The “North America Containerized Data Center Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
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 result of this, they have limited computing efficiency.
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.
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.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Need for Portability and Increasing Demand for Scalable Data Center Solutions
4.2.2 Rising Demand for Energy Efficient Data Centers
4.3 Market Restraints
4.3.1 Limited Computing Performance
4.4 Industry Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness – Porter’s Five Force Analysis
5 MARKET SEGMENTATION
5.1 By End-user Industry
5.1.1 IT & Telecommunications
5.1.4 Other End-users
5.2.1 United States
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Hewlett Packard Enterprise Company
6.1.2 IBM Corporation
6.1.3 Dell Inc.
6.1.4 Cisco Systems Inc.
6.1.5 Huawei Technologies Co. Ltd.
6.1.6 Emerson Network Power(Emerson Electric Co.)
6.1.7 Schneider Electric SE (acquired AST Modular)
6.1.8 Rittal Gmbh & Co. KG
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET
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