Modular Data Center Market Size By Component (Solution [All-in-One, Individual], Service [Consulting, Installation & Deployment, Maintenance & Support]), By Application (BFSI, IT & Telecom, Energy, Government & Defense, Healthcare, Industrial), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Modular Data Center Market size valued at over USD 15 billion in 2019 and will grow at a CAGR of around 13% from 2020 to 2026. Growing demand for portable infrastructure facilities for deployment in remote areas is boosting the market growth.
 

The rising need to reduce the complexity of conventional facilities is driving the industry demand for prefabricated data centers that facilitate scalability and easy deployment. The mobility of these facilities allows end-users to relocate their systems at new/remote locations. Pre-fabricated modules address customers’ capacity requirements with a fast deployment time. These facilities provide high density, low PUE, and significant cost & time saving owing to the relatively low time needed in their deployment.
 

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The coronavirus (COVID-19) pandemic will have a moderate impact on the modular data center market growth. Most countries have imposed stay-at-home orders and social distancing policies, generating a surge in remote work and media consumption. These factors will dramatically boost the use of online services including streaming media, Virtual Private Networks (VPNs), online gaming, and cloud computing applications. The social & business displacement caused by COVID-19 is propelling the market demand.
 

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Individual data centers are rapidly adopted among enterprises to enhance operational efficiency

In 2019, individual facilities accounted for over 70% share in the China modular data center market and is expected to witness 17% growth through 2026. These modules help in adding standard building blocks in the existing facilities, addressing scalability requirements. Individual functional module configuration-based data centers have different modules for different functional elements. The three major types of individual functional modules for containerized data centers include IT, electrical, and mechanical modules. These facilities provide feasible power and cooling sources, resulting in benefits such as reduced cost, time, quick planning, and increased reliability & accountability.
 

The development of cloud, internet, and e-commerce firms has created the market demand for containerized data center deployment in China. The modular data center market players including Tencent Holdings Limited, Alibaba Group, JD.com, Inc. are dominating the e-commerce ecosystem in China. To accommodate high data traffic, companies are increasing their expenditure on data center construction. In April 2020, Alibaba announced an investment of USD 28 billion to construct next-generation data centers over the next three years to support digital transformation needs.
 

Rising demand for edge computing across end-use sectors will fuel the U.S. market growth

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Containerized data centers are increasingly gaining traction to meet the requirements of growing edge infrastructure in the U.S. due to their unique design, scalable architecture, and easy deployment. With the increasing data traffic congestion and advancements in the network infrastructure, the modular data center market across the edge computing environment will witness an exponential growth over the coming years.
 

Furthermore, technology giants, such as Facebook, Google, and Microsoft, are constantly seeking new ways to manage their rising data, triggering the market adoption of modular data centers for edge computing applications. For instance, in March 2020, Google and AT&T announced a partnership to deploy modular data centers for edge computing and 5G enablement across the U.S.
 

The increasing adoption of IoT, big data, analytics, and cloud in the U.S. is contributing to modular data center market growth. The rising popularity of social media in the U.S. is a key factor contributing to the exponential rise in the volume of generated data. In 2019, the number of smartphone users in the U.S. reached around 270 million and 72% of people accessed the internet through their mobile phones. This rising data consumption is driving the market demand for portable data center infrastructure.
 

Submarine-based modular data centers are influencing the European market demand

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The Europe modular data center market dominated over 30% revenue share in 2019. The growing adoption of innovative approaches, such as submarine data centers, is a major trend boosting the market demand in the European countries. Furthermore, the adoption of renewable energy sources, emergence of lithium-ion batteries & fuel cells, and rise in data center automation are factors leading to the market growth in Europe.
 

The cold climate in the region is also encouraging several market players to construct modular data centers for saving investments on power and cooling systems. Cooling systems consume high power in data centers, compelling service providers to incorporate advanced technologies to improve the efficiency of the facility and reduce power consumption.
 

Strategic alliances will be a key market growth strategy among market players

The global modular data center market is characterized by high rivalry among major market players and fueled by strategic partnerships & new product launches. For instance, in February 2020, Dell launched the Dell EMC Modular Data Center Micro 415, an advanced modular data center, that can act as a localized data processing solution based on edge computing technology. It is a pre-fabricated enterprise-level data center with in-built remote management, cooling & power, and is smaller than a parking place.
 

Key companies in the market include 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.
 

The modular data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:

Market, By Component

• Solution
  • All-in-one
  • Individual
• Service
  • Consulting
  • Installation & Deployment
  • Maintenance & support

Market, By Application

• BFSI
• IT & Telecom
• Energy
• Government
• Healthcare
• Industrial
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Singapore
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa (MEA)
  • GCC
  • South Africa