Modular Data Center Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

The modular data center market is expected to grow from US$ 23.35 billion in 2022 to US$ 86.92 billion by 2031; it is estimated to grow at a CAGR of 24.5% from 2022 to 2031.

Modular data centers help organizations and enterprises by enabling more energy-efficient and quickly deployable data center solutions that are easily scalable according to changing business needs. They also allow end users to scale up data center capacities, and help them operate with optimal capital expenditure (CAPEX). Moreover, modular data center solutions are available in many standards and customized sizes that can be easily deployed in suitable locations. Thus, cost savings, reduced deployment time, improved energy efficiency, and simplified scalability are among the factors propelling the adoption of modular data center solutions and services.

Dell Inc.; Huawei Technologies Co., Ltd.; IBM Corporation; Oracle; and Vertiv Group Corp. are well-known key players and financially strong companies in the global modular data center market. In terms of application, the capacity expansion segment accounted for the largest market share in 2021 and is anticipated to witness steady market growth over the forecast period. Modular data centers enable companies to expand their capacity by adding racks or module units into their existing modular data centers. The use of modular data centers in this application aids in minimizing investment requirements and smooth data center upgrades. Moreover, the expansion of data storage capacity without the deployment of additional data centers helps them save space. Furthermore, the massive adoption of work-from-home policies and developments in the remote work culture during the COVID-19 pandemic has propelled the demand for modular data centers.

Strategic Insights

Regional Analysis of Modular Data Center Market Share 

North America dominated the modular data center market with the largest share in 2021. Enterprises in the demanding IT sector in this region are in continuous need of high-capacity data storage at an efficient cost and high scalability. The US government has been at a forefront of adopting modular data center technologies, and it has plans to purchase more data centers to achieve greater scalability, reduce wastage, and ensure quick service delivery. Dell Inc.; Hewlett Packard Enterprise Development LP; IBM Corporation; and Oracle are among some key companies operating in the modular data center market in North America. The modular data center market in Asia Pacific is anticipated to grow at a significant CAGR during the forecast period. There is a continuous demand for high-storage capability infrastructures by enterprises in India and China, along with increasing digital traffic. This triggers the demand for cost-effective modular data centers, which meet the requirements of companies with budget constraints in these cost-sensitive economies. Also, social media and mobile users in Asia Pacific demand low latency and high data storage capacity.

Market Insight – Modular Data Center Market

Vertical Based Insights

Based on vertical, the modular data center market is segmented into BFSI, IT & telecom, media & entertainment, healthcare, government and defense, retail, manufacturing, and others. In 2021, the IT & telecom segment accounted for the largest market share. Advancements in technologies and a massive shift from landlines and fax machines to smartphones capable of downloading music, texting, photo sharing, video streaming, and more compel the telecom industry to expand its data storage capacity. Also, in the highly competitive telecom market, companies continue to demand solutions that deliver low latency and high efficiency at reduced costs, simultaneously providing extensive geographic coverage. Companies in the IT & telecom industry players opt for modular data centers as they provide operational efficiency, reduce costs, and require less space. Also, modular data centers offer scalability to telecom operators.

Players operating in the modular data center market mainly focus on developing advanced and efficient products.

• In September 2022, Schindler Group planned to feature its new BuilT-In All-In-One Solution in BEX Asia. The solution provides building owners and managers with a single, consolidated platform along with Schindler's transit management system to conveniently and competently manage building access systems, and security applications.
• In January 2021, Vertiv Group Corp. launched SmartMod and SmartMod MAX in EMEA. The company also claims to have designed a customized modular data center for customers with the added benefits of cost certainty, standardization, and a consistent user experience.

The modular data center market is segmented into five major regions North America, Europe, Asia Pacific (APAC), the Middle East, and South America. In 2022, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the modular data center market from 2022 to 2031. Dell Inc.; Huawei Technologies Co., Ltd.; Hewlett Packard Enterprise Development LP; IBM Corporation; Oracle; Vertiv Group Corp.; STULZ MODULAR; Eaton; BladeRoom Group Ltd; and EDGE MISSION CRITICAL SYSTEMS, LLC are among the key players operating in the modular data center market.

REGIONAL FRAMEWORK

Modular Data Center Market Report Analysis

MARKET PLAYERS

Modular Data Center Market Report Scope