Modular Data Centre Market to expand at a steady CAGR of 22.3% by 2028

The global modular data centre market is expected to register a global CAGR of 22.3% during 2018 – 2028, with Western Europe and North America accounting for approximately 60% market value shares by the end of the forecast period.

FMI delivers key insights on the global modular data centre market in its report titled “Modular Data Centre Market: Global Industry Analysis 2013 – 2017 and Opportunity Assessment 2018 – 2028.” Growth in the market value of the global modular data centre market will remain attractive as the market is expected to grow continuously at a CAGR of 22.3% in terms of value during the forecast period 2018 – 2028. On the basis of solution, the all-in-one containers segment is expected to register attractive growth over the forecast period in the global modular data centre market.

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Under the all-in-one containers segment, 20-feet containers are expected to dominate the global modular data centre market throughout the forecast period. Based on data centre size type, the small data centres segment is expected to gain a higher market share during the forecast period in the global modular data centre market. Based on industry vertical, the healthcare, telecom & IT and manufacturing segments are expected to witness a comparatively higher CAGR in the global modular data centre market.

The global annual revenue from the modular data centre was valued at US$ 4,832.1 Mn by the end of 2017, which is expected to grow at a significant pace over the coming years. With the progression of time, a declining Y-o-Y growth trend is expected in the latter half of the forecast period. The dominating regions, i.e., North America, China, SEA & Other of APAC and Western Europe, are expected to collectively account for a majority share of the global modular data centre market. The North America modular data centre, APAC (including China and Japan) modular data centre and Western Europe modular data centre markets are likely to dominate the global modular data centre market over the forecast period.

The integration of IT modules, power modules and cooling modules individually as well as in the form of a container offers various advantages such as low service cost, enhanced output, portability, mobility, etc., over conventional data centres. Owing to these advantages, a higher preference for modular data centres is now witnessed among data centre customers. The ease of deployment and the compact size is also expected to boost the adoption of modular data centres in the global market, especially in countries that lack spaces to establish conventional data centres such as India, China, etc. A high adoption of modular data centres have been witnessed since its inception in the telecom & IT and BFSI industry verticals owing to the generation and the need for storage of high-volume data. Besides this, modular data centres have also been adopted by various governments for storing the data as a backup to deal with expected disasters and emergencies. In addition, the growth of the manufacturing and healthcare industry verticals worldwide in terms of value is correspondingly expected to increase the adoption of modular data centres.

On the basis of FMI analysis, a considerable traction of services is expected with the increasing deployment and installation of modular data centres globally. Under the independent containers segment, the IT modules segment is expected to witness a decline in its prices during the latter half of the forecast period. Among the services segments, the maintenance and support segment is expected to witness the maximum growth rate during the forecast period. One of the major factors driving the small-sized data centres is the increasing demand for micro-modular data centres in the global modular data centre market.

The North America modular data centre market is expected to dominate the global modular data centre market due to the high presence of modular data centre providers as well as a strong IT and telecom industry in the region. The modular data centre market in China has high potential owing to an increase in the number of SMEs in the region. The SEA and Others of APAC modular data centre market will be a target market for market participants owing to the high growth opportunities in countries such as India. MEA modular data centre market is estimated to grow at an above-average CAGR over the forecast period. GCC Countries is expected to hold a major revenue share in the MEA modular data centre market over the forecast period. Japan is, however, expected to witness restricted adoption as well as low growth rate during the forecast period in the global modular data centre market.

According to FMI analysis, the launch of advanced and smart modular data centres by modular data centre providers and strategic collaborations with an intention of catering to an unaddressed market will help increase revenue.

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Examples of some of the market participants in the global modular data centre market report are Airedale Air Conditioning; Baselayer Technology, LLC; CUPERTINO ELECTRIC, INC.; CyrusOne; Dell; Delta Power Solutions; Eaton; Hewlett Packard Enterprise Development LP; Huawei Technologies Co., Ltd.; Inspur Technologies Co., Ltd.; International Business Machines Corporation; Keysource; Rittal GmbH & Co. KG; Schneider Electric and Vertic, Co.