Micro Data Center Market Size, Share, Industry Trends and Forecast to 2030

What is the Market Size & CAGR of Micro Data Center market in 2021?

The global micro data center market size was valued at USD 5.2 billion in 2021. It is expected to grow at a CAGR of 18.3% from 2021 to 2028, reaching a market size of USD 15.6 billion by the end of the forecast period.

COVID-19 Impact on the Micro Data Center Market

The COVID-19 pandemic has had a significant impact on the micro data center market. With the increase in remote work and the shift towards digital transformation, the demand for micro data centers has surged. Organizations are looking for solutions that offer flexibility, scalability, and reliability to ensure uninterrupted operations in a remote working environment.

On the other hand, the supply chain disruptions caused by the pandemic have led to delays in the production and deployment of micro data center solutions. This has affected the market growth to some extent. However, as businesses adapt to the new normal and invest in resilient IT infrastructure, the demand for micro data centers is expected to continue rising in the post-pandemic period.

Micro Data Center Dynamics

The micro data center market is driven by several factors, including the increasing adoption of cloud computing, the rise in internet traffic, and the growing need for edge computing solutions. Organizations are looking for compact and efficient data center solutions that can support their evolving IT requirements.

Furthermore, the rapid expansion of IoT devices, the development of 5G technology, and the proliferation of data-intensive applications are fueling the demand for micro data centers. These solutions offer low-latency connectivity, high processing power, and secure data storage, making them ideal for diverse industry verticals.

Segments and Related Analysis

The micro data center market can be segmented based on type, application, and end-user industry. By type, the market is divided into prefabricated micro data centers and custom micro data centers. In terms of application, the market is categorized into IT and telecom, BFSI, healthcare, retail, and others.

The IT and telecom sector is the largest application segment in the micro data center market, driven by the increasing demand for data storage, processing, and networking capabilities. The retail sector is also witnessing significant growth in the adoption of micro data centers to support e-commerce operations, digital marketing initiatives, and customer analytics.

By Region Analysis

In 2021, North America held the largest market share in the global micro data center market, driven by the presence of key market players, technological advancements, and increasing investments in IT infrastructure. Europe is also a significant market for micro data centers, owing to the high adoption of cloud computing and IoT technologies.

Asia Pacific is expected to witness substantial growth in the micro data center market, propelled by the increasing digitalization initiatives, rapid expansion of data centers, and the growing demand for edge computing solutions. Latin America and the Middle East and Africa regions are projected to offer lucrative opportunities for market players due to the rising investments in data center infrastructure.

Key Market Players and Competitive Landscape

Some of the key players in the micro data center market include Schneider Electric SE, Hewlett Packard Enterprise Company, Eaton Corporation, Dell Technologies, Vertiv Group Corporation, and Hitachi Vantara. These companies are focusing on product innovation, strategic partnerships, and acquisitions to strengthen their market position.

The competitive landscape of the micro data center market is characterized by intense competition, technological advancements, and the launch of innovative solutions. Market players are striving to enhance their product portfolios, expand their geographical presence, and cater to the evolving needs of customers across various industry verticals.

Recent Happenings in the Micro Data Center Market

1. In March 2022, Schneider Electric announced the launch of its new EcoStruxure Micro Data Center R-Series, a compact and efficient solution designed to meet the growing demand for edge computing and IoT applications.

2. Hewlett Packard Enterprise unveiled its new Edge-to-Cloud Platform-as-a-Service (PaaS) offering in February 2022, aimed at enabling organizations to deploy and manage micro data centers at the edge for improved performance and scalability.

3. Eaton Corporation introduced its new Power Xpert 9395P Micro Data Center UPS solution in January 2022, designed to provide reliable power backup and protection for small to medium-sized data centers.

4. Dell Technologies partnered with NVIDIA in December 2021 to launch the Dell EMC PowerEdge R750xa server platform, offering high-performance computing capabilities for AI, machine learning, and data analytics workloads in micro data center environments.

5. Vertiv Group Corporation collaborated with Equinix in November 2021 to deploy its prefabricated VR Rack data center solution in Equinix's International Business Exchange (IBX) data centers, facilitating edge computing deployments for enterprises worldwide.