Industry Outlook Analysis: Trends Impacting the Modular Data Center Market

Modular Data Center Market size is expected to witness growth over the forecast timeline owing to improvised scalability and portability coupled with the growing inclination of organizations toward the deployment of modular data centers. In addition, growing adoption of high-performance and energy-efficient data centers and the increasing need to lower the expenses associated with operations is further contributing to the growth of the modular data center market.

Installation of these data centers can be done easily and include IT, cooling, power, and access control elements. The modules are portable in nature and can be transported to places, where there is no possibility of building a permanent data center. These are capable of sustaining harsh weather conditions, making them suitable for response operations through emergencies and helping the overall modular data center market growth.

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Growing inclination of Mobile Network Operators (MNOs) for distributed data centers help in facilitating Network Function Virtualization (NFV) owing to the reduction in size and ease in shipments, fueling the modular data center market growth. In addition, the rising demand to reduce the complexity related to conventional data centers with low Power Usage Effectiveness (PUE) is driving the industry. Inefficient performance measures with a high dependency on suppliers may hinder the growth of the modular data center market. Challenges associated with high-performance computing, vendor lock-in system, and pre-determined sizes, where users are incapable of building a data center based on their preferences are some of the factors limiting the scope of the industry

The modular data center market is currently witnessing various technological advancements and innovations along with a considerable number of investments in R&D operations. Advanced scalability and flexibility associated with modular data centers along with the growing demand from enterprises toward its deployment offer significant growth opportunities for the industry growth. Among the latest innovations in the modular data center market, prefabricated data centers featuring increased productivity and reduced costs result in increased operational efficiency. These data centers have high growth potential opportunities among various industries such as BFSI, IT & Telecom, retail, and manufacturing.

The modular data center market can be segmented based on functional module solution, deployment size, service, and end use. The industry by functional module solution can be classified into all-in-one and individual functional modules. The functional modules are anticipated to drive the industry owing to the capabilities such as offering flexibility and scalability required by data center operators. They consist of individual modules, which can be used for mechanical and electrical applications. Moreover, they provide users an ease of implementation for customized solutions, benefiting the modular data center market growth.

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Based on the services segment, the modular data center market can be classified into infrastructure management, integration and deployment, and consulting. Among these services, infrastructure management is expected to witness a rapid growth pertaining to the early adoption of the modular data center solutions in large businesses, where third-party support is necessary for infrastructure management.

Deployment sizes in the modular data center market include mid-sized, enterprise, and large data centers. Mid-sized data centers are usually more dependent on the reliability of the devices, offering affordable customization choices along with reduced installation time and allowing operators to take real-time decisions. However, enterprise solutions provide several benefits, such as application acceleration, maintaining uptime, the effectiveness of staff resources, and enhanced security solutions, thereby contributing to the growth of modular data center market.

Major industries in the modular data center market include BFSI, IT & telecom, healthcare, retail, manufacturing, energy, education, government, defense, media & entertainment, and logistics. The solutions are suitable for IT & Telecom and BFSI sectors for storage and efficiently managing and processing a huge volume of critical and sensitive data. The modular data center market is witnessing a boost owing to the presence of new and advanced modular design procedures with container-based solutions, which can solve critical issues and reduce the time and cost of implementation.

North America is expected to dominate the modular data center market owing to the advancements in technology and the high adoption in several industrial sectors. Asia Pacific modular data center market is expected to show a speedy growth pertaining to the rising data traffic and increasing need for deployment of data centers in the economically developing countries such as China and India. In addition, increasing growth of internet-connected users with growing number of SMEs and cloud service vendors is offering significant growth opportunities in the region.

Industry players in the modular data center market include IBM Corporation, Cisco Systems, Inc., Huawei Technologies Co., Ltd., Schneider Electric, Baselayer, Hewlett Packard, Inc., Dell, Inc., Emersion Electric Co., SGI Corporation, Flexenclosure AB, IO Data Centers, LLC, Blade Room, Cannon Technologies, Eaton, GE Industrial Solutions, Celeste, Cancom, Gardener DC solutions, Aceco TI, Stulz, and Equinix. The industry is currently witnessing a number of mergers & acquisitions, and collaborations & partnerships are being implemented by major technology vendors to increase the market share. Vendors are providing containerized modular data centers for delivering pre-fabricated infrastructure and offering portable facilities. To offer customers with high-performance modular data centers, Stulz partnered with Technology Space Integration (TSI) while Equinix, Inc. acquired Telecity Group to expand interconnection and data center services in European modular data center markets for accelerating business performance and innovations.

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