All-in-One Modular Data Center Market Size, Trends and Growth Analysis by 2027

The global market for all-in-one modular data centers was valued at approximately US$ 1.93 billion in 2018 and is projected to experience a compound annual growth rate (CAGR) of 24.8% from 2019 to 2027, ultimately reaching around US$ 13.95 billion by 2027. This growth can be attributed to several factors, including the rapid increase in the adoption of over-the-top (OTT) video services, the rise of high-quality and bandwidth-intensive content, and the expanding Internet of Things (IoT) ecosystem, all of which are driving the demand for all-in-one modular data centers.

The demand for compact all-in-one modular data centers is surging within the data center market. Vendors are presented with significant opportunities due to the rising customer demand. An all-in-one modular data center integrates computing, storage, and networking resources into a cohesive package. This type of data center enhances IT reliability while minimizing the physical space required, as the converged stack is designed as a unified solution from the outset. Although there is some level of compaction associated with hyper-converged IT, this is primarily due to advancements in IT equipment technology. Data storage has also undergone considerable compaction, particularly with the introduction of solid-state drives. The reduction in physical footprint, combined with performance enhancements, has enabled a single rack of servers to handle the same IT workload effectively.

In 2018, North America emerged as the leading region in the global all-in-one modular data center market, followed by Europe and the Asia Pacific region. The Middle East and Africa, along with South America, ranked fourth and fifth in terms of market share within this sector. The growth of the all-in-one modular data center market in North America can be largely attributed to the presence of advanced economies such as the United States and Canada. According to Cisco, internet traffic is expected to increase by 2.9 times between 2016 and 2021, reflecting a CAGR of 24%. By 2021, internet traffic is projected to reach 64.0 Exabytes per month, up from 21.7 Exabytes per month in 2016. Additionally, the number of network devices is anticipated to rise from 2.5 billion in 2016 to 4.4 billion by 2021.

The overall size of the all-in-one modular data center market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the all-in-one modular data center market. This research also provides an overview and forecast for the global market based on various segments, categorized into five major regions: North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Furthermore, primary interviews were conducted with industry participants and commentators to validate the data and analysis. Participants typically involved in this process include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the all-in-one modular data center sector. Key players in the global all-in-one modular data center market include Rittal GmbH & Co. KG, Bladeroom Group Ltd., Dell Inc., Flexenclosure AB, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd, International Business Machines (IBM) Corporation, Schneider Electric SE, Active Power, Inc., and NTT Communications, among others.