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Modular data center market expeced to grow at a CAGR of 24.36% during 2018 to 2023 illuminated by new report

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Global Modular Data Center Market - Segmented by Function Module Solution (Individual Function Module, All-in- one function module), by Deployment Size (Medium sized data centers, Enterprise data centers, Large data centers), by Application (Disaster recovery, High Density Networks, Remote office support, Mobile Computing), by Services (Consulting, Infrastructure, Integration and development) by End User (Manufacturing, Energy, Healthcare, Government and defense, Telecom&IT, BFSI) and Region - Growth, Trends and Forecasts (2018 - 2023)


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The Global Modular Data Center Market was valued at USD 9.46 billion in 2017, and it is expected to reach a value of USD 34.99 billion by 2023, at a CAGR of 24.36%, during the forecast period (2018 - 2023). The scope of the report is limited to solutions offered by major players including providers of modular data center professional services and integration solutions.

While the regions considered in the scope of the report include North America, Europe, Asia-middle east, Middle East and Latin America.

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Modern data centers have been evolving rapidly.


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The current market caters to complete systems for disaster recovery, and efficient cloud platforms to handle large influx from users. As the market for x86- based servers, storage and network equipment has grown, end-users across a broad spectrum of vertical markets have been exploring ways to find more effective methods to install and manage data center equipment.

Modular data center solutions represent one approach designed to increase installation and management efficiencies of data center hardware infrastructure. It is a deployment method engineered for data center assembly of modular components

United States Is One of the Primary Markets for Growth of Modular Data Centers

Being the hub for large-scale organizations and with higher internet penetration, North America accounts for the major share of global modular data center market. Cutthroat competition in the market prompts the organizations to adopt cost-effective solutions.

United States is a major market for global modular data centers. The organizations are investing in modular data centers to gain significant cost benefit, which are associated with their deployment.

Big Data and IoT penetration in the region will transform the demand for next generation modular data centers in the region. With the existing competition, organizations are under pressure to evolve IT scalability as well as the capacity.

The Increase in the Mobility and Scalability of Data Centers is Driving the Growth of Modular Data Centers

The mobility of the modular data centers enables clients to relocate their data center, rather than demolishing it and construct a new one at a new site. Modular data centers can be delivered wherever the end-user desired it to be.

A modular solution is considered mobile, since it can be transported in pieces and re-assembled very quickly on-site. Mobility has become a very attractive feature for organizations, who are looking at modular deployments for disaster recovery.

It is due to their ability to get deployed at recovery sites and start working within the least possible time. With more new offerings made available, data center providers look for practices, which are as agile as possible.

This adoption of modular data centers also contributes to the cost saving structure of the companies which contribute to the high adoption of modular data centers.

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IT Module Is One of the Primary Constituents for Individual Function Module

The functions of any data center can be categorized into three major categories - IT module, power module and mechanical module. Prefabricated modular data center modules are often provided one function of the data centers.

Owing to the stranded capacity in the existing facility, a prefabricated module is needed only for a specific resource, such as power or cooling or just IT space. A typical IT module consists of IT racks, which hold IT equipment, PDU’s, air distribution system, humidification/dehumidification system, cabling infrastructure, fire detection/protection, lights and security systems.

Since IT modules provide easy access to individual servers without interrupting data center operations, they are very important for smooth running of the data center. Generally, the IT modules have configurable power breaking whips, VESDA smoke detection and emergency power off and a user defined I/O interface, which enables the user to control it.

Key Developments in the Market

  • December 2017 - Leading data center facilities provider Equinix has acquired Metronade owing to which plans for rapid expansion in Australia have been implemented. Data center modules in Australia have been undertaken by Equinix who are expected to use a BladeRoom approach for modular data centers
  • December 2017 - Flexenclosure has opened a second eCenter production facility. This facility has been primary established owing to the demand for modular data center. These data centers are self-contained and pre-integrated with network and power equipment.

Major Players: HP INC., IBM CORPORATION, DELL INC., CISCO SYSTEMS INC., HUAWEI TECHNOLOGIES, EMERSON NETWORK POWER, SCHNEIDER ELECTRIC SE, AST MODULAR, IO DATACENTERS, RITTAL GMBH & CO., SILICON GRAPHICS INTERNATIONAL CORP., ELLIPTICAL MOBILE SOLUTIONS, THE SMART CUBE, FLEXENCLOSURE AB, AND COLT GROUP S.A.

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Reasons to Access this Report

  • Elaborate on the growing number of data centric institutions, which act as a driver to the global modular data center market scenario.
  • Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
  • The major applications and type of Services that are expected to dominate the market.
  • The regions are which expected to witness the fastest growth during the forecast period are analyzed in detail.
  • Identify the latest developments, market shares and strategies employed by the major market players.
  • 3-month analyst support, along with the Market Estimate sheet (in excel)

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