How Big Is the Edge Server Market | Trends 2031

Q: How big is the edge server market size?

The edge server market is expected to reach USD 17.1 billion by 2031.

Q: What is the CAGR of the edge server market?

The edge server market is projected to grow at a CAGR of 14.6% during the forecast period.

Q: What applications are driving edge server demand?

Key applications include video analytics, autonomous systems, industrial automation, and AR/VR platforms.

Q: What are the major challenges in the edge server market?

Challenges include high infrastructure costs, limited standardization, and integration complexity with legacy systems.

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Code: MTA5677

Publication Date: Jul 2025

How big is the edge server market?

According to 6Wresearch internal database and industry insights, the edge server market was valued at approximately USD 6.7 billion in 2024 and is projected to reach USD 17.1 billion by 2031, growing at a CAGR of 14.6% during the forecast period.

This growth is driven by the increasing need for low-latency computing, rising data traffic from connected devices, and expanding deployment of edge data centers across industrial, telecom, and retail sectors. Edge servers are becoming central to digital transformation strategies as enterprises aim for real-time processing closer to data sources.

Key Growth Factors of the Edge Server Market

Proliferation of IoT and smart devices requiring real-time processing
Expansion of 5G networks enabling faster data transmission at the edge
Surge in demand for edge computing across manufacturing and autonomous systems
Increased deployment of micro data centers to reduce latency
Growing focus on data sovereignty and localized storage

Edge Server Market Trends

The edge server market is evolving with a shift toward compact, modular servers designed for rugged environments. AI and GPU-powered edge servers are gaining popularity in autonomous vehicles and smart surveillance. There is a growing trend of integrating edge servers with hybrid cloud platforms to enable seamless data orchestration. Additionally, server virtualization at the edge is enhancing scalability and cost efficiency.

Emerging Developments in the Edge Server Market

Vendors are designing ultra-low latency edge servers optimized for AI workloads. Startups are developing open-source edge platforms to support containerized applications. Telecom operators are building MEC (multi-access edge computing) infrastructure to host edge servers at network nodes. Edge server-as-a-service models are emerging to offer flexible deployment and subscription-based solutions.