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The global modular data centers market size is forecast to increase by USD 26.78 billion between 2022 and 2027, accelerating at a CAGR of 15.58%. In 2017, the US held the largest market share, projecting an annual revenue of USD 3.11 billion. The need to streamline traditional data centers is a major factor fueling market growth. Today, companies running single conventional data centers grapple with complex management and soaring capital costs due to sophisticated power and cooling systems. With the current economic recession, businesses are increasingly seeking cost-effective and scalable solutions. Modular data centers, with their standardized, portable designs, provide an ideal alternative that can be quickly deployed. Mobile network operators and colocation providers are among the leading users of these solutions. These modular setups are more environmentally friendly, thanks to their energy-efficient HVAC systems and IT equipment. As big data, AI, cloud computing, 5G, and IoT applications require higher operating temperatures, the flexibility and scalability of modular designs become even more crucial.
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The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by End-user, which comprises IT and telecom, BFSI, Healthcare, Retail and e-commerce, and Others. Additionally, it categorizes Component into Solution and Services and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The market research report provides market size, historical data spanning from 2017 to 2021, and future projections, all presented in terms of value in (USD billion) for each of the mentioned segments.
The IT and telecom segment is estimated to witness significant growth during the forecast period. In the global market, Modular Data Centers hold a significant share, particularly in the IT and telecom sector. These centers are essential for providing the required computing power and storage for various applications and services in the industry. With the rise of cloud computing, the demand for data centers has escalated, as businesses seek to access resources without substantial capital expenditure. The influx of data from businesses and individuals necessitates data centers capable of handling vast amounts of information. Recession or not, Modular Data Centers offer scalability and rapid deployment, making them attractive to mobile network providers and data center colocation providers. Green data centers, with their standard design and cooling systems, are increasingly popular due to their energy efficiency. Big data, AI, cloud computing, 5G infrastructure, Internet of things, and cloud-based solutions are driving the market's growth.
However, challenges such as transportation and truck regulations, over-the-road laws, and a lack of awareness among Small and medium enterprises can hinder market expansion. Despite these hurdles, the benefits of modular data centers, including their ability to support on-premises services, disaster recovery, and function module solutions, make them a worthwhile investment for organizations of all sizes. Cooling systems, HVAC, and IT equipment are crucial components, with HPE being a notable player. Operating temperatures and IT modules are essential considerations. Cloud-based networking, Artificial intelligence, and robotics and automation are also transforming the data center landscape. Colocation providers offer services, including disaster recovery and function module solutions, to cater to various business needs. Capital expenditure and return on investment are essential factors in the decision-making process. Cooling systems, HVAC, and IT equipment are significant investments, and organizations must carefully consider their operating temperatures and IT module requirements. In conclusion, the Modular Data Center market is experiencing significant growth due to the increasing demand for data processing and storage, driven by cloud computing, AI, 5G, and IoT. Despite challenges, the benefits, including scalability, rapid deployment, and energy efficiency, make them a valuable investment for businesses of all sizes.
North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Edge computing trend is driving the growth of the market in the US and Canada, particularly in the BFSI industry. Large enterprises are shifting towards energy-efficient data centers to minimize costs and CAPEX, opting for cloud solutions from hyperscale providers like AWS, Microsoft, and Oracle. As of 2021, the US hosts over 2,670 data centers, making it the global leader. Quicksilver Capital and the World Economic Forum highlight the importance of digital transformation in this context. These offer a Scalable data centers for large enterprises, enabling them to meet their computing capacity requirements efficiently.
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They have emerged as a popular solution for businesses seeking scalability and rapid deployment during times of economic uncertainty, such as a recession. These data centers utilize a modular design, allowing for easy expansion and contraction based on demand. Green data centers, which prioritize energy efficiency, are a key focus in the modular data center market. Mobile network providers and large enterprises are major consumers, as they require cloud-based networking and 5G infrastructure to support digital transformation initiatives. The solutions sub-segment and services segment of the modular data center market are expected to grow significantly, as businesses increasingly turn to cloud-based solutions for their data storage and processing needs. The World Economic Forum has emphasized the importance of energy-efficient data centers in reducing carbon emissions and mitigating the environmental impact of digitalization. Quicksilver Capital and other investors have shown interest in the modular data center market, recognizing its potential for innovation and growth. Overall, the modular data center market is poised for expansion, driven by the need for scalable, energy-efficient, and quickly deployable solutions.
