Europe Micro Data Center Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Europe micro data center market size is expected to reach US$ 2,929.62 million by 2031 from US$ 1,058.72 million in 2023. The market is estimated to record a CAGR of 13.6% from 2023 to 2031.

Executive Summary and Europe Micro Data Center Market Analysis:

The micro data center market in Europe is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. The region is witnessing rising digitization in various industries, including BFSI. Nearly every notable banking institution in Europe has a digital transformation strategy in place. Offering digital services and goods around the clock and enhancing the customer experience are the main goals of most banking digitalization plans. This is boosting the need for data processing and storage solutions in the bank. As banks are present in various areas, including remote locations, the need for micro data centers is rising in the region, which is one of the major factors fueling the growth of the market.

The European Union (EU) is planning for the digital transformation of businesses by 2030. The EU has established two major goals: more than 90% of SMEs should achieve a baseline level of digital intensity, and 75% of EU firms should adopt cloud computing services, big data analysis, or artificial intelligence. Thus, the growing adoption of the above technologies in the region is increasing the demand for real-time data processing, storage, and analysis, further fueling the growth of the micro data center market in Europe. Governments of European countries are taking various initiatives to bolster the adoption of IoT and edge computing. In March 2021, the European Commission conducted a Fireside Chat workshop to mobilize and connect expert stakeholders from the agriculture, automotive, aerospace, construction machinery, home, and industrial automation verticals. This workshop aimed to design a strategy for the future progress of IoT and edge computing in Europe with a market window over five years. In addition, the EU hosts various funding programs for next-generation IoT and edge computing. For example, through Horizon Europe, the EU will contribute more than US$ 169.86 million (EUR 150 million) in research and innovation (R&I) under its 2021 "World Leading Data and Computing Technologies: From Cloud to Edge to IoT for European Data.'' The program will support the development and deployment of next-generation computing components, systems, and platforms. Such initiatives in the region are likely to fuel the growth of the micro data center market in Europe in the coming years.

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Europe Micro Data Center Market: Strategic Insights

Europe Micro Data Center Market Segmentation Analysis:

Key segments that contributed to the derivation of the micro data center market analysis are rack type, organization size, and application.

• Based on rack type, the Europe Micro Data Center Market is bifurcated into single rack and multi rack. The single rack segment held a larger share of the market in 2023.

• By organization size, the Europe Micro Data Center Market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger share of the market in 2023.

• By application, the Europe Micro Data Center Market is segmented into IT and telecom, BFSI, retail, healthcare, manufacturing, and others. The IT and telecom segment held the largest share of the market in 2023.

Europe Micro Data Center Market Players Density: Understanding Its Impact on Business Dynamics

The Europe Micro Data Center Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Europe Micro Data Center Market Outlook

The increasing adoption of prefabrication and micro-modular data center solutions is significantly driving the growth of the micro data center market. As organizations seek to enhance their operational efficiency and scalability, these innovative solutions offer a compelling alternative to traditional data center models. The modular design allows for rapid deployment and flexibility, enabling businesses to quickly respond to changing demands and optimize their infrastructure. This is particularly important in sectors such as IT, telecommunications, and healthcare, where the need for advanced data processing capabilities is on the rise. The modular design of micro data centers significantly enhances their appeal across various industries by enabling flexible and just-in-time deployment tailored to the unique needs of each sector. This adaptability means that organizations can quickly scale their infrastructure in response to fluctuating demands, allowing them to efficiently manage resources without the long lead times typically associated with traditional data center construction. For example, in the IT industry, companies can deploy micro data centers to support cloud services and edge computing, ensuring minimal latency and improved performance for end users. Similarly, the telecommunications industry benefits from the ability to rapidly install modular units at strategic locations, enhancing network reliability and capacity, especially as 5G technology rolls out. In the banking industry, where data security and compliance are paramount, micro-modular data centers can be quickly implemented to safeguard sensitive information while providing the necessary computational power for transactions and analytics. As these industries experience high growth rates in data center capacity, the modularity of micro data centers positions them as an ideal solution to support their evolving infrastructure needs efficiently and effectively.

According to Dell, it was estimated that by 2022, over 75% of enterprise data will be processed outside of traditional data centers. This shift is largely driven by the rise of edge computing, which enables efficient data processing even in remote locations. For many organizations, the adoption of micro-modular data centers represents a significant evolution in their operational capabilities. Micro-modular data centers are compact, mobile, and prefabricated data center solutions that can be deployed in a variety of environments. Most products available in the market are designed as complete data center infrastructures, integrating essential components such as cooling systems, power supply, and backup solutions within a self-contained unit. These units often take the form of ISO shipping containers or custom rack enclosures. The range of these modular data centers varies, with some systems designed to support a single rack with a few kilowatts of IT load. In contrast, others can accommodate multiple racks and handle hundreds of kilowatts of IT capacity. This versatility makes micro-modular data centers an attractive option for businesses seeking to enhance their data processing capabilities flexibly and efficiently.

Europe Micro Data Center Market Country Insights

Based on country, the Europe Micro Data Center Market comprises Germany, the UK, France, Italy, Russia, the Netherlands, and the Rest of Europe. Germany held the largest share in 2023.

The micro data center market in Germany is projected to expand at a significant rate in the coming years, owing to the growing digitalization and increasing demand for advanced learning platforms. The rising investment in the digitization of the retail sector in the country is boosting the demand for micro data centers, as this can help retailers with real-time data analytics and provide enhanced customer experiences. Further, the growing demand for industrial automation and the increasing adoption of Industry 4.0 are expected to offer lucrative growth opportunities for the market. Moreover, significant initiatives taken by the government to promote digitalization and adoption of advanced technologies such as AI, ML, and IoT in various industries, including retail, BFSI, and healthcare, are fueling the market growth.

Company Profiles

Some of the key players operating in the market include 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; Vertiv Group Corp.; STULZ GMBH; Hefei Coolnet Power Co., Ltd.; Vericom Global Solutions; and Canovate, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Europe Micro Data Center Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise