Modular Data Center Market Size To Reach USD 59,971 Million By 2027 at a CAGR of 18.7% – Valuates Reports

Modular Data Center

Modular Data Center Market is segmented by Component (Solution (All-in-one and Individual) and Services (Consulting, Deployment, and Support & Maintenance)), Enterprise Size (Small & Medium Enterprises and Large Enterprises), Industry Vertical (BFSI, IT & Telecom, Retail, Manufacturing, Healthcare, Energy, Media & Entertainment, Government, and Others). This report covers Global Opportunity Analysis and Industry Forecast from 2020 to 2027. This report is published on Valuates Reports in the Software Category.

The global modular data center market size was valued at USD 14,952 Million in 2019 and is projected to reach USD 59,971 Million by 2027, registering a CAGR of 18.7% from 2020 to 2027.

Major factors driving the growth of modular data center market size

  • Increase in demand for rapidly deployable & scalable data centers.
  • Upsurge in the adoption of cloud services by small & medium-size enterprises (SMEs), rise in demand for green data centers, and increase in demand for energy-efficient data centers.

An increase in demand for rapidly deployable & scalable data centers is expected to drive the growth of modular data center market size. Since it is a compact device that can be easily stationed anywhere to support customers’ existing data centers or be built into a system of modules, modular data centers are an effective alternative to conventional brick and mortar data centers. Furthermore, when rapid provisioning is needed, traditional brick and mortar data centers can stifle growth due to lengthy construction timelines and higher TCO. Modular data centers help you account for rapidly changing business environments by bypassing traditional complexities and leveraging your space more efficiently.

An upsurge in the adoption of cloud services by SMEs is expected to drive the growth of modular data center market size. The use of cloud services by SMEs is rapidly growing, as it allows them to focus on their most critical business activities, resulting in improved productivity. Furthermore, cloud adoption has provided SMEs with advantages such as limitless computing capacity, lower IT costs, fast access to data and applications, and competitive advantage. This rise in demand for cloud computing is, in turn, fueling the growth of modular cloud computing market size.

Problems such as modular data center transportation and vendor lock-in are impeding market development. However, an increase in demand for modular data centers by colocation providers and the advent of the fourth generation of data centers are expected to provide lucrative growth opportunities for the industry.


Due to increased acceptance of modular data center solutions and benefits associated with modular data center solutions such as improved energy efficiency, versatility, speed & agility, and scalability, in comparison to conventional data center solutions, the solution segment exhibited the highest growth in 2019 and is expected to sustain its dominance in the coming years.

The global modular data center market share was dominated by the large enterprises’ segment in 2019, and this pattern is expected to continue during the forecast years. This is due to a variety of issues associated with larger organization’s higher carbon footprint and higher power usage, which drives demand for modular data center solutions.

Because of the large presence of leading modular data center providers and the thriving IT & telecom industry, North America dominates the modular data center market share. Furthermore, the market’s growth is fuelled by an increase in investments from key players as well as the government in the production of advanced prefabricated data centers.

In terms of industry vertical, the IT & telecom industry produced the most revenue in 2019, but the healthcare industry is projected to expand at the fastest pace over the forecasted period.

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