Containerized Data Center Market Size, Share & Industry Analysis, By Type of Container (20 Feet Container, 40 Feet Container, and Customized Container), By Enterprise Type (Small and Mid-sized Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, IT & Telecom, Healthcare, Government, Media and Entertainment, Energy & Utilities, and Others), and Regional Forecast, 2024-2032

The global containerized data center market was valued at USD 11.21 billion in 2023. The market is projected to grow from USD 13.65 billion in 2024 to USD 65.13 billion by 2032, exhibiting a CAGR of 21.6% during the forecast period.

The demand for large-scale data center construction is on the rise due to the expansion of the data center industry. By embedding data center infrastructure into pre-fabricated modules such as power and cooling systems, firefighting systems, cabling, and management systems, a pre-fabricated data center solution enables fast installation and scalability.

According to the Global Data Center Investor Sentiment Survey, 2023, 89% of respondents plan to increase investment in data centers, while 37% have less than 5% experience with the data center asset, and only 16% of respondents expect to increase investments in data centers.

During the COVID-19 pandemic, data centers played a critical role in keeping the world going as supply chains and logistics were put on hold. Manufacturers across various regions focused on building more data centers. Data center providers focused on transforming technology and investment initiatives to create a competitive edge in the market.

Containerized Data Center Market Trends

Increasing Need for Scalable Data Center Solutions to Enhance Market Growth

As an ever-evolving component of the technology stack, the data center needs to continue to grow. This growth is driven by enterprise, hyperscale and colocation needs, as well as cloud demands. Containerized data centers are seeing high adoption and preference among data center operators as they offer a significant reduction in capital and operating costs (approximately 20% – 25%) compared to a traditional physical data center, while ensuring optimal use of available space. Moreover, the development and integration of technologies, such as IoT, mobile internet, cloud computing, big data, and others, are creating demand for data centers. The manufacturing of data centers has evolved the application demands with the increasing investments in the construction and services of data centers.

In addition, increasing development in artificial intelligence and comprehensive digital service industries is driving the requirement for new data center developments while creating innovation in the data center design and solutions offered by cloud providers, which are set to grow with the growth of the digital economy.

According to the State of the Data Center Report, 2024, 53% of the respondents believe that new AI workloads will increase capacity requirements for the colocation industry, while 56% of respondents are planning to deploy AI-capable solutions in their data centers.

Containerized Data Center Market Growth Factors

Rising Demand for Energy Efficient Data Centers to Boost Market Growth

The main objective of an energy-efficient data center is to reduce its carbon footprint and minimize its environmental impact. A green data center, also known as a sustainable data center, is a place where data is stored, managed, and transmitted where all systems (including mechanical and electrical) are energy efficient. Energy efficiency reduces costs and increases efficiency.

Further, these green data centers help modern companies save energy and reduce their carbon footprint. Large companies and small businesses across the globe are increasingly using them. These data centers can meet the needs of a wide range of business applications, from data collection to data processing and analysis, to data distribution.

• In September 2023, ULTIWIT, a business unit of S.A.TECH GmbH, announced the initiation of research, development, and production for a containerized data center with immersive fluid cooling capabilities, in collaboration with Gigabyte’s high performance computing (HPC) immersion servers. The product will offer a consistent operating environment for dedicated AI-powered GPUs. One of the key features of the product is the implementation of an interface that recycles computing waste heat as a step toward energy efficiency and environmental sustainability.

These type of initiatives are set to contribute to the containerized data center market growth.

RESTRAINING FACTORS

Limited Computing Performance and Low Security May Impede Market Progress

Data center in containers are often more cost-effective than large-scale physical data centers. They can also help save more money in the short-term and in the long-term by consolidating existing IT resources. A containerized data center may contain all IT infrastructure. However, it lacks the computing power of a traditional data center.

Moreover, these data centers do not have the same physical security layers as traditional data centers. Therefore, it becomes the end user’s responsibility to provide their own physical security, including anti-climbing fencing, a main entry gate, security guards, and biometric identification. Containerized data centers are also more vulnerable to data breach than traditional data center buildings. Without many built-in redundant security measures, a whole containerized data center could be shut down by one point of failure.           

