North America Modular Data Center Market – Industry Trends and Forecast to 2030

North America Modular Data Center Market Analysis and Size

A modular data center is a pre-fabricated and pre-engineered facility built using standardized components. It can be easily transported, deployed, and scaled as per the requirements of an organization. It is designed to provide a flexible and efficient solution for housing data center infrastructure, including servers, storage, networking equipment, and cooling systems.

The growing popularity of edge computing, the rising need for scalable data centers from industries across all domains, the increase in demand for pre-fabricated data facility centers, and the need for gaining end-to-end visibility for predicting capacity management requirements are the major factors expected to drive market growth. However, unreliable infrastructure in developing countries, complexities involved in integrating different data center tools, and high initial infrastructure costs are expected to restrain market growth. The rise in digitalization trends, advancements in the IT sector, rising demand for remote working facilities, and surge in the adoption of AI and ML provide opportunities for market growth. However, the lack of data security is expected to create a challenge to market growth.

Data Bridge Market Research analyzes that the North America modular data center market is expected to reach USD 39,162.45 million by 2030 from USD 9,698.19 million in 2022, growing with a CAGR of 19.3% in the forecast period of 2023 to 2030. Various market players are involved in exhibitions, award shows, and product launches to expand their business in the market, which has been increasing over the years.

Market Definition

Modular data centers are designed to offer flexibility, rapid deployment, and cost efficiency compared to traditional brick-and-mortar data centers. They are often used when organizations require quick expansion of their data center capacity, temporary data center solutions, or in locations with limited space and infrastructure. The market for modular data centers encompasses various aspects, including manufacturing, distribution, installation, and maintenance of these modular units and related services, such as consulting, design, and integration. It involves various industry participants, including data center solution providers, equipment manufacturers, system integrators, and service providers.

North America Modular Data Center Market Dynamics

This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:

Drivers

• Growing Popularity of Edge Computing

Edge computing is an emerging computing paradigm that refers to a range of networks and devices. This computing technology brings computing and data storage closer to the device where it is being gathered. In addition, companies using real-time data do not suffer latency issues and can save money.

As companies increasingly leverage edge computing to support multiple types of applications and systems, a massive amount of data is generated for decision-making. However, sending all the data to the cloud can result in latency. Edge computing can drive sub-second responses by moving both computing and data closer to the user. This will reduce latency, minimize data threats, and boost bandwidth.

• Rising Need for Scalable Data Centers from Industries Across All Domains

A data center in the age of digitalization is very important as almost every modern business and government office needs its data center. Depending on the needs, every government institution and corporation may choose to build and manage its data center. Even industries such as education, finance, telecommunication, retailers, and social networking services which generate and process tons of information every day, need a data center. Therefore, these industries need data centers to run their operations. If they fail to deploy, it can lead to the loss of clients and profits. There are four types of data centers such as colocation data centers, enterprise data centers, managed services data centers, and cloud data centers.

An effective data center must have systems that are working together to achieve better capabilities. Enterprise can efficiently function and contribute to the economy when systems such as firefighting systems, integration management, integrated cabling, cooling systems, power supply systems, interior decorations, cabinet systems, and surge protection are all combined.

Opportunity

• Rise in Digitalization Trend

The digitalization or the usage of digital processes to improve business operations is increasing with the usage of relevant components to modernize the business, leading to the evolution of the working process and revenue growth to achieve future success. Converting non-digital things into digital formats makes sharing, saving, and searching for information easier, which further leads to business operations automation by developing automatic workflows or marketing outreach sequences.

Digitalization has a wide range of benefits and requires proper maintenance and additional equipment and infrastructure to manage the working system properly. Thus, this process includes managing collected data, saving, processing, analyzing, sharing, and implementing many more operations. However, digitalization simplifies and automates the core working operations of the business but creates a need for advanced technology and infrastructure.

Restraint/Challenge

• Unreliable Infrastructure in Developing Countries

A data center plays a significant part in IT needs to oversee and store the tremendous assets that are significant for any association's consistent work. MDC is a solitary item, yet it plays a colossal part in the present business. It has been made with various specialized components. The primary work of a data center is figuring, putting away, and organizing. Dependability, effectiveness, security, and consistent advancement are the significant jobs of data centers.

