Containerized Data Center Market Size, Share & Trends Analysis Report By Container Type (20 Feet, 40 Feet), By Organization Size, By End Use (Healthcare, Retail And E-commerce), By Region, And Segment Forecasts, 2024 - 2030

Containerized Data Center Market Trends

The global containerized data center market size was estimated at USD 11.19 billion in 2023 and is expected to grow at a CAGR of 26.6% from 2024 to 2030. The exponential increase in data traffic is significantly driving the growth of the containerized data center industry. With the proliferation of digital devices, the Internet of Things (IoT), social media, and streaming services, the volume of data generated and transmitted across networks has surged.

The rollout of the 5G network has enhanced data transmission speeds and brought forth new applications, leading to a surge in demand for data center infrastructure to operate the growing data traffic. The technology with enhanced speed for faster downloads, quicker access, and smoother streaming to online services generates vast amounts of data, thereby creating demand for high-speed data centers across the world. Moreover, cloud services require robust data centers to manage and host applications and computing resources. Cloud providers are focused on offering edge computing services, which require smaller data centers or edge locations near users, thereby surging demand for modular data centers. The widespread adoption of cloud services across small & medium enterprises and large enterprises fuels market growth.

The widespread adoption of cloud computing has significantly increased the demand for scalable and flexible IT infrastructure. As businesses migrate their applications and data to the cloud, they require data center solutions that can be seamlessly scaled to accommodate fluctuating workloads and storage needs. Containerized data centers are modular solutions that can allow organizations to scale capacity up and down quickly and efficiently. This scalability ensures businesses can align their data center resources with their cloud computing requirements, providing a responsive and adaptable infrastructure that supports dynamic cloud environments.

The continued rollout of IoT networks is driving the preference for edge computing, opening opportunities to transform the incumbent data-rich world into a data-driven world. Many IoT applications, such as smart healthcare, industrial automation, and self-driving cars, necessitate a computational infrastructure that is closer to the devices and end users to facilitate faster response and offload some of the processing work from centralized cloud platforms. Today's edge data center solutions must ensure low latency in collecting and processing the data received from wireless sensors, digital platforms, and Artificial Intelligence (AI)-based applications. This requires a non-conventional approach to computing, apart from a mobile, efficient, and scalable infrastructure, given that all software computing, network connectivity, and storage must be located on the premises, such as a bank branch or manufacturing floor.

Market Concentration & Characteristics

The market has seen significant innovation over recent years, driven by the growing demand for scalable, efficient, and flexible data storage solutions. One key area of innovation has been the design and deployment of modular data centers, which offer rapid deployment and scalability compared to traditional data centers. These modular units can be quickly assembled, disassembled, and transported to different locations, allowing businesses to adapt to changing needs and emerging markets with minimal disruption. Innovations such as liquid cooling, evaporative cooling, and natural airflows have been incorporated to enhance energy efficiency and reduce operational costs. Moreover, edge computing has driven innovation in the containerized data center market. As the need for real-time data processing close to the data source increases, containerized data centers offer a practical solution by providing localized processing power.

Governments and regulatory bodies worldwide are implementing measures to curb energy consumption and reduce carbon emissions from data center operations. These regulations may include requirements for minimum energy efficiency levels, utilization of energy-efficient equipment and technologies, and compliance with industry-recognized standards such as Power Usage Effectiveness (PUE) and Energy Star certification. Suppliers and operators of containerized data centers, hence, must ensure that their products and operations meet or exceed these regulatory requirements to remain compliant and competitive in the market.

Many new product launches are emphasizing enhanced edge computing capabilities. These containerized data centers are designed to be deployed closer to end users or IoT devices, reducing latency and improving performance for applications that require real-time data processing. Innovations include compact designs that can fit into smaller spaces while still delivering robust computing power. For instance, in September 2022, Vertiv Group Corp., a U.S.-based manufacturer and servicer of digital infrastructure for data centers, unveiled the SmartMod Max CW, a prefabricated data center solution designed for rapid IT deployment. The scalable system accommodates up to 200kW of IT load and leverages chilled water cooling for energy-efficient operation. The solution was also designed to offer customizable power, cooling, and rack configurations to cater to diverse data center needs, from edge deployments to those of mid-sized enterprises and government agencies. The company was looking forward to providing the flexibility to ensure businesses can right-size their data center investment to meet specific requirements.

Containerized data centers offer several advantages to businesses, enhancing their operational efficiency, scalability, and cost-effectiveness. Containerized data centers often leverage standardized components and configurations, simplifying procurement, deployment, and maintenance processes Containerized data centers provide businesses with rapid deployment, scalability, cost efficiency, and enhanced mobility. These advantages make them a strategic choice for companies looking to improve their IT infrastructure, adapt to changing demands, and maintain a competitive edge in today’s dynamic market. By leveraging the benefits of containerized data centers, businesses can achieve greater operational flexibility, efficiency, and resilience. The containerized data centers market serves a highly diverse range of end users across multiple industries, including technology, telecommunications, government, healthcare, and financial services. This broad end user base reflects the versatility and wide applicability.

