Modular data centers are prefabricated and customizable which reduces costs and deployment timescales. It offers mobility as it can rapidly deployed in remote and harsh locations to support various applications including edge computing. The global modular data center market is dominated by large hyper-scale cloud providers adopting modular and portable infrastructure to cater rising data volumes and reduce deployment time.

The global modular data center Market is estimated to be valued at US$ 18.49 Bn in 2023 and is expected to exhibit a CAGR of 24.9% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

Growing need for data center infrastructure mobility is estimated to drive the global modular data center market over the forecast period. Modular data centers are pre-built and can easily movable anywhere to meet temporary or permanent workload demands which is a key advantage over convention data centers. Furthermore, modular data centers takes 4-6 months for deployment compare to over 12 months for tradition brick and mortar infrastructure. This reduces time-to-market and enable organizations deploy critical compute resources closer to end-users or at edge locations quickly. Hyperscale cloud providers are focusing on deploying portable and scalable modular infrastructure which is fueling market growth. However, concerns around integration challenges of portable facilities with existing data center infrastructure is a major limiting factor.

SWOT Analysis

Strength: Modular data centers offer easy scalability and flexibility which enables organizations to adapt as per changing business needs. They are energy efficient and help reduce operating costs as compared to traditional data centers. They have a quick deployment time of usually less than six months.

Weakness: Modular data centers have high initial setup costs. They also require routine maintenance and upgrades which increases overall costs. The components have shorter life cycles than conventional data centers.

Opportunity: Increasing demand for cloud and edge computing is driving the adoption of modular data centers. They are well-suited for applications in retail, healthcare and telecom industries which need decentralized IT infrastructure. Growing hyper-scale deployments by technology giants also present an opportunity.

Threats: Growing preference for all-in-one containerized andmicro modular data centers is a threat. Limited customizeabilityand complexity of integrating individual modules also hinderadoption. Lack of standardization impacts efficiency and scalability.

Global Modular Data Center Market Segmentation:

  • By Component:
  • Functional Modules
  • Services
  • Infrastructure
  • Power & Cooling
  • By Data Center Size:
  • Small and Medium
  • Large
  • Micro
  • By Tier Type:
  • Tier 1 & 2
  • Tier 3
  • Tier 4
  • By Industry:
  • BFSI
  • IT & Telecom
  • Government & Defense
  • Healthcare
  • Retail & E-commerce
  • Manufacturing
  • Others

Key Takeaways

The global Modular Data Center Market Size is expected to witness high growth over the forecast period supported by increasing digitalization and cloud adoption worldwide. The global Modular Data Center Market is estimated to be valued at US$ 18.49 Bn in 2023 and is expected to exhibit a CAGR of 24.9% over the forecast period 2023-2030.

North America currently dominates the market owing to strong tech industry and early adoption of modular solutions by enterprises in the region. The Asia Pacific market is expected to grow at the fastest pace led by China, India and other ASEAN countries. High internet penetration, lower costs and expanding digital infrastructure are driving the regional market.

Key players operating in the modular data center market are Huawei, IBM, Eaton, Dell, Vertiv, Schneider Electric, Hewlett Packard Enterprise, and Cisco. These companies have a strong global presence and offer innovative products with ongoing research and development. For example, Huawei launched its Intelligent Modular Data Center Solutions in early 2020 offering all-in-one configuration for ease of deployment. IBM is investing in green field sites for its standardized modular designs. 

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