Edge Computing Application among Drivers of Multi-billion Dollar Increase in Global Modular Data Center Market

Frost & Sullivan’s recent analysis, Global Modular Data Centers Market, Forecast to 2025, finds that the market is poised for tremendous growth with immense potential for expansion. Despite the impact of COVID-19, the market is estimated to witness nearly a three-fold growth, reaching $14.08 billion by 2025 from $4.81 billion in 2019, increasing at a compound annual growth rate (CAGR) of 19.5%.

“Although starter data centers were the biggest revenue contributors in 2019, edge computing application will drive high growth as it is expected to be the fastest-growing application type throughout the forecast period,” said Gautham Gnanajothi, Energy and Environment Research Analyst at Frost & Sullivan. “Additionally, disaster recovery and data center augmentation applications will play a crucial role to steer the overall market toward a growth stage at a rapid pace.”

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Gnanajothi added: “With a combined market share of 59%, North America and Europe are the biggest markets, whereas Asia-Pacific (APAC) is expected to be the fastest-growing market. Further, from the end-user vertical perspective, IT will be the biggest revenue contributor for the modular data centers market followed by the telecom sector.”

To tap into growth opportunities created by the lucrative global modular data centers market, market participants should adopt an innovative approach, especially with the advent of 5G and edge computing. They should:

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• Capitalize on the diversifying ecosystem, which has edge computing at its core.
• Focus on smaller-capacity modular data center products, which is critical to cater to the growing demand for edge applications.
• Identify potential partnerships with traditional co-location providers, edge co-location participants, and specialist edge participants to increase market reach and revenue stream.
• Look at emerging economies for modular data center solution providers, where both data creation and data center construction are at a nascent stage. This will help solution providers access high-growth markets.

Global Modular Data Centers Market, Forecast to 2025 is the latest addition to Frost & Sullivan’s Energy and Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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