Product Code: 51907
The modular data center market was valued at USD 7.995 billion in 2019. The modular data center solution units facilitate the physical build of IT infrastructure. The modular approach can be focused on the data center level or at a more granular level. For instance, more granular approaches can go down to the rack level. As the market for x86-based servers, storage, and network equipment has grown, end users across a broad spectrum of vertical markets have been exploring ways to find more effective methods of installing and managing data center equipment.
- The modular approach of data centers has been gaining enterprises' attention, owing to its ability of timely deployment and incremental expansion. Unlike the traditional way to implement the entire capacity at once to meet future demands, modular data center design enables an incremental addition of capacity.
- Organizations are looking toward modular services to optimize their infrastructure by selecting the desired services from the available integrated portfolio. With standardized delivery deployment, several service options are made available from online catalogs. These options offer the ability to lower the upfront investment for companies. IBM's integrated managed infrastructure services is a fine example of this situation.
- Disaster recovery has become an important factor for organizations investing in modular data centers. The market is driven by various industry trends, which are moving toward more agile practices. The mobility and scalability of the modular data centers further drive the market. However, price and vendor lock-in are constraining the market growth.
Scope of the Report
Modular data center solutions represent one approach that is designed to enhance installation and management efficiencies of data center hardware infrastructure. For instance, a brick-and-mortar data center facility typically takes 18 months of planning and implementation to make it serviceable. Modular solutions can reduce the time that it takes to bring a functional data center online to weeks.
Key Market Trends
Telecom Sector to Hold Major Share
The telecom providers, to optimize their networks and the digital services running on them, are going to need more compute and storage capacity to be deployed across carrier networks. Additionally, the increasing 4G penetration and the upcoming 5G wave are further motivating telecom vendors to invest in the modular data center market for more network functionality and much higher ability to manage networks around the edges.
- Intel is working on distributing data centers across the cloud with the help of 5G technology and the edge data center movement. The company is carrying out many large interoperability trials with Huawei, Nokia, and Ericsson.
- The increasing mobile penetration and rising government laws regarding data security concerns are also fueling the adoption of modular data centers among telecom vendors.
- For instance, in 2017, mobile data traffic, globally, reached 11 Exabyte's (11 billion gigabytes) a month, climbing rapidly into the future. Additionally, in April 2017, the Australian government introduced data retention law, which states that telecommunication companies, operating in the region, need to store and manage customer data for at least two years. Hence, these laws are forcing companies to adopt data centers.
North America Holds the largest Share
Being the hub for large-scale organizations and armed with higher internet penetration, North America accounts for the major share of the global modular data center market. Cutthroat competition in the market prompts organizations to adopt cost-effective solutions. The United States is a major market for global modular data centers. The organizations are investing in modular data centers to gain significant cost benefit, which is associated with their deployment. Big data and IoT penetration in the region will transform the demand for next-generation modular data centers. With the existing competition, organizations are under pressure to evolve IT scalability as well as their capacity.
The modular data center market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and profitability.
- January 2019 - Huawei introduced a new data center switch that is powered by an artificial intelligence (AI) chip, which is designed to improve the performance and reduce latency to near zero.
- November 2018 - Huawei opened a cloud data center in South Africa, and the services will be available by the end of 2019.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Mobility and Scalability of Modular Data Centers
- 4.3.2 Disaster Recovery Advantages
- 4.4 Market Restraints
- 4.4.1 Limitations in High Performance Computing and Threats from Substitutes
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Solution and Services
- 5.1.1 Function Module Solution
- 5.1.2 Services
- 5.2 By Appliation
- 5.2.1 Disaster Backup
- 5.2.2 High Performance/Edge Computing
- 5.2.3 Data Center Expansion
- 5.2.4 Starter Data Centers
- 5.3 By End User
- 5.3.1 IT
- 5.3.2 Telecom
- 5.3.3 BFSI
- 5.3.4 Government
- 5.3.5 Other End Users
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia-Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 IBM Corporation
- 6.1.2 Huawei Technologies Co. Ltd.
- 6.1.3 Dell EMC
- 6.1.4 HPE Company
- 6.1.5 Cisco System Inc.
- 6.1.6 Vertiv Group Corp.
- 6.1.7 Schneider Electric SE
- 6.1.8 Cannon Technologies Ltd.
- 6.1.9 Rittal Gmbh & Co. KG
- 6.1.10 Instant Data Centers LLC
- 6.1.11 Flexenclosure AB
- 6.1.12 Colt Group SA
- 6.1.13 Bladeroom Group Ltd.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS