Global Modular Data Centre Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Modular Data Centre Market Growth

Modular data centres are a portable method of implementing data centre solutions, such as scalable data capacity and networking environment, and servers. This data centre system can be positioned in any location, and it is comprised of modular components. Due to them being built of standardised components, they are comparatively easier and cheaper.

The rising adoption of cloud-based services and storage solutions is a major reason for the growth of the modular data centre market. This situation is prevalent due to the increasing number of people on online platforms which generates a huge amount of data, and large enterprises are implementing data centre solutions for maximum efficiency.

Modular Data Centre Market Trends

Government organisations have also started developing data centre infrastructure and cloud solutions to increase data security and efficiently store constantly increasing amounts of data. Modular data centre systems are expected to grow in value due to their environmental benefits. Compared to traditional data centres, they tend to consume less power and provide higher energy efficiency.

A crucial trend of modular data centre market is the rise of edge computing, which processes data closer to its source, is boosting demand for modular data centres. Their compact and adaptable nature makes them ideal for deployment in diverse locations, supporting faster data processing and reduced latency.

Recent Developments

As per the modular data centre market report, Vertiv announced the launch of a high-density modular data centre solution specifically designed for AI. Named the MegaMod CoolChip, this offering is intended to accelerate the deployment of AI capacity by up to 50 percent compared to conventional on-site construction methods. The MegaMod CoolChip employs liquid cooling technology, including direct-to-chip cooling, and can be tailored to accommodate the platforms of AI computing providers while being scalable to meet customer specifications.

Industry Outlook

As per the modular data centre industry analysis, several market players are launching innovative modular data centres to enhance efficiency. For instance, Alibaba Cloud claims that its modular data centre design can reduce construction times by as much as 50%. The Cube DC 5.0 features a prefabricated modular structure that includes a wind-liquid hybrid cooling system, an all-direct current power distribution network, and an intelligent management system. This innovative data centre architecture was unveiled at this year's Apsara Conference and is expected to support up to 200 MW of IT capacity and a server rack density of up to 200 kW once fully developed. It is specifically designed for next-generation, high-density, and energy-efficient data centres to meet the growing demand for high-performance computing in the AI era. A pilot implementation of the Cube DC 5.0 is planned for Alibaba Cloud's data centre in China by mid-2025.

Additionally, data centre startup EdgeCloudLink (ECL) has successfully introduced its first hydrogen-powered modular data centre, which can contribute to the growth of the modular data centre industry. According to an initial report by Silicon Angle, this modular facility has been set up at ECL's inaugural site in Mountain View, California, USA. ECL has indicated that its modular data centres are designed to support high densities of graphics processing units, a requirement that is increasingly important due to the demands of generative AI workloads.

Rapid deployment, scalability, cost efficiency, and energy efficiency offered by modular data centres drive the modular data centre market growth.

• Modular data centers offer highly scalable solutions, allowing businesses to expand their data infrastructure as needed without significant upfront costs. This flexibility is a major strength in the fast-evolving tech landscape.
• Compared to traditional data centers, modular data centers are quicker to deploy, as they are pre-fabricated off-site and can be assembled quickly. This reduces downtime and accelerates time-to-market, aiding the modular data centre market value.
• Modular data centers are designed to optimize energy use with efficient cooling systems and layouts, helping companies lower operational costs and reduce their carbon footprint.
• The modular design allows these data centers to be easily relocated or reconfigured, making them suitable for remote locations and industries requiring temporary setups, like military and disaster recovery applications.

High initial costs, dependency on standardized designs, limited customization options, and potential logistical disruptions may pose challenges to the market players.

• The initial investment for modular data centres can be high, which may be a barrier for some organizations, affecting modular data centre market revenue. 
• Dependency on standardized designs can limit flexibility and customization for specific business needs.
• Limited customization options may not meet the unique requirements of certain industries or applications.
• Logistical challenges, such as transportation and site preparation, can complicate deployment.

Growing demand for edge computing, increasing adoption of cloud services, and advancements in modular technology offer emerging opportunities.

• Developing regions, particularly in Asia-Pacific, Africa, and Latin America, are seeing rapid digital infrastructure growth. Modular data centres provide a scalable, efficient solution for these regions where large-scale infrastructure may not yet be developed, boosting the modular data centre demand.
• The growing demand for edge computing drives the need for modular data centres to support localized data processing.
• Increasing adoption of cloud services fuels the expansion of modular data centres to meet rising data storage and processing demands.
• Advancements in modular technology, including improved cooling and power solutions, enhance market appeal.

