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Steady Expansion Forecast for Modular Data Center Market, Projected to Reach $87.93 Billion by 2029
Modular Data Center
Modular Data Center Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In recent years, there has been a swift expansion in the market size of modular data centers. This market is anticipated to surge from $34 billion in 2024 to approximately $39.57 billion in 2025, with a compound annual growth rate (CAGR) of 16.4%. The unprecedented growth during the historical period was influenced by the demand for scalable and adaptable data center solutions, accelerated deployment, and benefits in terms of speed to market. Other contributing factors include the progression in edge computing and IoT applications, initiatives for energy-efficient and green data centers, as well as the adoption of containerization and virtualization technologies.
Modular Data Center Market Size Forecast: What's the Projected Valuation by 2029?
The market for modular data centers is anticipated to experience substantial growth in the coming years, reaching a worth of $87.93 billion by 2029, with a compound annual growth rate (CAGR) of 22.1%. This escalated growth in the projected period reflects the increasing usage in edge and distant locations, the rapid expansion of 5g networks and edge computing, the rising demand for sustainable and green data centers, the augmentation of disaster recovery solutions in modular data centers, and the incorporation of advanced systems for cooling and power management. Notable trends during the forecast period include the spike in the adoption of prefabricated and plug-and-play modular data centers, the emergence of micro data centers designed for specific purposes, the increasing use of modular data centers for temporary or mobile deployments, the integration of artificial intelligence for predictive upkeep, and a heightened focus on security and compliance within modular data centers.
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What Are the Drivers Transforming the Modular Data Center Market?
The advancements in environmental protection and energy consumption laws are predicted to bolster the growth of the modular data center market. The government's policy directions are supported by the energy utilization performance of modular data centers, along with the benefits they offer in terms of construction, planning, and space requirement. Newly built data centers have reaped advantages concerning construction time, energy usage, and expenses. Modular data centers are designed to manage server modifications like cloud computing, virtualization, centralization, and high density, and to enhance the efficiency of data center operations, lessen energy usage, and achieve quick expansion and zero interference objectives. As an example, the European Commission is exploring alternative methods to augment the energy efficiency of data centers and cloud computing. By 2030, under the European Green Deal, data center operations within the European Union are set to accomplish carbon neutrality. Consequently, escalating environmental protection and energy consumption rules are set to stimulate the market growth of modular data centers.
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What Long-Term Trends Will Define the Future of the Modular Data Center Market?
The main trend gaining traction in the modular data center market is technological innovation. Numerous renowned companies in this sector are concentrating on incorporating modern technologies into their products to enhance the performance of their data centers. For example, in June 2022, Schneider Electric SE, a firm based in France renowned for its work in digital automation and energy management, introduced a faster prefabricated data center service in Europe. Schneider plans to supply prefabricated, containerized data centers ranging from 27kW to 80kW, manufactured in its Barcelona factory, under the "Easy Modular Data Center All-in-One" label. The ordering process is streamlined, and instead of being engineered-to-order (ETO), the units are now available on a configure-to-order (CTO) basis. This shift indicates a move towards standardized configurations that can be selected from a catalog. The Easy pre-fabricated range of containers, which are ISO standard sized, can be delivered to smaller users or Edge sites in as short a period as 12 weeks.
Which Segments in the Modular Data Center Market Offer the Most Profit Potential?
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 Firms Dominate the Modular Data Center Market by Market Share and Revenue in 2025?
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.
Which Regions Offer the Highest Growth Potential in 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
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