Modular Data Center Market: Current Analysis and Forecast (2021-2027)

Modular data centers are a portable collection of all the components needed to provide data center capacities, such as servers, storage, and network equipment. Modular data centers are a great alternative to traditional data centers that simplify overall design and construction to overcome common obstacles such as faster expansion capacity, proper space allocation, and environment deployment. These data centers are flexible in terms of deployment and growth, have efficient speeds, and are predictable in terms of cost and availability.

The modular data center market demand is increasing at a substantial rate over the years and is expected to witness influential growth during the forecasted period as well. Factors such as increasing demand for quickly deployable and scalable data centers, rising demand for environment-friendly data centers, and the upswing in the adoption of cloud services by enterprises are positively influencing its market.

Based on component, the market is segmented into solutions and services. Among these, the solutions segment held a prominent share of the global modular data center market in 2020 and is expected to witness robust growth during the forecast period. This is due to the growing adoption of collocation solutions such as all-in-one and individual offered by key market players and advantages associated with modular data centers such as mobility, speed & agility, enhanced energy efficiency, scalability, etc.

On the basis of organization size, the market is categorized into large enterprises and SMEs. Among these, the large enterprises accounted for a significant share of the global modular data center market in 2020 and are anticipated to witness a strong growth rate during the forecast period. This is because modular data centers are highly beneficial for large enterprises since they are highly efficient in terms of power and cooling as the components such as storage devices, servers, UPS, cooling systems, etc. are fixed in the box, unlike the traditional data centers.

Based on industry, the market is divided into banking and financial services, information and communication technology, consumer goods and retail, manufacturing, healthcare, government, and others. Among these, the information and communication technology segment captured a prominent share of the global modular data center market in 2020 and is expected to witness substantial growth during the forecast period. This is mainly due to the increasing investments by telecommunication service companies in the development of the 5G network that requires a modular data center to handle network demand.

For a better understanding of the market adoption of the modular data center the market is analyzed based on its worldwide presence in the countries such as North America (US, Canada, Rest of North America), Europe (Germany, France, Spain, UK, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. North America accounted for a prominent share of the global modular data center market and is expected to grow at a steady growth rate owing to the presence of the key modular data center solutions providers and the flourishing information and communication technology industry. In addition, a surge in investments by key players as well as the government for developing the innovative prefabricated data center and rising demand for environment-friendly data centers in the region fuel the growth of the market.

Some of the major players operating in the modular data center market are Dell Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Baselayer Technology LLC, Vertiv Group Corp., Cannon Technologies Ltd., Box Modul AB, ScaleMatrix Holdings Inc., Schneider Electric SE, BladeRoom Group Ltd.