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Environmental Regulations And Energy Efficiency Initiatives Boosting Modular Data Center Market Growth: Transformative Forces Shaping the Modular Data Center Market Landscape in 2025
Modular Data Center Market
What Will the Modular Data Center Industry Market Size Be by 2025?
In the last few years, the size of the modular data center market has expanded quickly. Its progression is projected to continue from $34 billion in 2024 to $39.26 billion by 2025, with a compound annual growth rate (CAGR) of 15.5%. This significant growth in the past can be credited to the demand for scalable and adaptable data center solutions, speedy deployment and time-to-market advantages, advancements in edge computing and IoT applications, green data center endeavors and energy efficiency, and the acceptance of virtualization and containerization technologies.
What's the Long-Term Growth Forecast for the Modular Data Center Market Size Through 2029?
In the coming years, the modular data center market is anticipated to experience substantial growth, escalating to a worth of $86.1 billion in 2029 with a compound annual growth rate (CAGR) of 21.7%. This predicted surge during the forecast period can be attributed to factors such as higher usage in edge and remote areas, the growth of 5G networks and edge computing, the demand for sustainable and eco-friendly data centers, the increasing use of modular data center solutions for disaster recovery, and the integration of advanced cooling and power management technologies. Some of the major trends projected for the forecast period encompass the adoption of prefabricated and plug-and-play modular data centers, the creation of micro data centers for specific applications, the employment of modular data centers for temporary or mobile deployments, the application of artificial intelligence for predictive maintenance, and a focus on security and compliance within the modular data center domain.
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What Are the Key Growth Drivers Fueling the Modular Data Center Market Expansion?
The surge in environmental conservation and energy consumption regulations is anticipated to bolster the expansion of the modular data center market. The energy efficiency of modular data centers, coupled with the benefits in design, construction, and space requirements, align with government regulatory directions. The newly established data centers have consequently gained through reduced construction time, lower energy utilization, and cost-effectiveness. Modular data centers are designed to accommodate server modifications such as cloud computing, virtualization, centralization, and high density, in addition to enhancing data center operational effectiveness, minimal energy usage, and achieving quick expansion and zero disturbance objectives. For example, the European Commission is researching different approaches to boost the energy efficiency of data centers and cloud computing. Data center operations in the European Union are projected to realize carbon neutrality by 2030 as per the European Green Deal. As a result, intensified environmental conservation and energy consumption regulations will spur the growth of the modular data center market.
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What Are the Key Trends Driving Modular Data Center Market Growth?
In the modular data center market, the main trend that is gaining traction is technological innovation. Big firms functioning in the modular data center domain are putting their efforts into incorporating new technologies into their services to enhance the efficiency of their data centers. For instance, Schneider Electric SE, a company originated from France that specializes in the field of digital automation and energy management, introduced an advanced prefabricated data center service across Europe in June 2022. The service will be provided under the banner "Easy Modular Data Center All-in-One" and will deliver prefabricated containerized data centers ranging from 27kW to 80kW, built at its Barcelona factory with a neat ordering process. Instead of engineer-to-order (ETO), the boxes are now offered on a configure-to-order (CTO) basis, indicating a shift towards standardized configurations that can be ordered via a catalog. The Easy prefabricated series of containers, which are sized according to ISO standards, can cater to Edge sites or smaller users and can be delivered within a minimum of 12 weeks.
How Is the Modular Data Center Market Segmented?
The modular data centermarket 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 Companies Are Leading the Charge in Modular Data Center Market Innovation?
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 Are Leading the Global Modular Data Center Market in Revenue?
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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