Market Overview
Containerized Data Center Market is estimated to grow at a CAGR of 29.53% during the forecast period 2024-2031
The containerized data centers are fully enclosed and integrated data center incorporated into the shipping container or a structure of similar size. These centers are ideal for temporary deployments such as disaster areas. Containerized data centers are a convenient way to add additional servers for companies whose data centers are overflowing. The containerized data centers are available with the cooling and power preinstalled components. The containers are fabricated with all the components of a data center including cooling, power, and racks.
Market Summary
| Metrics | Details |
| Market CAGR | 29.53% |
| Segments Covered | By Container Type, By Application, By Deployment Size, By Industry Verticals, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Growth Trends
The market is driven by the rising demand for containerized data centers in various industries such as energy and education, financial services and insurance (BFSI), healthcare, banking, telecom, information technology, government, and defense industries. The containerized data centers are used in various locations as per the requirement. The containerized data centers are equipped with a higher energy saving target. These data centers require low operating costs. The containerized data centers reduce the complexity to assign and integrate separate individual modules. The containerized data centers provide end-user with high scalability and flexibility. It is easy to add or remove the containerized data centers as per the data center requirements.
The market is dominated by the availability of the containerized data centers in the form of a box or container in various size variants i.e. 10, 20, 40, 53 feet, etc. It is easy to deploy and assemble the containerized data centers at any location in lesser time duration. It comprised all basic functional data center modules including data, power, cooling, and monitoring, assembled, and integrated systems. The containerized data centers provide the user's plug and play benefits. The containerized data centers provide a huge reduction in capital and operational expenditures. These data centers have high degrees of customization that can be designed, manufactured, and deployed according to the specific customers' requirements.
There is an increase in the launch of the containerized data center. For instance, in January 2019, Vertiv, an American critical infrastructure specialist had launched the containerized data centers, power systems in Europe, the Middle East, and Africa (EMEA). It includes the two product lines for modular data centers i.e. Vertiv SmartMod, and Power Module. Vertiv SmartMod, provides the customers pre-fabricated, container-based data centers that can be configured to include the company’s power distribution and cooling equipment. Power Module is a weatherproof container designed specifically to house UPS systems, batteries, and thermal management kit. These products would enable customers to spend significantly less time on data center installation.
In February 2017, Cisco had unveiled the Cisco containerized data center to address the evolving computing and networking needs of both public and private sector organizations. The Cisco Containerized Data Center is a modular datacentre solution in a weatherized ISO container that provides an open architecture and transportable platform coupled with a unique management platform for cost-effective datacentre deployments. It is designed to meet the unique needs of government and commercial organizations for mobile rapid deployment, disaster recovery, support in remote areas, and better cost utilization. It provides an efficient continuity of operations, increased energy efficiency, increased power density, and reduced risk.
However, several factors such as restrictions in high-performance computing, vendor lock-in, and lack of expertise in operating the data centers are hindering the market growth.
Market Segmentation Analysis
The global containerized data center market is segmented based on the container type as 20 Feet container, 40 Feet container, and customized. The customized accounts for the significant market share of XX% in 2019 due to the increase in the number of companies providing customized containerized data centers as per the requirement of the customers. Several customized containerized data centers comprised different specifications of the containers including the 10 Feet, 53 Feet, and custom containers. The customized containerized data centers in containers provide the additional benefits of standardization and cost certainty. The customized data center features include modular designs with multiple connecting containers, permanent installations, temporary installations, quick connections for power and cooling, infrastructure management, and other features. The market is dominated by the availability of several customized containerized data centers. For instance, Huawei Technologies Co Ltd provides the customized solution of the Huawei IDS1000-C solution with the 3 typical configurations and supports a flexible combination of different modules to meet customers' diverse requirements.
