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

The North America Containerized Data Center Market is segmented by End-user Industry (IT & Telecom, Defense, BFSI, Government), and Country.

Market Snapshot

CAGR
Study Period:

2018 - 2026

Base Year:

2020

CAGR:

25.49 %

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Market Overview

The North America containerized data center market is expected to register a CAGR of 25.49% over the forecast period (2021 - 2026). With the growing adoption of the cloud and increasing data generation, the demand for containerized data centers in the region has spiked drastically over the past few years. These data centers 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.

  • The growth of mobile broadband, an increase in big data analytics, and cloud computing are driving the demand for new data center infrastructure. The United States, with a considerable number of data centers in 2019 and many enterprises switching from hardware to software-based services, is estimated to be an addressable market for data center installations. According to the cloud scene, there are 2,570 data centers in the United States and 2,252 service providers in the country, with 60 network fabrics in 2020.
  • Additionally, the increasing penetration of IoT is driving the demand for edge data centers. Many companies are taking advantage of IoT for applications ranging from retail to healthcare, and the amount of data being generated is substantial. For instance, according to the Cisco Global Cloud Index estimate, IoT has the potential to generate 275 times more data than IP traffic by 2020. This is expected to offer significant growth opportunities for the growth of the market, over the forecast period.
  • However, higher initial investments and low availability of resources are some of the factors presenting challenges to this market. As per the US Data Center Optimization Initiative (DCOI), agencies have to close at least 25% of their large data centers and 60% of their non-tiered data centers by 2018. Since these data centers are containerized, they are in small sizes and can be moved from one place to another. As a resuolt of this, they have limited computing efficiency.

Scope of the Report

A containerized data center is defined as a type of modular data center that is incorporated into standard shipping containers or similar containers. The containers are fabricated with all the components of a data center, including cooling, power, and racks. North America Containerized data center solution units facilitate the physical IT infrastructure. The modular approach can be focused on the data center level or a more granular level. For instance, more granular approaches can go down to the rack level. Containerized data centers are ideal for temporary deployments, such as in a disaster area. They also present a convenient way to add additional servers for end-users whose data centers are overflowing, if they aren’t prepared to move to the cloud. Containers can be modular but the opposite is not always true.

By End-user Industry
IT & Telecommunications
BFSI
Government
Other End-users
Country
United States
Canada

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Key Market Trends

Government Sector Expected to Witness Significant Growth

  • The government agencies are also broadly adopting containerized data centers to bolster security. The sensitive data, such as employees’ social security numbers, addresses of service members, and citizens information are stored in modular data centers that are operated by AI systems for an additional layer of protection.
  • Government initiatives and digitalization of public accessibility platforms are the greatest sources of demand for containerized data centers across the world. This is increasing the demand for modular data centers.
  • Moreover, the US government has started Data Center Optimization Initiative (DCOI) to deliver better services to the public while increasing return-on-investment to taxpayers by consolidating many data centers in the country. The consolidation process includes the process for building hyperscale data centers and to shut-off the underperforming ones. Till date the government has closed over 3,215 data centers in the country.​
  • In 2019, the US Army Contracting Command is reported to be looking into the requirements for building a Network Operations Center in Iraq. The Army Contracting Command expects to include two modular data centers, in order to make communications systems to meet the Iraq MOD missions and operations. Although the vendor has not been finalized yet, the US army expects the modular data center to operate in harsh environments and round the clock.
  • Considering the Canadian environment, the Government of Canada (GC) by its “cloud-first” strategy, outlined that the cloud services are identified and evaluated as the principal delivery option when initiating information technology (IT) investments, initiatives, strategies, and projects.
  • The cloud adoption across every segment in Canada, from nonprofits to education and all levels of government, has been witnessed rising. Therefore, in July 2019, AWS announced a Cloud Innovation Center at the University of British Columbia. This is indicative of increasing cloud investments in the country.
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United States Expected to Witness Significant Growth

