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 size was valued at USD 11.17 billion in 2023. The market is projected to grow from USD 13.47 billion in 2024 to USD 65.65 billion by 2032, exhibiting a CAGR of 21.9% during the forecast period. The Containerized Data Center Market in the U.S. is projected to grow significantly, reaching an estimated value of USD 16.81 billion by 2032, driven by Rising Demand for Energy Efficient Data Centers.

A containerized data center is built in a manufacturing facility and then transported to the end-user in a container. This report has considered a mixture of vendors offering integrated containerized data centers and solutions. Containers can be modular, but the opposite is not always true.

This industry is experiencing notable growth due to the exponential increase in data traffic. In addition, the introduction of 5G networks has increased data transmission speeds and led to the development of new applications, resulting in a higher demand for data center infrastructure to handle the growing data traffic. Moreover, governments and regulators worldwide are keeping a close eye on data center growth to tackle sustainability issues caused by energy-intensive operations. They are setting sustainability guidelines for new data centers. For instance,

• In January 2024, a new bill called HB 116 was introduced in the Virginia House of Delegates. This bill requires data center operators to meet specific energy efficiency requirements. According to the bill, data center operators can only qualify for tax exemptions if they achieve a power usage effectiveness score of 1.2 or lower.

Such developments are anticipated to increase the demand for container-based data centers with optimal airflow management, thereby reducing environmental impact.

The COVID-19 pandemic elevated the product demand owing to factors, such as increased remote work, cloud adoption, and governmental support. The surge in the need for a robust digital infrastructure accelerated the market growth. In the coming years, the market will keep flourishing owing to the rising demand for green and sustainable data centers.

Containerized Data Center Market Trends

Increasing Demand for Disaster Recovery Solutions and Priority for Business Continuity to Ensure Market Growth

Disaster recovery solutions and business continuity have become a priority for businesses prone to cyberattacks or natural disasters. According to industry experts, a 72% increase in data breaches was reported in 2023 compared to 2021. There were over 2,365 cyberattacks, with 343,338,964 victims in 2023.

In such cases, container-based data center solutions are an excellent option as they offer rapid deployment capabilities, minimal downtime, and swift restoration of critical IT services. In addition, these data centers are highly resilient, with features, such as advanced cooling systems and power generation systems making them highly suitable for disaster-prone areas. Thus, these types of data centers have become prevalent among end-users in recent years.

Containerized Data Center Market Growth Factors

Increasing Demand for Containerized Data Centers to Become Key Driving Factor for Market

The demand for these data centers has grown in recent years. Factors, such as rapid deployment, cost effectiveness, and reduced energy consumption compared to traditional data centers are driving the global containerized data center market growth. In addition, these data centers are ideal for deployment in remote or harsh environments where the construction of traditional data centers is not possible. Moreover, with the increasing focus on lowering carbon footprint, businesses are prompted to embrace sustainable data center solutions, such as container-based data centers. To cater to these rising demands, companies have been launching new data center solutions across the globe. For instance,

• In March 2023, The Housing Development Corporation introduced a containerized data center in Hulhumale, Maldives. This facility, managed under its SmartCom brand, includes a redundant battery backup system capable of lasting a minimum of 24 hours. In addition, the data center is equipped with an 80 kW backup generator.

Furthermore, these data centers have proven to be an excellent option for disaster recovery sites. These data centers provide a quick and reliable backup solution in case of emergencies. Thus, considering all the advantages of these data centers over traditional ones, the demand for them is expected to grow exponentially in the coming years.

RESTRAINING FACTORS

Security Concerns Related to Containerized Data Center Solutions to Hinder Market Growth

The market's restraining factors include security concerns related to containerized data center solutions. According to a report by Circadian Risk, physical security is the most important aspect of data centers. Similarly, the 2023 AFCOM State of the Data Center Report states that human threats are among the primary security and infrastructure threats.

Additionally, the Uptime Institute’s 2023 Global Data Center Survey indicates similar operators' concerns about the security implications of modular data centers. These concerns were stated due to the prefabricated nature of these data centers, which limits customization and integration capabilities that are key to meet specific organizational needs. Moreover, as these data centers are deployed in remote, harsh, and less secure environments, they become vulnerable to potential security risks.

Thus, several companies, such as Schneider Electric and Huawei have introduced advanced security features in their container-based data center solutions to provide protection against these prevailing security threats.

Containerized Data Center Market Segmentation Analysis

By Type of Container Analysis

40 Feet Container Segment Dominated Market Due to Increase in Demand for High Computing Power and Accuracy

By type of container, the market is segmented into 20 feet container, 40 feet container, and customized container.

In 2023, the 40 feet container segment dominated the market owing to the increased requirement for high computing power and accuracy. In addition, these types of containers are popular for being aligned with sustainability goals as they can be recycled. Moreover, they can be easily deployed and are recognized as being the optimal size of data centers, leading to efficient space utilization. These types of containers also provide a perfect balance between mobility and capacity.

In the coming years, the customized container data center segment is expected to dominate the global containerized data center market share. End-users are demanding personalized containers that suffice their evolving requirements. For instance, Microsoft’s Project Natick was based on exploring the efficiency of underwater data centers. These innovative approaches have created opportunities for market players to develop customized data centers for end users. This growing demand is expected to propel the segment’s growth during the forecast period.

By Enterprise Type Analysis

Large Enterprises Led Market Owing to Need for Managing Large Volumes of Data

By enterprise type, the market is bifurcated into small and mid-sized enterprises (SMEs) and large enterprises. In 2023, the large enterprises segment held the largest market share owing to two key factors: the need for managing large volumes of data and efficient disaster recovery and business continuity solutions.

