Modular Data Center Market - By Component (Solution [All-in-One, Individual], Service [Consulting, Installation & Deployment, Maintenance & Support]), By Application (BFSI, IT & Telecom, Energy, Government & Defense, Healthcare, Industrial) & Forecast, 2023-2032

Modular Data Center Market Size

Modular Data Center Market size was worth more than USD 15 billion in 2022 and is anticipated to register over 15% CAGR from 2023-2032. Rising applications of AI and ML technologies are expected to complement the industry expansion.
 

The constant surge in the adoption of green data centers is expected to complement the modular data center industry outlook. In the recent past, green data centers have gained significant traction with increased utilization of energy-efficient technologies for ensuring minimal environmental impacts. The growing concerns associated with massive energy consumption have prompted stringent government regulations pertaining to environmental protection, thus supporting the adoption of modular data centers.
 

Limitations in high-performance computing may hamper industry expansion

Challenges associated with high-performance computing are considered to be major roadblocks for the modular data center market players. High-performance computing requires specialized expertise and has extensive power and cooling requirements. Additionally, the presence of hardware limitations associated with advanced computing will hinder market development. However, the growing adoption of machine learning and the thriving AI-enabled applications across defense, finance, and healthcare sectors will help create lucrative product demand. Furthermore, the demand for modular data centers will also grow as they provide exceptional processing power and data storage capacity via robust infrastructures and technological interventions.
 

Modular Data Center Market Analysis

Modular data center market valuation from the service component segment is estimated to exceed USD 18 billion by 2032. The soaring demand for modular data center services can be attributed to the increasing need for global infrastructure management software and excellent features, such as easy maintenance, short integration & deployment periods, and minimized commissioning time. The rapid adoption of cloud data centers across the defense sector will also proliferate industry growth.
 

Amidst the ongoing transition from traditional to cloud-based models, enterprises are rapidly adopting scalable and flexible options, offering significant business prospects for the providers of modular data center services. For instance, in February 2023, Amazon Web Services (AWS) announced collaboration with the U.S. Department of Defense (DoD) under the Joint Warfighting Cloud Capability (JWCC) deal, allowing the agency to deploy self-contained data centers featuring built-in AWS infrastructure.
 

Modular data center market size from BFSI applications is projected to expand at over 15% CAGR between 2023 and 2032. The dynamic digitization of the banking and finance sectors is a key factor driving the demand for modular data centers. The advent of digital banking and mobile wallet has spurred the number of online payments performed per day. According to India’s Ministry of Electronics and IT, in 2021-22, more than 88 billion digital transactions were performed. In India, Bharat Interface for Money-Unified Payments Interface (BHIM-UPI) emerged as the most preferred payment method with over 8 billion transactions in January 2023. Hence, modular data centers are playing a vital role in monitoring mobile banking payments, indicating substantial scope for expansion.
 

North America modular data center market size is poised to reach over USD 20 billion by 2032. North America is a major hub for data center development thriving on the solid footprint of cloud service providers. Moreover, the rising 5G adoption in the U.S. and Canada is fostering demand for modular data centers for faster deployment, cost-effectiveness, and scalability. Hefty government investments for the development of robust 5G networks in the region will also have a positive impact on the industry outlook. Furthermore, the ongoing IoT, AI, and 5G advancements in edge computing for enabling advances in modern edge data centers will complement industry expansion.
 

Modular Data Center Market Share

Some of the leading companies in the global modular data center market include:

• Dell, Inc.
• Hewlett-Packard Enterprises Development LP
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Schneider Electric SE
• Vertiv Co.
• Cisco Systems, Inc
• CommScope Inc
• Eaton Corporation
• ZTE Corporation.

These industry participants are introducing advanced offerings suitable for modern data centers to achieve competitive advantages. For instance, in September 2022, Vertiv unveiled modular data centers with Vertiv prefabricated infrastructure solutions in India, enabling the deployment of IT assets on a flexible platform with easy scalability.
 

Impact of the COVID-19 pandemic

The COVID-19 pandemic had a positive impact on the modular data center industry as businesses, education, and entertainment worldwide turned to online approaches to enable activity. Data centers emerged as pivotal factors in allowing enterprises to operate from home through cloud technology solutions. Several leading public cloud providers such as Amazon Web Services and Google Cloud leveraged the situation to expand overseas. Since the pandemic-driven lockdown impositions ceased data construction activities globally, plug-and-play modular data centers gained significant momentum as a promising tool to counter supply chain bottlenecks.
 

The modular data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

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By Component

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

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
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Singapore
• South America
  • Brazil
  • Argentina
  • Colombia
• MEA
  • GCC
  • South Africa