Modular Data Center Market is set to chart out positive trajectory over 2023 to 2032. The escalation could be credited to the growing digitization and rising internet penetration. According to the data released by World Population Review, 69% of the global population announced using internet as of 2022.

Moreover, demand for scalable and cost-effective data center facilities that enable mobile network providers to use distributed data centers as a platform to deploy network function virtualization would support the industry expansion. Besides, features such as ease of deployment, lower installation time, integration of IT space and power capabilities, and improved scalability, would allow modular data center facilities to come in handy across a plethora of application sectors.

Ongoing innovations and new service launch by data center business players would further bolster the market dynamics over the forthcoming years. Say for instance, Amazon Web Services recently introduced a modular data center for the United States Department of Defense customers. As per reports, the AWS MDC is available to government customers qualified for the Joint Warfighting Cloud Capability agreement, which is the military’s USD 9 billion cloud deal.

The modular data center industry is fragmented into components, application, and region.

Based on component, the solution segment would expand considerably over the next ten years ascribed to the diverse features offered by solution providers, including an all-in-one format, in-house fabrication, and high-power density. These merits are fueling the demand for modular data center solutions as enterprises seek for scalable and flexible options that can accommodate the transforming data center requirements.

Considering the application, modular data center solutions and services are likely to see increased demand across the IT and telecom sector. Modular data centers provide ample benefits to the sector such as disruption to business operations and reduced downtime. Telecom operators are actively looking for optimizing their digital services and networks that require additional storage capacity and computing to be deployed across carrier networks. Furthermore, rising penetration of 5G has prompted telecom vendors to invest in the modular data center market.

Geographically, the Europe modular data center market is predicted to experience stellar growth in the ensuing years, driven by the expanding partnerships between private and government organizations to alleviate the businesses’ carbon footprint. Other fundamental factor bolstering the regional business space is the surging demand for data centers that can store personnel management data, customer information, and electronic financial services.