by Modular data centers are prefabricated and deliverable data center platforms or modules that are built to the specifications required by the end user. Modular data centers offer flexibility and scalability to customers without the need for capital-intensive construction. They provide improved air and power distribution systems, fault-tolerant power systems, and monitoring capabilities. Modular data centers find application in various industries such as BFSI, manufacturing, IT & telecom, media & entertainment, healthcare, retail, and others.
The global modular data center market is estimated to be valued at US$ 18.49 billion 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 growing use of modular data centers in various industries is expected to flourish the global modular data center market during the forecast period. Modular data centers offer scalability, flexibility, and a faster deployment time than traditional data center builds which makes them an attractive option for organizations across industries. They provide customizable IT environments allowing companies to add or remove modules based on fluctuating capacity needs. Modular data center designs address frequent concerns of space limitations, budget constraints, and expedited timelines faced by various industries.
Moreover, advantages such as plug and play functionality, predictability in deployment, and ease of maintenance with hot-swappable components cater to business agility needs of organizations. Modular data centers help in right-sizing capacity and optimizing CAPEX without locking budget into over provisioned or under-utilized infrastructure investments. This is supporting the adoption of modular data centers among industries like BFSI, manufacturing, retail, media & entertainment, and healthcare.
Segment Analysis:
The modular data center market is segmented into all-in-one containerized, individual, 40ft container and 20ft container modules. Amongst all the segments, the individual modular data center segment is dominating the global market. The individual modular data centers provide customized solutions as per the organizations IT infrastructure and power requirements which makes it a highly preferred option among organizations. These modular data centers offer maximum customization and flexibility to organizations along with reduced deployment time as compared to traditional brick and mortar facilities. Individual modular data centers have prefabricated modules that can be easily transported and quickly deployed onsite which is driving the growth of this segment.
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
PEST Analysis :
Political: Modular data centers help in minimizing environmental regulations issues associated with traditional facilities by utilizing less space and energy. Trade policies influence growth trends especially across borders.
Economic: Modular data centers provide organizations reduced capital expenditure and reduced total cost of ownership. Deploying modular infrastructure also provides opportunities for revenue growth. Cost of operations is lower due to optimized cooling and power infrastructure.
Social: Issues like carbon footprint and energy management are given high priority by organizations. Modular data centers address these aspects providing eco-friendly solutions. Work from anywhere culture promoted deployment of edge infrastructure across locations.
Technological: Advances in cooling, power distribution, and monitoring systems improved efficiency of modular facilities. Technological innovations like AI, IoT and 5G are driving the need for edge deployments addressed through modular infrastructure. Standardization of interfaces improved scalability.
Key Takeaways :
The global Modular Data Center Market Size is expected to witness high growth over the forecast period supported by increased digitalization, demand for scalable and flexible IT infrastructure across industries. The global modular data center market is estimated to be valued at US$ 18.49 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 – 2030.
North America region currently dominates the modular data center market owing to high technology adoption and presence of major modular infrastructure providers in the region. Organizations are increasingly deploying modular data center facilities over traditional brick and mortar infrastructure to optimize infrastructure costs, improve scalability and address critical power and cooling challenges efficiently.
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. Modular infrastructure providers are investing in development of edge specific all-in-one containerized modular facilities integrated with predictive analytics and monitoring systems to capitalize on the rising edge computing opportunities.
*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
