ICT-IOT

Micro Data Center Market is Expected to Reach USD 29,202.7 Million by 2031

Apr 2024

ICT-IOT

As per the report published by Kings Research, the global Micro Data Center Market was valued at USD 6,894.6 million in 2023 and is projected to reach USD 29,202.7 million by 2031, growing at a CAGR of 20.08% from 2024 to 2031.

Micro data centers offer significant sustainability benefits compared to traditional data center infrastructure. One of the key advantages is their smaller physical footprint, which requires less space and consumes fewer resources during construction and operation. Additionally, micro data centers are designed with a focus on energy efficiency, incorporating advanced cooling systems, power management technologies, and, in some cases renewable energy sources to reduce overall energy consumption. By optimizing resource usage and minimizing energy waste, micro data centers contribute to lower carbon emissions and environmental impact.

Moreover, their modular design allows for scalability and efficient use of resources, thereby reducing the need for overprovisioning and resulting in further energy savings. The sustainability benefits of micro data centers align with the growing emphasis on eco-friendly and energy-efficient solutions in the IT industry, making them an attractive option for organizations striving to reduce their environmental footprint.

Key Insights

  • Based on component, the services segment is expected to register the robust CAGR of 24.62% over the forecast period
  • Based on type, the rack segment generated the highest revenue of USD 3,330.8 million in 2023
  • By vertical, the IT and telecommunications segment is expected to witness the highest CAGR of 22.06% through the projection period
  • On the basis of region, Asia Pacific is anticipated to witness the a significant CAGR of 22.40% over 2024-2031

STULZ Launches Integrated Micro Data Centre Solution to Cater Wide Range of Applications

April 2023: STULZ introduced the STULZ Micro DC, an all-in-one micro data center solution in a single rack. With standardized and modular design, preconfigured options, and comprehensive testing, it integrates power protection, cooling, monitoring, management, fire protection, and security.

Rising Investments in Small & Medium Enterprises to Offer Lucrative Opportunities for Market Expansion

The increasing focus on digital transformation among small and medium enterprises (SMEs) globally presents lucrative opportunities for the expansion of the micro data center market. SMEs are increasingly recognizing the importance of efficient data management and processing to stay competitive in today's digital economy. As a result, they are investing heavily in IT infrastructure, including micro data centers, to support their growing data needs. Micro data centers offer SMEs a cost-effective and scalable solution that can be tailored to their specific requirements, whether they are establishing a new data center or expanding existing infrastructure. Moreover, the rise of edge computing and the need for real-time data processing drive the demand for micro data centers among SMEs operating in diverse industries such as retail, healthcare, manufacturing, and finance. By utilizing micro data centers, SMEs can enhance their operational efficiency, improve customer experiences, and gain a competitive edge in their respective markets.

Burgeoning Telecommunication Sector to Augment Market Growth

The expanding telecommunication sector is poised to significantly augment the growth of the micro data center market. Telecommunication companies are increasingly adopting micro data centers to support their expanding network infrastructure and the rollout of advanced technologies such as 5G. Micro data centers play a crucial role in enabling edge computing capabilities, which are essential for delivering low-latency and high-bandwidth services required by modern telecommunications networks. Furthermore, the deployment of micro data centers at the network edge facilitates efficient content delivery, edge caching, and mobile edge computing, thereby enhancing the overall performance and reliability of telecommunication services. With the ongoing evolution of telecommunication networks and the anticipated proliferation of connected devices and IoT applications, the demand for micro data centers within the telecommunication sector is projected to experience robust growth, which is driving market expansion and innovation in edge computing solutions.

Asia-Pacific to Record a Staggering CAGR of 22.40% Over the Forecast Period

Based on region, the global micro data center market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia Pacific is expected to emerge as the fastest-growing region in the forthcoming years. The region's rapid economic development, coupled with increasing digitalization initiatives across various industries, fuels the demand for advanced IT infrastructure solutions, including micro data centers. Countries such as China, India, Japan, South Korea, and Singapore are at the forefront of technological innovation and adoption, which is driving significant investments in data center infrastructure to support the burgeoning digital economy. Moreover, the proliferation of cloud services, IoT devices, and mobile connectivity in the Asia-Pacific region contributes to the need for edge computing solutions, where micro data centers play a pivotal role in enabling real-time data processing and analytics at the network edge. Additionally, government initiatives promoting digitalization, smart city development, and connectivity projects accelerate the adoption of micro data centers across sectors such as telecommunications, healthcare, manufacturing, and banking. With favorable market conditions and a supportive regulatory environment, Asia-Pacific emerges as a key market for the micro data center, offering substantial opportunities for market players to expand their presence and capitalize on the region's evolving IT landscape.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global micro data center market is fragmented with key players such as Rittal GmbH & Co. KG, Panduit Corp., Vertiv Group Corp., Schneider Electric, Eaton, American Portwell Technology, Inc., Hewlett Packard Enterprise Development LP, Hitachi Energy Ltd., Delta Power Solutions, ALTRON, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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