Containerized Data Center Market is expected to grow at CAGR of 25.46% from year 2018 to 2023 | Global Key Players - IBM, HEWLETT PACKARD ENTERPRISE, CISCO SYSTEMS, DELL, RITTAL GMBH & CO. KG

The global containerized data center market was valued at USD 4.78 billion in 2017, and is expected to reach a value of USD 18.64 billion by 2023 at a CAGR of 25.46%, during the forecast period (2018 - 2023). With the growing adoption of cloud and increasing data generation, the demand for data centers has spiked drastically over the past few years. Many companies were looking for immediate and reliable scaling solutions. Containerized data center thus offers flexibility to these users. These data centers can be shipped directly to the end-user location and can be set up immediately. With the plug and play functionalities, end-users can accommodate multiple containerized data centers and increase the capacity, depending on the requirements. The containerized data center has found applications in many sectors catering to different consumer needs. The disaster recovery remains one of the primary revenue-generating sectors, with many organizations deploying data center containers to deploy computing power in areas struck with disasters. Temporary capacity elevation and high-performance computing are also major applications for these data centers, with many users utilizing these systems to handle additional loads without interrupting core systems. Easy scalability and high power efficiency are supporting the deployment of this technology.

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High mobility and scalability offered by these systems remain one of the major driving factors for the market growth. The increasing demand for data centers and growing investments in the market are also expected to support the industry growth. With the demand for data center capacity growing, many companies are opting reliable and scalable data center solutions to cater to immediate needs. With containerized data centers offering suitable features to meet the requirements, the demand for these systems is expected to grow. However, the high flexibility offered by modular data centers is restraining the market growth. With industries inclining toward the deployment of modular data centers, the industry is struggling to expand. The limited flexibility and lack of expertise are also challenging the market growth.

Key Developments in the Market

March 2018 - Bahrain Airport Company (BAC), the operator and managing body of Bahrain International Airport (BIA) inaugurated its next-generation Containerised Data Centre (CDC) a portable and inherently scalable facility to host critical airport information systems. The CDC was designed, supplied and implemented by Gulf Business Machines (GBM)

The major players include –

IBM CORPORATION, HEWLETT PACKARD ENTERPRISE, CISCO SYSTEMS INC., DELL INC., RITTAL GMBH & CO. KG, and HUAWEI TECHNOLOGIES CO., LTD., amongst others.

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Growing Demand for Mobility and Scalability Solutions is Driving the Market Growth

For more than 40% organizations, scalability was one of the top challenges faced. Scalability provides the users with the building blocks to add capacity to their systems in timely intervals and pay-as-you-grow. This capacity-on-demand approach allows organizations to meet the fluctuating demands quickly. It also helps manage the capital expenditure costs and maintain higher operating efficiencies. This enables organizations to adopt new technologies with a forecast of very few months in advance, instead of years of planning. Building a data center environment doesn’t just depend on the scaling ability. Better results will be obtained when the data center is agile and scalable. Many new companies deploying data center strategies are starting with these systems to experiment and explore the potential. Easy scalability provided by adding additional blocks and easy plugin capabilities is supporting the growth. The markets, such as Brazil and India, which are experiencing high growth and penetration, are looking for scalable solutions.

North America to Hold the Largest Share in 2018

North America remained the largest market for these systems in 2017, with 38.2% market share. North America is one of the first regions to adopt these systems, with many companies in the region deploying these data centers in the United States. Microsoft, Google and Amazon, which were the first companies to deploy this technology, established containerized data centers in the United States. Many major players in the market, including IBM, HPE and Cisco have served the market, with the United States as the focused market. Thus, the penetration of containerized data centers in North America has been strong over the past few years. The high technology awareness and focus on cost-effective scaling have driven the market growth in the United States. Many companies in the data center industry have entered the US containerized data center market and expanded globally. However, the North American market is retreating, with many consumers moving toward modular data centers. The North American consumers are demanding higher flexibility and increased customization. With the containerized data centers offering limited flexibility, the demand for modular data centers has been high.

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