Modular Data Center Market by Functional Module Solution (All-In-One Module and Individual Module), Service, Data Center Size, Tier Type, Industry, and Region - Global Forecast to 2022

The modular data center market size is expected to grow from USD 13.07 Billion in 2017 to USD 46.50 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 28.90%. The growing requirement for scalable data centers, reduced Capital Expenditure (CAPEX), and the growing need for green data centers are the major growth drivers of the market. In this study, 2016 has been considered as the base year and 2017–2022 as the forecast period.

Objectives of the Study

The main objective of this report is to define, describe, and forecast the global modular data center market on the basis of functional module solutions, services, data center sizes, tier types, industries, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the total data center market. The report also attempts to forecast the market size with respect to 5 main regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. It also tracks and analyzes competitive developments, such as joint ventures, mergers and acquisitions, new product developments, and Research & Development (R&D) activities in the modular data center market.

Research Methodology

The research methodology used to estimate and forecast the modular data center market began with capturing data the key vendor’s revenues through a secondary research using sources, such as Uptime Institute (US) and Institute of Electrical and Electronic Engineers (IEEE) (US). The vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global market from the revenues of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The breakdown of primary profiles is depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The modular data center market ecosystem comprises vendors, such as Huawei Technologies Co., Ltd. (China), International Business Machines (IBM) Corporation (US), Eaton Corporation plc (Ireland), Bladeroom (UK), Cannon Technologies Ltd. (UK), CommScope Holding Company, Inc. (US), Dell Inc. (US), Flexenclosure AB (Sweden), Hewlett Packard Enterprise (HPE) Development LP (US), Rittal GmbH & Co. KG (Germany), Schneider Electric SE (France), Vertiv Co. (US), and Baselayer Technology, LLC (US); service providers; system integrators; and enterprises.

The target audience of the modular data center market report are:

• Information Technology (IT) service providers
• IT infrastructure equipment providers
• Component providers
• System integrators
• Support service providers
• Consulting service providers
• Cloud service providers
• Data center vendors
• Colocation providers
• Data center vendors
• Government and standardization bodies

 “Study answers several questions for the stakeholders, primarily which market segments will focus in next 2 to 5 years for prioritizing the efforts and investments”.

Scope of the Report

The research report categorizes the modular data center market to forecast the revenues and analyze the trends in each of the following subsegments:

By Component:

By Functional Module Solution:

• All-in-one functional module
• Individual functional module
  • IT module
  • Electrical module
  • Mechanical module

By Service:

• Consulting
• Integration and deployment
• Infrastructure management

By Data Center Size:

• Mid-sized data centers
• Enterprise data centers
• Large data centers

By Tier Type:

• Tier 1
• Tier 2
• Tier 3
• Tier 4

By Industry:

• BFSI
• IT and telecom
• Government and defense
• Healthcare
• Education
• Retail
• Energy
• Manufacturing
• Others (media and entertainment, and transportation and logistics)

By Region:

• North America
• Europe
• Middle East and Africa (MEA)
• Asia Pacific (APAC)
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

Product matrix which gives a detailed comparison of product portfolio of each company

Geographic Analysis

• Further breakdown of the North American modular data center market.
• Further breakdown of the European market.
• Further breakdown of the APAC market.
• Further breakdown of the MEA market.
• Further breakdown of the Latin American market.

Company Information

• Detailed analysis and profiling of additional market players

Market Dynamics

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Years Considered for the Study
    1.4 Currency
    1.5 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Top-Down Approach
    2.3 Research Assumptions
    2.4 Limitations

3 Executive Summary (Page No. - 23)

4 Premium Insights (Page No. - 25)
    4.1 Attractive Market Opportunities in the Modular Data Center Market
    4.2 Market 2017–2022
    4.3 Market By Industry and Region
    4.4 Market 2017–2022: By Region
    4.5 Life Cycle Analysis, By Region

