Modular Data Center Market, By Component (Solutions (All-In-One Containers and Independent Module Containers) and Services), By Data Center Size (Small, Mid-Size and Large), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Report Code: PMI457220 | Publish Date: May 2024 | No. of Pages: 180

Global Modular Data Center Market Overview

Modular Data Center Market was valued at US$ 29.9 billion in 2024 and is projected to grow at a CAGR of 19.2% to reach US$ 148.3 billion by 2034.

A modular data center is a data center that follows industry standards for both module and compartment configuration. Several distinct sections make up the entire data center. Based on a single, unified standard, every region is created uniquely for its scale, power load, configuration, etc. To prevent interference and enable autonomous operation without the need for shared resources, the cooling, power supply, and management systems in a modular data center are divided and modularized. Numerous benefits may be provided to the data center by a module. The term "converged infrastructure" is frequently used to describe modular data centers, which encourage economies of scale and economical energy use while taking the environment into account. Rather than treating all distinct systems as separate entities for U.S. Federal Communications Commission compliance certification, a module might be considered as a single entity.

Furthermore, it is projected that companies will increasingly use modular solutions to fulfill their expanding demands for data processing and storage, which will fuel the modular data center market's growth. Organizations may swiftly adapt to changing business requirements and IT demands by rapidly deploying modular data centers. This is crucial for sectors like healthcare, banking, and e-commerce where revenue and operations can be severely impacted by downtime. However, it is expected that security issues, a lack of standards, and the complexity of the design, construction, and management would hamper market expansion. Designing, constructing, and operating modular data centers can be challenging.

Some firms may be discouraged from implementing this technology due to its complexity, which can result in increased costs and longer implementation times. Within the next five years, the modular data center will have the ability to establish itself as a "virtually recognized approach" to data center construction. Any organization may construct a modular data center for itself and grow its size to accommodate additional IT-related requirements, regardless of its size or industry.

Modular Data Center Market Size

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Global Modular Data Center Market Dynamics

Modular Data Center Market Key Drivers:

Quick construction time and rapid installation

  • A lesser amount of time is needed for planning and designing when using modular data centers. Considering the design aim, a reasonable configuration of the system structure may be achieved. For instance, only a specific quantity and kind of equipment that can satisfy present IT needs is used in the physical layout of module units. Large-scale module manufacture results in faster delivery times and ready-to-use product availability.
  • Standardized connection techniques cut installation times by reducing the amount of effort required for on-site configuration and connecting. Similar to the work done on-site, modules can be integrated and pre-tested in the factory. Less time is required for system adjustments.
  • The data center is built to satisfy the present IT requirements, and to expedite deployment even further, fewer small-scale infrastructures than the larger, older systems, are required. Modular data centers have a significantly shorter building time. subsequently, constructing a conventional data center takes around 7 to 8 months, but constructing a modular data center takes 2 to 3 months.

Demand for eco-friendly data centers

  • The growing need for eco-friendly data centers is fueling this industry. Green data centers provide businesses with minimal environmental effects and maximum efficiency via the use of energy-efficient technologies and management techniques.
  • One of the most important benefits of modular data centers is that, in comparison to traditional data centers, they utilize less electrical power and are also more renewable, enabling them to fulfill business essential demands for less usage of energy. Modular data centers are in high demand due to higher electrical consumption and sustainability standards laid down by authorities internationally.

Modular Data Center Market Restrains:

High energy consumption

  • A data center with significant power usage requires enormous amounts of electricity to run. Concerns about power supply, cooling, and airflow control are seldom given top priority when building typical data centers. Many data centers have excessively high Power Usage Effectiveness (PUE), and they often employ standard environmental power equipment that is highly reliable.
  • The PUE of these data centers is typically more than 2.0, meaning that fifty percent of the power utilized by the data centers is required for the IT load and the remaining half is consumed for crucial and physical internet services, such as power supply, cooling, and lighting installations. Nevertheless, the efficiency of this equipment is typically low.

Global Modular Data Center Market Segmentation

Modular Data Center Market is segmented based on Component, Data Center Size and region:

Component Insights:

  • Solutions:

The solutions segment includes solutions like All-in-one containers and Independent module containers. These modules aid with deployments at sites and edge computing applications. 

  • All-In-One Containers:

The self-contained, prefabricated All-in-One Modules are kept within shipping containers as data centers. With all the required power, cooling, security measures, and IT infrastructure, they provide a comprehensive solution. They are perfect for temporary deployments, remote sites, and edge computing applications where they may be quickly deployed.

  • Independent Module Containers:

These modular containers offer unparalleled versatility and scalability. Independent modules provide users with more creative freedom than All-in-One containers, which are self-contained units. To satisfy certain power, cooling, and IT needs, each one may be specifically tailored. Additionally, they are perfect for applications with changing or expanding IT demands since they can readily be scaled up or down by adding or deleting modules.

