The global modular data center market is experiencing rapid growth, with a projected compound annual growth rate (CAGR) of 17.9% for the period from 2025 to 2031. According to a report by The Insight Partners, the sector is expected to increase from a value of $30.27 billion in 2024 to $81.56 billion by 2031. This growth can be attributed to the rising demand for efficient, sustainable, and scalable infrastructure solutions in the technology industry.
Key Growth Factors
- Fast Implementation and Reduced Construction Time: Modular data centers significantly decrease deployment time compared to traditional data centers. Their prefabricated design allows for customized configurations and faster integration, shortening construction time from months to weeks.
- Increased Adoption by Large Enterprises: Telecommunications, financial services, healthcare, and manufacturing companies are adopting modular solutions to meet the growing demand for data processing in edge computing, 5G, and artificial intelligence environments.
- Energy Efficiency and Sustainability: The need to reduce energy consumption and improve efficiency in data centers has driven the adoption of modular solutions, which optimize resource use and reduce long-term operational costs.
Market Segmentation
The report divides the modular data center market into various segments:
- By Components:
- Solutions (all-in-one and single-function modular data centers)
- Services (consulting, design, integration, support, and maintenance)
- By Company Size:
- By Sector:
- BFSI (banking, financial services, and insurance)
- Telecommunications and IT
- Manufacturing
- Government and Defense
- Healthcare and Others
Geography and Key Market Players
In 2024, North America led the market with the highest revenue share, followed by Asia-Pacific and Europe. North America is expected to continue registering the highest growth during the forecast period.
Key industry players include:
- Dell Inc.
- Hewlett Packard Enterprise
- IBM Corporation
- Huawei Technologies Co. Ltd.
- Schneider Electric SE
- Vertiv
- Eaton Corporation Plc
- Rittal Ltd UK
- Emerson Electric Co.
- IE Corporation
Future Trends and Opportunities
- Rise of Micro Data Centers: Their implementation in industries like banking and healthcare is increasing, allowing for data processing in remote locations with enhanced security and regulatory compliance.
- Expansion of Edge Computing: The need for low-latency infrastructure is driving the adoption of modular data centers close to end-users, improving the efficiency of 5G networks and distributed computing.
- Growing Demand in Telecommunications: Operators are deploying modular units near telecommunications towers to facilitate the expansion of 4G and 5G networks, reducing costs and improving transmission capacity.
The report by The Insight Partners highlights that the increasing adoption of modular data centers is driven by the need for more agile and sustainable solutions in an ever-evolving digital environment. With their flexible scalability and cost reduction capabilities, these data centers will continue to play a key role in the future of global digital infrastructure.
Source: PrNewsWire