Modular Data Center Global Market Report 2024

A modular data center consists of portable components strategically placed in any location to offer data center functionalities such as storage and networking. The primary objective of these modular data centers is to provide a cost-effective and scalable approach to acquiring flexible computing capabilities wherever they are required.

The key components of modular data centers include solutions and services. Solutions encompass container-housed data center solutions featuring customized SME, cloud, and edge applications, along with preconfigured data center containers. These modular data centers cater to organizations of various sizes, including small and medium-sized enterprises and large enterprises, spanning sectors such as banking, financial services and insurance (BFSI), IT and telecommunications, media and entertainment, healthcare, government and defense, retail, manufacturing, and other verticals.

The modular data center market research report is one of a series of new reports that provides modular data center market statistics, including modular data center industry global market size, regional shares, competitors with modular data center market share, detailed modular data center market segments, market trends, and opportunities, and any further data you may need to thrive in the modular data center industry. This modular data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The modular data center market size has grown rapidly in recent years. It will grow from $29.54 billion in 2023 to $34.73 billion in 2024 at a compound annual growth rate (CAGR) of 17.6%. The growth observed in the historical period can be ascribed to the demand for scalable and flexible data center solutions, the advantages of rapid deployment and reduced time-to-market, the expansion of edge computing and IoT applications, initiatives promoting energy efficiency and green data centers, and the widespread adoption of containerization and virtualization technologies.

The modular data center market size is expected to see rapid growth in the next few years. It will grow to $71.05 billion in 2028 at a compound annual growth rate (CAGR) of 19.6%. The anticipated growth in the forecast period can be credited to the heightened adoption in edge and remote locations, the expansion of 5G networks and edge computing, the increasing demand for sustainable and eco-friendly data centers, the rise in modular data center solutions for disaster recovery, and the integration of advanced cooling and power management technologies. Notable trends expected in the forecast period encompass the adoption of prefabricated and plug-and-play modular data centers, the development of micro data centers tailored for specific use cases, the utilization of modular data centers for temporary or mobile deployments, the integration of artificial intelligence for predictive maintenance, and a strong emphasis on modular data center security and compliance.

The modular data center market is expected to experience growth due to the increasing emphasis on environmental protection and energy consumption regulations. The performance of modular data centers in energy consumption, coupled with benefits in construction, planning, and space requirements, aligns with government policies. Newly constructed data centers have realized advantages in construction time, energy efficiency, and cost. These modular solutions address server changes like cloud computing, virtualization, centralization, and high density, aiming to enhance data center operational efficiency, reduce energy consumption, and facilitate rapid expansion with minimal interference. The European Commission is exploring ways to improve the energy efficiency of data centers and cloud computing, with the goal of achieving carbon neutrality in data center operations within the European Union by 2030. Consequently, the growth of the modular data center market is driven by increasing environmental protection and energy consumption regulations.

The modular data center market is anticipated to grow due to the expanding scope of digital transformation. Digital transformation involves leveraging digital technologies, strategies, and capabilities to fundamentally improve organizational operations, customer value delivery, and adaptation to evolving market conditions. In the context of modular data centers, digital transformation entails the implementation of cutting-edge digital technologies to optimize energy consumption, enhance cooling efficiency, and ensure equipment reliability in data center operations. For example, the National Informatics Centre reported over 88 billion digital transactions in India in 2021-22. Thus, the growing trend of digital transformation is expected to fuel the growth of the modular data center market.

A key trend in the modular data center market is technological innovation, with major companies integrating new technologies into their products to enhance data center efficiency. Schneider Electric SE, a France-based digital automation and energy management company, launched a faster prefabricated data center service in Europe in June 2022. The 'Easy Modular Data Center All-in-One' brand offers prefabricated containerized data centers ranging from 27kW to 80kW, streamlining the ordering process and moving toward standardized configurations available on a configure-to-order (CTO) basis. This innovation aims to meet the needs of edge sites or smaller users, delivering ISO standard-sized containers in as little as 12 weeks.

Strategic partnerships and collaborations with start-ups and mid-sized companies are a prominent strategy in the modular data center market, enabling major companies to expand their product and service offerings. In June 2023, Hewlett Packard Enterprise (HPE), a US-based IT company, announced an expanded partnership with Equinix, a US-based Internet services company, to extend the HPE GreenLake private cloud portfolio at Equinix International Business Exchange (IBX) data centers. This collaboration allows for the pre-provisioning of HPE GreenLake private cloud offerings, providing customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy.

In May 2021, Johnson Controls International plc, an Ireland-based HVAC and security equipment manufacturer, acquired Silent-Aire Limited Partnership, a Canada-based manufacturer of modular data centers, further solidifying Johnson Controls' position as a market leader in the expanding data center market.

Major companies operating in the in the modular data center market report are The International Business Machines Corporation, Huawei Technologies Co. Ltd., Dell Technologies Inc., Hewlett Packard Enterprise., Baselayer Technology LLC, Vertiv Group Corp., Schneider Electric SE, Cannon Technologies Ltd, Rittal Gmbh & Co. KG, Instant Data Centers LLC, Colt Group SA, Bladeroom Group Ltd., Diversitec Inc., Iron Mountain Inc., Rahi Systems Pvt Ltd., Eaton Corporation, EdgeConneX Inc., Flexenclosure AB, Green Datacenter AG, Hitachi Vantara Corporation, IO Data Centers, MDC Stockholm AB, Nortek Air Solutions, Panduit Corp., PCX Corporation, STULZ GmbH, Sunbird Software, Telenetix Private Limited, TSI Incorporated., Uptime Institute LLC., Vapor IO Inc., ZTE Corporation, ZutaCore Inc.

North America was the largest region in the modular data center market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the modular data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the modular data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The modular data center market consists of sales of all-in-one modules and individual modules. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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