Description

The global modular data center market is registering a CAGR of 18.70%., and was valued at USD 18,084.0 million in 2020, and is projected to reach USD 59,971.0 million by 2027. The fast, modular data center or deployable data center module is a portable data center that supports deploying data processing capacity. It proposes scalable data center capacity along with a range of cooling and power options. They target consumers for the modular data center are overcrowded data center owners and those in the necessity of substantial mobile computing power, such as the military, physics labs, government, Web 2.0 providers, financial institutions, disaster recovery providers, and emergency relief organizations. It offers several benefits, for example, high efficiency to its users and helps them rise per rack densities and encapsulate the IT environment by saving rack space.

The demand for rapidly deployable & scalable data centers drives the global modular data center market growth. In addition, various factors such as an upsurge in adoption of cloud services by small & medium-size enterprises (SMEs), a rise in demand for green data centers, and a surge in demand for energy-efficient data centers notably contribute toward the market growth. Moreover, the increased investments in developing advanced data centers during the COVID-19 pandemic considerably propelled the market's growth. However, challenges associated with the transport of the modular data center and vendor lock-in hamper the market's growth. On the contrary, the surge in demand for modular data centers by colocation providers and the emergence of the fourth generation of data centers is expected to offer potential growth opportunities for the market in the near future.

Furthermore, the massive volume of data created by the adaptation of emerging data-driven technologies such as the Internet of Things (IoT) and artificial intelligence (AI) has increased the power, cooling, networking, and computing demands of the data center for storage, big data analysis, and data transfer. In addition to this, constant advancements in the field of the modular data center provide lucrative growth opportunities for market growth. As, in October 2020, Huawei Technologies launched its next-generation Smart Modular Data Center 5.0. This solution uses artificial intelligence to build next-level data center intelligence, allowing the full use of SmartLi, the proprietary smart lithium battery, to implement full lithium battery backup.

COVID-19 Impact on the Global Modular Data Center

The outbreak of COVID-19 forced individuals to stay at home, which led to increasing internet usage due to the growing consumption of services such as digital-video-recorder (DVR) recordings, streaming services, and video-on-demand. According to the survey by InMobi, the mobile marketing platform, 46% of viewers are watching more online content. In addition, most of the networks are observing about 30–45% growth over a year in global internet traffic. This scenario has driven the need for modular data centers to ensure flexibility regarding viewer consumption and demand.

Moreover, the demand for web-enabled services has significantly increased as people around the globe are staying at home. For instance, Netflix gained 15.77 million new paid subscribers between February and April 2020. In addition, workplace communication tools such as WebEx, Zoom, and Microsoft Teams have become more important than ever, with Teams seeing a radical increase from 20 million to 75 million daily active users from November 2019 to April 2020. Hence, the demand for data center capacity is projected to continue its growth trajectory as businesses actively seek to accelerate their digital transformation programs.

Global Modular Data Center Market Dynamics

Drivers: Increase in demand for rapidly deployable & scalable data centers

The emergence of the fourth industrial revolution, the Internet of Things, and big data analytics demands flexible IT resources. Furthermore, the rise in the penetration of cloud computing and rapid digitalization has led to the steady growth of the data center industry. Moreover, the switch to work-from-home and remote working has rapidly driven the demand for deployable data centers. This has led to a growth in the market and deploying data center capacity quickly and efficiently.

Moreover, the modular approaches to building medium- or large-scale data centers offer both the speed to deploy and the quality of construction and ease of operation. Therefore, the demand for rapidly deployable & scalable data centers augments the growth of the global modular data center market.

Restraints: Challenges such as vendor and transportation lock-in

Transportation of prefabricated data centers to final locations is logistically challenging to some extent, with unique processes and equipment required that increases installation costs & time. In addition, the weight of this data center system is a concern due to the factors such as the available routes, type of vehicle that may be used for transportation, and the crane required to install the modules. Hence, transportation challenges considerably hamper the growth of the modular data center market.

On the other hand, the vendor lock-in provided by the vendor in which the modular data centers have to commit to a particular vendor's hardware and support offerings is projected to hinder the market growth.

