Modular Data Center Market Poised For Strongest Growth Due To Increasing Adoption Of Edge Computing

Modular Data Center Market Poised For Strongest Growth Due To Increasing Adoption Of Edge Computing

The modular data center market is growing significantly owing to increasing need for scalable and efficient data centers among organizations. Modular data centers provide a pre-engineered, standardized approach to design and implementation of physical infrastructure of the data center. They are assembled in a factory from standardized and pre-tested components and then shipped to any location worldwide. The key advantages of modular data centers include enhanced scalability, flexibility, reduced downtime, increased energy efficiency and lower costs of power and cooling.

The Global Modular Data Center Market Size Is Estimated To Be Valued At US$ 18.49 Billion In 2024 And Is Expected To Exhibit A CAGR Of 24% Over The Forecast Period 2024-2031.

Key Takeaways

Key players operating in the modular data center market are Huawei, IBM, Eaton, Dell, Vertiv, Schneider Electric, Hewlett Packard Enterprise, Cisco, and Rittal. The adoption of edge computing across industries is creating significant demand for modular data centers. Edge computing requires deployment of data infrastructure closer to the source of data generation which can be best served by flexible and portable modular data center solutions. Technological advancements such as advanced cooling solutions, lithium-ion batteries, and infrastructure management software are improving the efficiency, scalability and management of modular data centers.

Market Trends

The rising adoption of 5G networks will drive the modular data center market growth during the forecast period. 5G will enable new applications and use cases such as autonomous vehicles, augmented/virtual reality, smart cities, and IoT which will generate huge amount of data at the edge. This creates need for deployment of edge data centers for storage and processing of data in real-time. Another key trend is growing preference for all-in-one modular data centers as they provide fully integrated infrastructure solutions thereby reducing deployment time and costs.

Market Opportunities
Growth of cloud computing is one of the major opportunities for modular data center market. Hyperscale cloud providers are developing portable modular data center solutions that can be rapidly deployed at customer locations to support public/hybrid cloud offerings. Increasing investments by enterprises in edge infrastructure for IoT and mobile computing applications also present significant growth opportunities. The flexibility and portability of modular data centers make them well-suited to support emerging technologies across industries.

Impact Of COVID-19 On Modular Data Center Market Growth

The COVID-19 pandemic has profoundly impacted the modular data center market. During the initial phases of the pandemic in 2020, several industries witnessed a decline in their operations due to lockdowns imposed across major economies. This resulted in reduced deployment of new modular data center facilities by enterprises. However, the increasing reliance on digital technologies for work from home, e-commerce, and online streaming amid the restrictions provided opportunities for growth.

As organizations aimed to enhance their cloud computing and edge infrastructure, investments in modular and portable data center solutions picked up. Their ability to be deployed quickly helped in addressing the sudden surge in bandwidth usage. The demand from the healthcare industry for modular centers also rose as they required scalable infrastructure to store and analyze large volumes of patient data.

Moving ahead, the market is projected to witness sustained growth. Enterprises are expected to continue adopting modular solutions at a higher rate owing to benefits like scalability, reliability, versatility and lower costs of ownership. Rapid adoption of technologies such as AI, IoT, 5G will augment data usage as well, necessitating new facilities. While legacy infrastructure may constrain many organizations, modular centers provide an agile option to support their digital transformation initiatives seamlessly. The need to improve disaster recovery capabilities and ensure business continuity will drive further uptake.

Geographical Regions With Highest Modular Data Center Market Value

North America currently accounts for the largest share of the global modular data center market in terms of value. This is attributed to the early adoption of advanced colocation and cloud computing technologies by enterprises across sectors such as IT, telecom, BFSI in the region. Additionally, presence of prominent modular data center providers and hyperscale operators have augmented deployments. Going forward, Asia Pacific is anticipated to witness the fastest growth on account of rising investments by public and private organizations to develop digital infrastructure amid the growing digitization. Countries such as China, India and Japan are aggressively focusing on deploying modular facilities to support their Smart City projects and cater to the immense data center demand from an increasingly connected population.

Fastest Growing Region For Modular Data Center Market

Asia Pacific region is poised to emerge as the fastest growing regional market for modular data centers during the forecast period. This is mainly due to the rapid digital transformation occurring across industries in countries like China, India, Japan, and South Korea. The strong economic growth along with supportive government policies and initiatives targeting technology adoption are driving investments in advanced data center infrastructure. Furthermore, growing focus on edge computing and latency-sensitive applications are necessitating deployments of modular facilities close to end users in this region. The increasing penetration of 5G also raises the need for scalable, portable infrastructure to handle the massive data traffic. With Asia becoming a manufacturing and IT hub globally, the demand for agile, energy-efficient modular data centers will continue to accelerate to meet current and future requirements of clients.

What are the key data covered in this Modular Data Center Market report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Modular Data Center Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the Modular Data Center  Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behavior

:- Modular Data Center  Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Modular Data Center  Market vendors

FAQ’s

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