Modular Data Center Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)
Modular Data Center Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)
Modular Data Center Market is Segmented By Component (Functional Modules, Services, Infrastructure, Power & Cooling), Data Center Size (Small and Medium, Large, Micro), Tier Type (Tier 1 & 2, Tier 3, Tier 4), Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Retail & E-commerce, Manufacturing, Others), Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) The report offers the value (in USD billion) for the above-mentioned segments.
Modular Data Center Market is Segmented By Component (Functional Modules, Services, Infrastructure, ...
Modular Data Center Market Size - Analysis
The global modular data center market size was valued at US$ 18.49 billion in 2023 and is expected to reach US$ 87.65 billion by 2030, grow at a compound annual growth rate (CAGR) of 24.9% from 2023 to 2030.
Modular data centers are prefabricated computing facilities designed for scalable data center capacity and quick deployment. They provide benefits like flexibility, cost-efficiency, enhanced power management, and lean maintenance over traditional data centers. Key drivers of the modular data center market include the rising demand from colocation providers, growing need for energy-efficient data centers, increasing adoption by SMEs and favorable government initiatives promoting green data centers.
The Modular Data Center Market is segmented by component, data center size, tier type, industry, and region. By component, the market is segmented into functional modules, data center infrastructure, services, and power & cooling modules. The functional module segment accounted for the largest share in 2022. It includes IT modules, electrical modules, mechanical modules, and others. Functional modules are essential elements of a modular data center and their adoption is rising owing to benefits like reduced time-to-market and enhanced scalability.
Growing Demand for Scalable and Agile Data Center Capacity: The demand for data center capacity is growing rapidly driven by factors like rising data traffic, Internet of Things (IoT) adoption, big data analytics, and cloud computing. Many organizations are moving workloads to colocation facilities or cloud platforms. This is driving the need for scalable and agile data center capacity that can be added quickly as per demand fluctuations. Modular data centers fulfill this requirement with their prefab modular architecture that allows fast deployment and capacity expansion. The modular design enables data center owners to scale up or down based on actual compute needs. This driver is reinforced by innovations in modular data centers like enhanced power densities, cooling methods, management software etc.
Need for Lower OPEX and Enhanced Operational Efficiency: Modular data centers help organizations reduce operating costs and improve efficiency in facility management. As they come pre-integrated with IT/power/cooling infrastructure, modular data centers simplify deployment and ongoing operations. They reduce time and effort needed for planning, rack assembly, cabling, testing etc. Vendors offer remote monitoring software and services for lean operations. Modular architecture enables consistent environments and minimizes human errors. The streamlined management translates into lower operating expenditure for organizations. With rising energy costs, the energy-efficient designs of modern modular data centers also help rein in utility expenses.
Increasing Adoption of Containerized Data Centers: Containerized data centers are gaining rapid traction as they pack entire data center functionality into a standard intermodal container. They provide quick deployment, mobility, scalability and cost benefits for compute-intensive applications like cloud gaming and IoT edge networks. Containerized data centers come pre-integrated with precision cooling, fire detection/suppression, redundancy, and remote monitoring. Their uptake is increasing among organizations that need easily relocatable data center capacity, including the military, disaster recovery providers, mining firms and mobile network operators.
Growing Popularity of Micro Data Centers: Micro data centers are self-contained systems encompassing IT rack enclosure, power, cooling, security, management software etc. Their compact size and plug-n-play designs make them well-suited for edge computing applications across verticals like retail, manufacturing, telecom etc. Micro data centers allow processing of time-sensitive data closer to end-users and IoT devices. Their adoption is rising since they overcome bandwidth constraints and latency issues associated with centralized data centers in IT environments with distributed assets. Micro data centers accelerate localized processing for technologies like VR/AR, video analytics, autonomous vehicles etc.
Market Size in USD Bn
CAGR24.9%
Study Period
2023 - 2030
Base Year of Estimation
2022
CAGR
24.9%
Fastest Growing Market
Asia Pacific
Larget Market
North America
Market Concentration
High
Major Players
Huawei, IBM, Eaton, Bladeroom, Cannon Technologies and Among Others
*Disclaimer: Major players are listed in no particular order.
*Source: Coherent Market Insights
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Modular Data Center Market Trends
Innovations in Power Equipment for Improved Resiliency: Vendors are offering modular power infrastructure with hardening, redundancy and certified integration for maximized availability. For instance, Delta offers Eco Power Monitors to analyze quality of power delivered. Schneider provides shock-proof medium voltage switchgear. Huawei offers modular liquid cooling solutions reducing PUE below 1.2 for high efficiency. Such advances are ensuring resilient, uninterrupted power delivery crucial for continuity of modern always-online applications.