Container Type Insights

Based on container type, the 40 feet segment dominated the market with the largest revenue share of 50.0% in 2023. The increasing need for data centers in emerging markets is a trend in the 40 feet container segment. Emerging economies such as Asia Pacific and Latin America are experiencing rapid growth in digital services and require scalable data center infrastructure to support this growth.

The customized container segment is expected to register the fastest CAGR of 31.6% from 2024 to 2030. Several factors drive the demand for customized containers; various industries and use cases (e.g., edge computing, telecommunications, military, remote operations) have varying and specific requirements that standard containers may not fulfill. Moreover, customized containers can be customized to accommodate future growth and expansion by incorporating modular components and infrastructure, ensuring scalability.

Organization Size Insights

Based on organization size, large organizations dominated the market with the largest revenue share in 2023. Large enterprises are increasingly integrating containerized data centers into their hybrid and multi-cloud strategies. These modular data centers enhance hybrid cloud infrastructure by enabling seamless connectivity with public cloud services and extending on-premises capabilities. This approach allows for efficient workload management across both private and public cloud environments, streamlining the data center footprint. It also improves data sovereignty and regulatory compliance while leveraging the benefits of combined on-premises and cloud resources.

The small & medium-sized organizations segment is expected to register the highest CAGR from 2024 to 2030. The growing demand for containerized data centers among small and medium-sized organizations reflects a significant trend in the data center market. These modular data centers offer a scalable and efficient solution, allowing businesses to adjust their infrastructure to meet changing needs without substantial investments in traditional data centers.

End Use Industry Insights

The IT and telecommunications segment dominated the market with the largest revenue share in 2023, driven by the need for rapid deployment and scalability. These modular solutions offer significant cost efficiencies and operational benefits, making them ideal for companies facing fluctuating demand amidst emerging technologies such as 5G. Edge computing and the increasing emphasis on low-latency connectivity are also fueling demand for portable, efficient data centers. Moreover, sustainability and energy efficiency are becoming critical, with modern designs focusing on reducing carbon footprints.

The healthcare segment is expected to register the highest CAGR from 2024 to 2030, driven by key trends such as rapid deployment and scalability, to manage the growing volume of medical data. These modular data centers offer enhanced data security and compliance with regulations such as Health Insurance Portability and Accountability Act (HIPAA), making them suitable for secure and isolated data environments. The rise of telemedicine and remote patient monitoring necessitates reliable, quickly deployable IT infrastructure, further boosting their adoption. 

Regional Insights

North America containerized data center market is expected to grow significantly at a CAGR of 26.1% from 2024 to 2030. The rising digitization across various sectors is driving the growth of the containerized data center market in the region. Digitization is transforming industries in North America, such as healthcare, finance, retail, and manufacturing. Businesses are increasingly relying on digital tools and platforms to enhance their operations, customer engagement, and efficiency.

U.S. Containerized Data Center Market Trends

The containerized data center market in the U.S. is expected to grow significantly at a CAGR of 25.8% from 2024 to 2030. The increasing need for energy-efficient data center alternatives is driving the growth of the containerized data center market in the U.S. Many companies in the market are collaborating to reduce energy consumption, achieve carbon neutrality, and discover innovative cooling technologies.

Asia Pacific Containerized Data Center Market Trends

The containerized data center market in Asia Pacific is expected to grow significantly at a CAGR of 27.8% from 2024 to 2030. Governments across the Asia Pacific region are widely adopting containerized data centers. Numerous smart city initiatives are underway in the Asia Pacific region, which is driving the adoption of containerized data centers. Governments are investing in smart infrastructure to enhance urban living, improve public services, and drive economic growth.

China containerized data center market is expected to grow significantly at a CAGR of 27.3% from 2024 to 2030. The exponential growth of data generated by digital activities, social media, streaming services, and IoT devices in China creates a demand for efficient data storage and processing solutions. Containerized data centers offer a scalable and flexible infrastructure to manage this growing data volume. Their modular design allows for incremental expansion, enabling businesses to scale their IT infrastructure per their data requirements.

The containerized data center market in India is expected to grow significantly at a CAGR of 28.5% from 2024 to 2030. India is experiencing a growth of digitization across various sectors, driving significant growth in the containerized data center market. Containerized data centers offer substantial cost advantages over traditional data centers. Their modular design reduces construction and operational costs, making them an attractive option for businesses with budget constraints.

Japan containerized data center market is expected to grow significantly at a CAGR of 27.5% from 2024 to 2030. The innovative technology landscape of Japan is driving the growth of containerized data centers in the country. The adoption of these advanced data centers reflects the country's commitment to maintaining its technological edge and addressing the evolving needs of the digital economy. Introducing new containerized data centers showcases the country’s ability to develop advanced solutions that meet the demands of modern IT infrastructure.

Europe Containerized Data Center Market Trends

The containerized data center market in Europe is expected to grow at a CAGR of 25.6% from 2024 to 2030. Governments across Europe are increasingly adopting containerized data centers for various public sector applications, particularly in research and development. Research and development projects often have fluctuating demands for computing power and data storage. Containerized data centers provide a highly scalable and flexible solution, allowing government agencies to quickly adjust their IT infrastructure in response to the changing needs of different projects.

