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Modular Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Modular Data Center Manufacturers and the Market is Segmented by Solution and Services (Function Module Solution, and Services), Application (Disaster Backup, High Performance/ Edge Computing, Data Center Expansion, and Starter Data Centers), End User (IT, Telecom, BFSI, and Government), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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Modular Data Center Market Size

Modular Data Center Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 30.34 Billion
Market Size (2029) USD 67.32 Billion
CAGR (2024 - 2029) 18.78 %
Fastest Growing Market Europe
Largest Market North America
Market Concentration Low

Major Players

Modular Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Modular Data Center Market with other markets in Technology, Media and Telecom Industry

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Modular Data Center Market Analysis

The Modular Data Center Market size is estimated at USD 30.34 billion in 2024, and is expected to reach USD 67.32 billion by 2029, growing at a CAGR of 18.78% during the forecast period (2024-2029).

  • Disaggregated data center solution units facilitate the building of the IT infrastructure. A modular approach can be applied at the level of data centers or a more general level.
  • Modular architecture can support more than one workload to meet the needs of businesses as organizations continue to use cloud-based dispersed technologies. To meet the growing demand for cloud, mobile, and social analytics, these transportable data centers offer an effective, cost-efficient way of protecting computer performance while leaving no more floor space.
  • The high demand for environmentally friendly data centers drives this market's growth. Green data centers use energy-efficient management methods and technology, providing enterprises with little environmental impact and optimum efficiency. Modular data centers are highly requested because of increased energy consumption and environmental protection requirements laid down by governments worldwide. One of the most significant advantages of modular data centers is that, compared to traditional data centers, they consume less power and are more energy-efficient, allowing them to meet companies' intrinsic requirements for lower energy usage.
  • In the high-volume data center segment, there is a clear need for rapid infrastructure deployment in comparatively very dense configurations with an emphasis on energy and heat efficiency. We will likely see a much more significant module growth in this segment than conventional approaches.
  • Regarding installation speeds and low capex, Modular Data Centres represent a challenge to traditional brick-and-mortar data centers. But, traditional data centers are likely to remain a reality, and some applications may be more suitable for modular data centers.
  • The largest global investors are focusing on the market for digital infrastructure, with the extraordinary demand for capital to boost the data economy. The interest of investors remains high even during the COVID-19 situation. The investments in data centers increased after the growth of hyperscale computing. As the demand for modern, flexible, and scalable data centers increases, investments in data centers are expected to create opportunities to adopt modular data centers.

Modular Data Center Market Trends

IT Sector to Hold Significant Market Growth

  • Due to the growing number of companies that provide cloud, colocation, and Web hosting services, demand from IT firms for modular data centers is increasing. The significant factor driving the continued growth of this segment is an ever growing number of enterprises adopting cloud computing.
  • By providing secure and compliant data centers with adequate access to the world's top telecommunications operators and cloud computing services providers, studied market players help IT companies achieve hybrid IT success. The information and communications technology industry seeks the fastest possible response time and provides services for Modular and micromodular data centers with much to offer.
  • A trend is emerging worldwide, such as enterprises adopting modular data centers due to security concerns. The Modular Data Centre Market in the Information Technology sector has been positively influenced by an increasing demand for data storage and its robust and efficient processing.
  • Based on the size of Chinese IT companies, private storage facilities and large-scale data centers are required. Furthermore, cloud storage selection has steadily increased over time due to the growing number of Software Service Providers, enabling them to improve their capacity and create demand for data centers. SaaS platform as a service (PaaS) and infrastructure as a service (IaaS) are among China's three major cloud computing categories. This fuels the demand for more data centers.
Modular Data Center Market - Global Top-10 Cloud Vendors by Total Revenue 2023, in USD Billions

North America accounts for the Significant Market Share

  • The demand for new data center infrastructure in this region is triggered by the growth of Mobile Broadband, increased levels of Big Data Analytics, and cloud computing. Many data centers are present in North America, with many companies switching from hardware to software-based services, and it is estimated that this market will be a potential target for data center installation.
  • Organizations are looking for modular services that allow them to select the desired service in an integrated portfolio to optimize infrastructure. Several service options are available from the online catalogs as part of a standardized deployment. These options offer the possibility of lowering an initial investment for companies. An excellent example of this situation is the IBM Integrated Managed Infrastructure Service.
  • Moreover, the size and scope of next-generation modular data centers will significantly change due to the penetration of Big Data and the Internet of Things in this region. Given the existing competition, IT scalability and capacity need to be developed by organizations. Modular data centers are gaining momentum, given their flexibility to install a facility in the least time due to an exponential growth of data, coupled with hybrid cloud and outsourcing third-party data centers.
  • Additionally, the increasing penetration of IoT is driving the demand for edge data centers. Many companies are taking advantage of IoT for applications ranging from retail to healthcare, and the amount of data generated is enormous.
Modular Data Center Market - Growth Rate by Region

Modular Data Center Industry Overview

The modular data center market is fragmented, where competition tends to increase and consists of several major players. Few of the major players currently dominate the market, and these major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. Further, new players enter this market through strategic collaborative initiatives catering to intense rivalry. Key players are IBM Corporation, Huawei Technologies Co. Ltd, etc.

In February 2023, Vertiv Co. introduced the Vertiv MegaMod and Vertiv MegaMod Plus, a turnkey prefabricated modular (PFM) data center solution, deployable in expandable units of 0.5 or 1 megawatts for IT loads up to 2 megawatts or more. The high-quality prefabricated modules are integrated and tested with industry-leading Vertiv power management systems, thermal management solutions, remote monitoring, and IT equipment racks to deliver exceptional performance and help companies reduce deployment time by up to 40% compared to a traditional data center build. The solutions are now available across Europe, the Middle East and Africa (EMEA).