  • Services:

The services cover the hardware and software elements of a modular data center, including the physical infrastructure, power and cooling infrastructure, and IT infrastructure. Modular data center service providers could also help with the workload migration of the data center to the new setting and provide clients with educational and training opportunities.

Among the segments mentioned above the one that dominated the market is the Solutions segment due to characteristics like in-house manufacturing, an all-in-one format, and high power density provided by the solution providers

Data Center Size Insights:

  • Small:

Small Data Centers, which range in size from 25 kW to 250 kW, are used in remote and edge computing environments. Their quick deployment, minimal upfront costs, and ease of usage make them perfect for All-in-One containerized systems.

  • Mid-Size:

Mid-Size Data Centers are appropriate for a greater variety of applications because to their IT capacity, which spans from 250 kW to 1 MW. While mid-size data centers can benefit from All-in-One containers' shorter deployment times, facilities with greater discretion in their deployment schedules can take advantage of the individual modules' more customizability. This enables companies to tailor the design of the data center to meet their unique requirements, including adding more potent IT hardware or putting in place a more effective cooling system.

  • Large:

Large data centers need more than 1 MW of IT capacity. Large data centers usually use Independent Module Containers to satisfy their unique needs for performance, scalability, and efficiency. With the help of these modular construction parts, a company may create a data center that perfectly suits its specific demands.

Among the segments mentioned above the one that dominated the market is the Large data center segment due to the adoption of cloud-based solutions, and the growing popularity of edge computing.

Regional Insights:

Modular Data Center Market Regional Insights

  • North America market is estimated to witness a significantly high revenue share over the forecast period, because of the increased investment in the construction of cutting-edge prefabricated data centers by the government and key industry players.
  • Asia Pacific market is estimated to witness the largest revenue share because of the growth of SMEs and start-ups in the region, along with a growing emphasis on green data center solutions and rising data center investments in major nations like China, Japan, India, and others.
  • Europe's market finds lucrative market opportunities because of the abundance of data centers and cloud service providers, along with the growing adoption of modular data center systems. The region's market is expanding as a result of the rising demand for edge computing and the necessity for high-performance computing solutions across several sectors.
  • Latin America market is increasing gradually as a result of the rising investments in the adoption of cloud services in countries such as Brazil, Argentina, and Peru.
  • Middle East & Africa market is an emerging market as a result of increasing awareness of cloud computing applications. Modular data centers are being adopted steadily in this region.

Modular Data Center Market Report Scope:

Attribute

Details

Market Size 2024

US$ 29.9 billion

Projected Market Size 2034

US$ 148.3 billion

CAGR Growth Rate

19.2%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Component - Solutions (All-In-One Containers and Independent Module Containers) and Services.

By Data Center Size - Small, Mid-Size and Large.

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Modular Data Center Market report based on Component, Data Center Size and region:

Modular Data Center Market, By Component:

  • Solutions
    • All-In-One Containers
    • Independent Module Containers
  • Services

Modular Data Center Market, By Data Center Size:

  • Small
  • Mid-Size
  • Large

Modular Data Center Market, By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Global Modular Data Center Market Key Players

The key players operating the Modular Data Center Market includes CUPERTINO ELECTRIC INC., Dell, Delta Power Solutions, Eaton, Hewlett Packard, Cannon Technologies Ltd, Huawei Technologies Co. Ltd., IBM Corporation, Vertiv Co., and Inspur Technologies Co.

Modular Data Center Market Key Players

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Global Modular Data Center Market Key Issues Addressed

  • In February 2023, Vertiv, a leading global supplier of critical digital infrastructure and continuity solutions, unveiled the Vertiv MegaMod and Vertiv MegaMod Plus, a turnkey prefabricated modular (PFM) data center solutions that can be expanded to accommodate IT loads up to 2 megawatts or more. Prefabricated modules of superior quality are combined and tested with industry-leading Vertiv power management systems, thermal management solutions, remote monitoring, and IT equipment racks to optimize performance and save deployment times for businesses up to 40% when compared to traditional data center construction.
  • In November 2023, Schneider Electric, a pioneer in the digital revolution of energy management and automation, signed a $3 billion multi-year agreement with Compass Datacenters during its Capital Markets Day investor conference. By extending their current partnership, the firms will be able to produce and deploy prefabricated modular data center systems by integrating their separate supply chains. Schneider Electric and Compass Datacenters can fulfill their promise of providing scalable, modular data centers with a streamlined design, efficient manufacture, and easy deployment across several settings thanks to this special 5-year vendor-supplier agreement.