5 Market Overview and Industry Trends (Page No. - 28)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Growing Need for Energy-Efficient Data Centers
                    5.2.1.2 Portability and Scalability Requirements
                    5.2.1.3 Reduced Capex
                    5.2.1.4 Increasing Demand for Rapidly Deployable Data Centers
           5.2.2 Restraints
                    5.2.2.1 Reliance on Pue as the Sole Efficiency Measure
                    5.2.2.2 Vendor Lock-In Restricting the Buying Options
           5.2.3 Opportunities
                    5.2.3.1 Deployments in Disaster-Prone Areas
                    5.2.3.2 Reducing Real Estate Expenditure
           5.2.4 Challenges
                    5.2.4.1 Rise in HVAC Needs
    5.3 Technology Trends and Standards
           5.3.1 Introduction
           5.3.2 Standards and Guidelines for the Modular Data Center Market
                    5.3.2.1 Storage Networking Industry Association
                    5.3.2.2 Open Compute Project (OCP)
                    5.3.2.3 Telecommunications Infrastructure Standard for Data Centers
                    5.3.2.4 Underwriters Laboratory (UL)
                    5.3.2.5 Distributed Management Task Force Standards (DMTF)
                    5.3.2.6 Made in USA (For the Us)
                    5.3.2.7 Canadian Standards Association (CSA) Group
                    5.3.2.8 Electronic Industry Association (EIA)
                    5.3.2.9 Telecommunication Industry Association (TIA)
                    5.3.2.10 Organization for the Advancement of Structured Information (OASIS)
                    5.3.2.11 Data Center Site Infrastructure Tier Standard (Uptime Institute)
                    5.3.2.12 Storage Networking Industry Association (SNIA) and Cloud Data Management Interface (CDMI)
    5.4 Modular Data Center Framework
           5.4.1 Introduction

6 Modular Data Center Market Analysis, By Component (Page No. - 34)
    6.1 Introduction
    6.2 Functional Module Solutions
           6.2.1 All-In-One Functional Module
           6.2.2 Individual Functional Module
                    6.2.2.1 IT Module
                    6.2.2.2 Electrical Module
                    6.2.2.3 Mechanical Module
    6.3 Services
           6.3.1 Consulting
           6.3.2 Integration and Deployment
           6.3.3 Infrastructure Management

7 Modular Data Center Market Analysis, By Data Center Size (Page No. - 44)
    7.1 Introduction
    7.2 Mid-Sized Data Centers
    7.3 Enterprise Data Centers
    7.4 Large Data Centers

8 Modular Data Center Market Analysis, By Tier Type (Page No. - 49)
    8.1 Introduction
    8.2 Tier 1 Data Centers
    8.3 Tier 2 Data Centers
    8.4 Tier 3 Data Centers
    8.5 Tier 4 Data Centers

9 Modular Data Center Market Analysis, By Industry (Page No. - 55)
    9.1 Introduction
    9.2 Banking, Financial Services, and Insurance
    9.3 IT and Telecom
    9.4 Government and Defense
    9.5 Healthcare
    9.6 Education
    9.7 Retail
    9.8 Energy
    9.9 Manufacturing
    9.10 Others

10 Geographic Analysis (Page No. - 64)
     10.1 Introduction
     10.2 North America
     10.3 Europe
     10.4 Asia Pacific
     10.5 Middle East and Africa
     10.6 Latin America

11 Competitive Landscape (Page No. - 86)
     11.1 Microquadrant Overview
             11.1.1 Innovators
             11.1.2 Vanguards
             11.1.3 Emerging
             11.1.4 Dynamic
     11.2 Competitive Benchmarking
             11.2.1 Product Offerings
             11.2.2 Business Strategies

12 Company Profiles (Page No. - 90)
(Overview, Product Offerings, Business Strategies, Recent Developments)*
     12.1 Introduction
     12.2 Huawei
     12.3 IBM
     12.4 Eaton
     12.5 Bladeroom
     12.6 Cannon Technologies
     12.7 Commscope
     12.8 Dell
     12.9 Flexenclosure
     12.10 HPE
     12.11 Rittal
     12.12 Schneider Electric
     12.13 Vertiv
     12.14 Baselayer

*Details on Overview, Product Offerings, Business Strategies, Recent Developments Might Not Be Captured in Case of Unlisted Companies.

