The global Modular Data Center market is rapidly growing, driven by rising demand for scalable, energy-efficient infrastructure solutions.

AUSTIN, TX, UNITED STATES, January 6, 2025 /EINPresswire.com/ -- The SNS Insider report indicates that the Modular Data Center Market was valued at USD 25.39 billion in 2023 and is expected to grow to USD 108.81 billion by 2032, at a CAGR of 17.55% over the forecast period of 2024-2032.

Modular data centers provide an ideal solution to meet the constant demand for reliable and efficient IT infrastructure, ensuring continuous and stable operations around the clock. Such flexible, scalable, and energy-efficient data centers are gaining traction in telecom, enterprise IT, cloud service providers, and e-commerce businesses. As the utilization of cloud computing, big data analytics, and the Internet of Things (IoT) continues to grow, there has been a requirement for a data center that is performant, energy-efficient, and also scalable. The modular data center market is driven by the digital transformation trend across industries, the increasing adoption of digital infrastructure, and the need for business operations to support flexible IT infrastructure. This modular nature makes them easier to deploy and scale, which is crucial for any enterprise looking to grow their digital infrastructure with minimal cost. Modular data centers also enable enterprises to be energy-efficient and have lower operational costs, which is a critical factor in the modern enterprise for a sustainable IT ecosystem.

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Key Players:
The major players are HPE Company, CommScope Inc., Rahi Systems, IBM Corporation, Iron Mountain Corporation, Dell, Inc., Baselayer Technology LLC, Cannon Technologies Ltd, Vertiv Co., Diversitec, Inc., Rittal GmbH & Co. KG, Colt Group SA, Schneider Electric SE, Stulz GmbH, Bladeroom Group Ltd., Instant Data Centers LLC, Huawei Technologies Co., Ltd., ZTE Corporation, and others in the final report.

The Modular Data Center industry is poised to continue its strong growth as companies shift towards digital-first business models.
The increasing adoption of advanced technologies including artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) will drive the demand for robust and scalable IT infrastructure among key growth factors. Additionally, by providing the flexibility and scalable space required due to the need for just-in-time data processing and storage capabilities, modular data centers are further fueled by the growing demand.
Strategic advantages commodity modular data centers offer include speed of deployment and seamless increase in service scale, which together enable companies to respond faster to the volatility of data demand with fewer long-term capital investments.

Segmentation Analysis

By Component
The Function Module Solutions segment held the largest market share in 2023, Attributed to the proliferating demand for prefabricated and pre-engineered data centers. They provide scalability, faster deployment, and lower operational costs. Hence, all businesses now prefer using these solutions. This segment is boosted by the growth in data demand, the expansion of cloud computing, and infrastructure that is quick to deploy. Another factor spurring growth in this segment comes from the rising edge computing and remote site expansions. Market growth is projected to continue as more industries transition to digital transformation, particularly e-commerce, finance, and healthcare sectors globally. The Services segment is expected to grow at the fastest CAGR over the forecast period. Modular data centers are growing more complex and becoming an integral part of business operations, therefore, the demand for services including installation, maintenance, and managed services is increasing. As the growing presence of hybrid cloud and multi-cloud environments generates increased demand for remote monitoring, cybersecurity solutions, and energy optimization services, Access California is benefitting from a rapidly growing need.

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By Component
Function Module Solutions
Services

By Data Center Size
Small and Medium Data Centers
Large Data Center

By Application
Emergency Data Storage
Temporary Storage Expansion
Disaster Recovery
Edge Computing
Others

By Industry
BFSI
IT & Telecom
Government
Healthcare
Media & Entertainment
Others

Regional Landscape
North America held the largest share of the Modular Data Center Market in 2023. The region's dominance is primarily attributed to its advanced technological infrastructure, high adoption of digital transformation, and strong demand for data center solutions across various industries. The U.S. is a key contributor due to its expansive IT sector and significant investments in edge computing and cloud services. Additionally, government regulations on energy efficiency and the increasing requirement for reliable IT systems from industries like finance, healthcare, and telecommunications further bolster the market.

Asia-Pacific is expected to register the fastest CAGR during the forecast period. The region’s rapid industrialization, urbanization, and significant investments in cloud services and digital infrastructure are key drivers of growth. Countries like China, India, and Japan are witnessing significant investments in modular data centers to support emerging technologies such as 5G, IoT, and AI. Additionally, the growing adoption of smart cities and e-commerce platforms increases the need for reliable, scalable, and energy-efficient data center solutions. As the demand for faster and more efficient data processing grows, businesses in Asia-Pacific are turning to modular data centers to meet these needs.

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Regional Landscape
January 2024: Schneider Electric announced the launch of its new edge modular data center solutions, designed to improve scalability and efficiency for businesses expanding their data infrastructure. This move is aimed at supporting industries such as telecommunications and cloud service providers.
February 2024: Huawei Technologies revealed a new line of modular data centers that offer advanced AI-driven cooling solutions, which promise to reduce energy consumption and enhance performance in large-scale applications such as 5G deployments and IoT networks.

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