The micro data center market size was valued at US$ 4.04 billion in 2023 and is expected to reach US$ 11.93 billion by 2031; it is estimated to record a CAGR of 14.5% from 2023 to 2031.
The micro data center market is segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively. The micro data center market in North America is experiencing significant growth, driven primarily by the increased demand for edge computing solutions and the deployment of 5G infrastructure.
For instance, according to an article by CBRE published in May 2022, the emergence of edge computing may soon result in Canadian cities being equipped with micro data centers in a few parking spaces situated close to the businesses they serve rather than being housed in traditional, large-scale central data centers. Furthermore, telecommunications companies in the US are particularly active in this space, strategically placing micro data centers at cell towers and network aggregation points to enhance network performance and reduce latency. The introduction of innovative power solutions, such as advanced uninterruptible power supply (UPS) systems, is expected to further bolster the market. Moreover, the ongoing digital transformation across various sectors, coupled with the increasing volume of data generated by IoT devices, is propelling the demand for micro data centers. These facilities offer advantages such as portability, scalability, and energy efficiency, making them a lucrative option for organizations looking to enhance their data management strategies
The Asia Pacific micro data center market is projected to experience highest growth rate from 2023 to 2031. Asia Pacific (APAC) is a diverse region with a large population and growing digital economy, contributing to the surge in demand for localized data processing and storage solutions. APAC has been at the forefront of edge computing adoption due to the proliferation of IoT devices, smart cities initiatives, and the need for real-time data processing. APAC has witnessed a significant increase in internet penetration rates, leading to a surge in data consumption and the need for localized data processing. According to GSM Association, the IT industry has been instrumental in extending connectivity across the world.
In 2021, the number of internet subscribers reached 4.2 billion globally. In APAC, there were 59% of internet subscribers in 2021, projected to reach up to 62% by 2025. The rise of edge computing is directly linked to increasing internet usage. Micro data centers play a crucial role in supporting edge computing infrastructure by bringing compute resources closer to the source of data, reducing latency, and improving performance.
These data centers are crucial in supporting edge computing by deploying small-scale data centers in geographically distributed locations, including cities, to ensure rapid data processing and reduce reliance on centralized data centers. Micro data centers help address the growing demand for low-latency applications and services, such as video streaming, e-commerce, and mobile gaming.
Based on rack type, the EMEA micro data center market is bifurcated into single rack and multi rack. The single rack segment held the largest micro data center market share. The single rack micro data center is suitable for applications where the cabinet is within the range of 10 and the total load is less than 40kVA. A single rack micro data center is a compact, self-contained data center solution that provides all the essential functions of a traditional data center within a smaller footprint. These micro data centers are often used for edge computing applications. They typically include features such as networking, computing, storage, thermal management, power supply, distribution systems, battery, cooling systems, and security measures.
The compact design of these micro data centers allows for quick deployment within limited spaces and can be installed almost anywhere with a power supply and access to cooling. The key players engaged in providing single rack micro data centers include Cannon Technologies Ltd, Delta Power Solutions, Vertiv Group, and Rittal GmbH & Co. KG, among others.
Eaton Corp Plc, Cannon Technologies Ltd, SCHÄFER Ausstattungssysteme GmbH, Rittal GmbH & Co KG, Delta Electronics Inc, Datwyler IT Infra GmbH, Schneider Electric SE, Intellinet Network Solutions, Panduit, Legrand SA, and Vertiv Group Corp are among the key micro data center market players that are profiled in this market study.
The overall micro data center market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the micro data center market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments.
Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the micro data center market.
The micro data center market is segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively. The micro data center market in North America is experiencing significant growth, driven primarily by the increased demand for edge computing solutions and the deployment of 5G infrastructure.
