Micro Data Center Market Growth Report, Share Analysis & Forecast-2030

[Research Report] The micro data center market size was valued at US$ 3,650.00 million in 2022 and is expected to reach US$ 10,253.85 million by 2030; it is estimated to record a CAGR of 13.8% from 2022 to 2030.

Analyst Perspective:

Micro data center evolution life cycle and pace of adoption over the long term is expected to continue at a fast pace. Rapid growth in data generation highlights the requirement for more and more data centers to house and manage all information. Managing all such information, mostly generated through the Internet of Things (IoT) enabled devices, online streaming video, and social media usage growth, requires proper planning in terms of infrastructure. Unpredicted growth, pandemic-related disruptions, and dynamic usability have fueled such trends. Recent technological advancements have extended the possibilities for data collection sites, processing, storage, and analysis. As a result, depending on the nature of applications, enterprises are required to choose between using the cloud, a traditional data center, or the network edge. Furthermore, micro data centers are preferred to manage the growing computing needs across several edge computing environments. In certain scenarios, micro data center-enabled edge computing aids enterprises in reducing the need to transmit data back and forth across networks, thus reducing bandwidth costs. Similarly, latency-dependent applications might not be suited for working efficiently in cloud environments. In other scenarios where unstable network connections cause substantial remote location downtime, unplanned downtime can also be avoided by using micro data centers. Additionally, with the rapid growth of digital transformation at the edge, the adoption of key technologies such as 5G and IoT coupled with hyper-automation is increasing rapidly. Such factors are contributing to the micro data center market growth.

Micro Data Center Market Overview:

A micro data center is a miniaturized modular data center that includes all the computer, networking, storage, cooling, power, and other infrastructure required for a given workload. They are small enough to be deployed in locations where a traditional or full-scale data center would be impractical. This permits enterprises to cost-effectively solve the low-latency data processing and storage challenge. In the past few years, the rising adoption of the Internet of Things (IoT), content delivery, and 5G have created a surge in demand for low-latency access to data processing and storage. Traditional full-scale data centers, such as those used by Microsoft Azure and Amazon Web Services, were not designed for such applications. While these full-scale data centers enable cloud computing and create economies of scale, they are not capable of economically bringing data processing for these distributed workloads use cases close enough to end users. Micro data centers are shipped preassembled, wherein the equipment is preinstalled in a server rack and can be useful for applications where high-density, small-footprint compute resources are in demand.

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Micro Data Center Market: Strategic Insights

Market Size Value in	US$ 3,650.00 million in 2022
Market Size Value by	US$ 10,253.85 million by 2030
Growth rate	CAGR of 13.8% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Micro Data Center Market Driver:

Advent of IoT, Big Data, Machine Learning, and AI to Fuel Micro Data Center Market Growth During Forecast Period

In the past few years, the rising adoption of the Internet of Things (IoT), content delivery, and 5G have created a surge in demand for low-latency access to data processing and storage. IoT, big data, machine learning (ML), and artificial intelligence (AI) are a few technologies that generate huge volumes 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. These devices are expected to generate 79.4 zettabytes (ZB) of data by 2025. Data generated by IoT devices must be processed, stored, and analyzed in real time. IoT devices are widely used globally, 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, which reduce 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. Hence, the adoption of micro data centers is rising, leading to a rise in the launch of advanced micro data center offerings.

Micro Data Center Market Segmental Analysis:

The micro data center market is segmented on the basis of rack type, organization size, and end user. Based on rack type, the micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger micro data center market share in 2022 and is also anticipated to register a higher CAGR in the micro data center market during the forecast period. Based on organization size, the micro data center market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger micro data center market share in 2022; however, the SMEs segment is also anticipated to register a higher CAGR in the micro data center market during the forecast period. On the basis of end user, the micro data center market is segmented into IT & telecom, BFSI, retail, healthcare, manufacturing, and others. The IT & telecom segment held the largest micro data center market share in 2022 and is also anticipated to register the highest CAGR in the micro data center market during the forecast period.

Based on rack type, the micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger micro data center market share in 2022 and is also anticipated to register a higher CAGR in the micro data center market during the forecast period. A micro data center is a new generation of alternative solutions to small IT rooms. With complete integration of cooling system power supply, monitoring system, and cabinet containment, it can be used for IT equipment storage in "Edge-of-Cloud" applications. 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 micro data center market growth for the segment. Key players operating in the micro data center market are Shenzhen Kstar Science & Technology Co., Ltd. and Rittal GmbH & Co. KG, which provide single rack micro data centers.

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Micro Data Center Market Regional Analysis:

The North America micro data center market size was valued at US$ 1,468.55 million in 2022 and is projected to reach US$ 4,062.68 million by 2030; it is expected to record a CAGR of 13.6% from 2022 to 2030. The North America micro data center market is segmented into the US, Canada, and Mexico. The US held the largest share of the market in 2022. The micro data center in the US is growing rapidly due to the increasing demand for remote office and branch office (ROBO), edge computing, and instant data center solutions. The ROBO solutions are designed to provide IT services to remote offices and branch offices. Micro data centers are cost-effective solutions for ROBO deployment. Further, several micro data center market players across the US are launching modular data centers, which is propelling the micro data center market size in the region. For example, in November 2020, Giganet Networking Solutions launched edge micro data centers. The racks feature an installed cooling unit for cramped conditions or an outside unit, depending on the space. Similarly, in January 2023, Tech Data expanded its partnership with Schneider Electric to further contribute to the growth of net-zero data centers. The alliance will provide partners and end-users with cutting-edge micro data centers.

Micro Data Center Market Key Player Analysis:

The micro data center market consists of players such as Eaton Group, Hewlett Packard Enterprise Development LP, Hitachi Ltd, Rittal GmbH and Co KG, Legrand SA, Zella DC, Huawei Technologies Co Ltd, Schneider Electric, Delta Power Solutions, and Vertiv Group.

Recent Developments:

Inorganic and organic strategies are highly adopted by the micro data center market players. A few recent key micro data center market developments are listed below:

• In May 2023, Sonic Edge announced a partnership with Deep Green to launch 50 HPC/EdgePods at locations across the UK by the end of this year and in early 2024. According to the company, these 50 deployments will range from 50kW to 2MW, while the partnership with Deep Green will power them with low-cost, carbon-free energy sources and reduce the overall capex of HPC operations.
• In November 2022, Schneider Electric SE launched the EcoStruxure Micro Data Center R-Series 42U Medium Density for hybrid IT infrastructure management, and also aimed at expanding its ruggedized micro data center offering. The new micro data center solution is optimized for IT applications of industrial environments having distributed locations. It also ships fully integrated for speedy deployment. It also consists of a heavy weight load and is fitted with large, industrial casters for easy movement.
• In July 2022, Legrand SA acquired USystems Limited to strengthen its data center solutions offerings and bolster its micro data center market share. As per the company, the acquisition complements Legrand’s existing offering in the data center white space market and strengthen its position in the fastest-growing segments of the data center sector, namely high-performance computing and micro data center.