In September 2022, Vertiv offered modular data centers and infrastructure options by introducing Vertiv Prefab Data Centres in India. Integrated solutions can be adapted to IT asset deployment and provide a simple way to install capacity quickly. Simple scalability is also offered, enabling the data center operator to start with a solution that meets Immediate needs and then scale up as needed. Vertiv uses its prefabricated modular data centers' key power and temperature management capabilities and monitoring and control technologies.

Modular Data Center Market Leaders

  1. IBM Corporation

  2. Huawei Technologies Co. Ltd

  3. Dell EMC (Dell Technologies)

  4. Baselayer Technology LLC

  5. HPE Company

*Disclaimer: Major Players sorted in no particular order

Modular Data Center Market Concentration
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Modular Data Center Market News

  • June 2023: Hewlett Packard Enterprise announced an expanded partnership with Equinix to extend the HPE GreenLake private cloud portfolio at Equinix International Business Exchange (IBX) data centers. Hewlett Packard Enterprise will pre-provision HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition at strategic Equinix data centers around the world, giving customers rapid access to a broad range of private cloud offerings for more incredible speed, agility, flexibility, and choice in their hybrid cloud strategy.
  • November 2022: Huawei has introduced two new additions to its Smart Modular Data Center and SmartLi uninterruptible power supply (UPS) series -FusionModule2000 6.0, a modular small/medium-sized data center solution, and UPS2000-H, a small-footprint power supply solution running on SmartLi Mini and These new solutions will allow channel partners to take a competitive edge in the market while providing an efficient way of driving green digitalization for businesses cost-effectively.

Modular Data Center Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables & Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Mobility and Scalability of Modular Data Centers

      2. 5.1.2 Disaster Recovery Advantages

    2. 5.2 Market Challenges

      1. 5.2.1 Data Centers Facing Power Efficiency and Sustainability Issues along with Power and cooling

  6. 6. MARKET SEGMENTATION

    1. 6.1 Solution and Services

      1. 6.1.1 Function Module Solution (Individual Function Module and All-in-One Function Module)

      2. 6.1.2 Services

    2. 6.2 Application

      1. 6.2.1 Disaster Backup

      2. 6.2.2 High Performance/ Edge Computing

      3. 6.2.3 Data Center Expansion

      4. 6.2.4 Starter Data Centers

    3. 6.3 End User

      1. 6.3.1 IT

      2. 6.3.2 Telecom

      3. 6.3.3 BFSI

      4. 6.3.4 Government

      5. 6.3.5 Other End Users (Healthcare, Retail, Defense, etc.)

    4. 6.4 Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 Huawei Technologies Co. Ltd.

      3. 7.1.3 Dell EMC

      4. 7.1.4 HPE Company

      5. 7.1.5 Baselayer Technology LLC

      6. 7.1.6 Vertiv Co.

      7. 7.1.7 Schneider Electric SE

      8. 7.1.8 Cannon Technologies Ltd

      9. 7.1.9 Rittal Gmbh & Co. KG

      10. 7.1.10 Instant Data Centers LLC

      11. 7.1.11 Colt Group SA

      12. 7.1.12 Bladeroom Group Ltd.

    2. *List Not Exhaustive

  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Modular Data Center Industry Segmentation

A portable, modular data center exists at any location requiring data capacity. This type of data center system comprises modules and components with purpose engineering. Applications such as disaster backup, high-performance/ edge computing, data center expansion, and starter data centers are considered under the scope. '

The Modular Data Center Market is segmented by solution and services (function module solution and services), application (disaster backup, high performance/ edge computing, data center expansion, and starter data centers), end user (IT, telecom, BFSI, and government), and geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Solution and Services
Function Module Solution (Individual Function Module and All-in-One Function Module)
Services
Application
Disaster Backup
High Performance/ Edge Computing
Data Center Expansion
Starter Data Centers
End User
IT
Telecom
BFSI
Government
Other End Users (Healthcare, Retail, Defense, etc.)
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Modular Data Center Market Research FAQs

The Modular Data Center Market size is expected to reach USD 30.34 billion in 2024 and grow at a CAGR of 18.78% to reach USD 67.32 billion by 2029.

In 2024, the Modular Data Center Market size is expected to reach USD 30.34 billion.

IBM Corporation, Huawei Technologies Co. Ltd, Dell EMC (Dell Technologies), Baselayer Technology LLC and HPE Company are the major companies operating in the Modular Data Center Market.

Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Modular Data Center Market.

In 2023, the Modular Data Center Market size was estimated at USD 24.64 billion. The report covers the Modular Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Modular Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The major factors driving the Modular Data Center Market are a) Increased demand for scalability and flexibility b) Growing adoption of cloud computing and edge computing

Modular Data Centers Industry Report

The global modular data center market is witnessing remarkable growth, fueled by the rising demand for scalable, efficient, and eco-friendly solutions across IT & telecom, healthcare, and government sectors. With the push towards sustainability, the trend for green data centers is gaining momentum, aligning with the global sustainability goals. Modular data center manufacturers are at the heart of this innovation, offering rapid deployment and high energy efficiency to meet the needs of SMEs and large corporations alike. The integration of cloud-based solutions, big data analytics, and IoT is further driving demand, making modular data centers crucial for digital transformation strategies. These manufacturers are key in delivering versatile solutions that ensure quick scalability, disaster recovery, and power efficiency, addressing modern IT infrastructure challenges. According to Mordor Intelligenceā„¢ Industry Reports, the market is poised for significant expansion, with detailed analysis and forecasts available in their free report PDF download, highlighting the pivotal role of modular data center manufacturers in the industry's future.

Modular Data Center Market Report Snapshots

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Modular Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)