Modular Data Center Market

Modular Data Center Market By Component (Solution, Services) By Organization Size (Large Enterprises, Small & Medium Enterprises) By Industry Verticals (BFSI, IT & Telecom, Retail, Manufacturing, Healthcare, Energy, Media & Entertainment, Government, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, and Forecast 2023-2031

ICT & Media | April 2023 | Report ID: EMR0066 | Pages: 215

The global modular data center market size was valued at USD 22.45 billion in 2022 and is projected to hit around USD 110.61 billion by 2031, poised to grow at a CAGR of 17.85% between 2023 and 2031.

A modular data centre (MDC) is a self-contained computing environment that can be easily transported and deployed wherever it is needed. MDCs are designed to be flexible, scalable, and energy-efficient, making them an ideal solution for organizations that need to quickly deploy computing resources in remote or temporary locations. The modular data centre market is indeed growing rapidly due to the increasing demand for data storage and processing, as well as the need for flexible and portable computing solutions.

Modular Data Center Market Report Scope & Segmentation

Report Attribute


Estimated Market Value (2022)

22.45 Bn

Projected Market Value (2031)

110.61 Bn

Base Year


Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Component, By Industry Verticals, By Organization Size & Region

Segments Covered

By Component, By Industry Verticals, By Organization Size & Region

Forecast Units

Value (USD Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


The global modular data centre market is expected to grow significantly due to the increasing adoption of modular solutions by organizations to meet their growing data storage and processing needs. The fast deployment capability of modular data centres is particularly crucial in industries such as healthcare, finance, and e-commerce, where downtime can have a significant impact on operations and revenue. Moreover, modular data centres offer a scalable and flexible solution that can be customized to meet the specific requirements of an organization. This makes them an attractive option for companies that need to quickly expand their IT infrastructure without incurring significant capital expenditures.

One of the significant benefits of modular data centers is their scalability. They can be easily scaled up or down to accommodate changing business needs and IT requirements. This scalability allows organizations to add capacity as needed without having to build an entire data center from scratch, which can be a time-consuming and expensive process. The modular design of these data centers enables organizations to expand their IT infrastructure in a cost-effective and efficient manner, without sacrificing performance or reliability. This is particularly beneficial for organizations that have rapidly changing or unpredictable IT requirements.

COVID-19 Impact

The COVID-19 pandemic has had a profound impact on the way businesses operate, with remote work becoming the new normal for many companies worldwide. As a result, there has been a significant increase in the demand for IT infrastructure that can support remote work. Modular data centers have emerged as an ideal solution to this challenge, as they are highly scalable and can be quickly deployed in remote locations to support remote workers.

Growth Factors:

The fast demand for various applications, including cloud computing, disaster recovery, edge computing, and mobile computing, propelled market demand. There are many factors are helping to drive the market are:

  • Modular data centers are flexible, modular, and scalable
  • Cost-effectiveness
  • Rapid deployment of modular data centers

Market Drivers:

Modular data centers are flexible, modular, and scalable to brighten the market prospect

Modular data centers offer several advantages over traditional data centers, including their flexibility, modularity, and scalability. Unlike traditional data centers, modular data centers are designed to be quickly and easily deployed and expanded, thanks to their prefabricated modular design. This modular design allows for a more flexible and adaptable approach to IT infrastructure, allowing organizations to scale their operations up or down as needed. With the ability to rapidly deploy and expand, modular data centers enable organizations to respond quickly to changing business needs and IT requirements. This makes them an attractive option for organizations looking to stay competitive and agile in an increasingly fast-paced and demanding digital landscape.

Modular data centers have emerged as an energy-efficient and cost-effective alternative to traditional data centers. They are designed to minimize energy consumption through the use of innovative cooling and power management technologies, which not only reduces operational costs but also helps to reduce the carbon footprint. In addition, the flexibility and scalability of modular data centers make them well-suited for a variety of applications, such as cloud computing, edge computing, mobile computing, and disaster recovery. By providing customized solutions to meet specific business needs, modular data centers enable organizations to optimize their IT infrastructure, enhance efficiency, and reduce costs.

