Considerable Growth Predicted for Modular Data Center Market

Modular data centers offer flexibility, scalability and cost efficiency not seen with traditional deployments.

MarketsandMarkets recently released a new report on the modular data center market, which predicted significant growth in the sector. According to the data center research, the market is poised to hit $40.41 billion by 2018.

This increase will come at a compound annual growth rate of 37.41 percent from 2013 to 2018 in the overall market environment. Although the sector is segmented into different types of modular data centers, increased awareness and adoption of this type of solution will drive the market expansion.

The report stated that a main benefit of a modular data center design is portability, which enables customers to construct, tear down and relocate their facilities to fit their changing needs.

“Traditional data centers lack in capacity planning and scalability; it is also coupled with high cost and higher construction,” the report stated. “Modular solutions address these challenges in a cost effective and greener way.”

The study also noted a myriad of other benefits to be had with a modular data center, including flexibility, reusability, improved efficiency, lower total cost of ownership and a smaller environmental footprint. As designers have created a number of different types, including solutions for instant and retrofit facilities, self contained structures, as well as high density and mobile computing solutions. Customers can select the data center that fits their needs and add it to an existing facility or create a stand alone data center.

Contributing to Growth in Asia-Pacific
In addition to increases in the overall data center market, modular data center structures are contributing to expansion in the Asia-Pacific region, particularly for uninterruptible power supplies dealers. A new study from Frost & Sullivan found that the sector generated revenues of $1.42 billion in 2012 and predicted that the market will reach $1.92 billion by 2018.

As more customers seek technology that allow for a reduced environmental impact, modular data centers will present an attractive solution. In this way, these groups will also increasingly utilize compact UPS systems due to space constraints, leading to significant market growth and opportunities for vendors in this sector.

“Increased share of data center revenue will help improve margins, as the stakes are high for data center operators in their business critical networks,” stated the report.