Further, the market is also classified based on the industry verticals as the banking, financial services and insurance (BFSI), telecom and IT, government and public, defense, energy, healthcare, education, and others. The telecom and IT accounts for a significant market share of XX% in 2019 as the containerized data centers are the ideal solution for the telecom and IT industry where the high performance of servers, switches, and other computing and communications platforms is required. There is growing penetration of the containerized data centers in the telecom and IT industry as these data centers have the ability to fulfill the goal of standardization of mass production and rapid deployment. It is easy to move the containerized data centers from the private to public clouds and back. The containerized data centers allow the applications to be available when and where users and information technology need them. The containerized data centers allow the interconnections to be made between different colocation services and telecom carriers. It is easy to exchange data in the telecom and IT industry through the use of containerized data centers.
Market Geographical Share
By region, the global containerized data center market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global containerized data center market and expected to grow at the highest CAGR during the forecasted period due to the presence of a large number of the containerized data centers. There is growing adoption of the cloud and increasing data generation. The advanced cooling and power systems are used in the development of the containerized data centers for the optimum utilization of energy and reducing power effective usage. Reduction in the total cost of ownership and time of deployment are the major factors boosting the demand for the containerized data centers. Several companies are focussing on deploying the containerized data center with the additional blocks and easy plugin capabilities. There is an increasing focus on cost-effective scaling. The companies are providing the containerized data center with flexibility and customization.
Asia-Pacific region is expected to have positive market growth the increasing penetration of the containerized data center. Containerized data centers are emerging as a modular solution regarding the issue of data center capacity expansion. The increasing demand for mobile and scalable data center solutions shall stimulate market growth. There is a growing availability of fully enclosed and integrated containerized data center. The high technology awareness and focus on cost-effective scaling shall boost the demand for the containerized data centers over the forecasted period.
Companies and Competitive Landscape
The global containerized data center market is highly competitive with the presence of several international and local markets. Container diversification, revenue generation, and opportunities intensify the market competition. Huawei Technologies Co Ltd., Schneider Electric Holdings Inc., IBM Corporation, Cisco Systems Inc., Emerson Network Power, Hewlett Packard Enterprise, Johnson Controls, and Dell Inc. are the leading market players with significant market share.
The major players are using the containerized data centers development, containerized data centers launch, and market expansion strategies. For instance, In July 2019, Schneider Electric had expanded the data center cooling portfolio to include more cooling options for smaller footprints and load adaptability. This expansion would lead to the modernizing and consolidating data centers as more customers need a cooling solution that provides more cooling capacity in a smaller footprint and flexible capacity to adapt to the actual data center load.
In November 2018, Delta had enabled an energy-efficient 200kW containerized data center solution for the Singapore-based Campana Group. This data center features superior energy efficiency with an annual average PUE below 1.43, thus, achieving a gold level of the Green Grid standard. The solution provides a modular design that fully integrates high-efficiency power supply, precision cooling, comprehensive monitoring, airflow management, wiring, and piping systems in one 20' or 40' container.
The companies are entering into mergers, collaboration, acquisitions, licensing, and other activities for the development of containerized data centers. For instance, in March 2017, Cisco had entered into a strategic alliance with Docker Inc for modernizing the cloud and data center application environments. This collaboration would include worldwide engineering, sales, and support to deliver essential container capabilities for application-centric data center and cloud infrastructure. This collaboration would allow the customers to modernize applications using Docker Enterprise Edition (EE) with Docker Datacenter and providing securely and efficiently across the Cisco Unified Computing System (UCS) and Cisco validated converged infrastructure solutions.
In June 2016, Hewlett Packard Enterprise had entered into the collaboration with Docker for the containerized data-center. This collaboration includes the sales, engineering, support, and knowledge sharing for HPE data-center customers. HPE servers would be bundled with the Linux-based Docker Engine and support. This would enable customers to create containerized applications, which will be portable across all of HPE's servers.
In May 2016, ZTE Corporation had collaborated with the leading Internet company Tencent to successfully build Tencent West Lab, a fully mobile containerized data center with world-leading levels of energy efficiency. This collaboration had delivered a data center that features multiple technological breakthroughs, most notably an overall power usage effectiveness (PUE) level of 1.0665 (including photovoltaic gains).
**The global containerized data center market report will provide access to approximately 53 market data tables, 44 figures, and 178 pages.
