Edge computing application among drivers of multi-billion dollar increase in global modular data center market
by CM Staff
Asia-Pacific expected to be the fastest-growing market while North America and Europe expected to be the biggest markets, finds Frost & Sullivan
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, Global Modular Data Centers Market, Forecast to 2025, finds that the market has potential for expansion.
Despite the impact of COVID-19, the market is estimated to witness nearly a three-fold growth, reaching US$14.08 billion by 2025 from US$4.81 billion in 2019, increasing at a compound annual growth rate (CAGR) of 19.5%.
“Although starter data centers were the biggest revenue contributors in 2019, edge computing application will drive high growth as it is expected to be the fastest-growing application type throughout the forecast period,” said Gautham Gnanajothi, energy and environment research analyst at Frost & Sullivan, in a prepared statement. “Additionally, disaster recovery and data center augmentation applications will play a crucial role to steer the overall market toward a growth stage at a rapid pace.”
Gnanajothi added: “With a combined market share of 59%, North America and Europe are the biggest markets, whereas Asia-Pacific (APAC) is expected to be the fastest-growing market. Further, from the end-user vertical perspective, IT will be the biggest revenue contributor for the modular data centers market followed by the telecom sector.”
According to Frost & Sullivan, market participants should:
- Capitalize on the diversifying ecosystem, which has edge computing at its core.
- Focus on smaller-capacity modular data center products.
- Identify partnerships with traditional co-location providers, edge co-location participants, and specialist edge participants to increase market reach and revenue stream.
- Look at emerging economies for modular data center solution providers, where both data creation and data center construction are at a nascent stage.