Market Challenges:

As the sophistication of cyber-attacks continues to evolve, it is crucial for organizations to stay up-to-date with the latest security technologies and best practices to protect their data and IT infrastructure. Modular data centers can offer security advantages, such as enhanced physical security and the ability to isolate critical workloads from the rest of the IT environment. However, it is important for organizations to work closely with their data center providers and security experts to ensure that all necessary security measures are in place to protect their data and operations. In today's digital landscape, data security must be a top priority for all organizations, and modular data centers can play a key role in achieving this goal.

In addition to the physical and cybersecurity concerns, organizations must also consider compliance with various regulations and standards that govern data security and privacy. For instance, healthcare organizations in the United States must comply with the Health Insurance Portability and Accountability Act (HIPAA), while businesses in the European Union must adhere to the general data protection regulation (GDPR). Failure to comply with these regulations can result in substantial penalties and reputational damage. Therefore, addressing security concerns is crucial for ensuring that organizations can fully realize the benefits of modular data centers without compromising the security of their data and operations or running afoul of legal requirements.

Market Opportunities:

These are the following factor which is likely to create opportunity over the forecast period.

  • Rise of edge computing
  • Deployment of 5G networks
  • Support modular cloud infrastructure

Segments Analysis:

Component Insights:

Additionally, service providers can also offer maintenance and support services to ensure that the modular data center continues to function effectively and efficiently over time. These services can include monitoring, troubleshooting, and repairs as needed. As modular data centers become more widely adopted, the demand for these services is likely to continue to grow. This is because organizations may lack the internal expertise to manage and maintain their modular data center infrastructure and may therefore require the support of specialized service providers.

Organization Size Insights:

Small and medium enterprises, on the other hand, may have more limited IT infrastructure needs and may not require the same level of performance or security as large enterprises. However, as the demand for data-intensive applications continues to grow, smaller organizations may also find themselves in need of modular data center solutions to support their business operations. This could be driven by factors such as the need to support remote work, the adoption of cloud computing, or the need to store and process large amounts of data generated by Internet of Things (IoT) devices. As a result, the demand for modular data centers is expected to grow across all sizes of organizations in the coming years.

Regional Analysis:

In addition to the factors you mentioned, North America is also home to several major players in the modular data center market, which contributes to the region's dominance. Moreover, the region's strong focus on data privacy and security regulations has also driven the demand for modular data centers, which can help organizations meet compliance requirements while maintaining data security. The increasing adoption of modular data centers by various industry verticals, such as BFSI, healthcare, and government, is also contributing to the market's growth in North America.


Europe has a mature data center market with a high adoption rate of cloud computing, big data, and IoT technologies, which are driving the demand for modular data centers. The increasing demand for edge computing and the need for high-performance computing solutions in industries such as BFSI, healthcare, and manufacturing are also driving the growth of the European modular data center market. Additionally, the European Union's strict regulations on data privacy and security are compelling organizations to adopt modular data centers to ensure compliance.

Recent Developments:

  • In October 2019: - Dell Technologies launched its modular data center solution, the Dell EMC Modular Data Center Micro 415.
  • In September 2021: - Lenovo announced the launch of its ThinkSystem SE350 edge server, a modular data center solution designed for use in edge computing environments.

Key Market Players:

  • BaseLayer Technology LLC
  • CommScope Inc., Dell Inc.
  • Eaton, Hewlett Packard Enterprise Company.
  • Huawei Technologies Co. Ltd.
  • IBM Corporation
  • Rittal GmbH.
  • Schneider Electric.
  • Vertive Group Corporation

Modular Data Center Market Report Segmentation



By Component

  • Solution
  • Services

By Organization Size

  • Large Enterprises
  • Small & Medium Enterprises

By Industry Verticals

  • BFSI
  • IT & Telecom
  • Retail
  • Manufacturing
  • Healthcare
  • Energy
  • Media & Entertainment
  • Government
  • Others

By Geography

  • North America (USA and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

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Frequently Asked Questions

The global modular data center market size is expected to increase USD 110.61 billion by 2031 from USD 22.45 billion in 2022.
The global modular data center market will register growth rate of 17.85% between 2023 and 2031.
The major key players operating in the modular data center market are BaseLayer Technology LLC, CommScope Inc., Dell Inc., Hewlett Packard Enterprise Company., Huawei Technologies Co. Ltd., IBM Corporation, Rittal GmbH., Schneider Electric., Vertive Group Corporation and Others.
Key factors driving the market growth include the expansion of edge computing, increased special use cases, and an increase in demand for energy-efficient, green data centers and low-carbon.

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