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Modular Data Center Market - Forecasts from 2022 to 2027

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  • 114 Pages
  • June 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5636856
Modular data center market is estimated to be valued at US$13.785 billion in 2020.

We generate a considerable quantity of data 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 center that holds an institution's combined IT operations and equipment for data storage, processing, and distribution. A modular data center system is a portable data center capacity deployment solution that may be installed in almost any place where data capacity is required. Modular data center systems are made up of purpose-built modules and components that provide expandable data center capacity as well as a variety of power and cooling choices. Because modular data centers are movable and made from conventional containers, they offer much operational flexibility. Hence, they serve as an excellent alternative to organizations that need a faster and more economical data solution. Recent advancements in the modular data center market have seen a growth in providing cloud computing solutions to help users protect their data. On the other hand, cloud computing is wasteful in electricity and cooling because it draws resources from the data center’s capacity. Also, modular data centers cannot be set up everywhere due to locational and connectivity challenges.

The recent outbreak of the novel coronavirus disease had a positive impact on the global modular data center market. Despite the downturn in the overall market momentum, demand for internet service providers (ISPs), information technology (IT) infrastructure providers, and data centers increased, owing to a shift toward home and remote working since many companies have encouraged employees to work from home and are limiting the number of people on-site to prevent the virus from spreading. According to a study published by Cloudfare Inc., internet usage increased by more than 25% in most major cities across the world as a result of the lockdown measures. Modular Data centers improved their capacity in response to the increased load on their networks. The growing number of web-linked medical devices is adding to the workload of IT specialists in the sector. Data is being pushed to the cloud or edge networks, which data centers need to support, due to the sheer volume of data that healthcare providers increasingly handle. Some data centers, as well as their parent organizations, are aiming to improve data storage and accessibility.

Location and Climate

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

While some climates may be unsuitable for modular data centers, some markets are positively influenced by it. According to an IEEE report, the data center'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 center heating, ventilation, and air-conditioning energy use. According to the analysis, supplementing DX cooling with evaporative and free air cooling may save up to 38% and 36% of energy, respectively.

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 hackings, data servers need to be safeguarded from such risks. Modular data centers come with an 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 data loss. Modular data centers provide cloud solutions, including the data center infrastructure, cloud hardware, storage, software, patterns, monitoring, and more in a prefabricated, compact solution. Cloud computing solutions are provided either by data center providers (like Amazon and Microsoft) or by third-party cloud computing companies (like oracle and VMware). These solutions make modular data centers an ideal choice for organizations.

Increase in government expenditure

There has been an ever-increasing need for proper data center 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.

Kuwait aspires to be a "financial and commercial" center 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 centers and increasing the data center industry. Greenfield construction dominates the Kuwaiti market, which is also seeing the rise of on-site modular data center construction. The market is dominated by VRLA battery-based UPS systems, which account for more than 90% of the market. Most data centers include N+1 redundancy UPS systems, which may be expanded to 2N redundancy depending on customer needs.

Recently, the Australian Government announced that it is going to invest AU$12 million in a local containerized data center firm, Datapod. The Australian Department of Defence has approved a US$9 million investment in the Canberra-based company to ‘ensure Defence has access to modular data centers that can be deployed at short notice.’ Minister Price remarked that investing in Australia's sovereign industrial competency is vital in guaranteeing the Defense's ability to respond successfully to any difficulties or threats it faces on short notice.

India is in the process of transitioning from a developing market economy to a mature market economy, and technology is expected to play a significant part in this process. This is to be achieved by the recent Data Center policy introduced by the Indian Government. The government also predicts that by 2025, India's digital economy is expected to grow from US$ 200 billion in 2017-18 to a stunning US$ 1 trillion. The magnitude of India's digital population and the digital economy's growth trajectory need a rapid expansion of data centers, which can meet the country's expanding demands. This need for Data Center infrastructure in the country already represents a potential investment opportunity of USD 4.9 billion by 2025, with the possibility for further growth as the country moves closer to being a Data Center destination of choice for global players.


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

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Europe
  • Germany
  • France
  • UK
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others

Table of Contents

1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of End-Users
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
5. Global Modular Data Center Market Analysis, by Type
5.1. Introduction
5.2. Pre-engineered Data Center
5.3. Prefabricated Data Center
6. Global Modular Data Center Market Analysis, by End User
6.1. Introduction
6.2. Government
6.3. Telecom
6.4. IT
6.5. BFSI
6.6. Other End Users
7. Global Modular Data Center Market Analysis, by Organization Size
7.1. Introduction
7.2. Small and Medium-Sized Enterprises
7.3. Large Enterprises
8. Global Modular Data Center Market Analysis, by Configuration
8.1. Introduction
8.2. Fully Prefabricated Data Center
8.3. Semi-Prefabricated Data Center
8.4. All-in-One Data Center
9. Global Modular Data Center Market Analysis, by Geography
9.1. Introduction
9.2. North America
9.2.1. USA
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. Germany
9.4.2. France
9.4.3. UK
9.4.4. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. UAE
9.5.3. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. India
9.6.3. Japan
9.6.4. South Korea
9.6.5. Taiwan
9.6.6. Thailand
9.6.7. Indonesia
9.6.8. Others
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. PCX Corporation
11.2. Dell EMC
11.3. Microsoft Azure
11.4. Sun Microsystems Inc.
11.5. 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)

Companies Mentioned

  • PCX Corporation
  • Dell EMC
  • Microsoft Azure
  • Sun Microsystems Inc.
  • Internet Initiative Japan (IIJ)
  • Cisco
  • Vertiv Holdings Co.
  • IBM Corporation
  • Fujitsu
  • Hewlett Packard Enterprise (HPE)