Modular Data Center Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Component (Solution, Services) By Organization Size (Large Enterprises, Small & Medium Enterprises) By Industry Verticals (BFSI, IT and Telecom, Retail, Manufacturing, Healthcare, Energy, Media & Entertainment, Government, Others) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Modular Data Center Market was valued at USD 25,439.3 Million in 2022 and is anticipated to reach a value of USD 92,387.9 Million by 2030 expanding at a CAGR of 17.6% between 2023 and 2030.

An assembled beforehand, pre-engineered building made from conventional parts is called a modular data center. It is easily transportable, deployable, and scalable to meet an organization's needs. It is intended to offer a scalable and effective way to house networking hardware, servers, storage, cooling systems, and other components of data center infrastructure. The primary drivers anticipated to propel the market's expansion are the increasing appetite for pre-fabricated data facility centers, the increasing demand for expandable data centers from businesses throughout every sector, the increasing adoption of edge computing, and the necessity of gaining complete transparency for capacity management requirements. However, it is anticipated that market growth would be constrained by emerging nations' unstable infrastructure, the difficulties in integrating various data center tools, and the high initial expenses of infrastructure. Opportunities for market expansion are presented by the growing trend of digitization, developments in the IT industry, increased need for remote workspaces, and the explosive uptake of AI and ML. However, it is anticipated that the absence of data security will make industry expansion difficult.

Modular Data Center Market Major Driving Forces

Growing Popularity of Edge Computing: Businesses are using edge computing in growing numbers to assist with a variety of systems and applications, which generates a vast quantity of information for decision-making. Transferring every piece of information to the cloud, though, may cause delay. By bringing processing and data closer to the consumer, edge computing can enable sub-second reactions. This will increase bandwidth, decrease data risks, and lower latency.

Cost-effectiveness: Compared to traditional data centres, which are normally built on-site, modular data centres are constructed off-site and transported to the deployment area, saving on construction expenses. There may be large labour, material, and time savings as a result. Additionally, due to its scalable nature, businesses may expand their capacity without having to construct a whole data centre. Enabling businesses to progressively grow capacity as needed, can cut regular operational expenses and the initial expenditures associated with constructing a big data centre.        

Quick Deployment: Quick deployment of modular data centers shortens time-to-market and enables businesses to begin making money earlier. This might be especially crucial for companies that have to quickly expand their IT infrastructure to accommodate new projects or shifting market dynamics.

Growing Adoption of Cloud-Based Services: One of the significant market drivers is the increasing usage of cloud-based solutions and services. The government and major enterprises are concentrating their efforts on implementing sophisticated cloud technologies and applications. To store massive amounts of data, leading players in the worldwide market are concentrating on constructing modern modular data centers equipped with immersive technologies.                    

Modular Data Center Market Key Opportunities

Rise in Digitalization: With the use of pertinent elements to streamline the organization, there is an increase in the digitalization or utilization of digital processes to enhance company activities. This leads to the development of the working process and revenue growth to achieve future success. Transforming analog objects into digital formats facilitates information exchange, archiving, and retrieval. This, in turn, contributes to the automation of company operations through the creation of automated processes or marketing outreach sequences.  

Technological Advancements: Continuous technical developments lead to a steady increase in the performance and efficiency of the modular data centers, which increases their appeal to a wider range of sectors. Such of these developments include automation, integrated software solutions, and better modular architecture.

Sustainability and Energy Efficiency: Modular data centers offer a chance to develop and execute energy-efficient solutions by utilizing technologies such as modular cooling systems, renewable energy sources, and effective power distribution. Environmental sustainability is becoming increasingly important.

Modular Data Center Market Key Trends

·         Modular data centers are becoming more and more popular due to increasing requirements for edge computing solutions.

·         There is a growing focus on sustainability and energy efficiency, and modular data centers are being developed using eco-friendly technology.

·         Cloud services are integrated with modular data centers, enabling flexible scalability and hybrid cloud architectures.

·         The growing need for modular data centers to accommodate augmented data processing needs is being driven by the proliferation of 5G networks.

·         Modular data centers are becoming more effective and efficient due to ongoing technical improvements including better modular architecture and automation.

Region-wise Market Insights

North America accounted for the largest market share at 38.1% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 19.1% between 2023 and 2030.

It is anticipated that North American deployment of modular data centers is expected to account for a significant portion of 38.1% of the worldwide market. The region's high rate of technological proliferation, the existence of significant technology enterprises, the growth in government spending on data center development, etc., are all likely to promote sales of modular data centers. The European market for modular data center solutions has a sizable market share of 27.2%. The region's growing number of technological enterprises, growing investments in establishing safe data centers, and other reasons are projected to fuel demand for modular data centers. Germany, France, and the United Kingdom are important nations to watch out for in this area. The modular data center market is expected to develop at the quickest rate in Asia-Pacific. There are several elements that go into this growth estimate. To begin with, the region's digital infrastructure is growing quickly due to the growing use of big data analytics, cloud computing, and Internet of Things technologies. Additionally, in order to support their expanding economies, nations including China, India, and Japan are seeing a spike in data center investments. Besides this, the requirement for scalable and effective data center solutions is further fueled by the growing demand for online and mobile services in nations with dense populations. Furthermore, it is anticipated that data localization regulations and government programs supporting digital transformation would fuel the expansion of modular data centers in this area.        

Market Competition Landscape

The fierce competition in the worldwide modular data center market is a result of the rising need for scalable and adaptable IT infrastructure solutions. In this ever-changing industry, major businesses always compete for market share by highlighting innovation, efficiency, and sustainability. These data centers' modular design enables quick deployment and modification, meeting the varied demands of companies across a range of sectors. Rivals frequently set themselves apart with technological innovations including better modular design, integrated software, and energy-saving techniques. Increasingly, businesses are prioritizing edge computing, cloud integration, and sustainable practices. To keep ahead of this trend, players in the modular data center market provide solutions that support these practices. Industry norms and governmental restrictions also have an impact on competitiveness. Prominent players in the market include:

·         Schneider Electric SE

·         Hewlett Packard Enterprise (HPE)

·         IBM Corporation

·         Cisco Systems, Inc.

·         Dell Technologies Inc.

·         Eaton Corporation

·         Rittal GmbH & Co. KG

·         Flexenclosure AB

·         Baselayer Technology, LLC

·         Cannon Technologies Ltd.