Modular Data Centers Market size is set to grow by USD 26.78 billion from 2023-2027, requirement to reduce complexity of traditional data centers to boost the market growth, Technavio

NEW YORK, April 25, 2024 /PRNewswire/ -- The global modular data centers market size is estimated to grow by USD 26.78 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 15.58% during the forecast period. 

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Market Driver

The modular data centers market is witnessing high growth, mainly fueled by the pressing need to simplify the complexities inherent in traditional data center setups. With businesses clamoring for more data storage solutions, the demand for additional infrastructure is skyrocketing. However, the traditional route of constructing new facilities comes with hefty costs, thanks to the need for cutting-edge power and cooling systems. Managing these sprawling complexes adds another layer of complexity and expense. Consequently, organizations are increasingly turning to modular data centers, which offer a more streamlined and cost-effective alternative. In fact, setting up a modular data center can save between 20% to 30% compared to traditional builds. This cost-effectiveness, coupled with simplified operations, is expected to drive the market's growth significantly in the foreseeable future.

Market Challenges

• The global modular data centers market is on the rise, especially among colocation and telecommunication service providers. However, many data center operators remain unaware of the significant benefits modular facilities offer. Unlike traditional data centers, modular construction involves lower upfront costs and allows for scalability as demand increases.
• Yet, operators lack the necessary skills to efficiently configure and operate these solutions, potentially impacting productivity. Education and training on modular data center operations are crucial to ensure successful design, deployment, and maintenance. Safety measures are paramount to avoid increasing operational costs. Lack of awareness and expertise may hinder market growth, emphasizing the importance of proper training for personnel on both vendor and operator sides.

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Segment Overview 

This modular data centers market report extensively covers market segmentation by

1. End-user 
   1. 1.1 IT and telecom
   2. 1.2 BFSI
   3. 1.3 Healthcare
   4. 1.4 Retail and e-commerce
   5. 1.5 Others
2. Component 
   1. 2.1 Solution
   2. 2.2 Services
3. Geography 
   1. 3.1 North America
   2. 3.2 Europe
   3. 3.3 APAC
   4. 3.4 South America
   5. 3.5 Middle East and Africa

1.1 IT and telecom- The Modular Data Centers Market is poised for substantial growth, especially in the IT and telecom sector. With a surge in cloud computing adoption among enterprises, there's a heightened demand for data centers to support these services.

• Modular data centers offer the necessary computing power and storage, eliminating the need for expensive hardware investments. Moreover, the explosion of data from businesses and individuals necessitates modular data centers capable of handling vast amounts of data.
• Additionally, the growing requirements of data analytics and machine learning applications further drive the demand for high-performance computing resources. This convergence of factors positions the modular data centers market for significant expansion in the forecast period.

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Research Analysis

In the context of economic downturns, such as recessions, the Modular Data Centers market has gained significant attention from various sectors, including mobile network providers and large enterprises. These data centers, known for their rapid deployment and scalability, offer standard and modular designs that cater to the digital transformation needs of businesses.

With the integration of cloud-based networking, artificial intelligence, robotics and automation, energy-efficient solutions, and 5G infrastructure, the Modular Data Centers market is a key Solutions sub-segment and Services segment in the broader technology landscape. Quicksilver Capital and the World Economic Forum have recognized the potential of this market, emphasizing its importance in the Internet of Things era.

Modular Data Centers have gained significant traction in the technology industry due to their flexibility and scalability. These pre-fabricated data centers are designed with the latest technology and can be easily deployed in various locations. Modular Data Centers are known for their energy efficiency and reduced carbon footprint, making them an eco-friendly solution for businesses.

The market for Modular Data Centers is expected to grow rapidly due to the increasing demand for data center capacity and the need for quick deployment solutions. Companies like Google, Microsoft, and Amazon Web Services have already adopted Modular Data Centers in their operations. The market is driven by factors such as the need for cost-effective solutions, energy efficiency, and the ability to expand or contract capacity as needed. The Modular Data Center market is expected to reach new heights in the coming years, with key players focusing on innovation and expansion.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user 
  • IT And Telecom
  • BFSI
  • Healthcare
  • Retail And E-commerce
  • Others
• Component 
  • Solution
  • Services
• Geography 
  • North America
  • Europe
  • APAC
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio