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

Coverage: Modular Data Center Market covers analysis 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)

Publication Month : Feb 2024

  • Report Code : TIPTE100000203
  • Category : Technology, Media and Telecommunications
  • Status : Upcoming
  • No. of Pages : 198
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The modular data center market is expected to grow from US$ 23.35 billion in 2022 to US$ 86.92 billion by 2028; it is estimated to grow at a CAGR of 24.5% from 2022 to 2028.

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.

Lucrative Regions: Modular Data Center Market Share

Lucrative Regions: Modular Data Center Market Share

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 2019, 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 2028. 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.


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REGIONAL FRAMEWORK
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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Solution, Service, Application, Deployment Type, and Vertical

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies - Modular Data Center Market

  1. Baselayer Technology, LLC
  2. Bladeroom Group Ltd.
  3. Dell, Inc.
  4. Emerson Electric Co.
  5. Flexenclosure AB
  6. Hewlett Packard Enterprise
  7. Huawei Technologies Co.Ltd.
  8. IBM Corporation
  9. Rittal GmBH
  10. Schneider Electric

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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