13 Appendix (Page No. - 124)
     13.1 Insights of Industry Experts
     13.2 Discussion Guide
     13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     13.4 Introducing RT: Real-Time Market Intelligence
     13.5 Available Customizations
     13.6 Related Reports
     13.7 Author Details

List of Tables (69 Tables)

Table 1 United States Dollar Exchange Rate, 2014–2016
Table 2 Global Modular Data Center Market: Assumptions
Table 3 Market Size, By Component, 2015–2022 (USD Billion)
Table 4 Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 5 All-In-One Functional Module Market Size, By Region, 2015–2022 (USD Billion)
Table 6 Individual Functional Module Market Size, By Region, 2015–2022 (USD Billion)
Table 7 Individual Functional Module Market Size, By Type, 2015–2022 (USD Billion)
Table 8 IT Module Market Size, By Region, 2015–2022 (USD Billion)
Table 9 Electrical Module Market Size, By Region, 2015–2022 (USD Billion)
Table 10 Mechanical Module Market Size, By Region, 2015–2022 (USD Billion)
Table 11 Modular Data Center Market Size, By Service, 2015–2022 (USD Billion)
Table 12 Consulting Market Size, By Region, 2015–2022 (USD Billion)
Table 13 Integration and Deployment Market Size, By Region, 2015–2022 (USD Billion)
Table 14 Infrastructure Management Market Size, By Region, 2015–2022 (USD Billion)
Table 15 Modular Data Center Market Size, By Data Center Size, 2015–2022 (USD Billion)
Table 16 Mid-Sized Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 17 Enterprise Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 18 Large Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 19 Modular Data Center Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 20 Tier 1 Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 21 Tier 2 Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 22 Tier 3 Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 23 Tier 4 Data Centers: Market Size, By Region, 2015–2022 (USD Billion)
Table 24 Modular Data Center Market Size, By Industry, 2015–2022 (USD Million)
Table 25 Banking, Financial Services, and Insurance: Market By Region, 2015–2022 (USD Million)
Table 26 IT and Telecom: Market Size, By Region, 2015–2022 (USD Million)
Table 27 Government and Defense: Market Size, By Region, 2015–2022 (USD Million)
Table 28 Healthcare: Market Size, By Region, 2015–2022 (USD Million)
Table 29 Education: Market Size, By Region, 2015–2022 (USD Million)
Table 30 Retail: Market Size, By Region, 2015–2022 (USD Million)
Table 31 Energy: Market Size, By Region, 2015–2022 (USD Million)
Table 32 Manufacturing: Market Size, By Region, 2015–2022 (USD Million)
Table 33 Others: nter Market Size, By Region, 2015–2022 (USD Million)
Table 34 Market Size, By Region, 2015–2022 (USD Billion)
Table 35 North America: Modular Data Center Market Size, By Component, 2015–2022 (USD Billion)
Table 36 North America: Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 37 North America: Market Size, By Individual Functional Module, 2015–2022 (USD Billion)
Table 38 North America: Market Size, By Service, 2015–2022 (USD Billion)
Table 39 North America: Market Size, By Data Center Size, 2015–2022 (USD Billion)
Table 40 North America: Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 41 North America: Market Size, By Industry, 2015–2022 (USD Million)
Table 42 Europe: Modular Data Center Market Size, By Component, 2015–2022 (USD Billion)
Table 43 Europe: Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 44 Europe: Market Size, By Individual Functional Module, 2015–2022 (USD Billion)
Table 45 Europe: Market Size, By Service, 2015–2022 (USD Billion)
Table 46 Europe: Market Size, By Data Center Size, 2015–2022 (USD Billion)
Table 47 Europe: Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 48 Europe: Market Size, By Industry, 2015–2022 (USD Million)
Table 49 Asia Pacific: Modular Data Center Market Size, By Component, 2015–2022 (USD Billion)
Table 50 Asia Pacific: Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 51 Asia Pacific: Market Size, By Individual Functional Module, 2015–2022 (USD Billion)
Table 52 Asia Pacific: Market Size, By Service, 2015–2022 (USD Billion)
Table 53 Asia Pacific: Market Size, By Data Center Size, 2015–2022 (USD Billion)
Table 54 Asia Pacific: Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 55 Asia Pacific: Market Size, By Industry, 2015–2022 (USD Million)
Table 56 Middle East and Africa: Modular Data Center Market Size, By Component, 2015–2022 (USD Billion)
Table 57 Middle East and Africa: Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 58 Middle East and Africa: Market Size, By Individual Functional Module, 2015–2022 (USD Billion)
Table 59 Middle East and Africa: Market Size, By Service, 2015–2022 (USD Billion)
Table 60 Middle East and Africa: Market Size, By Data Center Size, 2015–2022 (USD Billion)
Table 61 Middle East and Africa: Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 62 Middle East and Africa: Market Size, By Industry, 2015–2022 (USD Million)
Table 63 Latin America: Modular Data Center Market Size, By Component, 2015–2022 (USD Billion)
Table 64 Latin America: Market Size, By Functional Module Solution, 2015–2022 (USD Billion)
Table 65 Latin America: Market Size, By Individual Functional Module, 2015–2022 (USD Billion)
Table 66 Latin America: Market Size, By Service, 2015–2022 (USD Billion)
Table 67 Latin America: Market Size, By Data Center Size , 2015–2022 (USD Billion)
Table 68 Latin America: Market Size, By Tier Type, 2015–2022 (USD Billion)
Table 69 Latin America: Market Size, By Industry, 2015–2022 (USD Million)

