Modular Data Center Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Modular Data Center Market 

• The annual demand for modular data center market was USD 31.25 billion in 2024 and is expected to reach USD 36.75 billion in 2025, up 17.6% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the modular data center market is expected to grow at a CAGR of 17.2%. The annual demand will reach of USD 111.62 billion in 2032, which is almost 3.04 times (~204% up) of the demand in 2025.
• During 2025-2032, the modular data center industry is expected to generate a cumulative sales opportunity of USD 548.50 billion which is almost 4.88 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• North America generated the highest demand in 2024, with robust IT infrastructure, high adoption of cloud computing as the key growth drivers in the region.
• By form factor type, enclosures segment is projected to be the dominant segment during the forecast period.
• By deployment type, outdoor segment is projected to be the dominant segment during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the modular data center market in terms of growth and market forecast.

Modular Data Center Market Data & Statistics

Market Dynamics

Introduction

What is modular data center?

A modular data center is a portable way of deploying data center capacity that consists of pre-fabricated modules and components intended to provide scalable data center capacity with multiple power and cooling solutions. Modular Data Centers provide fast deployment and versatile infrastructure choices, enabling organizations to address changing IT requirements effectively. The growing adoption of cloud computing and the necessity for flexible, mobile, and disaster-tolerant infrastructure are fuelling demand for modular data center solutions. As organizations seek to improve mobility and scalability, modular data centers are a reliable solution that can be rapidly installed across multiple sites while still being operationally efficient and disaster recovery-capable.

Market Drivers:

Mobility, Scalability, and Disaster Recovery Advantages of Modular Data Centers:

• The primary drivers fostering the growth of the modular data center market are the mobility, scalability, and disaster recovery benefits of these data centers. These innovations are designed for quick and adaptable implementation, enabling businesses to deploy their IT systems in the locations where they are most needed.
• The matter of flexible and mobile solutions is growing in relevance since companies are attempting to meet changing market requirements. Modular data centers enable companies to expand their infrastructure on demand with less downtime than regular data centers. 
• As flexibility and prompt response have become essential for companies, modular data centers are slowly attaining the position of valuable assets that enable them to respond to challenges efficiently and maximize their operations.

Market Challenges:

High Initial Investments Related to Modular Data Centers:

• One of the major challenges influencing the modular data centers market is the huge investment associated with these systems, which could be a challenge for new players or those with low resources. The upfront expenses of buying, integrating, and operating modular data centers may be expensive, even though these systems are anticipated to provide longer-term cost and operational benefits.
• When compared to the upfront expenses of traditional data center systems, some businesses could view this investment as being relatively too high. Thus, the cost barrier impedes the widespread adoption of modular data centers since smaller businesses are more concerned with short-term cost savings than long-term benefits.

Market Opportunities:

Rising Demand for IoT, AI, and 5G Technologies:

• The demand for modular data centers will rise sharply due to the Internet of Things, artificial intelligence, and 5G-driven data infrastructure. As IoT progresses further and through new 5G technology, localized processing of data becomes increasingly crucial.
• By providing reduced latency and enhanced connectivity, modular data centers play a critical role in enabling the effective deployment of IoT solutions across various industries. This integration of AI, IoT, and 5G increases the efficiency of operations and drives the demand for scalable and dependable data infrastructure, thereby fueling the expansion of the modular data center market.

Segment Analysis

By Form Factor Type 

“Enclosures segment is expected to hold the largest share in the market during the forecast period.”

• The modular data center market is segmented by form factor type into ISO containers, skid-mounted systems, and enclosures.
• Enclosures segment is expected to hold the largest market share during the forecast period due to its ability to offer flexible methods of safeguarding IT devices. They are pre-configured shell or metal enclosures that can be quickly assembled at the site through the joining of the other modules. 
• They can be installed inside and outside the facility and therefore can be utilized for the protection of equipment vulnerable to external environments. In addition to improving performance, this modular design makes it simple to expand and upgrade in response to changing needs.   

By Deployment Type 

“Outdoor segment is projected to grow with the highest CAGR during the forecast period.”

• The modular data center market is segmented by deployment type into indoor and outdoor.
• Outdoor segment is projected to grow with the highest CAGR during the forecast period. These data centers are independent solutions designed to be installed in outside environments and utilized at edge locations where traditional infrastructure is not possible.
• These systems offer power, cooling, monitoring, firefighting, and cabinet systems as modular building blocks, and they can be installed quickly into the data center. Outdoor ones can be set up at any site and can be expanded rapidly, hence they are ideal for organizations that must establish infrastructure in a short time in harsh conditions.

Regional Analysis 

“North America is expected to be the dominant and fastest-growing region over the forecasted period.”

• Based on region, the modular data center market has been segmented into North America, Europe, Asia Pacific, and the Rest of the world.
• North America is expected to be the dominant and fastest-growing region over the forecasted period, due to its robust IT infrastructure, high adoption of cloud computing, and significant investments in emerging technologies like AI, IoT, and 5G.
• Leading players like Amazon Web Services, Microsoft, and Google are major investors in modular data centers for scalable and energy-efficient infrastructure. Moreover, the presence of major tech giants and a focus on reducing energy consumption have further propelled the market's expansion in the region.

Competitive Landscape

Top Players 

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the modular data center market -  

• Dell
• Vertiv 
• Schneider Electric
• Huawei
• Eaton
• Rittal
• Johnson Controls
• ABB
• Delta Electronics
• Stulz

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions: 

• In June of 2024, Vertiv acquired CoolTera Ltd., adding to its liquid cooling solutions for data centers. This acquisition combines CoolTera's leading-edge cooling technology and experience, further strengthening Vertiv’s ability to handle and experience, further strengthening Vertiv's ability to handle high-density compute environments as well as AI deployments and significantly bolstering its role in the modular data center industry. 
• In June 2024, Ballard Power Systems and Vertiv formed a strategic technology alliance, integrating Ballard's fuel cells with hydrogen into Vertiv's Liebert EXL S1 UPS to offer scalable, emission-free backup power solutions. The demonstration of a proof-of-concept featured clean energy for data centers, in alignment with growing power requirements and sustainability goals. 

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The modular data center market is segmented into the following categories:

By Component Type

• Solutions 
• Services 

By Form Factor Type

• ISO Containers 
• Skid-Mounted Systems 
• Enclosures 

By Build Type

• Semi-Prefabricated Data Centers 
• Fully Prefabricated Data Centers 
• All-In-One Data Centers 

By Data Center Size Type

• Small Data Centers 
• Mid-Sized Data Centers 
• Large Data Centers 

By Deployment Type

• Indoor 
• Outdoor 

By End-Use Type

• Telecom Service Providers 
• Cloud Service Providers 
• Enterprises

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s modular data center market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]