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Leading Growth Driver in the Micro Data Center Market in 2025: The Surge In IoT Adoption Fuels Growth In The Micro Data Center Market Driver's Influence
Micro Data Center Market Size
The increasing adoption of the Internet of Things (IoT) is set to drive the growth of the micro data center market. IoT connects physical devices using sensors and software to exchange data, and its widespread adoption is driven by a desire for automation and enhanced connectivity. Micro data centers provide efficient and secure data processing, addressing challenges like latency and bandwidth in IoT systems. In January 2022, the GSM Association projected that global IoT connections would increase from 16.7 billion in 2023 to 25 billion by 2025. The growth of IoT is pushing the demand for micro data centers.
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What Is the projected market size and growth rate for the micro data center market?
The micro data center market has grown exponentially, rising from $7.48 billion in 2024 to $9.75 billion in 2025 at a CAGR of 30.3%. Key factors contributing to this surge include the increasing adoption of micro data centers, demand for micro-modular solutions, a rise in self-contained IT facilities, growing interest from colocation companies in modular solutions, and the sustainability benefits associated with micro data centers.
The micro data center market is set to experience exponential expansion, reaching $27.93 billion in 2029 at a CAGR of 30.1%. This growth is driven by the rising demand for real-time data processing, increased adoption of IoT and edge computing, the need for scalable and flexible solutions, heightened concerns for data security, and global digitalization. Major trends include the development of high-performance and reliable data centers, edge computing for AI and IoT applications, self-contained and scalable data center solutions, 5G adoption, and continuous product innovation.
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What new trends are reshaping the micro data center market and its opportunities?
Companies in the microdata center market are focusing on liquid cooling technology to gain a competitive advantage. Liquid cooling efficiently absorbs and removes heat from densely packed electronic components, making it ideal for data centers and high-performance computing setups. For instance, in April 2023, STULZ GMBH, a Germany-based company, launched the STULZ Micro DC, a modular micro data center solution. This product combines essential IT infrastructure components like power protection, cooling, and monitoring into a single system that can scale to meet user needs, offering both single- and multi-rack configurations.
What major market segments define the scope and growth of the micro data center market?
The micro data center market covered in this report is segmented -
1) By Component: Solutions, Service
2) By Organization Size: Small And Medium-Sized Enterprises, Large Enterprises
3) By Application: Instant Dc And Retrofit, High Density Networks, Remote Office, Mobile Computing, Other Applications
4) By Industry Vertical: Energy, Colocation, Banking, Financial Services, And Insurance (BFSI), Government, Industrial, Healthcare, Information Technology And Telecom, Other Industry Verticals
Subsegments:
1) By Solutions: Power Distribution Units (PDU), Cooling Systems, Rack Systems, Servers, Storage Systems, Networking Equipment
2) By Service: Consulting Services, Installation And Integration Services, Maintenance And Support Services, Managed Services
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What regions are leading the charge in the micro data center market?
North America was the largest region in the micro data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the micro data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Which key market leaders are driving the micro data center industry growth?
Major companies operating in the micro data center market are Huawei Technologies, IBM Corporation, Schneider Electric SA, Fujitsu Ltd., ABB Ltd., Hewlett Packard Enterprise Co., Eaton Corporation, Vertiv Group Corp., Dell Inc., Iron Mountain inc., Rittal GmbH, Tata Communications, Stulz GmbH, Switch, EdgeConneX, Canovate Group Companies, PI Data Centers Pvt. Ltd., ScaleMatrix Inc., Cannon Technologies Ltd., Hanley Energy LLC, Attom Technology, Advanced Facilities Inc., Rackbank Datacenters pvt. Ltd., ALTRON, Zella DC
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What Is Covered In The Micro Data Center Global Market Report?
•Market Size Forecast: Examine the micro data center market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the micro data center market for a structured understanding.
•Key Players Overview: Analyze major players in the micro data center market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the micro data center market.
•Segment Contributions: Evaluate how different segments drive overall growth in the micro data center market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the micro data center market.
•Industry Challenges: Identify potential risks and obstacles affecting the micro data center market.
•Competitive Landscape: Review strategic developments in the micro data center market, including expansions, agreements, and new product launches.
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