One of the key factors driving the market growth is the requirement to reduce the complexity of traditional data centers. In today's business landscape, enterprises operating a single traditional data center face increasing complexity in management and rising capital expenditures due to advanced power and cooling systems. The economic downturn (recession) further emphasizes the need for cost-effective and scalable solutions. They offer a standardized, mobile design for rapid deployment, making them an attractive alternative. Mobile network providers and colocation providers are among the key adopters. They provide a greener approach with energy-efficient cooling systems (HVAC) and IT equipment. Big data, AI, cloud computing, 5G infrastructure, and IoT require high operating temperatures, making modular design essential. Modular IT modules from companies like HPE cater to various organization size, including SMEs and commercial and industrial sectors. Rapid deployment addresses transportation challenges, including truck regulations and over-the-road laws. They offer cloud-based solutions, disaster recovery, and function module services, making them a valuable investment with a good return on investment. Cooling systems, HVAC, and IT equipment are integrated into the modules, reducing the need for on-premises services. Despite their benefits, lack of awareness and understanding may hinder their adoption. However, as technology continues to evolve, the integration of AI, robotics, and automation in cloud-based solutions and 5G infrastructure will further boost their popularity. Hence, such factors are expected to drive market growth during the forecast period.
Significant Market Trend
In today's business landscape, enterprises are increasingly adopting to manage their IT infrastructure more efficiently. During economic downturns like recessions, the flexibility and cost savings offered by these data centers become particularly attractive. Modular Data Centers, which utilize a standard design for scalability, can be rapidly deployed for mobile network providers and colocation providers. However, transportation challenges, such as truck regulations and over-the-road laws, can impact deployment. These data centers, which support both legacy applications and cloud computing services, are essential for big data processing and 5G infrastructure. They offer greater security, higher availability, and energy efficiency, making them ideal for green data centers. Capital expenditure and return on investment are key considerations for organizations of all sizes, from SMEs to commercial and industrial entities. They can be integrated with cooling systems, HVAC systems, and IT equipment to maintain optimal operating temperatures. HPE and other leading IT module providers offer function module solutions for various industries, including disaster recovery and cloud-based solutions. Additionally, cloud-based networking, AI, and robotics and automation are increasingly being integrated into these data centers to enhance their capabilities. Despite their benefits, a lack of awareness and the continued popularity of on-premises services remain challenges.
Major Market Challenge
In today's economic climate, adoption is on the rise, particularly among colocation and telecommunication service providers. These facilities offer several advantages, including scalability, rapid deployment, and energy efficiency, making them ideal for green data centers. However, many data center operators remain unaware of the benefits and the incremental capital expenditure involved in constructing modular facilities. Traditional data centers require substantial upfront costs, while modular designs allow for the addition of IT modules as demand grows. Mobile network providers and SMEs are increasingly turning to these due to their standard design and ease of transportation. However, transportation challenges, such as truck regulations and over-the-road laws, can impact the cost-effectiveness of these solutions. They are particularly suited for organizations of all sizes, from commercial and industrial enterprises to those in the IT sector. With the increasing adoption of technologies like 5G, cloud computing, AI, and robotics and automation, the need for scalable and efficient data centers is more critical than ever. Despite the advantages, a lack of awareness and understanding of the specifics of Modular Data Center operation can negatively impact productivity. Proper configuration of cooling systems, HVAC, and IT equipment is essential to maintain operating temperatures and ensure optimal performance. Colocation providers offering function module solutions can help organizations overcome the challenges associated with Modular Data Center operation and reap the benefits of this innovative technology. Additionally, these providers can offer disaster recovery services and cloud-based solutions to help organizations maximize their return on investment.
The market is fragmented in nature. Some significant players include Amazon.com Inc.and Cannon Technologies Ltd.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Cisco Systems Inc., Colt Technology Services Group Ltd., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Furukawa Electric Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Iron Mountain Inc., Microsoft Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Vertiv Holdings Co., and WESCO International Inc.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
They have gained significant traction in the technology sector due to their flexibility, efficiency, and scalability. These pre-fabricated data centers are designed to be easily transportable and can be installed in various locations, making them an ideal solution for businesses with dispersed operations. The market is driven by the increasing demand for data center infrastructure and the need for businesses to reduce capital and operational expenses. The market is segmented based on components, types, applications, and regions. The components market is further segmented into power and cooling systems, racks, IT infrastructure, and others. The types market is segmented into containerized and non-containerized Modular Data Centers.
The applications market is segmented into BFSI, IT and Telecommunication, Retail and E-commerce, Healthcare, and others. The market is expected to grow at a steady pace due to the increasing adoption of cloud computing and the need for businesses to reduce their carbon footprint. The market is also driven by the growing trend of edge computing and the need for businesses to deploy data centers closer to their customers to reduce latency. In conclusion, the market is a growing and dynamic industry that offers significant opportunities for businesses looking to reduce their IT infrastructure costs and improve their operational efficiency. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for data center infrastructure and the need for businesses to deploy data centers in remote locations.
Modular Data Centers Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.58% |
Market growth 2023-2027 |
USD 26.78 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.04 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Cannon Technologies Ltd., Cisco Systems Inc., Colt Technology Services Group Ltd., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Furukawa Electric Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Iron Mountain Inc., Microsoft Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Vertiv Holdings Co., and WESCO International Inc. |
Market dynamics |
Parent market analysis, market growth and trends, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Virtualization of data centers, Large data centers, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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