Modular Data Centers Market

Global Modular Data Centers Market Size (2024 to 2029)

The global modular data center market is predicted to reach USD 77.60 billion in 2024 and USD 318.77 billion by 2029, growing at a CAGR of 32.65% during the forecast period.

A modular data center, in general, is a flexible process of positioning the data center's capacity, as it can be deployed in any location where there is a necessity. The modular data center includes modules and components designed to provide a scalable capacity with multiple cooling and power options. These data centers are typically designed in shipping containers with standardized configurations but can also be customized as needed. Modular data centers are gaining popularity among organizations due to features such as scalability and easy deployment. Since these data centers are prefabricated modules, they can be implemented easily and, in less time, compared to conventional data centers. The factor that drives the demand for a modular data center is that it helps reduce the infrastructure costs required to implement a conventional data center. In addition, organizations are opting for a modular data center over conventional data centers because of advanced technology, the energy efficiency provided by modular data centers, and dynamic business needs.

Market Growth and Trends:

Telecommunication operators, to optimize their networks and the resulting digital services, will need more computing and storage capacity to be implemented in operators' networks. In addition, the increase in penetration of 4G and the next wave of 5G are further encouraging telecommunications providers to invest in the modular data center market for more network functionality and a much greater capacity to manage edge networks. For instance, Intel is performing several interoperability tests with Huawei, Nokia, and Ericsson. The rising penetration of smartphones and strict security laws by the government are also improving the deployment of modular data centers among telecommunication providers.

Global Modular Data Centers Market Drivers:

Modular data centers are easily scalable because of their modularity, which offers an efficient way to include and remove data center parts. In addition, these data centers are easily portable, unlike traditional rigid design data centers, which increases the popularity of small and medium-sized enterprises (SMEs). The portable nature of these data centers and their small size offer an attractive offer for mobile network providers who use distributed data centers as a platform for network function virtualization (NFV). Individual data center modules can be moved from one site to another location. They offer resources for IT space and cooling and power abilities in the data center. Additionally, these data centers include standardized design components that allow for rapid construction and deployment and are cheaper to build than traditional data centers. Advantages like portability and scalability delivered by modular data centers have assisted in the implementation of these solutions in several businesses. Data centers are usually created to offer the possibility of personalization according to the user environment. These features have enabled data center users to order data centers that can be tailored to their needs and the organization's overall operating environment.

Global Modular Data Centers Market Restraints:

However, modern modular data centers do not offer full customization based on their standardized nature and pre-made modules. Furthermore, the standardized nature of the modular data center offering limits the organization to a single provider and still prevents the user from adding new solutions from different providers to optimize the data center. This lack of customization and limited purchasing options is expected to hamper the growth of the global modular data center market.

GLOBAL MODULAR DATA CENTERS MARKET REPORT COVERAGE:

This research report on the global modular data centers market has been segmented and sub-segmented based on the solution, service, data center size, vertical, and region.

Global Modular Data Centers Market - By Solution:

• All-in-One-Module

• Individual Module

  • Computer Module

  • Mechanical Module

  • Electrical Module

Global Modular Data Centers Market - By Service:

• Consulting

• Integration and Implementation

• Infrastructure Management

Global Modular Data Centers Market - By Data Centre Size:

• Midsize Data Centers

• Large Data Centers

• Enterprise Data Centers

Global Modular Data Centers Market - By Vertical:

• Banking, financial, and insurance services (BFSI)

• Healthcare

• IT and Telecommunications

• Education

• Government and Defense

• Energy

• Retail

• Manufacturing

• Others

Global Modular Data Centers Market - By Region:

• Europe

• North America

• Asia-Pacific

• Middle East and Africa (MEA)

• Latin America

North America accounted for the most substantial portion in 2017, and the same trend is determined to develop in the prediction period. This area is developing because of the presence of various data center providers and has witnessed a rapid adoption rate owing to the availability of complete solutions. Nonetheless, modular data center solutions in the Asia Pacific are calculated to progress in a notable way as the fastest-growing region in the world marketplace. This is mainly credited to the rise in data center traffic in nations like China, Japan, South Korea, Australia, and Hong Kong of the APAC.

Key Players:

The main players in the modular data center market are:

1. Rittal GmbH & Co. KG

2. Cisco Systems, Inc.

3. IBM Corporation

4. Huawei Technologies Co. Ltd.

5. Commscope, Inc.

6. Baselayer Technology, LLC

7. Schneider Electric SE

8. The Hewlett Packard Enterprise Company

9. Dell, Inc.

10. SGI Corporation

11. IO Data Centers LLC

12. Flexenclosure AB

13. BladeRoom Group Ltd.

14. Cannon Technologies

15. Eaton Corporation

16. Vertiv Co.

17. STULZ GmbH

Manufacturers develop customized solutions for their customers based on their business needs. For example, in January 2015, Emerson Network Power created modular IT facilities for T-Systems in Spain. The facility meets business requirements for quick deployment, security, and efficiency.

Recent Developments:

• In November 2015, IBM partnered with Xilinx, Inc., an FPGA, SoC, MPSoC, and 3D IC provider, to improve data center applications. The partnership mainly prioritizes the activation of high-performance and efficient data center applications. Through this partnership, IBM and Xilinx have teamed up to develop open acceleration infrastructure, software, and middleware to improve the workload of emerging data centers.

• In 2017, global mobile data traffic reached 11 exabytes (11 billion gigabytes) per month, and it will continue to increase rapidly.

• In April 2017, the government of Australia started the Data Retention Law, which requires telecommunication companies operating in the area to store and manage customer data for at least two years and compelling organizations to implement data centers.