Modular Data Center Market Research Report—By Component (Functional Module, Services), By Data Center Size (Mid-Sized, Large, Enterprise) Tier Type (Tier 4, Tier 3, Tier 2, Tier 1), By End User (BFSI, IT and Telecom, Healthcare) - Forecast till 2030

Modular Data Center Market Analysis

Modular Data Center Market is predicted to grow at a healthy 21.46% CAGR between 2020- 2030, reveals the latest Market Research Future’s (MRFR) modular data center market forecast. The strong growth of the market can be accredited to the need to reduce capital expenditure and the need for energy-efficient data centers. 

COVID-19 Analysis 

The on-going COVID-19 outbreak has severely impacted the global economy. This crisis has forced companies to work from home and adopt completely remote services, which are adding market growth. Besides, the constant demand for SaaS (software-as-a-service) is also propelling the growth of the market. The concept of work from home has boosted the demand for managed network services and advanced remote working applications. Along with this, big investments from big brands like Google LLC for developing hyper-scale data centers also act as an impetus for the market in the forthcoming years. Data centers have helped to enable online meetings and digital commerce, making digital infrastructure vital than before. This has offered the world of digital center an achievement and thereby kept digital businesses to grow and operate. Again, the need for reducing the traditional data centers’ complexity is also impacting the market growth.

The current outbreak had a moderate impact on market growth. The majority of the countries have imposed social distancing policies and stay-at-home orders, thereby generating a rise in media consumption and remote work. Such factors are drastically increasing the usage of online services such as cloud computing applications, online gaming, Virtual Private Networks, and streaming media. The business and social displacement due to coronavirus is boosting market demand.

Modular Data Center Market Dynamics

• Drivers

Trend for Green Data Centres to Bolster Market Growth

There has been a surging demand for green data centers that are boosting the market growth. Green data center uses management systems and equipment that are highly energy-efficient, thus offers organizations with minimum environmental impact and maximum efficiency. Modular data centers are experiencing a burgeoning demand for the surge in energy consumption and environmental protection regulations that have been imposed by the government all over the world. One of the greatest pluses of modular data centers is that compared to traditional data centers, they consume less power and are more energy-efficient, thus helps to satisfy the inherent need of organizations for lower consumption of energy.

Other factors adding to the modular data center market size include the growing demand for advanced pre-fabricated data center infrastructure across different industries including healthcare, IT and telecom, and others, different benefits of data centers such as easy deployment, density, and increased scalability, increased investments by key players and government to develop advanced data centers, and growing demand for services and solutions like automation, robotics, artificial intelligence, and cloud-based networking.

• Opportunities

Rising Adoption of Cloud-Based Services and Solutions to Offer Robust Opportunities 

The rising adoption of cloud-based services and solutions is likely to offer robust opportunities to key players in the upcoming years. Leading brands and governments are making the most of advanced cloud applications and solutions. With an aim to store huge amounts of data and information, vendors are all set to create an advanced modular data center with innovative technologies.

• Restrain

Vendor lock-in issue may Restrain Market Growth 

Vendor lock-in issues may limit the market growth as customers are stuck to switch to another vendor due to the cost. 

• Challenges

High Implementation Cost to Challenge Market Players 

The high cost of implementation of modular data centers and lack of awareness are likely to be major challenges for market players. 

Modular Data Center Market Segmentation

Modular Data Center Market is segmented based on Component, Tier Type, End-User, and Data Center Size. 

Component-Based Functional Module to Lead the Market

By component, the global modular data center market is segmented into services and functional modules. Of these, the functional module segment will lead the market over the forecast period.

Data Center Size-Based Large Data Centers to Dominate the Market

By data center size, the global modular data center market is segmented into enterprise data centers, large data centers, and mid-sized data centers. Of these, the large data centers segment will dominate the market over the forecast period. 

By tier type, the modular data center market is segmented into tier 1, tier 2, tier 3, and tier 4.

End-User-Based IT and Telecom Segment to Spearhead the Market 

By end-user, the global modular data center market is segmented into manufacturing, energy, retail, education, healthcare, government and defense, IT and Telecom, BFSI, and others. Of these, the IT and Telecom segment will spearhead the market over the forecast period. 

Modular Data Center Market Regional Analysis

North America to Remain Forerunner in the Market

By region, the global modular data center market covers opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), South America, and the Middle East and Africa (MEA). Of these, North America will remain the forerunner in the market over the forecast period. Increasing investments by key players and government to develop advanced pre-fabricated data centers, increasing investments by companies in Mexico, Canada, and the US, and increasing adoption of modular data centers in the IT and Telecom and BFSI sector are adding to the modular data center market share in the region. Additional factors adding market growth include growth of mobile broadband, rise in cloud computing and big data analytics, presence of several data centers, enterprises switching to software-based services from hardware, and a strong foothold of key industry players.

APAC to Hold Second-Largest Share in the Market

The global modular data center market in the APAC region is predicted to have the second-largest share over the forecast period. Increasing demand for modular data center solutions, the increasing awareness about the potential advantages of modular data centers, increase in cloud service providers, presence of major economies that are making a significant contribution, presence of several modular data centers, booming gaming and social media sector, demand for explicitly scalable architecture that can handle complex operations, and effective deployment of such data center solutions are adding to the modular data center market growth in the region. Additional factors adding market growth include the rising number of startups and SMEs in South Korea, Indonesia, India, and China, and increasing adoption of LTE public safety services in China

Modular Data Center Market Players

• Silent-Aire Limited Partnership (Canada)


• BladeRoom Group Ltd (UK)


• Flexenclosure AB (Sweden)


• Schneider Electric (France)


• Cannon Technologies Ltd (UK)


• CommScope Holding Company Inc (US)


• Eaton Corporation PLC (Ireland)


• Hewlett Packard Enterprise Company (US)


• Dell Technologies Inc. (US)


• Huawei Technologies Co. Ltd (China)


• IBM Corporation (US)

Competitive Landscape of Modular Data Center Market

The modular data center market is fragmented and has several major players. Some industry players presently dominate the market, and with a major market share, are laying emphasis on expanding the customer base across different foreign countries. Besides, new players are entering the market through strategic collaborations that cater to intense rivalry.

Recent Developments

• December 2020- ALT Telecom Company Limited has partnered with the Faculty of Architecture and Planning to create a prototype of Smart Technology Space to develop the best environment for working and learning. In this partnership, ALT has offered a modular data center together with technology and equipment to install telecommunication network engineering and systems.


• October 2020- Modular data centers will link to Microsoft Azure Cloud through satellite. It will open up locations to deploy modular data centers, which are computing facilities that are self-sufficient packed in enclosures similar to shipping containers, which can be plopped whenever big cloud customers may require computing infrastructure.