Large enterprises have their business operations spread across the globe. In addition, they require solutions that can easily handle large volumes of data and the capacity to support the entire expanded IT infrastructure. Moreover, the need for robust disaster recovery and business continuity solutions will fuel the demand for modular data centers. Thus, there is an increasing demand for these data centers across large enterprises as they are the appropriate solutions for their requirements.

In the coming years, the adoption of these data centers across small and medium-sized enterprises is expected to grow notably. This rise is due to the development of customized data centers that are tailored to SME requirements.

By Industry Analysis

IT & Telecom Sector Led Market Owing to Increasing Adoption of Innovative Technologies

By industry, the market is categorized into banking, financial services and insurance (BFSI), IT & telecom, healthcare, government, media & entertainment, energy & utilities, and others. The others industries include manufacturing, education, and others. In 2023, the IT & telecom industry segment dominated the market. This sector is at the forefront of adopting new-age technologies, further requiring flexibility to support and integrate these technologies effortlessly. In addition, this sector requires minimal downtime and rapid response time to serve its end users. Thus, the IT & telecom industry prefers containerized data centers to serve its rapidly evolving requirements.

The healthcare sector segment is expected to record the highest CAGR during the forecast period. This growth is due to the rising demand for security solutions to safeguard sensitive patient documents.

REGIONAL INSIGHTS

Geographically, the market is examined across five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America held the highest market share in 2023 and was valued at USD 3.88 billion in 2023. The market’s growth in this region can be attributed to the early adoption of the containerized type of data centers as a result of increased demand for big data, data processing, storage, and analysis. Moreover, the rising need for a flexible IT infrastructure and adoption of online services will also provide significant growth opportunities for the North American data center industry over the coming years.

In the coming years, Asia Pacific is expected to record the highest CAGR. The region's growth is mainly due to the continually evolving sectors, such as IT & telecom, healthcare, government, BFSI, and manufacturing. Various initiatives, such as the Regional Comprehensive Economic Partnership (RCEP) and the Southeast Asian Manufacturing Alliance (SMA) aim to connect businesses with a network of trusted partners to grow and navigate in the diverse Southeast Asian region confidently.

Moreover, Europe is witnessing robust growth owing to the data center expansion happening in major cities, such as London, Dublin, and Frankfurt. Coldwell Banker Richard Ellis (CBRE) Group reports that the data center supply in Frankfurt, London, Amsterdam, and Paris (FLAP) has increased compared to the previous year as providers strive to meet the high demand in these top European markets. Despite power availability challenges, recent developments and major project deliveries are anticipated in 2024.

On the other hand, MEA and South America are expected to showcase slower growth than other regions. However, digitalization is gaining momentum across these regions, and several government initiatives are also encouraging digital technology adoption. Thus, this technology-driven shift is attracting demand for data centers, further promising a healthy growth rate for the market in these regions.

KEY INDUSTRY PLAYERS

Companies Focused on Developing Modular Design and Energy Efficient Containerized Data Center Solutions

Several companies operating in the market have been focusing on modular designs to meet evolving client requirements. These modular data center designs provide flexibility, allowing faster deployment. In addition, companies have been investing in the use of renewable energy in their data centers, particularly prefabricated models. Major investments or research projects are seen in cooling technologies and energy-efficient designs. Companies, such as Vertiv, Schneider Electric, and IBM are exploring these sustainable solutions. These players are also focusing on key business strategies, such as partnerships, acquisitions, and collaborations, among others.

List of Top Containerized Data Center Companies:

• Hewlett Packard Enterprise Company (U.S.)


• IBM Corporation (U.S.)


• Dell Technologies Inc. (U.S.)


• Huawei Investment & Holding Co., Ltd. (China)


• Vertiv Holdings Co. (U.S.)


• Schneider Electric (France)


• ZTE Corporation (China)


• Delta Electronics, Inc. (Taiwan)


• Fuji Electric Co., Ltd. (Japan)


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

KEY INDUSTRY DEVELOPMENTS:

• July 2024: Vertiv introduced a prefabricated modular data center solution, Vertiv MegaMod CoolChip, with liquid cooling aimed at providing reliable and efficient AI computing.


• October 2023: Mitsubishi Heavy Industries introduced a 40kVA-class 12ft. containerized data center with an in-built hybrid cooling system. The facility was expected to be commercially available by the end of 2023 and has both air-cooling and immersion cooling systems built in.


• October 2023: Green Revolution Cooling, Dell, and DCV Industries partnered to provide immersion-cooled, modular data centers to the MEA region.


• September 2023: The City Hall of Mogi das Cruzes, a municipality in Brazil, acquired a new containerized data center from the local provider Modular Data Centers. This data center is equipped with temperature, humidity, and fire controls and built to meet Tier III standards. It is intended to meet the comprehensive technological needs of the City Hall, offering high availability and the capacity to host large-scale technology infrastructure solutions.


• August 2023: Two containerized data centers by Schneider Electric got approved by North Carolina's Brunswick County Board of Commissioners. The data centers were over 12 ft. high, 12 ft. wide, and 25 ft. long and will be established at two different locations.

REPORT COVERAGE

The report delivers an in-depth analysis of the market, concentrating on factors that directly and indirectly affect its growth. It covers market size, key market players, competitive dashboard, product types, and their applications. It also includes PESTLE and deals/contracts/profitability analysis. Moreover, the report highlights the recent market trends, technological advancements, regulatory contexts, and primary industry engagements.

Report Scope & Segmentation