Opportunities: Surge in demand for the modular data centers

The colocation and hyperscale data center operators strive to grow their businesses in the highly competitive data center services marketplace. Hence, both the systems resilience and time-to-market have emerged as essential business differentiators. Therefore, more colocation businesses adopt advanced technologies, such as a prefabricated modular data center, to better service customer requirements for quick application and deployment stability. In addition, colocation providers promote modular solutions as a differentiator in quality, scalability, and reliability. Hence, this factor is one of the significant opportunities for the growth of the modular data center market during the forecast period.

Scope of the Report

The study categorizes the modular data center market based on components, organization size, industry vertical, and regions.

By Component Outlook (Sales, USD Million, 2017-2027)

• Solution
• Services

By Organization Size Outlook (Sales, USD Million, 2017-2027)

• Large enterprises
• Small & medium enterprises

By Industry Vertical Outlook (Sales, USD Million, 2017-2027)

• Manufacturing
• Healthcare
• Automotive
• Media & Entertainment
• Transport & Logistic
• Government
• Others

By Region Outlook (Sales, USD Million, 2017-2027)

• North America (US, Canada, Mexico)
• South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
• The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

The solutions segment is projected to account for the largest market share by components

On the basis of components, the modular data center market is divided into services and solutions. The solution segment by component was the highest contributor to the market, with a share of 61.9% in 2020, growing at a CAGR of 17.5% during the forecast period. The solution segment includes an all-in-one and individual modular data center. A modular data center solution is an approach to data center design that integrates contained units, usually prefabricated modules. Numerous modular data center players offer smart modular data center solutions with complete power supply, battery, cooling system, distribution systems, fire protection, and cabinets.

Furthermore, the emergence of innovative smart data center solutions with advanced features propels market growth during the forecast period. For instance, in November 2020, Huawei Technologies launched the next-generation Smart Modular Data Center 5.0. This solution allows building a green and smart data center based on SmartLi inside, a big screen visualizing the digital twin, and AI-Robot intelligent Operations & Maintenance (O&M).

Asia Pacific accounts for the highest CAGR during the forecast period

Region-wise, the global modular data center market is analyzed across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia-Pacific is the fastest-growing region, with a CAGR of 21.6%, during the forecast period, 2021-2027. The modular data center market in Asia-Pacific is analyzed across China, Japan, India, Australia, and the rest of Asia- Pacific. This region registers the highest growth in the modular data center market. The countries such as China, India, Japan, and Indonesia are observing tremendous investments in modular data centers. The development of 5G network infrastructure in the region further fuels the market growth.

Moreover, ongoing investments by the government & defense sector in the modular data center facilities fuel the market's growth. For instance, DataPod, the modular data center manufacturer, signed a contract to deliver air-shippable modular data centers for the Australian military.

Key Market Players

Every company follows its own business strategy to attain the maximum market share. The key players in the global modular data center market include CommScope, Inc., Eaton, Dell Inc., Hewlett Packard Enterprise Development LP, BASELAYER, Huawei Technologies Co., Ltd., Rittal, Schneider Electric SE, IBM Corporation, and Vertiv Group Corp.

Recent Developments

• In January 2021, Vertiv Group Corporation launched its new containerized data centers and power systems in Europe, the Middle East, and Africa, providing a better experience for its customers.
• In March 2020, Baselayer was acquired by IE Corporation, the leading maker of enclosures and skid-mounted power solutions. This acquisition will allow Baselayer to provide better data center service to its customer and deploy a 200-megawatt data center.
• In February 2021, Eaton acquired Tripp lite for USD 1.67 billion, a leading data center service provider company. This acquisition will allow Eaton to bolster its presence in the data center market.
• In November 2020, Commscope Inc. and Corning Optical Communication, the leading provider of fiber cabling and related technology subsidiary of Corning Inc. This partnership will provide fiber-optic connectivity products for high-density data centers and central offices.

Key Issues Addressed

• What is the market size by various segmentation of the modular data center by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the modular data center market?
• What are the key opportunities and trends for manufacturers involved in the modular data center supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of modular data center in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.