According to our latest study on “Micro Data Center Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis – by Rack Type, Organization Size, and End User,” the micro data center market size is expected to reach US$ 10,253.85 million by 2030 from US$ 3,650.00 million in 2022, with an estimated CAGR of 13.8% from 2022 to 2030.

Increasing Deployment of 5G Services to Provide Lucrative Opportunities for Micro Data Center Market Growth During Forecast Period

The deployment of 5G is expected to significantly increase the volume of data traffic, as 5G offers high-speed data and lower latency compared to 4G and other networks. According to the Cisco company’s report published in 2022, 5G is expected to support more than 10% of the world's mobile connections by the end of 2023, with an average speed of 575 Mbps, i.e., 13 times faster than the average mobile connection. Due to increased data traffic, businesses and enterprises are seeking a location to store, process, and distribute their data more efficiently and reliably, contributing to the need for micro data centers. Moreover, the major advantage of 5G deployment is its ability to support a wide range of IoT services and applications, such as autonomous vehicles and industrial automation. These applications generate large amounts of data, which needs to be processed in real time and stored securely. Micro data center facilities offer a cost-effective and scalable solution for storing and processing this data, providing high security, redundancy, and connectivity. Furthermore, businesses seek to deploy 5G applications and services in their areas with limited network infrastructure with “Data sovereignty.” This practice allows micro data center providers to offer services such as enhanced network connectivity and disaster recovery.

Several micro data center providers are launching data centers and their services across the globe. For instance, in November 2022, Rittal launched new micro data centers, which are compact, robust, and fully-fledged homes for IT hardware. The RiMatrix micro data centers are equipped with matching OT components such as rack, power, cooling, monitoring, and security to ensure that the it is securely packed and operates with the smallest carbon emissions, regardless of the location. Further, with global standardization and increased adaptability, these new packages offer more advantages to consumers. In addition, in June 2022, Schneider Electric launched its micro data center service in Europe. They provide micro data centers, ranging from 27kW to 80kW, designed for Edge locations or smaller users. Micro data centers use 5G services to handle the exponential growth in data consumption, edge computing, IoT devices, cloud computing, and digital services. Therefore, the increasing deployment of 5G services is expected to offer lucrative opportunities for the micro data center market growth in the coming years.

North America commanded over one-third of the global micro data center market share in 2022. The region’s micro data center market is segmented into the US, Canada, and Mexico. North America dominates the global market with the growing adoption of innovative technologies and rising digitization. The expansion of edge computing in the region emphasizes the growing overlap between the data center and wireless worlds. Due to overlap, various companies in North America are entering into the data center business. For instance, in November 2021, the American Tower Corporation—the world's largest wireless infrastructure owner with more than 170,000 sites—acquired CoreSite. The acquisition was aimed at improving its mobile edge computing business which is anticipated to gain from the proliferation of 5G low-latency applications throughout the cloud, enterprise and network ecosystems, and also for establishing converged communication and computing infrastructure offering distributed points of presence across multiple edge layers. Market players are developing supportive solutions   for micro data centers in the region. For instance, in March 2020, Vertiv Group launched UPS integrated with lithium-ion batteries in North America. As the lithium-ion batteries function at greater ambient temperatures and reducing expense for data center cooling. This solution aims to reduce the maintenance cost of micro-edge data centers. Such factors collaboratively promote the micro data center market size in the region.

Key Findings of Micro Data Center Market Study:

Based on rack type, the micro data center market is bifurcated into single rack and multi rack. The single rack segment held the largest micro data center market share in 2022 and is also anticipated to register the highest CAGR in the micro data center market during the forecast period. Based on organization size, the micro data center market is segmented into large enterprises and SMEs. The large enterprises segment held the largest micro data center market share in 2022, but the SMEs segment is also anticipated to register the highest CAGR in the micro data center market during the forecast period. On the basis of end user, the micro data center market is segmented into IT & telecom, BFSI, retail, healthcare, manufacturing, and others. The IT & telecom segment held the largest micro data center market share in 2022 and is also anticipated to register the highest CAGR in the micro data center market during the forecast period. By region, the micro data center market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The single rack segment had the larger micro data center market share in 2022. A micro data center is a new generation of alternative solutions to small IT rooms. With complete integration of cooling system power supply, monitoring system, and cabinet containment, it can be used for IT equipment storage in "Edge-of-Cloud" applications. Large and small enterprises have realized that the single-cabinet micro data center with high reliability and availability is the future trend from the perspectives of current short-term investments and future long-term operating costs. Therefore, the demand for single racks is increasing, which is boosting the micro data center market growth for the segment. Micro data center market players such as Shenzhen Kstar Science & Technology Co., Ltd. and Rittal GmbH & Co. KG provide single rack micro data centers.

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