List of Figures (61 Figures)

Figure 1 Global Modular Data Center Market: Market Segmentation
Figure 2 Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 Modular Data Center Market: Evolution
Figure 8 North America is Estimated to Hold the Largest Market Share in 2017
Figure 9 Increasing Requirement for Energy-Efficient Data Centers is Expected to Boost the Growth of the Market
Figure 10 Modular Data Center Services Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 11 IT and Telecom Industries and North America are Expected to Hold the Largest Market Share in 2017
Figure 12 Asia Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 13 The Modular Data Center Market has Immense Opportunities for Growth in Asia Pacific
Figure 14 Market: Drivers, Restraints, Opportunities, and Challenges
Figure 15 Modular Data Center Framework
Figure 16 Individual Functional Module is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 17 Infrastructure Management Service is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 18 Enterprise Data Centers Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 19 Tier 3 Data Center Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 20 Government and Defense Industry is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 21 Regional Snapshot (2017–2022): North America is Expected to Hold the Largest Market Share in 2022
Figure 22 North America: Market Snapshot
Figure 23 Services Segment in North America is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 24 Services Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 25 Asia Pacific: Market Snapshot
Figure 26 Services Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 27 Services Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 28 Services are Expected to Grow at A Higher CAGR During the Forecast Period
Figure 29 Microquadrant
Figure 30 Huawei: Company Snapshot
Figure 31 Huawei: Product Offering Scorecard
Figure 32 Huawei: Business Strategy Scorecard
Figure 33 IBM: Company Snapshot
Figure 34 IBM: Product Offering Scorecard
Figure 35 IBM: Business Strategy Scorecard
Figure 36 Eaton: Company Snapshot
Figure 37 Eaton: Product Offering Scorecard
Figure 38 Eaton: Business Strategy Scorecard
Figure 39 Bladeroom: Product Offering Scorecard
Figure 40 Bladeroom: Business Strategy Scorecard
Figure 41 Cannon Technologies: Product Offering Scorecard
Figure 42 Cannon Technologies: Business Strategy Scorecard
Figure 43 Commscope: Company Snapshot
Figure 44 Commscope: Product Offering Scorecard
Figure 45 Commscope: Business Strategy Scorecard
Figure 46 Dell: Product Offering Scorecard
Figure 47 Dell: Business Strategy Scorecard
Figure 48 Flexenclosure: Product Offering Scorecard
Figure 49 Flexenclosure: Business Strategy Scorecard
Figure 50 HPE: Company Snapshot
Figure 51 HPE: Product Offering Scorecard
Figure 52 HPE: Business Strategy Scorecard
Figure 53 Rittal: Product Offering Scorecard
Figure 54 Rittal: Business Strategy Scorecard
Figure 55 Schneider Electric: Company Snapshot
Figure 56 Schneider Electric: Product Offering Scorecard
Figure 57 Schneider Electric: Business Strategy Scorecard
Figure 58 Vertiv: Product Offering Scorecard
Figure 59 Vertiv: Business Strategy Scorecard
Figure 60 Baselayer: Product Offering Scorecard
Figure 61 Baselayer: Business Strategy Scorecard

