Containerized Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global containerized data center market was valued at USD 7.52 billion in 2020. It is expected to reach a value of USD 29.34 billion by 2026 at a CAGR of 25.49% over the forecast period (2021 - 2026). With the growing adoption of cloud and increasing data generation, the demand for data centers has spiked drastically over the past few years. Enterprise equipment provider, Cisco, projected the volume of digital traffic to triple over the next five years.

• The Containerized Data Center are fabricated in a manufacturing facility and shipped to the end-user in the container. Most of the components in this type of data center are preinstalled, and offer limited flexibility, in terms of replacement and upgrading components. Evidently, with many companies looking for immediate and reliable scaling solutions, containerized data centers provide flexibility to their users. For more than 40 % of organizations, scalability was one of the top challenges in maintaining a data center. The flexibility of the containerized data centers, i. e. , adding new units as and when required, allows organizations to meet the fluctuating demands in a fast way.
• Containerized data centers have found applications in many sectors, catering to different consumer needs. Disaster recovery remains one of the primary revenue-generating industries, with many organizations deploying data center containers to use computing power in areas struck with disasters. Temporary capacity elevation and high-performance computing are also significant applications for these data centers, with many users utilizing them to handle additional loads without interrupting core systems. Easy scalability and high -power efficiency are supporting the deployment of this technology
• Further, these systems' high mobility and scalability remain among the major driving factors for the market growth. The increasing demand for data centers and the increasing investments in the market are expected to grow industry growth. With the demand for these data center capacity growing, multiple companies are opting for these data centers for reliable and scalable solutions to cater to their immediate needs. As these containerized data centers offer suitable features to meet the client's requirements, the demand for these systems is expected to grow in the coming years. Limited flexibility and a lack of expertise are also challenging market growth.
• Amidst the COVID-19 crisis, the adoption of digital banking solutions is expected to further push the adoption of technologies, like containerization, cloud computing, microservices, APIs, and blockchain. Hence, the financial and banking industry is expected to provide several opportunities for containerized data centers' growth over the forecast period
• Additionally, the world's largest investors are focusing on the digital infrastructure market, citing extraordinary demand for capital to boost the data economy. Investor interest remains high even amid the COVID -19 pandemic. The growth of hyperscale computing has increased investors' interest in data centers. As the demand for modern, flexible, and scalable data center grows, investment in data centers is expected to create opportunities for the adoption of containerized data centers.

Scope of the Report

A containerized data center is primarily defined as a modular data center incorporated into a standard shipping container or similar type of container. The containers are then fabricated with all the necessary components used in a data center, including cooling, power, and racks. The report covers the emerging trends in containerized data center market segmented by type, end-user across different regions studied. ​

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Key Market Trends

Defense Sector to Register Significant Growth

• With rugged work environments, ranging from sub-zero temperatures to sandstorms, the need for data centers that are built to withstand extreme temperatures and explosions is expected to grow. Although technology giants like Microsoft and Google were among the prominent users of containerized data centers, defense deployments have been evident since the 2000s.
• New defense aimed data center solutions are a continuing trend. For instance, PacStar, a prominent communication technology provided its service for defense in the US, launched PacStar Modular Data Center (MDC) in October 2018. The MDC is a COTS (commercial off-the-shelf) product that is designed based on their PacStar 400-Series server modules, for easy installation and interoperability, warfighters to deploy data center-class computing and storage at the edge of tactical networks
• Supported by the defense infrastructure modernization initiatives, and the need for mobility and scalable data centers, solutions in the defense applications are expected to provide significant demand for a modular approach of storing data.
• Furthermore, in October 2019, the United States Army planned to invest USD 1 billion in cloud and data modernization over the next five years. Plans for the deployment of two modular data centers in Iraq with Schneider Electric's prefabricated modular data center range called Smart Shelter Container initiated a major market shift in the global defense sector for containerized datacentres. Post-deployment estimates that the data centers will primarily be responsible for voice, video, data, and infrastructure systems within the Ministry of Defense - Iraq areas of responsibility.

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