Micro Data Center Market is expected to reach US$ 11.93 Billion by 2031

Emergence of 5G to Fuel Micro Data Center Market Growth During Forecast Period 

According to our latest study, "Micro Data Center Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Rack Type, Organization Size, Application, and Geography," the market was valued at US$ 4.04 billion in 2023 and is expected to reach US$ 11.93 billion by 2031; it is estimated to record a CAGR of 14.5% from 2023 to 2031. The report includes growth prospects owing to the current micro data center market trends and their foreseeable impact during the forecast period.    

The 5G network is ∼100 times faster than the 4G network, making real-time data acquisition easier. As the 5G network provides strong connectivity and high-speed data transfer, its demand is increasing globally. According to the Groupe Speciale Mobile Association (GSMA), 5G penetration will continue to grow in Europe from 11% in 2022 to 87% by 2030. As per the same source, France will witness an increase in 5G penetration from 8% in 2022 to 90% in 2030, and Germany will experience an increase from 17% in 2022 to 94% in 2030. Similarly, according to the GSMA, Middle East and North Africa (MENA) will witness an increase in 5G penetration from 3% in 2022 to 50% in 2030, where GCC Arab states will witness high growth in the region from 16% in 2022 to 95% in 2030. Additionally, according to GSMA, the US and Canada are recognized as global leaders in 5G adoption, driven by ambitious deployment strategies from telecommunications providers and robust consumer demand for innovative services. The impact of 5G connectivity is already significant, acting as a catalyst for economic growth; projections indicate that its contribution to North America's GDP will exceed US$ 200 billion by 2030, accounting for 16% of the total annual economic impact of mobile technology in the region. In addition to its GDP contributions, the mobile ecosystem supports approximately 2.1 million jobs, both directly and indirectly, and plays a crucial role in public sector funding, generating US$ 130 billion in tax revenue in 2022. This economic significance highlights the necessity for stakeholders to implement effective measures to maintain the positive influence of mobile services on the digital economy, with spectrum availability being a vital factor in ensuring equitable access to affordable 5G for all. As 5G networks demand low latency and high-speed data processing, micro data centers have become essential for edge computing, enabling faster data handling and reducing network congestion.  

Micro Data Center Market Analysis — by Geography

Source: The Insight Partners Analysis

Eaton Corp Plc, Cannon Technologies Ltd, SCHÄFER Ausstattungssysteme GmbH, Rittal GmbH & Co KG, Delta Electronics Inc, Datwyler IT Infra GmbH, Schneider Electric SE, Intellinet Network Solutions, Panduit, Legrand SA, and Vertiv Group Corp are among the key players profiled in the micro data center market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the micro data center market forecast by rack type, organization size, and application. Based on rack type, the market is divided into single rack and multi rack. In terms of revenue, the single rack segment held a larger micro data center market share and is expected to record a higher CAGR during the forecast period.

The scope of the micro data center market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The Asia Pacific micro data center market is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest micro data center market share in APAC. The government of China has employed various policies aimed at promoting digital transformation and enhancing data infrastructure. Initiatives such as the national data center system aim to optimize the construction of new data centers and improve network quality. In mid-February 2022, China launched a new national project: building a centralized data center system across eight regions in the country. These policies not only encourage investment in micro data centers but also set specific targets for energy efficiency and computing power, driving the market forward. The rapid development of IT infrastructure in China, including improvements in connectivity and network capabilities, is facilitating the growth of micro data centers. China has prioritized the development of 5G technology as a key component of its national strategy, recognizing that 5G networks will significantly enhance the digital transformation of the broader economy. According to GSMA, by 2025, China is projected to have the largest consumer market for 5G users globally, with nearly 800 million users, representing approximately 50% of the country's mobile connections. To address the demand for 5G services, Chinese operators are expected to invest US$ 250 billion in mobile network capital expenditures from 2018 to 2025, with US$ 180 billion allocated specifically for 5G networks. This enhanced infrastructure supports the deployment of advanced technologies and enables businesses to leverage micro data centers effectively.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com