The modular data center market is expected to reach at US$ 86.92 billion by 2028; registering at a CAGR of 24.5% from 2022 to 2028, according to a new research study conducted by The Insight Partners.
A Surge in Adoption of Cloud-Based Solutions and Growing Demand for Deployable & Scalable Data Centers to Boost the Growth of Modular Data Center Market During 2022–2028
Modular data centers are easy to deploy, and they provide end users with flexibility and high scalability in business operations, along with enhancing the overall energy efficiency of operations. Advancing digital ecosystems and large data generation are providing ample opportunities for the players operating in the global modular data center market. A few factors that might hinder the growth of the modular data center market are low awareness about modular products, and reluctance and low confidence among end users for adopting new technologies.
Modular Data Center Market — by Region, 2022
Modular Data Center Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: by Solution (All-in-One Modular Data Center and Single Function Modular Data Center), Service (Consulting and Planning Services; Design, Construction, and Commissioning Services; Operations and Maintenance Services; and Others), Application (Emergency and Temporary Deployment, Capacity Expansion, Disaster Recovery, and Others), Deployment Type (Brownfield Deployment and Greenfield Deployment), and Vertical (BFSI, IT & Telecom, Media & Entertainment, Healthcare, Government and Defense, Retail, Manufacturing, and Others), and Geography (North America, Europe, Asia Pacific, and South and Central America)
Modular Data Center Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis
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Source: The Insight Partners Analysis
Modular data center is emerging as a prominent solution in countries and regions facing frequent dramatic weather changes, and at sites where building a traditional brick-and-mortar facility is a complex and challenging task due to the lack of infrastructure. In such places, these data centers offer efficient data storage and processing without latency, helping enterprises with the ability to scale up their data centers with low capital expenditure and greater predictability. Further, a surge in data traffic with the increasing use of the internet, and the rise of small and medium-sized enterprises in large numbers are expected to bolster the adoption of modular data centers during the forecast period.
The COVID-19 pandemic had a positive impact on the modular data center market growth. With a surge in digitization across several industries, companies adopted modern technologies to simplify their business operations and ease work processes. Moreover, the global corporate sector embraced there the work-from-home/remote work model at a massive scale to continue operations amid this financial and health crisis. Also, companies are significantly investing in building next-generation data centers to support digital transformation needs in the post-pandemic situation. North America dominates the modular data center market, followed by Europe. In addition, Asia Pacific, the Middle East, Africa, and South America are expected to exhibit higher growth in the modular data center market due to the growing awareness about the benefits of modular data centers in these regions.
Based on the deployment type, the modular data center market is bifurcated into brownfield and greenfield deployment. The brownfield deployment segment dominated the modular data center market with the largest share in 2021. A brownfield deployment is an addition or upgrade of the existing data center. Demand for data centers deployed by this method continues to rise due to scalability and reliability, which help maintain workloads. Brownfield deployment includes integrating a new feature to software, adding a new module to an existing enterprise system, and upgrading code to enhance the functionality of an app. These factors, as a result propelling the growth of this segment in modular data center market.
A few key players operating in the modular data center market are 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.
- In February 2020, Dell Inc. announced a new solution to help capture the time-sensitive value of devices at the edge and help customers adjust to the changing nature of data, outside of a traditional data center. In addition, with smaller modular data centers and improved telemetry management—customers can overcome edge computing, network, and storage challenges in core data centers and public clouds.
- In April 2020, Huawei Technologies launched the FusionServer Pro 2298 V5, a 2U 2-socket storage rack server. It has a storage capacity of up to 450 TB and is mainly adopted by customers deploying a high-density, large-capacity storage solution in their data centers, thereby propelling the demand growth of modular data center market.
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