As per the report, the global modular data center industry was accounted for $14.95 billion in 2019, and is projected to reach $59.97 billion by 2027, growing at a CAGR of 18.7% from 2020 to 2027.

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Surge in demand for rapidly deployable & scalable data centers and green data centers, increase in need for energy-efficient data centers, and rise in adoption of cloud services by small & medium-size enterprises have boosted the growth of the global modular data center market. However, transportation and vendor lock-in hinders the market growth. On the contrary, rise in demand for modular data centers by colocation providers is expected to open lucrative opportunities for the market players in the future.

By industry vertical, the healthcare segment is estimated to portray the highest CAGR of 24.2% during the forecast period, due to unique data demands of the healthcare sectors such as the need to protect sensitive information and stringent compliance requirements. However, IT & telecom held the largest share in 2019, contributing to more than two-fifths of the global modular data center market, as the modular data centers have become a more strategic asset for IT companies as well as telecom operators.

By component, the solution segment held the largest share in 2019, accounting for more than three-fifths of the global modular data center market. This is due to increased adoption of modular data center solutions driven by several advantages offered by modular data centers such as energy efficiency, mobility, speed & agility, and scalability, in comparison with traditional data center solutions. However, the services segment is expected to register the highest CAGR of 20.5% during the forecast period, as there has been an extensive adoption of deployment and integration services among end-users.  

By region, the market across North America held the lion’s share in 2019, accounting for more than two-fifths of the market, due to surge in investments by key players as well as the government for developing the innovative prefabricated data center. However, the global modular data center market across Asia-Pacific is projected to portray the highest CAGR of 21.6% during the forecast period, owing to the extensive development of 5G network infrastructure in the region and increase in number of startups and small & medium-sized enterprises.

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