Asia Pacific Micro Data Center Market to Grow at a CAGR of 15.4% to reach US$ 2,851.20 million from 2023 to 2030

The Asia Pacific micro data center market size is expected to grow from US$ 1,018.57 million in 2023 to US$ 2,851.20 million by 2030; it is estimated to register a CAGR of 15.4% from 2023 to 2030.

Analyst Perspective:

The Asia Pacific micro data center market has been expanding steadily due to the rising adoption of edge computing and the proliferation of cloud-based services and IoT devices. The Asia Pacific market is expected to grow rapidly in the coming years due to rising digitalization efforts by the organizations, expanding IoT infrastructure, and the increasing need for data processing capabilities at the edge. Micro data centers comprise various components, including computing infrastructure (servers, storage, and networking), power and cooling systems, security mechanisms, and management software. They are available in form factors such as prefabricated modular units, rack-based systems, and containerized data centers. Micro data centers offer flexibility, scalability, and easy deployment, making them suitable for a wide range of industries and end users. All such factors are contributing to the Asia Pacific micro data center market growth.

Asia Pacific Micro Data Center Market Overview

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A micro data center (MDC) is a small-scale modular data center that includes compute, storage, networking, power, cooling, and other infrastructure required for a given workload. Typically, micro data centers support critical loads of no more than 100–150 kilowatts (kW) and include data centers with less than 10 servers and 100 virtual machines. Micro data centers are ideal for edge applications, especially in distributed, remote, or unconditioned locations. As the entire system is enclosed into the size of one standard IT rack, micro data centers can be used in existing network closets or small server rooms, as well as in open office spaces, retail stores, and clinics.

Asia Pacific Micro Data Center Market Driver:

Advent of IoT, Big Data, Machine Learning, and AI Drives Asia Pacific Micro Data Center Market Growth

The Internet of Things (IoT), big data, machine learning, and artificial intelligence (AI) are a few technologies that generate massive amounts of data, require low latency processing, and demand localized computing resources. According to IoTExpress Technologies Pvt. Ltd., in APAC, IoT devices are expected to surpass 15 billion by the end of 2023, a 55% increase from 2020. Additionally, these devices are expected to generate 79.4 zettabytes (ZB) of data by 2025, according to IoTExpress Technologies Pvt. Ltd. IoT generates a huge amount of data that must be processed, stored, and analyzed in real time. IoT devices are widely used across the region, connecting various physical objects and enabling data collection and communication. Micro data centers positioned at the edge of the network can provide local computing power, storage, and analytics capabilities, reducing the latency and bandwidth requirements of transmitting data to a centralized data center. Micro data centers enable real-time decision-making and facilitate IoT deployments across the manufacturing, healthcare, transportation, and smart city industries. Further, processing and analyzing such massive datasets require significant computational power and storage capabilities. Therefore, the advent of various technologies, such as the IoT, machine learning, big data, and AI, is boosting the Asia Pacific micro data center market growth.

Asia Pacific Micro Data Center Market Segmental Analysis:

Based on rack type, the Asia Pacific micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger market share in 2022. The single rack offers several advantages such as space efficiency, scalability, low cost, rapid deployment, and improved reliability. Large and small enterprises have realized that the single-cabinet micro data center with high reliability and availability is the future trend from the perspectives of current short-term investments and future long-term operating costs. Therefore, the demand for single racks is increasing, which is boosting the Asia Pacific micro data center market growth for the segment. Shenzhen Kstar Science&Technology Co., Ltd.; Vertiv Group Corp.; and other companies provide single-rack micro data centers.

Asia Pacific Micro Data Center Market Regional Analysis:

The Asia Pacific micro data center market has been segmented into Australia, Indonesia, New Zealand, Singapore, Thailand, Vietnam, the Philippines, Bangladesh, Sri Lanka, and the Rest of Asia Pacific. Australia has one of the strongest healthcare systems across the world. The Australian government is focusing on strengthening the healthcare system. According to the Commonwealth of Australia, the government aims to spend US$ 537 billion from 2022 to 2025. Advances in big data, analytics, and other technologies enable healthcare providers to assist their employees and patients through a micro data center for healthcare. New technologies present new demands for data management, security, and storage infrastructure. Edge computing and micro data centers are a huge part of this revolutionary healthcare shift. The ability of micro data center to transfer data in real-time, without uploading it to the cloud or a latency lag before it can be analyzed and used, is game-changing in medicine. Therefore, the increasing use of micro data centers in healthcare is boosting the Asia Pacific micro data center market growth in Australia.

Asia Pacific Micro Data Center Market Key Player Analysis:

Eaton; Hewlett Packard Enterprise Development LP; Hitachi, Ltd.; Rittal GmbH and Co. KG; Legrand SA; Zella DC; HIRO micro data centers; Schneider Electric; Delta Power Solutions; and Vertiv Group Corp are among the players operating in the Asia Pacific micro data center market.

Asia Pacific Micro Data Center Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the Asia Pacific micro data center market. A few recent key Asia Pacific micro data center market developments are listed below:

• In November 2022, Rittal RiMatrix launched new Micro Data Centers, which are compact, powerful, and fully-fledged homes for IT hardware. Rittal RiMatrix Micro Data Centers with components such as rack, power, cooling, monitoring, and security, ensures that the IT is securely packaged and operate with the smallest carbon emissions. Moreover, the combination of global standardization and adaptability means that these new packages make even better use of their advantages.
• In March 2021, Rittal, the provider of industrial enclosures and IT infrastructure, and Stulz, the leading specialist for data center cooling systems, entered into a global partnership to offer customers end-to-end, tailored solutions to their needs.
• In October 2021, Schneider Electric announced it had expanded its Micro Data Center solutions portfolio with the introduction of the Easy Micro Data Center Series for standard IT and commercial environments.
• In August 2020, Legrand India announced the launch of Legrand Data Center Solutions (LDCS), which brought together a portfolio of global brands, including Legrand, Numeric, Raritan & Server Technology, under one specialist team. LDCS was designed to give maximum flexibility for growth, allowing the companies to easily and cost-effectively expand, modify, or replace technologies and applications in the least amount of time. Legrand Data Center Solutions are modular, scalable, and customizable and are designed for agility.