The modular data center market is expected to grow from USD 13.07 Billion in 2017 to USD 46.50 Billion by 2022, at a high Compound Annual Growth Rate (CAGR) of 28.90% during the forecast period. Data center operators face an increasing need for a scale-out data center architecture, which enables the scaling of critical data center components as and when the demand increases. The modular data center provides prefabricated modules that easily address the customer’s capacity needs with a quick deployment time. It also helps in cutting down the cost of in-house infrastructure. Modular data center solutions, including all-in-one as well as individual functional modules can be added to the existing data center infrastructure, which enables a massively scalable architecture. These solutions are expected to fuel the growth of the modular data center market, as organizations are increasingly adopting them to cater to the increasing data center traffic.

The report provides detailed insights into the global modular data center market, which is segmented according to the components, data center sizes, tier types, industries, and regions. The component segment is further classified into functional module solutions and services, and in the functional module solutions segment, the individual functional module solutions are expected to dominate the market and contribute to the largest market share. In the services segment, infrastructure management services are set to grow at the highest CAGR during the forecast period. The data center sizes segment includes mid-sized data centers, enterprise data centers, and large data centers, where the mid-sized data centers segment is estimated to have a higher market size, as it has a high demand for scalable infrastructure to support the high-end applications. The growing investments in data center technologies across the world and the increasing number of data centers are expected to demand for modular data center solutions and fuel the growth of the market.

The report covers all the major aspects of the modular data center market and provides an in-depth analysis across the regions of North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. The market in North America is expected to hold the largest market share. Due to the presence of various developing countries, the growing number of data centers, and an increasing adoption associated services, the APAC region is projected to have great opportunities in this market and expected to grow at the highest CAGR by 2022.

However, vendor lock-ins may act as the restraining factor for the modular data center market. Various vendors are providing modular data center solutions to help enterprises in reducing their Capital Expenditure (CAPEX). HPE is one of the major vendors that offer modular data center solutions, with respect to all-in-one as well as individual functional modules. The company has extensively focused on developing data center solutions that can help transform data centers in a cost-effective and secure way. Other vendors include Huawei Technologies Co., Ltd. (China); International Business Machines (IBM) Corporation (US); Eaton Corporation (Ireland); BladeRoom (UK); Cannon Technologies Ltd. (UK); Commscope Inc. (US); Dell Inc. (US); Flexenclosure AB (Sweden); Rittal GmbH & Co. KG (Germany); Schneider Electric SE (France); Vertiv Co. (US); and Baselayer Technology, LLC. (US). These players have adopted various strategies, such as new product launches, partnerships, collaborations, and expansions, to stay competitive in the market.

The modular data center is designed for energy efficiency, rapid deployments, and increasing computing density. The modular data center infrastructure enables addition and integration or retrofitting of modules, such as IT, electrical, and mechanical units, in the existing data center infrastructure. Organizations are increasingly adopting modular data center solutions, as they are flexible and can deliver high computing power at a very low power usage effectiveness (PUE) level.

