From 2019 to 2024, the compound growth rate of China's edge computing server market will reach 22.0%

Jiwei.com reported on April 28 that according to the latest report released by International Data Corporation (IDC), the overall market size of China's edge computing servers was US$1.542 billion in the second half of 2020, and reached US$2.655 billion in 2020, a year-on-year increase of 16.3% compared with 2019. IDC predicts that from 2019 to 2024, the compound annual growth rate of China's edge computing server market will reach 22.0%, higher than the global average growth rate of 19.6%.

Image source: IDC

In the report, IDC further analyzed the telecommunications network (MEC) and industry edge application markets. In 2020, the size of this market segment in China reached US$274 million, a year-on-year increase of 129.6% from 2019, of which general-purpose servers and edge customized servers accounted for 87.1% and 12.9% respectively. IDC predicts that as edge application scenarios close to the data generation end become increasingly abundant, the demand for edge customized servers with specific form factors, low energy consumption, a wide range of operating temperatures, and other specific designs will increase rapidly to adapt to complex and diverse deployment environments. The edge customized server market is expected to maintain a compound annual growth rate of 130.2% from 2019 to 2024, and by 2024, it will account for more than 40% of this market segment.

Image source: IDC

In terms of the number of units shipped, the top three manufacturers in China's edge customized server market in 2020 are Inspur, H3C and Huawei; in terms of industry, telecommunications, utilities, energy and manufacturing industries showed rapid growth in 2020. Telecom operators are actively building edge computing platforms and leading market development. Other industries, especially utilities, energy and manufacturing, are also accelerating the adoption of edge computing, deploying edge computing dedicated servers at sites with complex environments for quality inspection, automated predictive maintenance, line/pipeline inspection, and other application scenarios.

IDC analysts believe that edge computing servers are gaining more and more attention in the server market, and the growth of the global server market deployed at the edge will be much higher than the average growth rate of core data centers in the next five years. In China, new infrastructure is a new driving force for economic recovery in the post-epidemic era, and is closely related to IT spending such as artificial intelligence, 5G, and the Internet of Things. The combination of edge computing and these emerging technologies will further promote the development of the market. Driven by user demand in industries such as manufacturing, energy, and transportation, the edge customized server market will usher in rapid growth from point to surface, and is expected to become one of the fastest growing sub-markets in the server market in the next five years.