Containerized Data Center Market Segmentation Analysis

By Type of Container Analysis

40 Feet Container Segment Accounted for the Largest Revenue Due to High Demand for Increased Computing Power and Accuracy

Based on the type of container, this market is segmented into 20 feet container, 40 feet container, and customized container.

The 40 feet container segment held the highest revenue in 2022. This growth is attributed to the need for long-term computing systems for bigger projects, to manage a long-term relief project, add infrastructure for remote military facilities, or to support a regional or local government. Some of the key market players offering 40-feet centers include IBM, Huawei Technology Co., Ltd., ZTE Corporation, and Cisco Systems Inc.

By Enterprise Type Analysis

Strong Adoption among Large Enterprises to Positively Influence the Market Growth

Based on enterprise type, the market is segmented into small and mid-sized enterprises (SMEs) and large enterprises.

The large enterprises segment held the largest market share in 2022. Businesses with a large number of branch offices prefer containerized data centers as they can be scaled up and down to support an organization’s data center needs. Containerized solutions can also be deployed quickly, saving businesses space and money. Besides, large enterprises with thousands of customers generate large amounts of data. This has led to a growing product demand among these organizations.

The SMEs segment is expected to witness the fastest growth during the forecast period. Portable modular data centers have become a key component of the data center industry to meet the growing needs of the digital sector. These data centers offer high value-added services to both large and small enterprises. They also enable continuous monitoring of construction and operation, extending numerous benefits such as improved coordination, reduced deployment time, enhanced integration of the Internet of Things (IoT), and others.

By Industry Analysis

Healthcare Industry to Witness a Remarkable Market Growth Owing to Rising Investments in IT Spending

By industry, the market is divided into BFSI (banking, financial services and insurance), IT & telecom, healthcare, government, media and entertainment, energy & utilities, and others (manufacturing, education).

The IT & Telecom sector dominated the market share in 2022. Rising demand for data center technologies, an increase in edge computing deployment as several telecom service providers are looking to modernize their networks, and rapid growth in the IT & telecom sector are some of the factors propelling the market growth in the region.

However, the demand in the healthcare industry is likely to grow with the highest CAGR over the forecast period. In addition to digitization, IoT, remote clinical, and real-time patient monitoring all create an unprecedented need for connectivity, power, IT, and patient care capabilities. For instance,

• In June 2023, Secure I.T. Environments, a modular data center provider, collaborated with Barnet Hospital by deploying the 42U Micro Data Center in its intensive care unit (ICU). The containerized data center contains a capacity of 12kW load and provides network and communications services for operating in ICU.

REGIONAL INSIGHTS

The global market has been studied across five regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

The market in North America dominated the demand for containerized data center in terms of market share in 2022. The growth in this region can be attributed to the early adoption of this type of data center, as a result of increased demand for big data, data processing, storing, and analysis. The regional growth can also be attributed to the presence of major players in the market such as HPE, Dell Inc., IBM, and Vertiv Group Corp.

The increasing need for flexible IT infrastructure and the adoption of online services will also provide significant growth opportunities for the North American data center industry in the coming years. For example, with edge and cloud computing becoming increasingly popular, several companies are looking to make the most of the scalability and flexibility offered by this type of infrastructure.

Asia Pacific is estimated to record the highest CAGR during 2023-2030. Edge computing adoption in the region is driven by the growing number of Internet of Things (IoT) devices, smart city initiatives, and the need to process data in real-time. According to IoT Express Technologies Pvt. Ltd., in the region, the number of IoT devices is expected to exceed 15 billion by 2023, an increase of 55% compared to 2020. Furthermore, Internet of Things (IoT) devices are expected to produce 79.4 Zettabytes of data in 2025. The emerging economies of the region, such as China, India, and the Philippines, have a vibrant startup community that is backed by skilled workforce, which will favor the growth of the regional market share.