Modular Data Centre Industry Segmentations

Based on component, the market can be segmented into solutions and services. Based on the organisation size, it can be bifurcated into small and medium enterprises and large enterprises. Based on industry vertical, the market can be divided into BFSI, IT and Telecommunication, media and entertainment, healthcare, government and defence, retail, and manufacturing, among others. The regional markets for the modular data centre market can be divided into North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa.

Modular Data Centre Market Share

Based on Component

Based on components, the market can be bifurcated into solutions and services. The solutions segment is likely to cover the largest modular data centre market share and is expected to grow at a CAGR of 16.7% in the forecast period. The growth is due to the increasing implementation of modular data centres owing to their advantages with energy efficiency, scalability, and accessibility.

Due to the increased usage of public cloud services among startups and SMEs, the services category is predicted to expand at the fastest CAGR throughout the forecast period.

Based on Organisation Size

Based on organisation sizes, the market divisions include small and medium enterprises and large enterprises.

The modular data centre demand growth is fuelled by large enterprises owing to the large pool of capital available for them to set up the infrastructure and manage the system. The segment is expected to develop rapidly owing to the increasing demand for private cloud solutions. Small and medium-sized enterprises are expected to show to high growth rate owing to the growing number of startups and the rapid development of small enterprises. Companies are starting to invest in data storage systems to properly handle the growing collection of data.

Competitive Landscape

CommScope Inc. is a leading technology company in modular data centre market that is engaged in designing, manufacturing, installing, and supporting hardware infrastructure and software to enable streamlined communication. They provide network solutions, broadband networks, data centre solutions, and managed networks, among others. The company is headquartered in North Carolina, United States and it was founded in 1976.

• Comprehensive Solutions: The company offers a wide range of modular data centre solutions that include both infrastructure and connectivity components, enhancing modular data centre market opportunities.
• Customization: Provides highly customizable modular data centre designs to meet specific customer requirements.
• Global Presence: Leverages its global footprint to deliver solutions and support to customers worldwide, ensuring consistent service delivery.

Dell Inc. is a technology company and one of the largest companies to develop and distribute computers and related products. It is an American company headquartered in Texas, United States and it was founded in 1984. Their product portfolio covers various categories of products including laptops, desktops, data storage, servers, networking, and data protection, among many others. Dell is a major player in the IT and computing market, known for its innovative data centre solutions, including modular data centres.

• Integrated Solutions: Delivers integrated modular data centre solutions that combine computing, storage, and networking components, which can aid the demand of modular data centre market.
• Scalability: Focuses on scalable designs that allow data centres to grow with the needs of the business.
• Innovation and R&D: Invests heavily in research and development to offer cutting-edge technology and maintain a competitive edge.

Hewlett Packard Enterprise Development LP. is one of the largest global information technology companies in modular data centre market, based in Texas, United States. The company was founded in 2015 and has been operating to improve business workflow with comprehensive solutions and edge-to-cloud solutions. The company provides different IT solutions including data storage, high-performance computing, networking, artificial intelligence, machine learning, analytics, and software, among others.

• Advanced Technology: Utilizes advanced technologies such as AI and IoT to enhance the efficiency and performance of its modular data centres, which can impact the modular data centre demand forecast.
• Energy Efficiency: Prioritises energy-efficient designs to help customers reduce operational costs and environmental impact.
• Global Support Network: Provides extensive global support and services to ensure reliable operation and maintenance of its solutions.

Baselayer Technology LLC: Baselayer Technology specializes in modular data centre solutions, focusing on innovative and flexible designs.

• Innovation: Emphasizes innovation in modular data centre design, offering solutions that are easy to deploy and manage.
• Flexibility: Provides highly flexible solutions that can be tailored to various applications and environments.
• Customer Focus: Maintains a strong customer focus, offering personalized solutions and support to meet specific needs.

Other players in the market include Vertiv Group Corp., and Iron Mountain Incorporated, among others.

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Modular Data Centre Market Regional Analysis

The Asia Pacific region is expected to register robust growth in the market and is expected to grow at a CAGR of 17.5% in the forecast period, driven by rapid economic development, expanding infrastructure, and strong adoption of IT solutions. The markets in India, China, and Japan are expected to grow at a CAGR of 20.1%, 16.8%, and 10.5% between 2024 and 2032 and boost the modular data centre industry revenue. The rapid expansion of 5G network infrastructure in countries such as India, China, and South Korea is driving the need for high-speed, low-latency, and scalable data centres to support the rise in data demand.