According to a recent report published by Allied Market Research, titled, “Modular data center Market By Component, Enterprise Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020-2027,” the global modular data center market size was valued at $14,952 million in 2019, and is projected to reach $59,971 million by 2027, registering a CAGR of 18.7% from 2020 to 2027.
The growth of the global modular data center market is driven by increase in demand for rapidly deployable & scalable data centers. In addition, various factors such as upsurge in adoption of cloud services by small & medium size enterprises (SMEs), rise in demand for green data centers, and surge in demand for energy-efficient data centers notably contribute toward the growth of the market. Moreover, rise in investments to develop advanced data centers during the COVID-19 pandemic is considerably propelling the growth of the market. However, challenges associated with transportation of the modular data center and vendor lock-in hampers growth of the market. On the contrary, surge in demand for modular data centers by colocation providers and emergence of fourth generation of data centers are anticipated to provide lucrative growth opportunities for the expansion of the market during the forecast period.
In 2019, the solution segment exhibited the highest growth in the modular data center market share in 2019, and is expected to maintain its dominance in the upcoming years, due to increase in adoption of modular data center solutions driven by several advantages offered by modular data center such as enhanced energy efficiency, mobility, speed & agility, and scalability, in comparison with traditional data center solutions. However, the services segment is expected to witness the highest growth, as there has been an extensive adoption of deployment and integration services among end users, as it ensures effective functioning of modular data center solution throughout the process.
By enterprise size, the global modular data center market share was dominated by the large enterprises segment in 2019, and is expected to continue this trend in the upcoming years, as various issues associated with the higher carbon footprint and higher power consumption in large enterprises propels demand for modular data centers due to its ability to provide higher energy efficiency. However, the small & medium enterprises segment is expected to witness the highest growth, owing to the elimination of the need for specialized support skillsets along with the benefits such as the manpower and administration savings, real estate savings, and lower power utilization efficiency (PUE).
The current estimation of 2027 is projected to be higher than pre COVID-19 estimates. The COVID-19 outbreak has low impact on the modular data center market growth. The spread of COVID-19 has considerably augmented data traffic. In addition, upsurge in the storage volume requirement due to the pandemic driven by proliferation of emerging technologies such as artificial intelligence (AI), big data, and Internet of things (IoT) is projected to continue to drive the modular data center investments across the globe. The industry players such as Amazon, Google, Facebook, and Microsoft continuing to lead spending on data centers, followed by Alibaba, Apple, and Tencent. For instance, in April 2020, Alibaba Cloud, announced to invest a $28.2 billion in cloud infrastructure as well as the construction of advanced data centers in upcoming three years. Such investments significantly fuel the growth of the modular data center market.
Key Findings Of The Study
- By component, in 2019, the solution dominated the modular data center market size. However, the services segment is expected to exhibit significant growth rate during the forecast period.
- Depending on enterprise size, the large enterprises generated the highest revenue in 2019. However, the small & medium size enterprises segment is expected to witness highest growth rate in the near future.
- On the basis of industry vertical, the IT & telecom industry accounted for the highest revenue in 2019, however, the healthcare industry is expected to witness highest growth rate in the forecasted period.
- Region wise, the modular data center market was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years.
Some of the key players profiled in the modular data center industry report include BASELAYER, CommScope, Inc., Eaton, Dell Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM Corporation, Rittal, Schneider Electric SE, and Vertiv Group Corp. This study includes content modular data center market trends, modular data center market analysis, and future estimations to determine the imminent investment pockets.