by Modular data centers are prefabricated and portable data center facilities that can be deployed in a compact footprint to support IT infrastructure at the edge. They provide flexible, scalable, and energy-efficient solutions for various high-density computing applications across sectors such as BFSI, healthcare, government & defense, IT & telecom, retail, among others. Rising adoption of cloud-based services, big data analytics, and edge computing is fueling demand for cost-effective data center solutions. Modular data centers enable efficient disaster recovery and increase operational agility by providing pay-as-you-grow capacity. Their plug-and-play design allows for quick deployment within weeks, unlike brick-and-mortar facilities.
The global modular data center market was valued at US$ 18.49 Bn in 2023 and is expected to exhibit a CAGR of 24.9% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Dynamics:
Increased demand for cost-effective data center solutions: Rising preference for cost-effective Infrastructure-as-a-Service (IaaS) offerings has augmented demand for modular data center solutions. Their prefabricated design and standardized configurations help optimize upfront capital costs and reduce power consumption over the lifecycle as compared to convention facilities. This key driver also referred in the heading is expected to flourish the modular data center market over the forecast period.
Growing adoption of edge computing applications: Rapid digitalization and proliferation of IoT devices are generating massive volumes of data that need real-time processing at the edge. Modular data centers provide a compelling option to deploy IT capacity and enable edge computing applications within the vicinity of data sources. Their compact form factor, quick deployment time, and flexible scalability align well with the needs of distributed edge infrastructure rollouts.
Segment Analysis:
The modular data center market is dominanted by rack and enclosure based segment which accounted for around 55% of total market share in 2023. This is because rack and enclosure based modular data centers offer high scalability, flexibility and can be easily transported to remote locations for quick deployment. These factors make rack and enclosure based solutions highly preferable for organizations requiring deployment of edge infrastructure across multiple sites.
PEST Analysis:
Political: Growing concerns around data sovereignty and regulations are encouraging organizations to adopt localized infrastructure like modular data centers for storing sensitive data within geographical boundaries to comply with regulations.
Economic: Modular data centers enable fast deployment of IT infrastructure as per the business demands with minimal upfront investment. This helps reduce capital expenditure and supports the economic growth of organizations.
Social: With increasing digitalization and adoption of cloud, there is rising demand for localized IT infrastructure to ensure seamless consumer experiences. Modular data centers play a key role in fulfilling this demand by facilitating quick provisioning of edge compute power.
Technological: Advancements in areas like scalable rack design, efficient cooling systems and DCIM software are enhancing the capabilities and use cases of modular solutions. Technologies such as artificial intelligence and 5G will further bolster the growth of edge deployments addressed by modular data centers.
Global Modular Data Center Market Segmentation:
By Disease Type
- Classical MWS
- MWS with amyloidosis
- MWS without amyloidosis
- Overlap MWS
- Others
By Treatment Type
- Anti-inflammatory drugs
- Immunosuppressants
- Biologics
- JAK inhibitors
- Corticosteroids
- Analgesics
- Others
By Route of Administration
- Oral
- Injectable
- Topical
- Others
By Distribution Channel
- Hospital Pharmacies
- Retail Pharmacies
- Online Pharmacies
Key Takeaways:
The global Modular Data Center Market Size is expected to witness high growth over the forecast period supported by increasing demand for scalable, flexible and rapidly deployable edge infrastructure. Regionally, North America dominated the market in 2023 owing to early adoption of advanced technologies; however Asia Pacific is expected to witness fastest growth on back of ongoing digital transformation and 5G deployments across countries.
Key players operating in the modular data center market are Huawei, IBM, Eaton, Dell, Vertiv, Schneider Electric, Hewlett Packard Enterprise, and Cisco. These players are focused on developing innovative modular solutions and enhancing software capabilities to capture greater market share. Huawei, IBM and Dell captured major market share in 2023 owing to their early focus on modular solutions and brand outreach.
*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