The significant investment volumes and the quality and adequacy of infrastructure services generally vary across nations. The experience of millions of individuals all over the planet shows that just being associated with foundation networks does not ensure dependable administrations. Particularly, the quickly developing urban communities in emerging nations are confronting the difficult outcomes of unacceptable frameworks, frequently at a massive expense. Maturing hardware, underfunding, unfortunate support, and quick extension are a portion of the key variables bringing about temperamental power frameworks, water, and disinfection.

Recent Developments

• In July 2023, Digital Realty chose IBM Corporation's Envizi sustainability software to revolutionize data analysis in its global data centers and offices. This central hub facilitated ESG data collection, management, and insight extraction, aiding progress tracking, improvement identification, performance reporting, and meeting disclosure needs. IBM gained a valuable advantage by helping clients, such as Digital Realty make data-driven, sustainable decisions through the Envizi ESG Suite.
• In June 2023, Hewlett Packard Enterprise Development LP announced the expanded partnership with Equinix to extend the HPE GreenLake private cloud portfolio at Equinix International Business Exchange (IBX) data centers. This partnership will help the company bring the best cloud experience for data centers and enhance the performance of the system.
• In May 2023, Dell Inc. introduced the Dell NativeEdge software platform to secure edge deployments. This new solution will help the company to simplify, secure, and automate edge infrastructure and application deployment. In addition, this will help to manage the data centers and public clouds.

North America Modular Data Center Market Scope

The North America modular data center market is segmented into seven notable segments based on component, type, application, deployment size, tier type, location type, and vertical. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Solution
• Services

On the basis of component, the market is segmented into solution and services.

Type

• Full Functional
• Partial Fabricated
• Micro Data Centers

On the basis of type, the market is segmented into full functional, partial fabricated, and micro data centers.

Application

• Smarter Data Centers
• Capacity Expansion
• High Performance/Edge Computing
• Disaster Recovery
• Emergency and Temporary Deployment
• Data Center Expansion

On the basis of application, the market is segmented into smarter data centers, capacity expansion, high performance/ edge computing, disaster recovery, emergency and temporary deployment, and data center expansion.

Deployment Size

• Large Size Data
• Medium Size Data Center
• Small Size Data Center

On the basis of deployment size, the market is segmented into large size data, medium size data center, and small size data center.

Tier Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

On the basis of tier type, the market is segmented into tier 4, tier 3, tier 2, and tier 1.

Location Type

• Outdoor
• Indoor

On the basis of location type, the market is segmented into outdoor and indoor.

Vertical

• BFSI
• IT & Telecom
• Energy & Utilities
• Industrial
• Government & Defense
• Manufacturing
• Healthcare
• Transport & Logistics
• Media & Entertainment
• Retail
• Education
• Others

On the basis of vertical, the market is segmented into BFSI, IT & telecom, energy & utilities, industrial, government & defense, manufacturing, healthcare, transport & logistics, media & entertainment, retail, education, and others.

North America Modular Data Center Market Regional Analysis/Insights

The North America modular data center market is analyzed and market size insights and trends are provided by country, component, type, application, deployment size, tier type, location type, and vertical, as referenced above.

The countries covered in this market report are the U.S., Canada, and Mexico.

U.S. is expected to dominate the North America modular data center market due to its strong technology infrastructure, high demand for data storage, and the presence of major tech companies. Its booming digital economy, rapid urbanization, and government initiatives support data center construction and digital infrastructure development.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as downstream and upstream value chain analysis, technical trends, Porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.

Competitive Landscape and North America Modular Data Center Market Share Analysis

The North America modular data center market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major market players operating in the North America modular data center market are Dell Inc., Hewlett Packard Enterprise Development LP, IBM Corp., Schneider Electric, Vertiv Group Corp., Cisco Systems, Inc., ZTE Corporation, Baselayer Technology, LLC., PCX Holding LLC, Box Modul, Eaton, Rittal GmbH & Co. KG, Cupertino Electric, Inc., Delta Electronics, Inc., Huawei Technologies Co., Ltd., and FiberHome, among others.

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