Over the forecast period, the market in Europe will experience significant expansion. One of the factors driving the growth of the Europe market is the increasing user demand for predictive analytics, storage, and fast processing. For instance, in June 2023, in partnership with Delta, Zwart Techniek delivered Europe’s 1st Xubus Node, the first containerized data center constructed and sold in the European market. The 70 kVA model fulfilled the client’s financial needs through a new leasing model and delivered to a client located in the Netherlands.

The Middle East & Africa market is set to showcase a steady growth over the forecast period. This can be attributed to cloud computing, government projects, technological advancements, and widespread adoption of data. In July 2021, The MDS Site & Power group successfully completed a large-scale modular data center project in the UAE. The project, located in the city of Fujairah, UAE, is a cutting-edge design that was produced, installed, and commissioned along with all the infrastructure in less than 8 months. The MDC was required to improve and play a vital role in serving the ICT requirements in the UAE.

The South American market is anticipated to expand steadily over the forecast period. This is due to the rising number of digital start-ups in Brazil and increased investment by major players. South American countries, such as Brazil, Argentina, and Colombia have adopted new AI policies and integrated strategies to promote the adoption of innovative technologies. Thus, South American countries are expected to create multiple growth prospects over the coming years.

List of Key Companies in Containerized Data Center Market

Strategic Collaboration and Critical Investments in Modular Data Centers by Major Players to Gain Competitive Edge

Several commercial plans and strategies are being implemented by leading market players such as HPE, Delta Power Solutions, Dell, IBM, Schneider Electric SE, and others. These strategies would help companies to strengthen their global presence and offer unconventional services to end-users or businesses.

• In August 2023, the Brunswick County Board of Commissioners in North Carolina selected Schneider Electric to deploy two containerized data centers. These containerized data centers are 25 ft long, 12 ft wide, and 12 ft high and are to be located distinctly, one at the coast and another at North Brunswick High School.

List of Key Companies Profiled:

• Hewlett Packard Enterprises (U.S.)


• Delta Power Solutions (Taiwan)


• IBM Corporation (U.S.)


• Dell Inc. (U.S.)


• Huawei Digital Power Technologies Co., Ltd. (China)


• Vertiv Group Corp. (U.S.)


• Schneider Electric SE (France)


• ZTE Corporation (China)


• Shenzhen Kstar Science&Technology Co., Ltd. (China)


• Fuji Bridex Pte Ltd. (Singapore)

KEY INDUSTRY DEVELOPMENTS

• November 2023: Vertiv introduced a manufactured wooden data center module. This data center module is manufactured using mass timber instead of steel for structural components, including the covering. The wooden box will create a lower carbon footprint than the other comparable steel versions of the product.


• October 2023: Mitsubishi Heavy Industries, Ltd. (MHI) introduced a 40kVA 12ft containerized data center with an air-cooled hybrid cooling system. The data center simultaneously houses servers using three types of cooling methods: air cooling (8kVA), immersion cooling (25kVA), and water cooling (8kVA).


• June 2023 – KDDI Corporation, a Japanese telecommunications company, developed a new type of small data center that is mobile and environmentally friendly. These container-type immersion-cooled small data centers use “single-phase immersion cooling”, which reduces power consumption by 43%.


• March 2023 – Zeittac, a Brazilian company that specializes in data center solutions, built a new data center for Brazil's Public Ministry in the western city of Campo Grande. The 72 square meters (775 square feet) center has a total floor area of 340 square meters. Besides, the center is equipped with a Type B vault room, which makes it strong enough to withstand fire and other effects such as earthquakes and extreme weather conditions.


• February 2023 – Varanium Cloud, an Indian tech company, recently announced the launch of a new Edge Containerized Data Center in Maharashtra, which is part of their Hydra Web Services division. This Edge data center is expected to help boost their gross margins and bring high-performance computing environments closer to customers. The goal of Varanium Cloud is to provide digital, tech, and internet services to tier-2 cities.

REPORT COVERAGE

The research report includes prominent regions across the globe to get a better knowledge of the industry. Furthermore, it offers insights into the most recent industry trends and an analysis of technologies that are being adopted quickly on a global scale. It also provides the market drivers and restraints, allowing the reader to gain a thorough understanding of the industry scenario.

REPORT SCOPE & SEGMENTATION