Modular data center solutions not only help organizations improve their operational excellence, but also provide a low PUE and rapid deployment.This approach reduces the OPEX and CAPEX of the organizations and lure customers across multiple industries

Banking, Financial Services, and Insurance

The BFSI segment comprises organizations that are into banking services, such as core banking, corporate, retail, investment, private, and cards; financial services, such as payment gateways, stock broking, and mutual funds; and insurance services, covering both life and general insurance policies. The high growth of electronic banking, paperless storage, and virtualization in the BFSI sector are expected to increase the demand for safe, resilient, cost-effective, and energy-efficient modular data center solutions. The BFSI sector is constantly exposed to the challenges of intense competition, global expansion, consolidation, and changing consumer demand. These challenges increase the need for modular data center solutions for the BFSI sector, as they offer secure storage of critical data and meet consumers’ demands.

The BFSI sector is also adopting cloud services, as they help save operational costs and offer high business continuity. The adoption of cloud services in the BFSI sector requires modular data centers to store data and process them on a real-time basis. The modular data centers offer high computing power and reduce computational time for BFSI institutions and ensure business continuity by focusing on issues, such as manageability, scalability, efficiency, and energy efficiency. Hence, modular data center solutions play an important role in minimizing the risk of business continuity and providing cost-effective solutions in the BFSI sector. This sector is expanding globally and is suffering huge transactions failure, due to unplanned downtime and IT failure, which can be overcome by installing modular data centers with integrated efficient and reliable power solutions. Furthermore, modular data centers offer rapid deployment of data center infrastructure with increasing requirement of data storage.

IT and Telecom

The traditional data centers used in the IT and telecom industry are unorganized, unsecure, unmonitored, and associated with space constraints and over-heating issues. Additionally, in traditional data centers, random equipment failures, forced shutdown of the system, and reboots are common due to high temperatures, which could lead to unplanned downtime, resulting in loss of critical data and business continuity. Modular data centers negate these issues, as they integrate secure computing environment that comprises storage, networking, cooling, security, power, and data center infrastructure management tools.

The IT and telecom industry requires high data security, integrated physical security, and productivity. The sector is booming due to the large-scale growth in mobile subscribers and data penetration. Telecom service providers are investing heavily in modular data center construction and co-locations, as modular data centers are portable, flexible, reliable, and store huge amounts of data. Modular data centers provide comprehensive solutions for managing all the data needs of the IT and telecom sector, by providing secure and high-speed deployment. The high rise in online web pages and video content delivered through high-speed data by the telecom service providers to the internet-enabled devices has increased data traffic. Therefore, the IT and telecom companies require dedicated and reliable modular data center systems to minimize the loss of data and ensure business continuity and security.

Government and Defense

The government and defense industry comprises government organizations, agencies, and the defense sector. This industry deals with sensitive and confidential data, which needs to be protected securely and reliably in data centers. The rise in security concerns and compliance requirements are some of the challenges faced by the government and defense organizations, which can be overcome by adopting modular data center solutions that can securely store, manage, and handle sensitive data. Modular data centers comprise integrated cooling, power, server, and UPS systems that enable the government and defense organizations to store data securely and reliably. They are portable and can be displaced reliably, based on the requirement of government and defense organizations. The awareness toward digitization of information by the government and defense organizations has increased the demand for modular data centers, as they facilitate secure, energy-efficient, and cost-effective solutions.

Healthcare

The healthcare industry deals with a huge amount of confidential patient related data, which is vulnerable owing to changes in technology and increased security breaches. To maintain privacy and security of the patient’s data, the healthcare industry is adopting digital and cloud-enabled technologies, which boost security and reduce the healthcare-related expenses. Additionally, modern healthcare organizations are collaborating with traditional film-based images by Picture Archiving and Communication System (PACS) to shift the manual records of patients to electrical storage. This helps to centralize the data and offers healthcare solutions on a real-time basis. Thus, these facilities require modular data centers that help to store information and data securely. Moreover, modular data centers occupy low space, which helps hospitals to set up other critical systems in the free space. These advantages of modular data centers facilitate the smooth running of hospitals and enhance the uninterrupted functioning of the healthcare industry.

