Modular Data Center Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Organization Size (Later Enterprises, Small & Medium Enterprises), By Industry Vertical, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global modular data center market size was valued at USD 18,187.2 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.2 % from 2022 to 2030. Factors such as the expansion of edge computing and the increasing demand for energy-efficient, low-carbon, and green data centers across industries are driving the demand for modular data center applications among industries. Moreover, growing digital transformation is likely to fuel the growth of the market. The COVID-19 pandemic had a positive impact on the modular data center market. Increased corporate awareness of the advantages that cloud services can offer, increased board pressure to provide more secure and robust IT environments, as well as the establishment of local data centers, have all contributed to the growth of modular data centers. Italy, a nation that was particularly heavily hit by COVID-19, experienced a 775% rise in monthly users of Microsoft Teams in March 2020. Furthermore, Google's video chat services witnessed daily user growth of 60% and a 2 million user increase in March and early April of 2020. To provide sufficient network services and maintain data security for all the new users, a reliable data center infrastructure was required.

Modular data centers showcase all the capabilities of traditional data centers with additional advantages. Additionally, these kinds of data centers also address many of the construction issues associated with constructing brick-and-mortar data centers. It has applications in various industries such as IT and Telecom, BFSI, healthcare, government and defense, retail, media and entertainment, and others.

Customers of modular data center programs are compelled to commit to a long-term business partnership of 15 to 25 years with a particular vendor. Since many of the parts, devices and programs utilized in the modular building are proprietary, there is an inevitable risk. More innovation leads to more automation and complexity, which increases reliance on the vendor. Hence, dependency on vendors is likely to restrain the modular data center market growth.

IoT is expected to produce significant amounts of data in industrial applications. For instance, according to Quicksilver Capital, a smart factory will produce 5 petabytes of data every week, while an offshore oil rig is estimated to generate 1 to 2 terabytes of data every day. Massive volumes of data are transformed into insights and value by new business models that use artificial intelligence, platforms, and algorithms. According to the World Economic Forum, digitally enabled platform business models will generate 70% of new economic value over the next decade.

Component Insights

The solutions sub-segment further comprises all-in-one modules and individual modules. The solutions segment accounted for the largest revenue of USD 14,719.3 million in 2021 and is projected to grow at a CAGR of 16.9% over the forecast period. The market growth in this segment is attributed to the features such as in-house fabrication, an all-in-one format, and high power density offered by the solution providers.

The services segment is likely to witness a CAGR of 18.2%, the highest for the segment over the forecast period. Factors such as short integration and deployment period, use of the global infrastructure management software, short commissioning time, and easy maintenance are expected to drive the growth of the services segment.

Organization Size Insights

Based on organization size, the market is segmented into large enterprises and small and medium enterprises. The large enterprises segment accounted for the largest revenue of USD 11,365.2 million in 2021 and is projected to grow at a CAGR of 16.8% over the forecast period. As organizations grow, so does the need for better data centers. Many large enterprises are able to keep up with the current industry trend owing to the modular data center. Large organizations can also integrate scalable data center alternatives to guarantee better market responsiveness.

The small and medium enterprises segment is likely to witness a CAGR of 17.8%, the highest for the segment over the forecast period. Modules for this type of modular data center are prefabricated in the factory, reducing the effort on site and speeding up deployment times, even though the number of modules can be flexible and adjusted based on customer requirements.

Industry Vertical Insights

The IT and Telecom segment accounted for the largest revenue share of 29.8% in 2021 and is projected to witness a CAGR of 16.0% over the forecast period. The modular data center, made up of micro modules, is gaining popularity. Large telecom and Internet organizations and large and medium-sized businesses place high importance on the micro modules' predictability and adaptability. Micro modules have been widely used by many telecom companies worldwide.

The healthcare sub-segment is likely to witness a CAGR of 18.6%, the highest for the segment over the forecast period. In the healthcare sector, there is an unheard-of need for patient care capacity, power dependability, and connectivity. Prefabricated modular data centers, which are self-contained enclosures that hold IT capability in large, medium, and small amounts, along with all the necessary power and cooling infrastructure, is one solution that satisfies these three crucial hospital requirements.

Regional Insights

North America dominated the market and accounted for a revenue share of 40.6% in 2021 and is expected to witness a CAGR of over 16.6% over the forecast period. Factors such as the presence of prominent market players such as U.S.-based Dell Inc., Hewlett Packard Enterprise Development LP, Vertiv Group Corp., and Baselayer Technology, LLC. and the presence of developed technology and data center infrastructure are contributing to the highest share of the market of the region.

Asia Pacific is expected to witness the highest CAGR of 18.5% over the forecast period. Suitable government policies and the need for data center infrastructure upgradation in the Asia Pacific are driving the growth of the modular data center market in the region.

Key Companies & Market Share Insights

The modular data center market has a fragmented competitive landscape, featuring several global and regional players. The market players are investing in Research & Development (R&D) to develop advanced solutions and gain a competitive edge in the market. Moreover, they are expanding production capacities to meet growing customer demand.

For instance, in April 2021, Vertiv Group Corp. opened a factory in Rugvica, Croatia to build integrated modular data centers. The factory is equipped with the latest manufacturing processes. The Rugvica factory is designed to provide a varied range of prefabricated modular solutions as well as cable stations that power the Internet. The production facility is expected to help the company meet the growing demand for prefabricated modular data centers. Some of the prominent players in the modular data center market include:

• Dell Inc.

• Hewlett Packard Enterprise Development LP

• Huawei Technologies Co., Ltd.

• Vertiv Group Corp.

• Eaton

• Schneider Electric

• Baselayer Technology, LLC.

• Rittal GmbH & Co. KG

• Cannon Technologies Ltd.

• PCX Holding LLC

Modular Data Center Market Report Scope

Global Modular Data Center Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global modular data center market report based on, component, organization size, industry vertical, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solutions

    • All-in-one Module

    • Individual Module

      • IT

      • Power

      • Cooling

  • Services

    • Design And Consulting

    • Integration And Deployment

    • Maintenance & Support

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• Industry Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & Telecom

  • Government & Defense

  • Media & Entertainment

  • Healthcare

  • Retail

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

    • South Africa