5G Proliferation Provides Impetus to Micro Data Center Market Globally; Says TMR

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Jun 06, 2019, 08:00 ET

ALBANY, New York, June 6, 2019 /PRNewswire/ -- The global micro data center market is projected to demonstrate impressive growth in coming years, as reported by Transparency Market Research (TMR). Featuring a consolidated competitive landscape, a few established vendors dominate the global micro data center market. At the same time, intense competition exists between the market players. Local and regional vendors are seen investing in several organic and inorganic growth strategies with the aim of gaining market volumes. Mergers and acquisitions, joint ventures, and partnerships are key schemes leveraged by vendors in the micro data center market. A prime example in the partnership between Global Switch and Huawei Technologies. For Global Switch, an emerging vendor of data centers and dense network in Europe and Asia Pacific, the partnership will help gain a global brand name and reach, along with technical expertise.

Further, players are developing cost-effective, energy-efficient and portable alternatives that can be readily deployed at the company facility with minimum space occupancy. On the industry, companies also develop parts such as enclosures and racks of various sizes.

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Prominent vendors operating in the global micro data center market include Dataracks, Allied Electronics Corporation Limited, Inc., Delta Power Solutions, International Business Machines (IBM) Corporation, and Schneider Electric SE.

TMR projects the global micro data center market to take impressive strides with an impressive CAGR of 21.1% over the forecast period 2017 to 2025. The market was estimated to be worth US$3,208.9 mn in 2016, and is likely to reach US$14,813.2 mn by 2025.

Among the several end-use industries, the segment of IT and telecom is expected to garner significant revenues over the forecast tenure. Among the regional markets, North America is anticipated to hold the leading position; and rise at an 18.6% CAGR from 2017 to 2025.

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Demand for Integrated Solutions to Bolster Micro Data Center Market

Micro datacenters are often used to take end-users nearer to computing resources. These data centers are usually set up by geographically distributed company organizations. In such instances, remotely installed micro data centers can be used to locally replicate cloud services, enhancing efficiency and allowing companies to access distant data. In addition, micro data centers provide company continuity, performance continuity and on-site continuity because they enable service providers, without building delays, to enter or grow in new geographies and markets. The information centers are a full IT solution, incorporated into high-end machinery and network systems for high-density areas, for the telecommunication and IT industries.

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On account of this, and soaring demand for integrating solutions, the global market for micro data centers is projected to witness amplified sales in coming years.

Proliferation of 5G to Boost Opportunity

With the increasing penetration of 5G systems, businesses are more worried about the quality of the network and internet bandwidth. Companies are investing strongly to enhance the 5G-compatible network infrastructure. The implementation of cutting-edge computing solutions enables companies to connect to networks near customers with lower latency problems, increasing market demand for micro data centers.

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Mobile Data Centers to Witness High Uptake

Micro mobile data centers are seen to decrease reaction times and reduce operating costs. Due to remote surveillance and management capacities, micro portable datacenters are also progressively being used. These benefits for micro mobile data centers will fuel worldwide micro data center market growth in the coming years.

This review is based on TMR's report titled, "Micro Data Center Market (Rack Size - Less than 25 U, 25 U - 40 U, and More than 40 U; End-Use Industry - IT and Telecom, Retail, Education, BFSI, Healthcare, and Energy) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 – 2025."

The global micro data center market has been segmented as follows:

By Rack Size

Less than 25 U
25 U - 40 U
More than 40 U

By End-use Industry

IT and Telecom
Retail
BFSI
Healthcare
Energy
Others

By Geography

North America

The U.S.
Canada
Rest of North America

Europe

The U.K.
Germany
France
Rest of Europe

Asia-Pacific

China
India
Japan
Rest of Asia Pacific

Middle East and Africa (MEA)

The UAE
South Africa
Rest of the Middle East & Africa

South America

Brazil
Rest of South America

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