Prefabricated Data Centers Gain Traction: Prefabricated modular data centers built via factory pre-integration and testing are gaining impetus. They promise accelerated deployment, controlled environments, minimal errors and consistent quality. Colo providers like ST Telemedia, Global Switch, and Digital Realty have adopted prefabricated designs. Huawei's Modular Data Center Product Portfolio encompasses prefabricated modules, IT/power/cooling infrastructure and management software for rapid capacity rollouts.
Growing Adoption of AI-enabled Monitoring and Management: AI and big data analytics are increasing being leveraged by modular data center vendors to enable intelligent remote monitoring and streamline management. Machine learning algorithms help analyze parameters like rack conditions, airflow, humidity levels, track failure patterns and even predict future anomalies. This allows timely servicing and prevention of outages. Chatbots ease IT teams' efforts via conversational interfaces. AI is transforming modular facilities into self-driving data centers improving uptime and staff productivity.
Innovative Cooling Techniques and Free Cooling Utilization: Vendors are offering cutting-edge cooling systems for modular data centers to lower energy consumption, including zero-water liquid cooling, rear-door heat exchangers, containment systems, and shrimp farms. Scavenging of external ambient air via free cooling modes is also being smartly enabled leveraging IoT sensors, predictive modeling and PUE optimization engines. For instance, Schneider Electric's EcoBreeze utilize AI to make real-time cooling adjustments using free air. Such techniques ensure optimal cooling while reducing redundant air conditioning.
Modular Data Center Market Regional Insights
North America is expected to be the largest market for Modular Data Center Market during the forecast period, accounting for over 38.5% of the market share in 2022. The growth of the market in North America is attributed to early adoption of advanced technologies, presence of leading colocation and cloud service providers, and growing investments in edge computing solutions.
The Europe market is expected to be the second-largest market for Modular Data Center Market, accounting for over 32.1% of the market share in 2022. The growth of the market in is attributed to high demand from the UK, Germany, France and the Netherlands along with strict government regulations around emissions.
The Asia Pacific market is expected to be the fastest-growing market for Modular Data Center Market, with a CAGR of over 26.7% during the forecast period. The growth of the market in Asia Pacific is attributed to rapidly growing data center infrastructure, increasing adoption of cloud computing and IoT, and growing digitalization in countries like China, Japan and India.
Figure 1. Global Modular Data Center Market Share (%), by Region, 2023
Competitive overview of Modular Data Center Market
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 are the major companies operating in Modular Data Center Market.
Modular Data Center Market Leaders
Huawei
IBM
Eaton
Bladeroom
Cannon Technologies
*Disclaimer: Major players are listed in no particular order.
Modular Data Center Market - Competitive Rivalry
Modular Data Center Market
Market Consolidated (Dominated by major players)
Market Fragmented (Highly competitive with lots of players.)
*Source: Coherent Market Insights
Recent Developments in Modular Data Center Market
The modular data center industry has witnessed substantial growth and innovation in recent years, driven by the increasing demand for scalable and energy-efficient data storage solutions. These compact and flexible data centers are designed to be modular, allowing for easy expansion and customization to meet the evolving needs of businesses in the rapidly changing digital landscape.
One key advantage of modular data centers is their ability to be deployed in a fraction of the time required for traditional data centers. This quick deployment is crucial for businesses seeking rapid scalability and adaptability to fluctuating workloads. Additionally, modular data centers are often equipped with advanced cooling and energy management systems, enhancing efficiency and reducing environmental impact.
The industry has seen a surge in adoption across various sectors, including IT, telecommunications, healthcare, and finance, where the demand for high-performance computing and storage capabilities continues to grow. The modular approach enables companies to optimize their IT infrastructure without the need for large upfront investments, making it an attractive solution for both established enterprises and emerging businesses.
As technology evolves, modular data centers are expected to play a pivotal role in the data storage landscape, providing a cost-effective and sustainable solution for businesses looking to stay agile in the face of ever-changing digital demands. With ongoing advancements in modular design, energy efficiency, and connectivity, the modular data center industry is poised for continued expansion and influence in the global IT infrastructure market.
In September 2022, Huawei launched its next-generation FusionModule2000 modular data center offering enhanced integration, power density, reliability, and environmental friendliness.
In June 2021, Schneider Electric launched EcoStruxure Micro Data Center C-Series 43U with enhanced cooling technology for edge computing applications.