UK containerized data center market is expected to grow at a CAGR of 25.8% from 2024 to 2030. Companies are increasingly integrating containerized data center segments into their business operations to cater to the growing needs of businesses for scalable, efficient, and flexible IT infrastructure in the country. As organizations in the country are undergoing digital transformations, they require robust data center solutions that can keep pace with the rapid increase in data generation and processing needs.

The containerized data center market in Germany is expected to grow at a CAGR of 25.2% from 2024 to 2030. Land scarcity in Germany is a significant factor driving the growth of containerized data centers. As one of Europe's most densely populated countries, Germany faces challenges in finding large, suitable plots of land for traditional data center construction.

France containerized data center market is expected to grow significantly at a CAGR of 27.1% from 2024 to 2030. The adoption of containerized data centers by companies across various sectors in France is significantly driving the growth of this market. Industries ranging from finance, healthcare, and telecommunications to manufacturing and retail are recognizing the benefits of containerized data centers. The manufacturing sector embraces Industry 4.0, which integrates digital technologies into manufacturing processes. Containerized data centers play a key role in this transformation by providing the computing power needed for real-time data analysis, automation, and predictive maintenance.

Middle East & Africa Containerized Data Center Market Trends

The containerized data center market in the Middle East & Africa is expected to grow at a CAGR of 27.4% from 2024 to 2030. The Middle East and Africa region is witnessing a surge in foreign investments for infrastructure development. As companies expand their operations into the region, there is a growing demand for modern data center solutions to support the evolving digital infrastructure needs, thus driving the growth of the regional containerized data center market.

Key Containerized Data Center Company Insights

Some of the key players operating in the market include Dell Technologies; Hewlett Packard Enterprise (HPE); and Cisco Systems among others.

• Dell Inc. is an IT provider specializing in enterprise hardware solutions designed to help organizations and individuals navigate the digital landscape. The company offers a wide range of solutions, from conventional infrastructure to multi-cloud environments, to meet the evolving needs of the data-driven era. The company’s integrated IT solutions empower businesses to modernize infrastructure, manage multi-cloud environments, facilitate workforce transformation, and provide connectivity solutions.

• Hewlett Packard Enterprise Development LP provides IT infrastructure products and services. The company offers servers, software, data storage, networking, systems, and cloud computing solutions. The company operates through six business segments, namely Intelligent Edge, HPC & AI, Storage, Compute, Financial Services, and Corporate Investments and other. 

Delta Power Solutions, Fuji Electric Co., Ltd., Rittal GmbH & Co. KG, Vertiv Group Corpare some of the emerging market participants in the containerized data center market.

• Delta Power Solutions is a provider of power and technology solutions, offering a range of products and services for data centers, communication networks, and commercial and industrial environments. The company is known for its innovative and efficient solutions, including its containerized data center products that provide scalable, modular, and highly integrated infrastructure for edge computing and data center applications.

• Fuji Electric Co., Ltd. makes electronic products and electrical gear. The company's offerings include factory automation equipment, automatic vending machines, and power supply. The company also provides information and electronic components, such as power semiconductors and integrated circuits (ICs). 

Recent Developments

• In November 2023, Vertiv Group Corp. introduced Vertiv TimberMod, a prefabricated wooden data center module. Developed as a variant of the company’s Vertiv Power Module and Vertiv SmartMod families, Vertiv TimberMod marked a significant step toward sustainability in the data center industry by using mass timber instead of steel to reduce the carbon footprint of the product, making it an eco-friendlier option for customers. The innovative approach was aimed at not only benefiting the environment but also enhancing the operational efficiency of data center operations.

• In September 2023, Dell Inc. introduced new Dell APEX Cloud Platform for Microsoft Azure simplifies hybrid cloud management. It extends the Azure experience to on-premises data centers and edges, offering faster deployment, continuous updates, and unified management. This empowers businesses to strategically place workloads across their infrastructure for optimal performance and cost.

• In August 2023, Hewlett Packard Enterprise (HPE) partnered with Schneider Electric, aiming to propel businesses in Asia Pacific towards sustainability. This strategic partnership offers a comprehensive suite of sustainable IT solutions. Schneider Electric brings its expertise in renewable energy and sustainability consulting, while HPE contributes its portfolio of eco-friendly IT products and services, including the HPE GreenLake platform. This cloud service allows for optimizing workloads and data center operations, leading to reduced energy consumption.

Containerized Data Center Market Report Scope

Global Containerized Data Center Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global containerized data center market report based on container type, organization size, end use industry, and region:

• Container Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • 20 Feet Container

  • 40 Feet Container

  • Customized  Container

• Organization Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Small & Medium-Sized Organizations

  • Large Organizations

• End Use Industry Outlook (Revenue, USD Billion, 2018 - 2030)

  • IT and Telecommunications

  • BFSI

  • Healthcare

  • Retail and E-commerce

  • Aerospace & Defense

  • Energy & Utilities

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa (MEA)

    • UAE

    • Saudi Arabia

    • South Africa