Modular Data Center Market Highlights

• Global modular data center market revenue is poised to garner USD 113.6 billion by 2032 with a CAGR of 17.1% from 2023 to 2032
• North America modular data center market value occupied more than USD 8.9 billion in 2022
• Asia-Pacific modular data center market growth will record a CAGR of more than 17% from 2023 to 2032
• Among component, the solutions sub-segment generated over US$ 18.1 billion revenue in 2022 
• Based industry vertical, the telecom & IT sub-segment generated around 29% share in 2022
• Expansion into new markets is popular modular data center market trend that fuels the industry demand

A modular data center refers to a portable method of positioning a data center's capacity. These data centers can be deployed anywhere, where there is a requirement for data capacity. A modular data center comprises modules and components that are purpose-engineered to provide scalable data center capacity that has multiple cooling and power options. Usually, these data centers are designed in shipping containers with standardized configurations but can also be custom-made according to the requirement.

Global Modular Data Center Market Dynamics

Market Drivers

• Increasing demand for data storage
• Growing need for edge computing
• Rapid growth in cloud computing
• Increasing adoption of IoT devices

Market Restraints

• Limited customization
• Security concerns
• Dependence on third-party providers

Market Opportunities

• Increased demand for mobile computing
• Growing need for sustainable solutions

Modular Data Center Market Report Coverage

Modular Data Center Market Insights

Modular data centers are gaining popularity among organizations owing to the characteristics such as scalability and easy deployment. Since these data centers are prefabricated modules they can be deployed easily and in less time as compared to conventional data centers. Another factor driving the demand for the modular data center is that it facilitates cutting the infrastructural cost required to deploy a conventional data center. Furthermore, organizations are opting for a modular data center in place of conventional data centers due to the advancement of technology, power efficiency delivered by modular data centers, and dynamic business needs.

Modular Data Center Market Segmentation

The worldwide market for modular data center is split based on component, industry vertical, organization size, and geography.

Modular Data Center Market By Component

• Solutions
  • All-in-one Module
  • Individual Module
    • IT
    • Power
    • Cooling
• Services
  • Design And Consulting
  • Integration And Deployment
  • Maintenance & Support

According to a modular data center industry analysis, the modular data centre market has been dominated by solutions providers. Various solution providers in the modular data centre market provide modular data centre solutions, including design, build, and deployment services. These solution providers also provide modular data centre managed services such as maintenance, repair, and upgrades.

Modular data centre providers provide solutions that include prefabricated and pre-tested modules that include all of the necessary IT infrastructure components such as servers, storage, networking, and cooling systems. These modules are easily transported and installed on-site, reducing construction and deployment time and cost.

Modular data centre providers' solutions also include a variety of customization options to meet the specific needs of their customers. This includes the ability to design modular data centres for specific industries, such as healthcare or finance, or to tailor them to specific computing needs, such as high-performance computing or edge computing.

Modular Data Center Market By Industry Vertical

• BFSI
• Telecom & IT
• Retail
• Healthcare
• Government & Defense
• Media & Entertainment
• Others

As per the modular data center market forecast, the IT & telecom sub-segment is expeted to lead the market in the coming year from 2023 to 2032. The IT & telecom segment is the leading vertical segment owing to the increasing demand for capacity expansion by IT & telecom companies particularly, in developing countries. The rising usage of internet services in developing countries by the population demanding more digital content is resulting in increased demand for capacity expansion. Further, modular data centers are portable and can be easily shipped, and also, can work efficiently in harsh environments. Thus, organizations operating in remote locations are opting for modular data centers for increasing efficiency. On the other hand, modular data centers can be re-located and their usage in defense applications is rapidly increasing

Modular Data Center Market By Organization Size

• Large Enterprises
• SMEs

Large enterprises have taken over the market in terms of market share, owing to their larger resources and more complex IT infrastructure requirements. Large enterprises require a large amount of computing power and data storage capacity to support their operations, which modular data centres can provide. Modular data centres are also scalable, allowing large enterprises to easily expand their IT infrastructure as their requirements grow. Large enterprises also have larger IT budgets, allowing them to invest in cutting-edge technology solutions such as modular data centres. Furthermore, large enterprises frequently have more complex IT environments, which may necessitate more customised solutions, which modular data centre providers can providers

However, as they seek to improve their IT infrastructure and reduce costs, SMEs are increasingly adopting modular data centres. Modular data centres provide SMEs with a cost-effective IT infrastructure solution that can be easily deployed and scaled to meet their needs. By providing dependable and efficient IT infrastructure, SMEs can compete with larger enterprises.

Modular Data Center Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Modular Data Center Market Regional Analysis

North America held the largest share in 2015 owing to the developments and better infrastructure facilities available in the region. However, Asia-Pacific is expected to experience high demand for modular data centers. This demand is due to the increasing number of companies deploying modular data centers in developing economies such as India, China, and the Philippines. The dependency on vendors may act as a factor hampering the growth of the modular data centers market. Vendors offer specialized solutions, that are not standardized. This makes it difficult for organizations to opt for any other vendor who can offer added functionality solutions.

Modular Data Center Market Players

Some of the top modular data center companies offered in the professional report include Huawei Technologies Co., Ltd., International Business Machines Corporation, Dell, Inc., Emerson Electric Co., Cannon Technologies Ltd., Hewlett-Packard Enterprise Development LP, Schneider Electric SE, Cisco Systems, Inc., Commscope, Inc., Rittal GmbH & Co. Kg, Bladeroom Group Ltd and Flexenclosure Ab (PUBL).