For instance, according to an article by CBRE published in May 2022, the emergence of edge computing may soon result in Canadian cities being equipped with micro data centers in a few parking spaces situated close to the businesses they serve rather than being housed in traditional, large-scale central data centers. Furthermore, telecommunications companies in the US are particularly active in this space, strategically placing micro data centers at cell towers and network aggregation points to enhance network performance and reduce latency. The introduction of innovative power solutions, such as advanced uninterruptible power supply (UPS) systems, is expected to further bolster the market. Moreover, the ongoing digital transformation across various sectors, coupled with the increasing volume of data generated by IoT devices, is propelling the demand for micro data centers. These facilities offer advantages such as portability, scalability, and energy efficiency, making them a lucrative option for organizations looking to enhance their data management strategies
The Asia Pacific micro data center market is projected to experience highest growth rate from 2023 to 2031. Asia Pacific (APAC) is a diverse region with a large population and growing digital economy, contributing to the surge in demand for localized data processing and storage solutions. APAC has been at the forefront of edge computing adoption due to the proliferation of IoT devices, smart cities initiatives, and the need for real-time data processing. APAC has witnessed a significant increase in internet penetration rates, leading to a surge in data consumption and the need for localized data processing. According to GSM Association, the IT industry has been instrumental in extending connectivity across the world.
In 2021, the number of internet subscribers reached 4.2 billion globally. In APAC, there were 59% of internet subscribers in 2021, projected to reach up to 62% by 2025. The rise of edge computing is directly linked to increasing internet usage. Micro data centers play a crucial role in supporting edge computing infrastructure by bringing compute resources closer to the source of data, reducing latency, and improving performance.
These data centers are crucial in supporting edge computing by deploying small-scale data centers in geographically distributed locations, including cities, to ensure rapid data processing and reduce reliance on centralized data centers. Micro data centers help address the growing demand for low-latency applications and services, such as video streaming, e-commerce, and mobile gaming.
Based on rack type, the EMEA micro data center market is bifurcated into single rack and multi rack. The single rack segment held the largest micro data center market share. The single rack micro data center is suitable for applications where the cabinet is within the range of 10 and the total load is less than 40kVA. A single rack micro data center is a compact, self-contained data center solution that provides all the essential functions of a traditional data center within a smaller footprint. These micro data centers are often used for edge computing applications. They typically include features such as networking, computing, storage, thermal management, power supply, distribution systems, battery, cooling systems, and security measures.
The compact design of these micro data centers allows for quick deployment within limited spaces and can be installed almost anywhere with a power supply and access to cooling. The key players engaged in providing single rack micro data centers include Cannon Technologies Ltd, Delta Power Solutions, Vertiv Group, and Rittal GmbH & Co. KG, among others.
Eaton Corp Plc, Cannon Technologies Ltd, SCHÄFER Ausstattungssysteme GmbH, Rittal GmbH & Co KG, Delta Electronics Inc, Datwyler IT Infra GmbH, Schneider Electric SE, Intellinet Network Solutions, Panduit, Legrand SA, and Vertiv Group Corp are among the key micro data center market players that are profiled in this market study.
The overall micro data center market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the micro data center market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments.
Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the micro data center market.
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- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global micro data center market.
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- The key findings and recommendations such as specific country and segmental insight highlights crucial progressive industry trends in the global micro data center market, thereby allowing players across the value chain to develop effective long-term strategies.
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- Scrutinize in-depth market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. Micro Data Center Market Landscape
5. Micro Data Center Market - Key Market Dynamics
6. Micro Data Center Market - Global Market Analysis
7. Micro Data Center Market Analysis - by Rack Type
8. Micro Data Center Market Analysis - by Organization Size
9. Micro Data Center Market Analysis - by Application
10. Micro Data Center Market - Geographical Analysis
11. Competitive Landscape
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Companies Mentioned
Some of the leading companies in the Micro Data Center Market include:- Eaton Corp Plc
- Cannon Technologies Ltd
- SCHÄFER Ausstattungssysteme GmbH
- Rittal GmbH & Co KG
- Delta Electronics Inc
- Datwyler IT Infra GmbH
- Schneider Electric SE
- Intellinet Network Solutions
- Panduit
- Legrand SA
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 193 |
| Published | October 2024 |
| Forecast Period | 2023 - 2031 |
| Estimated Market Value ( USD | $ 4.04 Billion |
| Forecasted Market Value ( USD | $ 11.93 Billion |
| Compound Annual Growth Rate | 14.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
