Press release
Modular Data Center Industry Report 2025-2034: Market Dynamics, Trends, And Forecasts
Modular Data Center
What Is the Expected Modular Data Center Market Size During the Forecast Period?
The scale of the modular data center market has seen a significant expansion in the past few years. The market size is predicted to inflate from $34 billion in 2024 to approximately $39.57 billion in 2025, growing at a compound annual growth rate (CAGR) of 16.4%. The historic period's growth may be due to the necessity for adaptable and flexible data center solutions, quick deployment and advantages in time-to-market, a surge in edge of computing and IoT applications, initiatives towards energy efficiency and eco-friendly data centers, and the embracing of containerization and virtualization technologies.
Predictions for the modular data center market size suggest a dramatic increase over the coming years, with projections reaching $87.93 billion by 2029, maintaining a CAGR of 22.1%. Factors contributing to this projected growth during the forecast period include greater incorporation in edge and remote locations, extended 5g networks and edge computing, escalating demand for sustainable and eco-friendly data centers, and increased reliance on modular data center solutions in disaster recovery scenarios. Integration of sophisticated cooling and power management technologies also contributes to this trend. The prediction period will likely see the increased popularity of prefabricated and plug-and-play modular data centers, development of specialized micro data centers, and temporary or mobile deployment of modular data centers. The integration of AI for preventive upkeep and a focus on modular data center security and compliance are also expected to define the forecast period.
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What Are the High-Growth Segments in the Modular Data Center Market?
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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What Key Drivers Are Expected to Influence Future Modular Data Center Market Growth?
The growth of the modular data center market is projected to be driven by rising environmental conservation and energy use guidelines. The energy utilization and advantages of modular data centers in areas like construction, designing, and required space are consistent with governmental guidelines. Newly built data centers have enjoyed benefits in construction duration, energy usage, and costs. Modular data centers aim to address transformations in servers such as cloud computing, virtualization, centralization and high density, while also enhancing the efficiency of data center operations, lowering energy use, and achieving goals of quick expansion and zero disruption. For example, the European Commission is exploring alternative methods to boost the energy efficiency of data centers and cloud computing. In addition, under the European Green Agreement terms, data center activities in the European Union are predicted to reach carbon neutrality by 2030. Therefore, the escalating environmental protection and energy use regulations are likely to fuel the expansion of the modular data center market.
Which Companies Hold the Largest Share Across Different Modular Data Center Market Segments?
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.
What Trends Are Driving Growth in The Modular Data Center Market?
The prevailing trend in the modular data center market is the integration of technological innovation. Key market players are channeling their efforts towards incorporating novel technologies into their product range to boost data center efficiency. For example, in June 2022, Schneider Electric SE, a leading European firm dealing in digital automation and energy management, introduced a new and improved prefabricated data center service in Europe. Identified as the "Easy Modular Data Center All-in-One," Schneider plans to produce prefabricated containerized data centers, ranging from 27kW to 80kW, from its Barcelona-based manufacturing facility. This service includes a simplified ordering process. Its switch from an engineer-to-order (ETO) to a configure-to-order (CTO) model enables a shift towards standardized configurations that can be easily ordered from a catalog. For Edge sites or smaller users, the Easy prefabricated series of containers adheres to the ISO standard size and offers delivery in as few as 12 weeks.
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What Are the Emerging Geographies for The Modular Data Center Market Growth?
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
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Modular Data Center Market?
2. What is the CAGR expected in the Modular Data Center Market?
3. What Are the Key Innovations Transforming the Modular Data Center Industry?
4. Which Region Is Leading the Modular Data Center Market?
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