Press release
Environmental Regulations And Energy Efficiency Initiatives Boosting Modular Data Center Market Growth Driver: A Major Catalyst in the Evolution of the Modular Data Center Market in 2025
The impetus for the expansion of the modular data center market is expected to be stricter environmental and energy usage regulations. Modular data centers' energy efficiency and advantages in terms of construction, planning, and space requirement align well with government policies. New data centers have seen improvements in construction timeframes, power usage, and costs. Modular data centers aim to adapt to server shifts like cloud computing, virtualization, centralization, and high density. They also strive to enhance the efficiency of data center operation, decrease energy usage, and realize fast scaling and zero interference objectives. For example, the European Commission is exploring measures to enhance the energy efficiency of data centers and cloud computing. Furthermore, data center operations in the European Union are projected to achieve carbon neutrality by 2030, in accordance with the European Green Deal. Thus, the heightened focus on environmental conservation and energy usage regulations are expected to catalyze the growth of the modular data center market.
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What is the projected compound annual growth rate (CAGR) of the modular data center market from 2025 to 2034, and what factors influence it?
The size of the modular data center market has seen swift expansion in the recent past. Projected to rise from a worth of $34 billion in 2024, it is expected to reach $39.57 billion in 2025, growing at a compound annual growth rate (CAGR) of 16.4%. The historical growth can be linked to factors such as the demand for scalable and flexible data center solutions, faster deployment and market entry benefits, growth in edge computing and IoT applications, emphasis on energy efficiency and green data center initiatives, and adoption of containerization and virtualization technologies.
The modular data center industry is projected to experience significant increases in the forthcoming years, reaching a value of $87.93 billion by 2029, with a compound annual growth rate (CAGR) of 22.1%. The rising growth in this timeframe can be credited to factors like higher deployment in edge and remote locations, the evolution of 5G networks and edge computing, the requirement for environmentally friendly and sustainable data centers, development in modular data center solutions aimed at disaster recovery, and the induction of improved cooling and power management technologies. Key trends during the prediction period include the adoption of prefabricated and ready-to-use modular data centers, creation of micro data centers for specific scenarios, utilization of modular data centers for temporary or mobile deployments, integration of artificial intelligence for predictive upkeep, and a heightened focus on security and compliance within modular data centers.
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How are the latest trends influencing the growth of the modular data center market?
The current trend in the modular data center market is significantly driven by technological innovation. To enhance the performance of their data centers, leading businesses involved in modular data centers are concentrating on the incorporation of advanced technologies into their product lines. As an illustration, Schneider Electric SE, a French enterprise renowned for its expertise in digital automation and energy management, initiated a faster prefabricated data center service within Europe in June 2022. The company, under the label ""Easy Modular Data Center All-in-One,"" plans to distribute prefabricated containerized data centers from 27kW to 80kW built in its Barcelona facility, complete with a simplified ordering process. Instead of the conventional engineer-to-order (ETO) approach, these units can now be purchased on a configure-to-order (CTO) basis, signifying a shift towards a standard catalog of configurable options. For Edge locations or smaller-scale customers, the Easy prefabricated range of containers are compliant with ISO standards and can be delivered in a minimum span of 12 weeks.
What are the major segments of the modular data center market and their role in driving growth?
The modular data center market covered in this report is segmented -
1) By Component: Solutions, Services
2) By Organization Size: Small and Medium-sized Enterprises, Large Enterprises
3) By Vertical: Banking, Financial Services And Insurance (BFSI), IT And Telecommunication, Media And Entertainment, Healthcare, Government And Defense, Retail, Manufacturing, Other Verticals
Subsegments:
1) By Solutions: Power Distribution Solutions, Cooling Solutions, Rack Systems, Security Solutions, Monitoring And Management Software, Networking Solutions
2) By Services: Consulting Services, Integration Services, Installation Services, Maintenance And Support Services, Training And Education Services, Managed Services
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Which regions are key players in the growth of the modular data center market?
North America was the largest region in the modular data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the modular data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the key firms paving the way for growth in the modular data center market?
Major companies operating in the modular data center market include The International Business Machines Corporation, Huawei Technologies Co. Ltd., Dell Technologies Inc., Hewlett Packard Enterprise., Baselayer Technology LLC, Vertiv Group Corp., Schneider Electric SE, Cannon Technologies Ltd, Rittal Gmbh & Co. KG, Instant Data Centers LLC, Colt Group SA, Bladeroom Group Ltd., Diversitec Inc., Iron Mountain Inc., Rahi Systems Pvt Ltd., Eaton Corporation, EdgeConneX Inc., Flexenclosure AB, Green Datacenter AG, Hitachi Vantara Corporation, IO Data Centers, MDC Stockholm AB, Nortek Air Solutions, Panduit Corp., PCX Corporation, STULZ GmbH, Sunbird Software, Telenetix Private Limited, Uptime Institute LLC., Vapor IO Inc., ZTE Corporation, ZutaCore Inc.
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What Is Covered In The Modular Data Center Global Market Report?
•Market Size Forecast: Examine the modular data center market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the modular data center market for a structured understanding.
•Key Players Overview: Analyze major players in the modular data center market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the modular data center market.
•Segment Contributions: Evaluate how different segments drive overall growth in the modular data center market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the modular data center market.
•Industry Challenges: Identify potential risks and obstacles affecting the modular data center market.
•Competitive Landscape: Review strategic developments in the modular data center market, including expansions, agreements, and new product launches.
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