Modular Data Center Market Size, Share, Growth Analysis, By Component(Solutions and Services), By Organization Size(Large Enterprises, and Small & Medium Enterprises), By Industry Vertical(BFSI, IT & Telecom) - Industry Forecast 2024-2031

Global Modular Data Center Market size was valued at USD 21.24 Billion in 2022 and is poised to grow from USD 24.89 Billion in 2022 to USD 88.61 Billion by 2031, by rising at a CAGR of 17.2% during the forecast period (2024-2031).

Factors such as the growing use of computing at the edge and the increasing demand for environmentally friendly, low-carbon, and green data centers across sectors are driving the demand for modular data center applications. Furthermore, the rapid digital revolution is expected to boost market expansion. The COVID-19 epidemic had a favorable effect on the modular data center business. rising corporate knowledge of the benefits of cloud services, rising board pressure to deliver more secure and robust IT environments, and the construction of local data centers have all contributed to the expansion of modular data centers. Italy, which was particularly hard struck by COVID-19, saw a 775% increase in monthly users of Microsoft Teams.

Modular data centers have all of the features of traditional data centers while also providing extra benefits. Furthermore, these types of data centers address many of the construction challenges associated with brick-and-mortar data centers. It is used in a variety of industries, including IT and telecommunications, banking and finance, healthcare, government and defense, retail, media and entertainment, and others.

Customers of modular data center programmers are required to commit to a 15 to 25-year commercial engagement with a certain vendor. There is an unavoidable danger because many of the modular building's elements, electronics, and programmes are proprietary. More innovation leads to increased automation and complexity, increasing dependency on the vendor. As a result, reliance on vendors is anticipated to limit the modular data center market's growth.

In industrial applications, IoT is projected to generate large amounts of data. Quicksilver Capital estimates that a smart factory will generate 5 petabytes of data weekly, while an offshore oil rig will produce 1 to 2 terabytes of data each day. New business models that leverage artificial intelligence, platforms, and computers to translate massive amounts of data into insights and value. The World Economic Forum predicts that digitally enabled platform companies will create 70% of additional economic value over the next decade.