Modular data centers enable quick deployment and offer scalability according to growing organization needs. They offer pre-built modules or containers equipped with necessary IT infrastructure like cooling, power distribution, and rack space. Modular data centers are widely adopted in industries like IT, telecom and cloud where there is a need for frequent data center capacity expansion near user locations for lowering latency.

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% over the forecast period 2023 - 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

The increasing demand for edge computing globally is driving the growth of the modular data center market. Edge computing enables processing of data locally where it is generated to lower latency issues. This has increased the need for deploying modular data center capacity near user locations. Additionally, the growing adoption of cloud-based services is raising the demand for data center infrastructure globally which is further propelling the modular data center market growth. Modular data centers allow scalable expansion of cloud capacity efficiently to support growing cloud infrastructure needs. Their prefabricated design makes deployment swift to accommodate frequent capacity upgrades in the cloud market.

SWOT Analysis:

Strength: The modular data center market provides flexibility and scalability to organizations. The modular design allows quick deployment and easy relocations. It also offers reduced total cost of ownership compared to traditional brick-and-mortar facilities due to its prefabricated modules. Modular data centers consume 30% less power and take up to 50% less space compared to conventional data centers.

Weakness: Modular data centers have high initial setup costs compared to traditional facilities. They also have dependency on external power and cooling infrastructure which increases operational expenses. The components and modules have shorter life cycles requiring frequent replacements.

Opportunity: Growth of remote and edge computing is driving demand for deployment of modular data centers near customer locations for faster response times. Rising need for scalable and adaptable infrastructure suitable for colocation facilities also presents an opportunity. Increasing global spending on digital transformation initiatives is boosting adoption of modular solutions.

Threats: Availability of in-house developed facilities by hyperscale service providers poses a threat. Strict regulations around safety, power consumption and environmental policies pose compliance challenges.

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 of 2023-2030 due to rising digitalization across industries. It is projected to grow at a CAGR of 24% during this period to reach a market size of US$ 18.49 billion by 2024.

Regional Analysis:

The Asia Pacific region is projected to be the fastest growing regional market for modular data centers owing to increasing government initiatives for digitization of economy and roll out of 5G networks in major countries. North America currently dominates the global market led by high demand from colocation facilities and cloud service providers in the United States.

Key Players

Key players operating in the Modular Data Center market are Flexenclosure, Hewlett Packard Enterprise, Huawei, IBM , Eaton, Bladeroom, Cannon Technologies, Rittal, Schneider Electric, Vertiv, Baselayer Technology, Cisco, Aceco TI, Active Power, Datapod, ZTE, Commscope Holding, Dell.

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