Modular Data Center Market Size

Modular data centers go by different names like containerized, self-contained, and portable data centers. They can be set up anywhere, making them easy to use. The increasing use of cloud technology, more Internet of Things (IoT) devices, rising data traffic, and the growing use of automation in different industries are trends boosting the use of data centers. However, because technology is always changing, traditional data centers face problems like not having enough space, flexibility, and scalability. Modular data centers solve these problems because they are flexible, scalable, and suitable for small and large businesses. They're adaptable, have a customizable design, are efficient, and eco-friendly.

The global market for modular data centers made around USD 13.87 billion in 2017 and is expected to reach USD 49.01 billion by 2023, growing at a rate of 24.40% each year. North America has more than 45% of the market share in modular data centers because big tech companies like IBM Corporation, Dell, Inc., and HPE adopted them early on. The continuous use of cloud solutions, progress in digital technology, and ongoing development in advanced networking, like 5G, are expected to keep North America leading in the modular data center market.

The Asia-Pacific modular data center market is the second-largest in terms of revenue. Countries like China, Japan, South Korea, and India have a high demand for data centers due to more network traffic, growth in manufacturing industries, and a significant increase in the use of connected devices by small and large businesses. The increasing complexity in IT infrastructure because of ongoing digital technology development is also pushing enterprises to use data center services, boosting the market for modular data centers in the region.

In Europe, the modular data center market made up about 19% of the global market in 2017. Europe is seeing a high adoption rate of data center infrastructure because of the growing trend of digital transformation in the region. This is driven by the need for more efficient IT agility, developer-friendly infrastructure, and strong industrial growth. Among European countries, the UK dominates the modular data center market with a 54% market share, followed by Germany with 21%. Germany is expected to grow the fastest during the forecast period, with a rate of 27.88% each year. This growth is because of the increasing trend of digital shift in the country, supported by the need for high-tech infrastructure, including large scale data centers and modular data centers. Key players like Google, Microsoft, and Schneider are also showing interest in investing in data centers in European countries.