Advent of IoT, Big Data, Machine Learning, and AI To Fuel Micro Data Center Market Growth During Forecast Period
A micro data center is a miniaturized modular data center that includes all the computer, networking, storage, cooling, power, and other infrastructure required for a given workload. Micro data centers comprise various components, including computing infrastructure (servers, storage, and networking), power and cooling systems, security mechanisms, and management software. They are available in form factors such as prefabricated modular units, rack-based systems, and containerized data centers. Micro data centers offer flexibility, scalability, and easy deployment, making them suitable for various industrial applications and end users. In the past few years, the rising adoption of the Internet of Things (IoT), content delivery, and 5G have created a surge in demand for low-latency access to data processing and storage. IoT, big data, machine learning (ML), and artificial intelligence (AI) are a few technologies that generate huge volumes of data, require low latency processing, and demand localized computing resources. According to IoTExpress Technologies Pvt. Ltd., in APAC, IoT devices are expected to surpass 15 billion by the end of 2023, a 55% increase from 2020. These devices are expected to generate 79.4 zettabytes (ZB) of data by 2025. Data generated by IoT devices must be processed, stored, and analyzed in real time. IoT devices are widely used globally, connecting various physical objects and enabling data collection and communication. Micro data centers positioned at the edge of the network can provide local computing power, storage, and analytics capabilities, which reduce the latency and bandwidth requirements of transmitting data to a centralized data center. Micro data centers enable real-time decision-making and facilitate IoT deployments across the manufacturing, healthcare, transportation, and smart city industries. Hence, the adoption of micro data centers is rising, leading to a rise in the launch of advanced micro data center offerings.
Micro Data Center Market: Industry Overview
The micro data center market is segmented on the basis of rack type, organization size, and end user. Based on rack type, the micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger micro data center market share in 2022 and is also anticipated to register a higher CAGR in the micro data center market during the forecast period. Based on organization size, the micro data center market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger micro data center market share in 2022; however, the SMEs segment is also anticipated to register a higher CAGR in the micro data center market during the forecast period. On the basis of end user, the micro data center market is segmented into IT & telecom, BFSI, retail, healthcare, manufacturing, and others. The IT & telecom segment held the largest micro data center market share in 2022 and is also anticipated to register the highest CAGR in the micro data center market during the forecast period. By region, the micro data center market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
The global micro data center market is segmented into five major regions—North America, Europe, APAC, the MEA, and SAM. In 2022, North America led the largest global micro data center market share, followed by Europe and APAC. Asia Pacific (APAC) is a diverse region with a large population and a growing digital economy, contributing to the surge in demand for localized data processing and storage solutions. The demand for micro data centers is increasing rapidly in the region. APAC has been at the forefront of edge computing adoption due to the proliferation of IoT devices, smart cities initiatives, and the need for real-time data processing. According to the GSM Association, the IT industry has been significantly promoting the rise in connectivity across the world. In 2021, the number of internet subscribers reached 4.2 billion globally. In APAC, there were 59% of internet subscribers in 2021, projected to reach 62% by 2025. The rise of edge computing is directly linked to increasing internet usage. Micro data centers play a crucial role in supporting edge computing infrastructure by bringing computer resources closer to the source of data, reducing latency, and improving performance. With governments and businesses recognizing the importance of edge computing, the growth of micro data center market size is projected to propel in the coming years.
Micro Data Center Market: Competitive Landscape and Key Developments
Eaton Group, Hewlett Packard Enterprise Development LP, Hitachi Ltd, Rittal GmbH and Co KG, Legrand SA, Zella DC, Huawei Technologies Co Ltd, Schneider Electric, Delta Power Solutions, and Vertiv Group Corp are among the key players operating in the micro data center market. Several other leading micro data center market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed micro data center market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In May 2023, Sonic Edge announced a partnership with Deep Green to launch 50 HPC/EdgePods at locations across the UK by the end of this year and in early 2024. According to the company, these 50 deployments will range from 50kW to 2MW, while the partnership with Deep Green will power them with low-cost, carbon-free energy sources and reduce the overall capex of HPC operations.
- In November 2022, Schneider Electric SE launched the EcoStruxure Micro Data Center R-Series 42U Medium Density for hybrid IT infrastructure management, and also aimed at expanding its ruggedized micro data center offering. The new micro data center solution is optimized for IT applications of industrial environments having distributed locations. It also ships fully integrated for speedy deployment. It also consists of a heavy weight load and is fitted with large, industrial casters for easy movement.
- In July 2022, Legrand SA acquired USystems Limited to strengthen its data center solutions offerings and bolster its micro data center market share. As per the company, the acquisition complements Legrand’s existing offering in the data center white space market and strengthen its position in the fastest-growing segments of the data center sector, namely high-performance computing and micro data center.