Market Overview:
Global Modular Data Center Market Size Was Valued at USD 24.18 Billion In 2022 And Is Projected to Reach USD 90.28 Billion By 2030, Growing at A CAGR of 17.9% From 2023 To 2030.
Prefabricated modules created in a factory and sent to the customer site, where they are assembled, installed, and commissioned, are combined to create modular data centers. The demand for quickly deployable, scalable, and customized data centers is on the rise, as is the demand for environmentally friendly (green) data centers. Other factors driving this market include disaster recovery management and prompt data center initiatives to eliminate unheard-of critical infrastructure inefficiencies. Big data analytics, the Internet of Things, and the fourth industrial revolution all call for flexible IT resources. Additionally, fast digitalization and increased cloud computing usage have contributed to the data center industry's consistent expansion.
Top Key Players in Modular Data Center Market:
DELL Technologies, Vertiv Co, Hewlett Packard Enterprises, Huawei Technologies Co. Ltd., International Business Machines Corporation, BaseLayer Technology LLC., Eltek AS, Cannon Technologies Ltd., Oracle, Microsoft, AWS, Meta, Apple, Rittal GmbH & Co. KG, and Other Major Players.
Market Dynamics and Factors for Modular Data Center Market:
Drivers:
Growing Adoption of Cloud-based Solutions by SMEs
The growing adoption of cloud-based solutions and services is considered one of the major key drivers for the market. Government and large organizations are focused on adopting advanced cloud solutions and applications. To store an enormous amount of information, key players in the global market are focused on developing advanced modular data centers enabled by immersive technologies. Advancements in technologies such as 5G infrastructure, big data, the Internet of Things (IoT), and others are expected to drive the demand for modular data centers.
Opportunities:
Deployment Of Modular Data Centers In Disaster-Prone Areas
Deploying modular data centers in disaster-prone areas presents a unique opportunity for the modular data center market. The concept of using modular data centers in regions susceptible to natural disasters offers several benefits that align with the industry's growth and trends. When disasters strike, time is of the essence. Traditional data centers can take months or even years to plan, build, and deploy. In contrast, modular data centers are pre-fabricated and can be deployed relatively quickly. This speed of deployment is a significant advantage in disaster scenarios where organizations need to restore critical IT infrastructure urgently. As a result, modular data centers can provide a rapid response to emergencies, making them a compelling solution for disaster-prone areas.
Segmentation Analysis of the Modular Data Center Market:
By Component, the Solutions segment is Anticipated to Dominate the Market Over the Forecast period. Solution providers offer end-to-end solutions that encompass various aspects of data center design, construction, management, and operation. These offerings often include hardware, software, infrastructure, consulting, and managed services.
By Verticals, the IT & Telecom segment is Anticipated to Dominate the Market Over the Forecast period Businesses across various industries are undergoing digital transformation to enhance their operations, customer experiences, and services. This transformation requires robust IT infrastructure to handle increased data processing, storage, and communication demands. Data centers are essential in providing the necessary computing power and connectivity.
Regional Analysis of the Modular Data Center Market:
The Modular Data Center Market in North America was led by North America, and it is anticipated that North America will continue to dominate during the forecast period. This region is expected to have the largest regional market in 2022 due to technological advancements, a large number of early adopters, and the presence of major market players. Moreover, this region has the largest number of cloud service providers, which is expected to result in increased investments related to the technological development of the existing infrastructure, contributing to the growth in the number of modular data center deployments. The increasing influence of data center regulatory standards, green data center popularity and demand, cloud data traffic, and the adoption of IoT and edge computing are factors acting as a catalyst driving the market growth in North America. The presence of a large number of modular data center vendors, with the rising data center infrastructure installations and upgrades, further adds to the growth of the market in the region.
Key Industry Development:
In June 2022, In Europe, Schneider Electric introduced their simple modular all-in-one data center system. This novel, simple prefabricated solution has undergone testing and standardization. It provides shorter lead times and quicker time to market. With a TCO that is more reliable and predictable thanks to its modular design, it costs about 15% less than conventional ETO (Engineer to order) offerings.
