North America Containerized Data Center Market Size

North America Containerized Data Center Market Analysis

The North America Containerized Data Center Market size is estimated at USD 5.55 billion in 2024, and is expected to reach USD 16.23 billion by 2029, growing at a CAGR of 23.91% during the forecast period (2024-2029).

• 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 replacing and upgrading components.
• Containerized data center solution units facilitate the physical IT infrastructure. The modular approach can focus on the data center or a more granular level. For instance, more granular approaches can go down to the rack level. As the market for x86-based servers, storage, and network equipment has grown, end users across a broad spectrum of vertical markets have been exploring ways to find more effective methods of installing and managing data center equipment.
• Moreover, big data and Internet of Things (IoT) penetration in the region is expected to significantly transform the size and scope of the next-generation modular data centers. With the existing competition, organizations are under pressure to evolve IT scalability and capacity. With the exponential growth of data, hybrid cloud, and outsourcing third-party data centers, containerized data centers are gaining traction, owing to their flexibility in installing a center within the least possible time.
• Further, rising digitization throughout the industrial emphasis areas, steady technological advancements, and rising penetration of smart connected devices have all contributed to the growth of IoT in the North American region.
• Organizations are looking at modular services to optimize their infrastructure by selecting the desired services from the available integrated portfolio. In addition, with the standardized delivery deployment, several service options are made available from online catalogs. These options offer the ability to lower the upfront investment for companies. IBM integrated managed infrastructure service is an example of this situation.
• However, higher initial investments and low resource availability are some factors presenting challenges to this market. Further, these data centers are containerized; they are in small sizes and can be moved from one place to another. As a result of this, they have limited computing efficiency.
• During the COVID-19 lockdown, the demand for data centers grew as more people started working remotely. Increased data traffic impacted the market studied due to the expanding use of cloud services.