Modular data centers are pre-fabricated, integrated IT infrastructures that are built and tested offsite before being shipped to the customer location. They are self-contained units equipped with IT equipment like servers, networking devices, and storage along with cooling, power, and monitoring components. Modular data centers offer several advantages such as plug-and-play functionality, scalability, cost-effectiveness, reduced deployment time and increased efficiency. With growing cloud computing and edge computing infrastructure needs, these ready-built modular units provide an agile and flexible solution to enterprises.
The Global Modular Data Center Market is estimated to be valued at US$ 18.49 Bn in 2024 and is expected to exhibit a CAGR of 24.% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Modular Data Center are Huawei, IBM, Eaton, Dell, Vertiv, Schneider Electric, Hewlett Packard Enterprise, Cisco, and Rittal. These players are focusing on expanding their product portfolio and geographical presence through mergers and acquisitions. For instance, in 2022, Schneider Electric acquired Tabreed which strengthened its data center cooling offerings.
The growing trend of cloud and edge computing adoption across industries is driving the demand for Modular Data Center. They provide an efficient option for organizations to scale up their IT infrastructure in a short span of time to cope with increasing data volumes. Further, the demand from sectors like telecom, IT, healthcare and retail is contributing to market growth.
Technological advancements such as developments in liquid cooling, high density computing, and use of artificial intelligence for predictive monitoring are allowing modular data centers to support higher computing loads efficiently. Strategic partnerships between market players and technology companies will lead to innovative products with improved design, enhanced power densities and reduced footprint.
Market Trends
Green modular data centers are a key trend, with growing emphasis on renewable energy integration and eco-friendly designs. They offer PUE of below 1.5 and reduce carbon footprint significantly. Hyperscale adoption is another major trend, with cloud service providers increasingly deploying modular campus infrastructure to support their global expansion.
Market Opportunities
Edge computing is expected to drive new opportunities. Modular facilities help enterprises overcome challenges of limited space at edge sites and facilitate rapid deployment of micro data centers at remote locations closer to end-users. Growing 5G connectivity and proliferation of IoT devices will further fuel the edge market. Further, recovery investments driven by governments worldwide post-pandemic present a lucrative avenue.
Impact of COVID-19 on Modular Data Center Market Growth
The COVID-19 pandemic has significantly impacted the growth of the modular data center market. During the initial months of the pandemic in 2020, the global economy witnessed an economic slowdown due to nationwide lockdowns imposed by various countries. This led to a decline in demand from various end-use industries that rely on modular data centers such as IT & telecom, BFSI, healthcare, among others.
However, as remote working and digitalization became the new normal, there was a surge in demand for modular data center infrastructure to support increased data traffic and cloud services. Various organizations accelerated their digital transformation journeys and cloud migration strategies to ensure business continuity. This boosted the demand for scalable and efficient modular data centers that offer quick deployment time.
The modular data center market is also expected to witness higher growth post-COVID as enterprises focus on disaster recovery and business continuity plans. Emphasis on hybrid work models and digitization of operations will further augment the need for increased data center capacity and scalability. Modular solutions with pay-as-you-grow models are well-suited to address this demand. While supply chain disruptions remain a challenge, the long-term prospects of the market remain positive driven by rising technological innovations and cloud adoption trends. Future strategies for players include strengthening Edge and 5G capabilities to capitalize on new opportunities.
Modular Data Center Market Concentration in North America
In terms of value, North America holds the largest share of the overall modular data center market, estimated at over 35% in 2024. This can be attributed to high digitalization, strong presence of leading vendors, and large enterprise customer base in countries like the US and Canada.
Within North America, the US commands the highest market share, driven by robust investment in data center infrastructure by hyperscale operators and large corporations. Tax incentives provided by state and local governments also attract data center investments. The modular data center market benefits from a large addressable customer segment and comprehensive support from American brands.
Fastest Growing Region for Modular Data Center Market
Asia Pacific is projected to be the fastest growing regional market for modular data centers during the forecast period of 2024-2031, expanding at a CAGR of over 30%. Rapid digitization initiatives across India, China, Japan and Southeast Asian countries are fueling the demand for scalable and efficient data center solutions.
Within Asia Pacific, India and China represent highly lucrative growth opportunities backed by increasing investments in digital services, 5G rollouts, smart city projects, and cloud computing adoption. Their massive population bases also contribute to strong long-term demand potential for modular data center deployments. Edge computing requirements of telecom operators and scalability needs of growing startups continue to propel the Asia Pacific market.
What Are The Key Data Covered In This Modular Data Center Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Modular Data Center's growth between 2024 and 2031.
:- Accurate calculation of the size of the Modular Data Center and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Modular Data Center Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Modular Data Center vendors
FAQ’s
Q.1 What are the main factors influencing the Modular Data Center?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Modular Data Center companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Modular Data Center’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)