North American modular data center market expected to dominate
The worldwide modular data center market is expected to see 'attractive' growth, according to a new report from FMI.
The report, titled "Modular Data Center Market: Global Industry Analysis 2013-2017 and Opportunity Assessment 2018-2028, says the market is expected to grow continuously at a CAGR of 22.3% in terms of value, with Western Europe and North America accounting for approximately 60% market value shares by the end of the forecast period.
According to findings, the all-in-one containers segment is expected to register attractive growth over the forecast period, with 20-feet containers expected to dominate the global market.
Based on data center size type, the small data centers segment is expected to gain a higher market share during the forecast period, while the healthcare, telecom & IT and manufacturing segments are expected to witness a comparatively higher CAGR in terms of industry verticals.
The global annual revenue from the modular data center was valued at US$4,832.1m by the end of 2017, which is expected to grow at a significant pace over the coming years, the report found. With the progression of time, a declining year-on-year growth trend is expected in the latter half of the forecast period.
The dominating regions, including North America, China, SEA & Other of APAC and Western Europe, are expected to collectively account for a majority share of the global modular data center market, according to the report. The North America, APAC (including China and Japan) and Western Europe markets are likely to dominate the global modular data center market over the forecast period.
The report found that the integration of IT modules, power modules and cooling modules individually as well as in the form of a container offers various advantages, such as low service cost, enhanced output, portability, mobility, etc., over conventional data centers. Owing to these advantages, a higher preference for modular data centers is now witnessed among data center customers.
"The ease of deployment and the compact size is also expected to boost the adoption of modular data centers in the global market, especially in countries that lack spaces to establish conventional data centers such as India and China," FMI says.
FMI says a high adoption of modular data centers has been witnessed since its inception in the telecom & IT and BFSI industry verticals, owing to the generation and the need for storage of high-volume data.
"Besides this, modular data centers have also been adopted by various governments for storing the data as a backup to deal with expected disasters and emergencies," FMI says. "In addition, the growth of the manufacturing and healthcare industry verticals worldwide in terms of value is correspondingly expected to increase the adoption of modular data centers."
On the basis of FMI analysis, a considerable traction of services is expected with the increasing deployment and installation of modular data centers globally.
Under the independent containers segment, the IT modules segment is expected to witness a decline in its prices during the latter half of the forecast period, the report says.
Among the services segments, the maintenance and support segment is expected to witness the maximum growth rate during the forecast period. "One of the major factors driving the small-sized data centers is the increasing demand for micro-modular data centers," FMI says.
The North America modular data center market is expected to dominate the global market due to the high presence of modular data center providers, as well as a strong IT and telecom industry in the region.
The modular data center market in China has high potential owing to an increase in the number of SMEs in the region, the report found. The SEA and Others of APAC modular market will be a target market for market participants owing to the high growth opportunities in countries such as India.
The MEA modular data center market is estimated to grow at an above-average CAGR over the forecast period. The report also found GCC Countries is expected to hold a major revenue share in the MEA modular market over the forecast period. Japan is, however, expected to witness restricted adoption as well as low growth rate, FMI says.