Modular Data Center Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Pre-Engineered Data Center, Prefabricated Data Center), By End-User (Government, Telecom, IT, BFSI, Other End Users), By Organization Size (Small and Medium-sized Enterprises, Large Enterprises), By Configuration (Fully Prefabricated Data Center, Semi-Prefabricated Data Center, All-in-One Data Center), And By Geography - Forecasts From 2024 To 2029

The modular data centre market is expected to grow at a CAGR of 9.89%, reaching a market size of US$31.758 billion in 2029 from US$16.41 billion in 2022.

A considerable quantity of data is generated every day, and that rate is only growing as the number of internet users grows. To process such a vast amount of data, companies use a facility known as a data centre that holds an institution's combined IT operations and equipment for data storage, processing, and distribution. A modular data centre system is a portable data centre capacity deployment solution that may be installed in almost any place where data capacity is required. These systems comprise purpose-built modules and components that provide expandable data centre capacity and various power and cooling choices. Because modular data centres are movable and made from conventional containers, they offer much operational flexibility. Hence, they serve as an excellent alternative to organizations needing faster and more economical data solutions. Recent advancements in the modular data centre market have seen growth in providing cloud computing solutions to help users protect their data.

Modular Data Centre Market Drivers:

• The increasing influence of location and climate on data centre setup

The location analysis is crucial to the modular data centre installation process. Because of geographical difficulties, many organizations that require data centre solutions cannot deploy modular data centres. As a result, modular data centres cannot penetrate a wide range of markets. The provisions for transportation of data modules, power and fibre connectivity, location-related latency, interconnectivity to network systems, building regulations, etc., play a significant role in the modular data centre market. For instance, locations that experience a lot of precipitation also require proper physical qualities of the data centre enclosure to prevent water damage, leakage, and rusting. Though most modular data centre companies provide cloud storage to protect data from getting lost, they require more power and cooling than regular data centres, limiting an organization’s ability to install it.

While some climates may be unsuitable for modular data centres, they positively influence some markets. According to an IEEE report, the data centre's Energy Reuse Effectiveness rises when the ambient (outside) temperature drops and the server inlet-outlet temperature differential rises. Furthermore, data indicate that, particularly in scorching and humid areas, using passive cooling techniques (e.g., DEC and free air cooling) reduces data centre heating, ventilation, and air-conditioning energy use.

• Introduction of cloud computing

With an increase in data consumption and usage, there arises a need for proper data storage. Due to the increase in data breaches and hacking, data servers need to be safeguarded from such risks. Modular data centres come with the added advantage of cloud computing, which stores data in a cloud-based environment to serve as a recovery tool in case of a data breach or loss. These centers give cloud solutions such as the data center infrastructure, cloud hardware, storage, software, templates, supervision and many more in a prefabricated, compact solution. Cloud services are offered by data center providers (e.g., Amazon and Microsoft) as well as by third-party cloud computing companies (e.g., Oracle and VMware). These solutions make modular data centres an ideal choice for organizations.

• Increase in government expenditure

There has been an ever-increasing need for proper data centre infrastructure, and companies are finding it difficult to keep up with the trend due to rising energy expenses. As a result, the requirement for government expenditure increases. For instance, Kuwait aspires to be a "financial and commercial" centre in the Middle East as part of the ‘Vision 2035’ plan. Government agencies and the commercial sector are migrating to digital platforms, which is accelerating the development of cloud, collocation, and managed data centres and increasing the data centre industry. Greenfield construction dominates the Kuwaiti market, which is also seeing the rise of on-site modular data centre construction. The market is dominated by VRLA battery-based UPS systems, which account for more than 90%. Most data centres include N+1 redundancy UPS systems, which may be expanded to 2N redundancy depending on customer needs.

Modular Data Centre Market Restraint:

• Lack of awareness

While there are many benefits to having a data center, most users tend to still use on-premises services. High implementation costs and a generally low level of awareness about modular data centers, which are mainly in rural settings and beyond the reach of IT services or network connectivity, can stymie this market’s growth. Additional elements like data center virtualization and restrictive forms are anticipated to impede market expansion.