Global Modular Data Center Market Company Profile

  • CUPERTINO ELECTRIC INC.*
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Dell
  • Delta Power Solutions
  • Eaton
  • Hewlett Packard
  • Cannon Technologies Ltd.
  • Huawei Technologies Co. Ltd.
  • IBM Corporation
  • Vertiv Co.
  • Inspur Technologies Co.

“*” marked represents similar segmentation in other categories in the respective section.

Global Modular Data Center Market Table of Contents

  1. Research Objective and Assumption
    • Preface
    • Research Objectives
    • Study Scope
    • Years Considered for the study
    • Assumptions
    • Abbreviations
  2. Research Methodology
    • Research data
    • Primary Data
      • Primary Interviews
      • Primary Breakdown
      • Key data from Primary Sources
      • Key Thickness Insights
    • Secondary Data
      • Major Secondary Sources
      • Secondary Sources
    • Market Estimation
    • Top-Down Approach
      • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
    • Bottom-Up Approach
      • Approach for estimating market share by Bottom-up Analysis (Demand Side)
    • Market Breakdown and Data Triangulation
    • Research Assumptions
  3. Market Preview
    • Executive Summary
    • Key Findings—Global Outlook for Modular Data Center Strategies
      • Key Questions this Study will Answer
      • Market Snippet, By Component
      • Market Snippet, By Data Center Size
      • Market Snippet, By Region
    • Opportunity Map Analysis
    • Executive Summary—3 Big Predictions
  4. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Market Trends
    • DR Impact Analysis
    • PEST Analysis
    • Porter’s Five Forces Analysis
    • Opportunity Orbit
    • Market Investment Feasibility Index
    • Macroeconomic Factor Analysis
  5. Market Segmentation, By Component, 2019 – 2029, (US$ Mn)
    • Solutions
      • Market Value and Forecast (US$ Mn), and Share Analysis (%), 2019 – 2029
      • Y-o-Y Growth Analysis (%), 2019 – 2029
      • Segment Trends
    • Services
      • Overview
      • Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2019 – 2029
  6. Market Segmentation, By Data Size Center, 2019 – 2029, (US$ Mn)
    • Small
      • Market Value and Forecast (US$ Mn), and Share Analysis (%), 2019 – 2029
      • Y-o-Y Growth Analysis (%), 2019 – 2029
      • Segment Trends
    • Mid-Size
      • Overview
      • Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2019 – 2029
    • Large
      • Overview
      • Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2019 – 2029
  7. Global Center Market, By Region, 2019 – 2029, (US$ Mn)
    • Overview
      • Market Value and Forecast (US$ Mn), and Share Analysis (%), 2019 – 2029
      • Y-o-Y Growth Analysis (%), 2019 – 2029
      • Regional Trends
    • North America
      • Market Size and Forecast (US$ Mn), By Component, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Data Center Size, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Country, 2019 – 2029
        • U.S.
        • Canada
    • Europe
      • Market Size and Forecast (US$ Mn), By Component, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Data Center Size, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Country, 2019 – 2029
        • Germany
        • UK
        • France
        • Russia
        • Italy
        • Rest of Europe
    • Asia Pacific
      • Market Size and Forecast (US$ Mn), By Component, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Data Center Size, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Country, 2019 – 2029
        • China
        • India
        • Japan
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Market Size and Forecast (US$ Mn), By Component, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Data Center Size, 2019 – 2029
      • Market Size  and Forecast (US$ Mn), By Country, 2019 – 2029
        • Brazil
        • Mexico
        • Rest of Latin America
    • Middle East & Africa
      • Market Size and Forecast (US$ Mn), By Component, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Data Center Size, 2019 – 2029
      • Market Size and Forecast (US$ Mn), By Country, 2019 – 2029
        • GCC
        • Israel
        • South Africa
        • Rest of Middle East
  8. Competitive Landscape
    • Heat Map Analysis
    • Market Presence and Specificity Analysis
  9. Company Profiles
      • CUPERTINO ELECTRIC INC.
        • Company Overview
        • Component Portfolio
        • Key Highlights
        • Financial Overview
        • Business Strategies
      • Dell
      • Delta Power Solutions
      • Eaton
      • Hewlett Packard
      • Enterprise Development LP
      • Huawei Technologies Co. Ltd.
      • Inspur Technologies Co.
  10. The Last Word
    • Future Impact
    • About Us
    • Contact

FAQs

The Modular Data Center Market report segments the market been segmented on the basis of component, data center size and region.

Modular data centers are witnessing a growing demand, owing to the increasing number of environmental protection and energy consumption regulations laid down by various governments across the world.

North America to hold the largest market size during forecast period

The leading players operating in the Modular Data Center Market includes CUPERTINO ELECTRIC INC., Dell, Delta Power Solutions, Eaton, Hewlett Packard, Enterprise Development LP, Huawei Technologies Co. Ltd., and Inspur Technologies Co.