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

Micro Data Center Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Rack Type (Single Rack and Multi Rack), Organization Size (Large Enterprises and SMEs), and End User (IT & Telecom, BFSI, Retail, Healthcare, Manufacturing, and Others)

Publication Month : Sep 2023

  • Report Code : TIPTE100000230
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 206
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[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 inUS$ 3,650.00 million in 2022
Market Size Value byUS$ 10,253.85 million by 2030
Growth rateCAGR of 13.8% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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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.

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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.
Report Coverage
Report Coverage

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

Segment Covered
Segment Covered

Rack Type, Organization Size, and End User

Regional Scope
Regional Scope

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

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions

What will be the global market size for micro data center market by 2030?

The micro data center market is expected to reach US$ 10,253.85 million by 2030.

Which is the fastest growing regional market?

APAC is anticipated to grow with the highest CAGR over the forecast period.

Which is the leading organization size segment in the global micro data center market?

The large enterprises segment led the micro data center market with a significant share in 2022 and it is also expected to grow with the highest CAGR.

Which are the key players holding the major market share of global micro data center market?

The key players, holding majority shares, in micro data center market includes The Hitachi Ltd, Legrand SA, Schneider Electric, Vertiv Group, and HP Enterprise.

What are the future trends of the global micro data center market?

Edge micro data centers, which offer reduced latency and bandwidth use and leads to increased productivity, are expected to be the most favored option in the future.

What are the driving factors impacting the global micro data center market?

The advent of IoT, Big Data, Machine Learning, and AI and application of the same across different verticals are the major factors that propel the micro data center market growth.

What is the estimated global market size for the global micro data center market in 2022?

The global micro data center market was estimated to be USD 3,650.00 million in 2022 and is expected to grow at a CAGR of 13.8 %, during the forecast period.

The List of Companies - Micro Data Center Market

  1. Eaton Group
  2. Hewlett Packard Enterprise Development LP
  3. Hitachi Ltd
  4. Rittal GmbH and Co KG
  5. Legrand SA
  6. Zella DC
  7. Huawei Technologies Co Ltd
  8. Schneider Electric
  9. Delta Power Solutions
  10. Vertiv Group Corp

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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