The modular data center market is witnessing increased demand owing to high need for scalable and flexible data center solutions among organizations. Modular data centers are pre-fabricated, standardized modules that provide scalable and flexible IT infrastructure along with benefits such as plug-and-play deployment, energy efficiency and minimallead times. With increasing cloud adoption among enterprises, demand for modular and portable data center capacity is rising sharply. Modular data centers are ideal for organizations requiring additional capacity for cloud operations or disaster recovery sites.

The global modular data center market size was valued at US$ 18.49 billion in 2023 and is expected to reach US$ 87.65 billion by 2030, grow at a compound annual growth rate (CAGR) of 24.9% from 2023 to 2030.


Key Takeaways



Key players operating in the modular data center market are Huawei, IBM, Dell, Hitachi Ltd, Vertiv and Rittal. Huawei is a notable player offering wide range of modular and containerized data center solutions to support cloud infrastructure.



The increasing demand for scalable and distributed cloud and IT infrastructure among enterprises is driving the Modular Data Center Market globally. Modular solutions help provide on-demand capacity without significant downtime or upfront capital costs.



The modular data center market is witnessing increased global expansion as organizations looks to deploy prefabricated capacity across locations. North America remains the largest regional market however emerging economies of APAC and Middle East & Africa are witnessing strong growth.



Market Key Trends



One of the major trends in the modular data center market is increasing adoption of all-in-one modular solutions. Vendors are offering complete plug-and-play modules integrated with IT infrastructure, cooling, power distribution and security systems. These all-inclusive modules help reduce deployment time and costs significantly. With growing popularity of edge computing, demand for rugged and portable edge modules is rising as well to support distributed cloud infrastructure deployments at remote locations.


Porter's Analysis



Threat of new entrants: Modular data center requires high initial capital investments deterring new players. Established suppliers have economies of scale and brand loyalty advantage.



Bargaining power of buyers: Large cloud service providers and hyperscalers have significant bargaining power to negotiate on pricing and customization. However, growing demand of modular data centers have increased their need in order to scale quickly.



Bargaining power of suppliers: Key component providers like UPS, cooling systems suppliers have moderate bargaining power. However, increasing competition has balanced their power.



Threat of new substitutes: Growing demand for purpose-built data centers prevent significant threat from other substitutes. However, increasing cloud computing adoption poses some threat to on-premise deployment of modular data centers.



Competitive rivalry: Presence of numerous global and local suppliers has increased competitive pressure on pricing and customization. Players differentiate based on scalability, reliability and sustainability.



Geographical Regions

North America region dominates the modular data center market currently in terms of value due to strong presence of cloud service providers and data center operators. The region displays higher adoption of pre-fabricated data center solutions owing to rapid establishment of edge data centers.



Asia Pacific region is expected to witness fastest growth during the forecast period owing to increasing digitalization, cloud migration and remote work culture in major countries like China, India and Japan. Hyperscalers are expanding their presence with modular data center deployments in Asia to improve customer connectivity and reduce latency issues.

Author Bio:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)