Modular Data Center Market Report - Table of Contents
Research Objectives and Assumptions
Research Objectives
Assumptions
Abbreviations
Market Preview
Report Description
Market Definition and Scope
Executive Summary
Market Modular Data Center, By Component
Market Modular Data Center, By Data Center Size
Market Modular Data Center, By Tier Type
Market Modular Data Center, By Industry
Coherent Opportunity Map (COM)
Market Dynamics, Regulations, and Trends Analysis
Market Dynamics
Drivers
Increasing internet penetration
Restraints
Copyright and piracy issues
Opportunities
Evolving Monetization Pathways
Impact Analysis
Key Highlights
Regulatory Scenario
Product launch/Approvals
PEST Analysis
PORTER’s Analysis
Merger and Acquisition Scenario
Modular Data Center Market – Impact of Coronavirus (COVID-19) Pandemic
COVID-19 Epidemiology
Supply Side and Demand Side Analysis
Economic Impact
Modular Data Center Market , By Component, 2018-2030, (US$ Bn)
Introduction
Market Share Analysis, 2023 and 2030 (%)
Y-o-Y Growth Analysis, 2019 – 2030
Segment Trends
Functional Modules
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Bn)
Services
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Bn)
Infrastructure
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Bn)
Power & Cooling
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Bn)
Modular Data Center Market , By Data Center Size, 2018-2030, (US$ Bn)
Introduction
Market Share Analysis, 2023 and 2030 (%)
Y-o-Y Growth Analysis, 2019– 2030
Segment Trends
Small and Medium
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Large
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Micro
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Modular Data Center Market , By Tier Type, 2018-2030, (US$ Bn)
Introduction
Market Share Analysis, 2023 and 2030 (%)
Y-o-Y Growth Analysis, 2019– 2030
Segment Trends
Tier 1 & 2
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Tier 3
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Tier 4
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Modular Data Center Market , By Industry, 2019-2030, (US$ Bn)
Introduction
Market Share Analysis, 2023 and 2030 (%)
Y-o-Y Growth Analysis, 2018– 2030
Segment Trends
BFSI
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
IT & Telecom
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Government & Defence
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Healthcare
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Retail & E-commerce
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Manufacturing
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Others
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2018-2030,(US$ Billion)
Global Video Borescopes Market, By Region,2018-2030, (US$ Bn)
Introduction
Market Share Analysis, 2023 and 2030 (%)
Y-o-Y Growth Analysis, 2019– 2030
Country Trends
North America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Component, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Data Center Size, 20218-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Tier Type, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Industry, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2018-2030, (US$ Bn)
U.S.
Canada
Europe
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Component, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Data Center Size, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Tier Type, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Industry, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2018-2030, (US$ Bn)
Germany
U.K.
Spain
France
Italy
Russia
Rest of Europe
Asia Pacific
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Component, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Data Center Size, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Tier Type, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Industry, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2018-2030, (US$ Bn)
China
India
Japan
Australia
South Korea
ASEAN
Rest of Asia Pacific
Latin America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Component, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Data Center Size, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Tier Type, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Industry, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2018-2030, (US$ Bn)
Brazil
Argentina
Mexico
Rest of Latin America
Middle East & Africa
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Component, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Data Center Size, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Tier Type, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Industry, 2018-2030, (US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2018-2030, (US$ Bn)
GCC Countries
Israel
South Africa
North Africa
Rest of Middle East & Africa
Competitive Landscape
Huawei
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
IBM
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Eaton
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Bladeroom
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Cannon Technologies
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Commscope Holding
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Dell
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Flexenclosure
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Hewlett Packard Enterprise
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Rittal
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Schneider Electric
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Vertiv
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Baselayer Technology
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Cisco
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Aceco TI
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Active Power
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Datapod
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
ZTE
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
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
By Region:
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
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About author
Suraj Bhanudas Jagtap is a seasoned Senior Management Consultant with over 7 years of experience. He has served Fortune 500 companies and startups, helping clients with cross broader expansion and market entry access strategies. He has played significant role in offering strategic viewpoints and actionable insights for various client’s projects including demand analysis, and competitive analysis, identifying right channel partner among others.
Frequently Asked Questions :
What are the key factors hampering growth of the Modular Data Center Market?
High initial investments, vendor lock-in issues, lack of standardization, complex integration challenges with in-house data centers, locating faults in case of failures, and limited flexibility in expansion are some key factors hampering the growth of the Modular Data Center Market.
What are the major factors driving the Modular Data Center Market growth?
Growing demand from colocation providers, increasing need for energy-efficient green data centers, rising adoption by SMEs, scalability and easy deployment, innovations in modular infrastructure are some of the major factors driving the growth of the Modular Data Center Market.
Which is the leading component segment in the Modular Data Center Market?
The functional modules segment accounted for the largest share in the Modular Data Center Market in 2022.
Which are the major players operating in the Modular Data Center Market?
Some of the major players operating in the Modular Data Center market are Huawei, IBM, Eaton, Dell, Vertiv, Schneider Electric, Hewlett Packard Enterprise, Cisco, and Rittal among others.
Which region will lead the Modular Data Center Market?
North America is expected to continue its dominance in the Modular Data Center Market during the forecast period.
What will be the CAGR of Modular Data Center Market?
The Modular Data Center Market is expected to grow at a CAGR of around 24.9% during 2023-2030.
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