Modular Data CenteráMarket Expected to Grow at a CAGR 19% by 2027


Modular Data Center Market Definition+ Overview:

Modular Data, it is a compact device that can be easily stationed anywhere to serve customers' current data center, or it can be built into a system of modules, modular data center’s are an effective alternative to conventional brick and mortar data centers. Many of the usual components, such as fuel, it, cooling, fire safety, and access control, are present in these data centers. Furthermore, these compact systems help with energy savings because they use less resources than conventional data centers.

The global modular data center industry was worth valued $16.56 million in 2019, which is expected to grow to $65.55 million by 2027, with a CAGR of 19.0% between 2020 and 2027.

The modular data centers simplicity comes from the fact that they can be quickly replaced if they become outdated or if new technology is required. Demand for solutions and services are on the rise. Cloud-based networking, artificial intelligence, robotics and automation, and other technologies have aided in the creation of scalable data centers. The coronavirus (COVID-19) pandemic has had a minor effect on the development of the modular data center industry. Stay-at-home orders and social distancing measures have been implemented in most nations, resulting in an increase in remote employment and media use.

Modular Data Center Market DORC+ Recent News

Driver: The demand for energy-efficient data centers is growing.

As of the growing number of environmental conservation and energy use regulations imposed by different governments around the world, modular data centers are in high demand. The modular data center's enclosed space is easier to cool than a single wide room, and built-in aisle containment reduces hot and cold air mixing. As a result, modular data centers are more energy efficient and use fewer resources than conventional data center’s, assisting companies in meeting their intrinsic requirement for reduced energy usage.

Restraint: Customer buying opportunities are limited by vendor lock-ins.

Data centers were often built to order, with the possibility of modification based on the user's needs. These features allowed data center customers to request data center’s that could respond to their needs as well as the organization's overall operational environment. . This lack of customization and limitation in buying options is expected to hinder the global modular data center market growth.

Opportunity: Modular data centers are in high demand from colocation providers.

To reduce the risk of downtime, best-in-class modular data centers have built-in cooling and power redundancies. They have what is known as concurrent maintainability in more detail. Organizations may scale data halls incrementally without losing reliability or the freedom to optimize the environment flexible, to modularly built colocation data center. As a result, colocation vendors are expected to open up a plethora of options for the deployment of modular data center.

  • May 2020 - Schneider Electric planned to work in collaboration with Sydney-based Leading-Edge Data Centers on a USD 30 million projects to ‘upgrade’ Australia’s digital economy and keep data on home soil. The company will provide Tier-3-designed, standardized, pre-assembled and fully integrated data center modules, designed to boost Leading Edge’s presence in six sites across New South Wales.
  • April 2020 - Huawei Technologies launched the next-gen Fusion Server Pro 2298 V5, a 2U 2-socket storage rack server that provides up to 450 TB storage capacities. It is designed to resolve the problems of low storage capacity and limited room space, and for customers who are looking to deploy a high-density and large-capacity storage solution in their data centers.

Modular Data Center Market Segmentation+ Geographical Overview:

Due to increased acceptance of modular data center solutions and benefits associated with modular data center solutions such as improved energy consumption, mobility, speed & agility, and scalability, in contrast to conventional data center solutions, the system segment experienced the fastest growth in 2019 and is projected to continue its supremacy in the coming years. The data center market share was dominated by large companies in terms of business size, and this trend is likely to continue in the coming years also IT & Telecom is projected to have the largest market share over the forecast era, with key market participants concentrating on developing advanced prefabricated data centers to meet the growing demand in the IT and Telecom industries.

As of the large presence of leading modular data center providers and the thriving IT & telecom industry, North America dominates the modular data center market share. Furthermore, the market's growth is fueled by a boom in investments by major players as well as the government in the development of advanced prefabricated data centers. Due to factors such as the comprehensive expansion of 5G network infrastructure in the area and the increase in number of start-ups and small- and medium-sized enterprises (SMEs) in emerging economies such as India, China, and South Korea, Asia-Pacific is projected to expand at the fastest pace during the modular data center  industry forecast period.

Competitive Intelligence

Baselayer Technology, LLC, BladeRoom Group Ltd., Cisco Systems, Inc., CommScope, Inc., Dell, Inc., Eaton Corporation, Huawei Technologies Co., Ltd., IBM Corporation, Iron Mountain Corporation, LLC, Rahi Systems, Rittal GmbH & Co., KG, Schneider Electric SE, SGI Corporation, Stulz GmbH, The Hewlett-Packard Company, Vertiv Co., and ZTE Corporation are some of the Key players in the industry.

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