The modular data center market size has grown rapidly in recent years. It is set to grow from $34 billion in 2024 to $39.57 billion in 2025 at a compound annual growth rate (CAGR) of 16.4%. This exponential growth is attributed to the need for scalable and flexible data center solutions, rapid deployment and time-to-market advantages, growth in edge computing and IoT applications, energy efficiency and green data center initiatives, and adoption of containerization and virtualization technologies. These factors are expected to further propel the market size to $87.93 billion in 2029, growing at an estimated CAGR of 22.1%. The forecast period growth is expected due to an increased adoption in edge and remote locations, expansion of 5g networks and edge computing, demand for sustainable and eco-friendly data centers, and growth in modular data center solutions for disaster recovery.
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What Are the Key Drivers of the Modular Data Center Market?
The increasing environmental protection and energy consumption regulations are driving the modular data center market growth forward. Modular data centers align with government policy directions in terms of energy consumption performance, construction, planning, and required space. The adoption of modular data centers to deal with server changes such as cloud computing, virtualization, centralization, and high density is aimed at improving data center operation efficiency, reducing energy consumption, and achieving rapid expansion and zero interference.
What Are the Major Segments of the Modular Data Center Market?
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
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Which Major Companies Are Operating in the Modular Data Center Market?
Companies like 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. are key players in the modular data center market.
What Trends Are Shaping the Future of the Modular Data Center Market?
Technological innovation is driving trends in the modular data center market. Schneider Electric SE, for example, has launched a speedy prefabricated data center service in Europe. These standardized configurations can be ordered from a catalog and can be delivered in as little as 12 weeks, serving as a promising model for future data center deployments.
Which Region Is Leading in the Modular Data Center Market?
In 2024, North America emerged as the largest region in the modular data center market, with Asia-Pacific predicted to be the fastest-growing region in the forecast period.
What Does The Modular Data Center Market Report 2025 Offer?
A modular data center is a portable collection of components that provide data center capabilities, such as storage and networking, at any given location. These data centers offer a cost-effective and scalable approach for obtaining flexible computing capabilities when needed. The Modular Data Center Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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