Modular data centers are prefabricated and modular modules or containers that provide the necessary infrastructure and services to support a pre-defined number of IT servers and applications. Modular data centers are highly portable as they can be easily transported to the location where they are needed which make them an ideal solution for edge computing across various industries including telecom, healthcare, retail and BFSI among others.
The global Modular Data Center Market is estimated to be valued at US$ 18.49 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 - 2030, as highlighted in a new report published by CoherentMI.
Market Opportunity:
Edge computing provides data processing capabilities closer to where data is generated. This offers bandwidth savings, latency reduction, and context-aware services which are requirements for emerging technologies like 5G, IoT and AI. Modular data centers are well positioned to support the growing needs of edge computing applications across various industries. Their portability allows modular data centers to be placed at the edge locations very easily. The increasing adoption of edge computing technologies across industries is expected to drive significant demand for modular data centers during the forecast period to efficiently process and manage data closer to end-users without transmitting it to a centralized cloud facility. This creates huge market opportunity for modular data center providers to tap into the growing edge computing markets.
Porter’s Analysis:
Threat of new entrants: High initial investments required such as land, infrastructure and IT equipment pose high entry barriers.
Bargaining power of buyers: Modular data center solutions cater to both small and large businesses. Therefore, buyers have moderate bargaining power.
Bargaining power of suppliers: The presence of numerous component manufacturers limits the bargaining power of suppliers.
Threat of new substitutes: Rising popularity of cloud-based services poses threat of substitution.
Competitive rivalry: Numerous global and local players compete extensively in terms of product offerings, pricing and customer services.
SWOT Analysis:
Strengths: Scalable, flexible and reusable infrastructure; Cost-effective deployment.
Weaknesses: Vendor lock-in; Customization challenges.
Opportunities: Increasing demand from SMEs and strong growth in cloud adoption.
Threats: Vulnerability to cyber threats; Rising energy consumption.
Key Takeaways :
The global Modular Data Center Market Size is expected to witness high growth. The global Modular Data Center Market is estimated to be valued at US$ 18.49 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 – 2030.
North America dominates the global market currently due to high technology adoption. However, Asia Pacific is expected to grow at a higher pace during the forecast period supported by increasing digitalization in countries like China, India.
Key Players operating in the modular data center market are Flexenclosure, Hewlett Packard Enterprise, Huawei, IBM , Eaton, Bladeroom, Cannon Technologies, Rittal, Schneider Electric, Vertiv, Baselayer Technology, Cisco, Aceco TI, Active Power, Datapod, ZTE, Commscope Holding, Dell. Regional analysis focuses on the increasing deployment of pre-fabricated data centers across APAC and European countries to minimize deployment time.
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