Education

The extensive resource integration and knowledge sharing among educational institutes requires efficient data center solutions for data storage purposes. The modular data center infrastructure offers data computing, network transmission, information storage, and support for research and academic applications. Thus, leading universities, colleges, and research institutions are using modular data center deployments to enhance their efficiency and decrease costs. They are also adopting high-performance computing and IT infrastructure, resulting in an increase in the number of collaborations with modular data center service providers for data storage.

Most of the universities offer online education to students, which has been gaining popularity in the recent times. Web-based learning, computer-based learning, and virtual classrooms are conducted online, where data centers are needed to store data. Moreover, the emergence of modern smart education system and e-learning are associated with efficient storage and computational requirements. Thus, to streamline the process of modern research and academia, there is an increasing need for energy-efficient modular data center solutions.

Retail

Retailers are embracing cloud computing, big data analytics, and digital transformation to expand their businesses and increase their customer base. This requires reliable modular data centers that can store large data securely. Modular data centers offer a platform to the retail industry that enables the storage of customer data and its usage to target loyal customers. Moreover, the retail industry is associated with the evolving need to maintain the customer’s personal, financial, and stock data, and has witnessed a surge in the number of data centers, leading to an increasing demand for efficient and scalable data center solutions. Modular data center solutions provide an improved application performance at a lower cost and enable uninterrupted working of data center infrastructure, due to integrated redundant power supply, storage, and cooling system.

Energy

The energy sector faces an increasing demand for modular data centers, due to the growing need to securely store critical administration and operational data. Additionally, remote deployment capabilities of a modular data center make it an attractive option for companies having their operational sites in disaster-prone areas. Modular data centers can be constructed in sites where legacy systems are extremely difficult to deploy, thus contributing to their exponential growth in the energy sector, which requires rapid deployment abilities, coupled with high performance. Modular data centers provide reduced deployment and commissioning time and can be constructed at a relatively low upfront cost. Moreover, certain vendors provide modular data centers that are shock and vibration proof and can be deployed with fire suppression and other security systems. These overall benefits have added to the demand for modular data centers in the energy vertical.

Manufacturing

Frequent technological advancements have increased the competition among manufacturing companies, which are optimizing their processes by relying on IT systems to streamline operations, including logistics and production processes. This requires efficient data center solutions, particularly to ensure cost effectiveness and IT reliability, as well as to meet the growing customer demand. The critical resource management systems, such as sales and distribution, financial controlling, and supply chain management, of the manufacturing companies require energy-efficient modular data centers for storage, as they offer high computing power efficiently. Thus, manufacturing industries are focused on adopting advanced modular data center technologies that enable benefits, such as agility, scalability, and reliability. Moreover, increasing usage of virtualization and cloud computing in the manufacturing enterprises is expected to boost the modular data center market.

Others

Modular data centers are increasingly being adopted in companies operating across various other industries, such as media and entertainment and transportation and logistics. The growing use of advanced technologies that enables rapid provisioning of videos and other media content has contributed to the exponential rise in the data requirement by companies operating in the media and entertainment sector. Rise in the utilization of media streaming as a source of entertainment has also contributed significantly to the increase in data storage requirement in this industry. Thus, the media and entertainment industry is characterized by the fluctuating data demands and high server loads. Transportation and logistics companies face increasing data needs owing to the sophisticated nature of their business that uses digitized information. The transportation and logistics industry requires various applications related to safety, communication, and location monitoring, which generates large amounts of data. Hence, there is a rise in adoption of energy-efficient modular data center solutions across media and entertainment and transport and logistics sectors.

Key questions

• What are the modular data center framework?
• What are the different standards and guidelines that need to be followed for successful deployment of modular data centers?
• What is the market potential for various modules used is modular data center?
• What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst