Market Size of Modular Data Center Industry
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*Disclaimer: Major Players sorted in no particular order |
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 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 |
Modular Data Center Market Size Summary
The modular data center market is experiencing significant growth, driven by the increasing demand for flexible, scalable, and energy-efficient data storage solutions. This market is characterized by the adoption of disaggregated data center solution units, which facilitate the construction of IT infrastructure in a modular fashion. This approach is particularly beneficial for businesses leveraging cloud-based technologies, as it supports multiple workloads while optimizing space and performance. The rising emphasis on environmentally friendly practices is further propelling the market, as modular data centers are designed to be more energy-efficient than traditional counterparts, aligning with global sustainability goals. The demand for rapid infrastructure deployment in high-volume data centers, coupled with the need for energy and heat efficiency, is also contributing to the market's expansion.
The market landscape is competitive and fragmented, with several major players like IBM Corporation and Huawei Technologies Co. Ltd. dominating the scene. These companies are focusing on expanding their global presence and enhancing their offerings through strategic collaborations and innovative solutions. The increasing penetration of IoT and the growing importance of edge data centers are driving further demand, as businesses seek to manage the vast amounts of data generated across various sectors. The modular data center market is poised for continued growth, supported by the ongoing investments in digital infrastructure and the rising adoption of cloud computing services. As organizations increasingly prioritize hybrid IT solutions, modular data centers are becoming a crucial component of modern IT strategies, offering rapid deployment and scalability to meet evolving business needs.
Modular Data Center Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Industry
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2. MARKET SEGMENTATION
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2.1 Solution and Services
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2.1.1 Function Module Solution (Individual Function Module and All-in-One Function Module)
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2.1.2 Services
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2.2 Application
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2.2.1 Disaster Backup
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2.2.2 High Performance/ Edge Computing
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2.2.3 Data Center Expansion
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2.2.4 Starter Data Centers
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2.3 End User
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2.3.1 IT
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2.3.2 Telecom
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2.3.3 BFSI
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2.3.4 Government
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2.3.5 Other End Users (Healthcare, Retail, Defense, etc.)
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2.4 Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 Latin America
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2.4.5 Middle East and Africa
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Modular Data Center Market Size FAQs
How big is the Modular Data Center Market?
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.
What is the current Modular Data Center Market size?
In 2024, the Modular Data Center Market size is expected to reach USD 30.34 billion.