by Modular data centers are prefabricated modules or containers that are purpose-built to house computing equipment such as servers in a highly secure and controlled environment. They offer scalability, modularity, and energy efficiency to smoothly support expanding cloud computing needs of organizations. Modular data centers provide flexibility to add or remove capacity without disrupting existing IT operations, enabling scalability without over-provisioning. Their compact design takes up less space on the data center floor and offers a plug-and-play infrastructure. The pre-built modules can be rapidly deployed onsite, allowing faster time to market for cloud and edge computing services compared to brick-and-mortar facilities.
The global Modular Data Center Market is estimated to be valued at US$ 18.49 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
The increasing adoption of edge and cloud computing is fueling demand for modular data centers. Edge computing requires data processing capabilities to be deployed closer to the source of data production to enable real-time analytics and reduce latency. Modular data centers offer a scalable and flexible infrastructure to efficiently support edge computing needs. Their self-contained design makes them easily deployable at decentralized on-premises locations. Furthermore, the rapid digital transformation across industries is generating massive volumes of data that needs to be processed, stored and analyzed seamlessly in cloud platforms. Modular data centers provide the necessary computing capacity to handle extensive cloud workloads and allow incremental capacity scaling as per usage. Their plug-and-play deployability allows cloud and IT providers to swiftly augment cloud infrastructure to capitalize on spiking demand from clients.
Porter’s Analysis :
Threat of new entrants: Modular data center market attracts new entrants due to high growth opportunities and lack of infrastructure offering challenges. However, high initial capital investment and established customer base of existing players poses barriers.
Bargaining power of buyers: Large technology companies have higher bargaining power due to their capability to deploy modular data centers on large scale. However, customized nature of solutions balances bargaining power.
Bargaining power of suppliers: Key component suppliers have some bargaining power due to their specialized expertise and scale of operations. However, availability of alternate component suppliers mitigates their bargaining power.
Threat of new substitutes: Modular infrastructure provides edge over brick and mortar infrastructure due threats of disasters. However, upcoming technologies like edge computing are substituting some workloads.
Competitive rivalry: Market is dominated by few global players and regional specialized players. Intense competition exists on the basis of product innovation, quality, pricing and customer service.
Modular Data Center Market Segmentation:
- By Component:
- Functional Modules
- Services
- Infrastructure
- Power & Cooling
- By Data Center Size:
- Small and Medium
- Large
- Micro
- By Tier Type:
- Tier 1 & 2
- Tier 3
- Tier 4
- By Industry:
- BFSI
- IT & Telecom
- Government & Defense
- Healthcare
- Retail & E-commerce
- Manufacturing
- Others
Key Takeaways
The global Modular Data Center Market Size is expected to witness high growth. The global Modular Data Center Market is estimated to be valued at US$ 18.49 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023-2030.
North America accounts for largest share driven by factors such as strong economic conditions, significant IT Infrastructure spending, and early adoption of new technologies. Asia Pacific is expected to show high growth rate on back of rising investments by tech giants and increasing awareness regarding flexible data center solutions.
Key players operating in the modular data center market are Flexenclosure, Hewlett Packard Enterprise, Huawei, IBM, Eaton, Bladeroom, Cannon Technologies, Rittal, Schneider Electric, Vertiv, Baselayer Technology, Cisco, Aceco TI, Active Power, Datapod, ZTE, Commscope Holding, and Dell. Flexenclosure, HPE and Huawei captured major share due to their global presence and product innovation. Smaller players focus on customized regional offerings. The market is expected to witness mergers and acquisitions among players to enhance capabilities.
*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