Modular Data Centre Market Geographical Outlook

• North America is projected to grow rapidly during the forecast period

The expansion of cloud computing, mobile broadband, and big data analytics drive the need for new data centre infrastructure in this area. North America is known for having a large number of data centres. As more businesses move from providing hardware-based services to software-based ones, it is anticipated that this market will present opportunities for data centre installation. To optimize infrastructure, organizations are searching for modular services that enable them to choose the desired service from an integrated portfolio. Moreover, the online catalogs have several services included in a basic setup. These services enable businesses to lower the cost of starting a business. IBM's Integrated Managed Infrastructure Service provides a good example of such a service.

Modular Data Centre Market Developments:

• In February 2023, Amazon Web Services revealed that in accordance with the JWCC contract, the Amazon Web Services Modular Data Center was made available to the U.S. Department of Defense. The Department of Defense chose AWS for the DoD JWCC contract in December 2022. The AWS Modular Data Center enables the DoD to set up self-contained data centers with integrated AWS infrastructure in environments with little or no infrastructure available; at any security level, from enterprise to the tactical edge, this multi-vendor acquisition vehicle will provide cloud services and capabilities.
• In June 2023, Hewlett Packard Enterprise and Equinix announced a deeper partnership to expand HPE GreenLake's private cloud offering at Equinix's data centres in the International Business Exchange (IBX). To give customers quick access to a wide range of private cloud offerings for even greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise pre-provisioned HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition at key Equinix data centres around the world.

Key Market Segmentation:

The modular data centre market is segmented and analyzed as below:

• By Type
  • Pre-engineered Data Centre
  • Prefabricated Data Centre
• By End-User
  • Government
  • Telecom
  • IT
  • BFSI
  • Other End Users
• By Organization Size
  • Small and Medium-sized Enterprises
  • Large Enterprises
• By Configuration
  • Fully Prefabricated Data Centre
  • Semi-Prefabricated Data Centre
  • All-in-One Data Centre
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. MODULAR DATA CENTRE MARKET BY TYPE

5.1. Introduction

5.2. Pre-engineered Data Centre

5.3. Prefabricated Data Centre

6. MODULAR DATA CENTRE MARKET BY END-USER

6.1. Introduction

6.2. Government

6.3. Telecom

6.4. IT

6.5. BFSI

6.6. Other End Users

7. MODULAR DATA CENTRE MARKET BY ORGANIZATION SIZE

7.1. Introduction

7.2. Small and Medium-sized Enterprises

7.3. Large Enterprises

8. MODULAR DATA CENTRE MARKET BY CONFIGURATION

8.1. Introduction

8.2. Fully Prefabricated Data Centre

8.3. Semi-Prefabricated Data Centre

8.4. All-in-One Data Centre

9. MODULAR DATA CENTRE MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Type

9.2.2. By End-User 

9.2.3. By Organization Size

9.2.4. By Configuration

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Type

9.3.2. By End-User 

9.3.3. By Organization Size

9.3.4. By Configuration

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Type

9.4.2. By End-User 

9.4.3. By Organization Size

9.4.4. By Configuration

9.4.5. By Country

9.4.5.1. Germany

9.4.5.2. France

9.4.5.3. UK

9.4.5.4. Others

9.5. Middle East and Africa

9.5.1. By Type

9.5.2. By End-User 

9.5.3. By Organization Size

9.5.4. By Configuration

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Type

9.6.2. By End-User 

9.6.3. By Organization Size

9.6.4. By Configuration

9.6.5. By Country

9.6.5.1. China

9.6.5.2. India

9.6.5.3. Japan

9.6.5.4. South Korea

9.6.5.5. Taiwan

9.6.5.6. Thailand

9.6.5.7. Indonesia

9.6.5.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. PCX Corporation

11.2. Dell EMC

11.3. Microsoft Azure

11.4. Oracle Corporation (Sun Microsystems Inc.)

11.5. Japanese telco KDDI (Internet Initiative Japan (IIJ))

11.6. Cisco

11.7. Vertiv Holdings Co.

11.8. IBM Corporation

11.9. Fujitsu

11.10. Hewlett Packard Enterprise (HPE)

PCX Corporation

Dell EMC

Microsoft Azure

Oracle Corporation (Sun Microsystems Inc.)

Japanese telco KDDI (Internet Initiative Japan (IIJ))

Cisco

Vertiv Holdings Co.

IBM Corporation

Fujitsu

Hewlett Packard Enterprise (HPE)