As per the report published by Fior Markets, the global modular data center market is expected to grow from USD 20 billion in 2020 and reach USD 91.8 billion by 2028, at a CAGR of 21% during the forecast period 2021-2028.
The modular data center market is witnessing significant growth in the past years. This growth is attributed to the growing wide variety of environmental safety and energy consumption guidelines as laid down by various governments worldwide. It is simpler to cool the restrained space of the modular data center than one giant room, and integrated aisle containment minimizes warm and cold air mixing. According to data from Building Industry Consulting Service International (BICSI), modular data centers offer 40% more power-efficient than an open data center environment. Thus, modular data centers are extra energy-efficient and consume lesser energy than conventional data centers, in addition, to helpful resources in satisfying the organizations’ inherent need for lower energy intake. Additionally, modular data centers can lessen PUE degrees by adopting and integrating renewable energy sources with solar power. A decreased PUE level brought by modular data centers helps in growing their demand across various industry verticals.
The Modular Data Center (MD) was basically designed for quick deployment, electricity efficiency, and compute density in consideration. It can be sent to any place in the global region and set up anywhere there is water and power, an Internet connection, and an external chiller. A modular data center has a data center layout method that includes limited elements, sometimes in the form of modular components. The modular market commenced with a well-known worldwide process in the form of an ISO (International Standards Organization) shipping container and has since developed right into a budding vendor market.
The global modular data center market is expected to witness significant growth, owing to the increasing digitalization, the growing adoption of cloud-based solutions and services is considered one of the fundamental key drivers for the market. Government and large companies are targeted at adopting advanced cloud solutions and applications. to store a significant amount of information, key players in the global market are focused on growing advanced modular data centers enabled by immersive technologies. The factors restraining the market growth are the majority of the users depend on on-premise services. Also, the high value of implementation and lack of understanding of modular data centers mainly in countryside areas or where network connectivity and IT service are not available is anticipated to obstruct the market’s growth.
Key players operating in the global modular data center market include Baselayer Technology LLC, Cisco Systems, Inc., CommScope, Inc., Dell, Inc., BladeRoom Group Ltd., Eaton Corporation, Huawei Technologies Co., Ltd., IBM Corporation, Iron Mountain Corporation, LLC, Rittal GmbH & Co., KG, Schneider Electric SE, Rahi Systems, SGI Corporation, Stulz GmbH, The Hewlett-Packard Company, Vertiv Co., and ZTE Corporation. To gain a significant market share in the global modular data center market, the key players are now focusing on adopting strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
- In February 2020, Dell Inc. enabled edge computing solutions with its modular data center. The edge solution from Dell Technologies includes new edge server designs, smaller modular data centers, enhanced telemetry management, and a streaming analytics engine. Customers will overcome edge computing, network, and storage challenges to uncover new insights through data analytics across the border, core data centers, and public clouds.
- In January 2019, EMEA launched SmartMod and SmartMod MAX. Vertiv’s SmartMod platform allows it to build customized modular data centers for customers worldwide, and it is now able to supplement that capability with the added benefits of standardization, cost certainty, and a unified user experience.
- In January 2019, Vertiv SmartMod and SmartMod MAX were launched in EMEA. With SmartMod, Vertiv can build customized modular data centers for customers worldwide and can now augment that capability with the additional benefits of standardization, cost certainty, and a common user experience.
- In September 2020, Microsoft launched an Azure modular data center for people who need cloud computing in any challenging environment. Azure can provide mobile command centers, humanitarian assistance, military mission needs, mineral explosion, or other cases requiring high-intensity and secure computing.
- In August 2019, Rittal partnered with ABB and Hewlett Packard Enterprise (HPE) to provide turnkey resilient micro-modular data centers purpose-built for rough environments, which help customers turn data into action in real time.
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The solution segment dominated the market and held the largest market share of 65.3% in the year 2020
On the basis of components, the global modular data center market is segmented into solutions and services. The solution segment dominated the market and held the largest market share of 65.3% in the year 2020. This growth is attributed to the increasing government initiatives for the production of modular data centers.
IT and telecom segment dominated the market and held the largest market share of 48.8% in the year 2020
On the basis of application, the global modular data center market is segmented into BFSI, energy, IT and telecom, healthcare, government, industrial, and others. The IT and telecom segment dominated the market and held the largest market share of 48.8% in the year 2020. This growth is attributed to the increasing IT sectors and the increasing use of smartphones.