According to a recent study from market research firm Global Market Insights, the modular data center market is set to grow from its current market value of more than $15 billion to over $35 billion by 2026, gaining remarkable traction over the 2020 to 2026 period.

The modular data center market is projected to observe substantial growth through the forthcoming timeframe owing to the increasing development of connected devices and the subsequent adoption of technologies like big data and IoT across several industry verticals. This has, in turn, led to the generation of an immense amount of data traffic, which is boosting the demand for digital storage. This significant growth in data is greatly influencing investments in data center facilities as well as growth of a number of cloud service providers worldwide. Additionally, these conditions are also creating a higher demand for modular data centers as they are designed to deliver new capacities in three to four months.

Considering this increasing inclination toward modular data center capacity, industry players are rolling out new products to effectively expand their respective revenue streams. Citing an instance, in July 2020, Delta reportedly announced the launch of SmartNode, offering electrical and cooling system design options, fast deployment, and mountable capacity for versatile implementation in various regions. Further, the new modularized data centers are available in five capacities that range from 33 kW to 90 kW.

The all-in-one functional modules provide low power consumption; fast deployment; scalability; and  easy storage, lifting, and transportation.

The overall health care industry was expected to invest $2.7 trillion annually on IT infrastructure, including data centers, by the end of 2020. This will result in changing the way health services are delivered and managed and also foster high investments in data centers by health system administrators. Moreover, innovative technologies like MRIs and CT scans, as well as extensive use of video conferencing software to interact with patients remotely, will boost the demand for flexible and scalable data center facilities.

In addition, as hyperscale and collocation data center operators are struggling to grow their business in the extremely competitive data center services market, both time-to-market and systems resilience have arisen as significant business differentiators. Owing to these reasons, several collocation businesses are accepting innovative technologies like prefabricated modular data centers for serving customer needs for application stability and rapid deployment. Deployment of modular data centers offers several advantages as well, like workforce optimization, risk mitigation, and improved resilience. The above-mentioned factors will drive the need for modular data centers.

The North America modular data center industry is an early adopter of the cutting-edge technologies. Factors like increasing consumption of online video and audio content, along with high adoption of innovative, advanced technologies, will influence the market growth. Rapid advancements in the new technologies, IoT, and infrastructure services are further driving cloud providers to expand their respective facilities for supporting increasing data storage needs.