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12 Jun 2017

Modular data centre market worth $46B by 2022

A new report from MarketsandMarkets Research projects that the market for modular data centers could grow to $46 billion over the next five years. That would mean an over 300% increase in the total market in 2017, with this year's market valued at an estimated $13 billion, according to the report.

This market growth represents a high compound annual growth rate (CAGR) of 28.9%, mostly driven by the need for scalable, environmentally-sound data centers that are cost-effective, with lower capital expenditures and maintenance costs compared to traditionally-constructed data centers.

The report breaks data centers down by region, type, services and size. While North America is the region with the largest share of the market in 2017, the market growth is expected to be highest in the APAC region for 2017-2022. Higher expected CAGR in the APAC region is due to the presence of developing countries, the growing number of data centers, and increasing adoption of data center services by corporations.

Modular data center type is broken down into individual functional modules and all-in-one modular solutions. Individual functional modules are expected to dominate the market for this time period, offering advantages such as flexible design according to individual needs.

Infrastructure management services are expected to have the highest annual growth rate over other types of associated services, which include consulting, integration and deployment.

Mid-sized data centers are expected to be in higher demand than large or enterprise-sized facilities, as they provide a more scalable infrastructure and better flexibility to answer to changing data usage requirements.

related study notes that the changing regulatory environment and national policies regarding federal data centers and corporate data storage marks an additional driver for the modular data center market. As governments become more interested in energy-efficient and cost-effective data center solutions for their own needs, they can leverage the advantages modular data centers provide in energy consumption and scalability.

Private enterprises are also becoming more concerned with energy costs and environmental impact of data centers, in addition to the ever-increasing costs to design, construct, and operate a traditional data center. With a prefabricated design and offsite manufacture, companies can easily save up to 30% in construction costs alone while taking advantage of a shorter timeline and fast, easy deployment.

Source Credit: https://thestack.com/data-centre/2017/06/12/modular-data-center-market-worth-46b-by-2022/

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