  • According to a report by CBRE, the total capacity of the US primary data center markets grew by 200 megawatts (MW) or 8% in H1 2019. The country is expanding its capacity by more than 411 MW, which is currently under construction. The primary US wholesale data center market recorded a combined 171 MW of net absorption in H1 2019, which was more than 56% of the 2018 full-year record.
  • Also, according to Telecom Advisory Services, in 2019, the United States generated 41.52 million exabytes per month of internet traffic. According to Cisco, the cloud traffic in North America was expected to be 4,860 exabytes per year in 2019. Currently, about 10% of enterprise-generated data is created and processed outside a traditional centralized data center or cloud.
  • Furthermore, in October 2019, the United States Army has planned to invest USD 1 billion in cloud and data modernization over the next five years. It wants to deploy two modular data centers in Iraq with Schneider Electric's prefabricated modular data center range called a Smart Shelter Container. It will be responsible for voice, video, data, and infrastructure systems within the Ministry of Defense- Iraq areas of responsibility.​
  • Moreover, the region has a strong foothold of modular data center providers, which adds to its growth. Some of them include IBM Corporation, HPE, Vertiv Co., Cisco Systems, and Dell EMC, among others.
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Competitive Landscape

The major players include - IBM Corporation, Hewlett Packard Enterprise, Cisco Systems Inc., Dell Inc., Rittal GmbH & Co. KG, and Huawei Technologies Co. Ltd, among others. These players are increasingly undertaking mergers and acquisitions and product launches to develop and introduce new technologies and products to the market. As a result of this, market concentration will be medium.

  • May 2020 - Schneider Electric announced that it will work in collaboration with Sydney-based Leading-Edge Data Centers on a USD 30 million project to ‘upgrade’ Australia’s digital economy and keep data on home soil. The company will provide Tier-3-designed, standardized, pre-assembled and fully integrated data center modules, designed to boost Leading Edge’s presence in six sites across New South Wales.
  • October 2019 - Huawei announced CloudFabric Cloud Data Center Solution, to support container network deployment automation, available for the industry-leading enterprise Kubernetes platform. This solution is reported to be designed to allow customers to obtain an unified network architecture for containers, as well as other applications, like virtual machines (VMs), and bare metal servers (BMSs). The solution is designed to automatically identify containerized micro-service requirements that are defined in the container platform, and convert the requirements into network policies, and deliver policies automatically.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Need for Portability and Increasing Demand for Scalable Data Center Solutions

      2. 4.2.2 Rising Demand for Energy Efficient Data Centers

    3. 4.3 Market Restraints

      1. 4.3.1 Limited Computing Performance

    4. 4.4 Industry Value Chain / Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End-user Industry

      1. 5.1.1 IT & Telecommunications

      2. 5.1.2 BFSI

      3. 5.1.3 Government

      4. 5.1.4 Other End-users

    2. 5.2 Country

      1. 5.2.1 United States

      2. 5.2.2 Canada

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Hewlett Packard Enterprise Company

      2. 6.1.2 IBM Corporation

      3. 6.1.3 Dell Inc.

      4. 6.1.4 Cisco Systems Inc.

      5. 6.1.5 Huawei Technologies Co. Ltd.

      6. 6.1.6 Emerson Network Power(Emerson Electric Co.)

      7. 6.1.7 Schneider Electric SE (acquired AST Modular)

      8. 6.1.8 Rittal Gmbh & Co. KG

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The North America Containerized Data Center Market market is studied from 2018 - 2026.

The North America Containerized Data Center Market is growing at a CAGR of 25.49% over the next 5 years.

  • IBM Corporation
  • Huawei Technologies Co. Ltd.
  • Hewlett Packard Enterprise Company
  • Cisco Systems Inc.
  • Schneider Electric SE

Are the major companies operating in North America Containerized Data Center Market.

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