Modular Data Center Market – Overview of 4 Driving Factors

Modular data center system is commonly used as an alternative to the traditional data centers, mainly because they can be placed at any place where added data capacity is required. These centers have redefined the way the conventional infrastructures like cooling, spacing and power supplying worked. Different advantages of these systems including scalability, flexibility, reusability, portability, low, cost, reduced deployment time, and smaller footprint make them highly popular. These advantages are considered to be the strongest driver for the global modular data center market. The industry is also expected to gain benefits from technological advancements and growing applications across different industrial verticals.

According to the latest market research reports, the global modular data center market is expected to grow at a CAGR of over 31%, from 2014 to 2019. At the projected growth rate, the market is expected to become worth $26.02 billion by the end of the year 2019. As of 2014, the market is expected to be worth $6.52 billion. During the forecasting period, North America is expected to dominate the global market. Asia Pacific and other emerging markets, on the other hand, are expected to witness impressive growth as well.

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Segmentation in Modular Datacenter Industry

The global market is segmented on the basis of several basic components, which include the types, configuration, module forms, size of deployment, and demand across different industrial verticals and geographic regions. Following are the details of the sub-segments in the modular data center market:

  • Types: Containerized and individual module (IT, power, cooling & generator module)
  • Module Forms: Enclosures, ISO containers, and skid mounted
  • Configuration: Fully fabricated, semi fabricated and all-in-one
  • Deployment: Midsize, enterprise and large datacenters
  • Industry: Healthcare, education, IT & telecom, BFSI, defense, government, public, etc.
  • Geography: Europe, Asia Pacific, North America, Middle East & Africa and Latin America

Drivers & Restraints

The global modular data center market is driven by four crucial factors, which include growing advantages of these datacenters. Various advantages offering convenience to the users have increased their demand across different industrial verticals. More mobility and scalability and low Capex and Opex are also major driving factors for the industry. Applications in disaster recovery and low power usage effectiveness (PUE) are also significant drivers for the global market. Vendors lock in and limitations in high performance computing are estimated to be the strongest challenges for the market. However, existing companies in the market are seeking business opportunities from cost reduction, achieving similar level technological effects and replacement of traditional datacenters.

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