Micro Data Centers Market to be Worth $37.6 Billion by 2031

Micro Data Centers Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Organization Size, Application (Instant Data Centers, Edge Computing), End User (IT & Telecom, Healthcare, BFSI, Retail, Government), and Geography - Global Forecast to 2031

Meticulous Research^®—leading global market research company, published a research report titled, ‘Micro Data Centers Market by Offering (Solutions, Services), Organization Size, Application (Instant Data Centers, Edge Computing), End User (IT & Telecom, Healthcare, BFSI, Retail, Government), and Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the micro data centers market is projected to reach $37.6 billion by 2031, at a CAGR of 20.2% from 2024–2031. The growth of the micro data centers market is driven by the growing demand for low-latency applications and services and the rising need for efficient data collection and management. However, the high upfront capital investments restrain the growth of this market. Furthermore, the proliferation of cloud-based services and IoT devices is expected to generate growth opportunities for the players operating in this market. However, data privacy & security concerns are a major challenge impacting market growth. Additionally, increasing adoption of 5G network services and growing demand for edge micro data centers are prominent trends in this market.

The micro data centers market is segmented by offering (solutions [micro data center {indoor micro data centers, cabinet micro data centers, container micro data centers, and other micro data centers} and rack units {Up to 20 RU, 20–40 RU, and Above 40 RU}] and services [training & support services, consulting services, installation & deployment services, and network connectivity & security services]), organization size (large enterprises and small & medium-sized enterprises), application (instant data centers, remote & branch offices, edge computing, and other applications), end user (IT & telecom, automotive, healthcare, transportation & logistics, government, manufacturing, retail, energy & utilities, BFSI, and other end users), and geography. The study also evaluates industry competitors and analyses the market at the country and regional levels.

Based on offering, the micro data centers market is segmented into solutions and services. In 2024, the solutions segment is expected to account for the larger share of above 62.0% of the micro data centers market. The segment's large market share is attributed to the growing need to replace computing resources closer to IoT devices to reduce latency for real-time data processing; the increasing adoption of micro data centers to enhance IT infrastructure's agility, performance, and resilience; the growing demand for low-latency applications and services; and the increasing demand for micro data centers in the telecom industry.

Additionally, due to the increasing demand for high-density computing infrastructure for the cloud, several companies are launching micro data centers for private cloud companies. For instance, in March 2024, Avant Technologies, Inc. (U.S.) launched the first Avant-branded micro data center, which will be specifically designed for private cloud companies in the booming AI and big data sectors.

However, the services segment is expected to register a higher CAGR during the forecast period. The segment’s growth is attributed to the growing use of micro data center services for rapid deployment and provision, which allow businesses to quickly adapt to changing business needs; the growing need to reduce capital expenditures and operational costs; and the growing need to implement robust security measures and compliance standards to protect customer data and regulatory compliance.

Based on organization size, the micro data centers market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of above 58.0% of the micro data centers market. The segment's large market share is attributed to the growing adoption of MDCs in large enterprises to reduce the risk of physical breaches; the increasing use of advanced technologies such as IoT and AI for real-time processing; the increasing implementation of MDCs to reduce downtime and minimize the disruption to business operations during upgrades or repairs; and the rising need of MDCs to ensure data remains within specific jurisdictions, aiding compliance with data sovereignty regulations.

However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The growth of this segment is attributed to the growing adoption of MDCs to protect data and ensure compliance with industry regulations; the increasing use of MDCs in SMEs as scalable, flexible, and cost-effective solutions for IT infrastructure; the MDCs’ redundancy features, such as backup power and data replication to reduces the risk of downtime; and the MDCs’ flexibility in terms of hardware and software configurations, allowing SMEs to tailor the infrastructure to their specific needs.

Based on application, the micro data centers market is segmented into instant data centers, remote and branch offices, edge computing, and other applications. In 2024, the instant data centers segment is expected to account for the largest share of above 45.0% of the micro data centers market. The segment's large market share is attributed to the growing adoption of instant data centers due to easy installation and high portability across businesses; the increasing need for instant data centers for better service, more reliability, and less expense than traditional data centers; and the ability of low-latency compute capacity closer to applications, makes real-time data processing faster.

However, the edge computing segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the growing adoption of MDCs due to their ability to be located in close proximity to the point where data is generated; the implementation of MDCs at the edge to improve overall performance by ensuring greater bandwidth available for critical applications; and the rising adoption of MDC’s for edge computing help to enhance competitiveness and ability to offer real-time services and applications.

Based on end user, the micro data centers market is segmented into IT & telecom, automotive, healthcare, transportation & logistics, government, manufacturing, retail, energy & utilities, BFSI, and other end users. In 2024, the IT & telecom segment is expected to account for the largest share of above 30.0% of the micro data centers market. The segment's large market share is attributed to the growing adoption of MDCs in IT & telecom to integrate new technology without disrupting existing systems; the growing adoption of 5G and IoT, MDCs help telecom companies manage the increased data loads and complexity of modern networks; and the increasing adoption of MDC’s in IT & telecom to improve security and compliance.

However, the healthcare segment is expected to register the highest CAGR during the forecast period. This segment's growth is attributed to the growing adoption of MDCs in healthcare due to their robust security features such as data encryption, access controls, and secure physical enclosures; the healthcare sector’s reliance on MDCs to minimize the risk of service disruptions; and the rise of telemedicine and remote patient monitoring as MDCs ensure robust connectivity and data processing for telehealth services.

Based on geography, the micro data centers market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of above 40.0% of the micro data centers market. North America’s significant market share can be attributed to the growing adoption of edge computing across businesses in the region; the increasing adoption of MDCs in retail to enhance consumer experience and improve logistics operations; and the rising need for efficient data collection and management in the region. Various companies are providing micro data center solutions for edge computing in the region. For instance, in October 2022, Vertiv Group Corporation (U.S.) launched the Vertiv SmartCabinet 2M, a self-contained micro data center designed for Edge Computing applications.

However, Asia-Pacific is expected to register the highest CAGR of above 22.0% during the forecast period. The growth of this market is attributed to the growing demand for low-latency applications and services across businesses in the region, the increasing government investment in MDCs to manage the increased data loads and complexity of modern networks, and the growing adoption of MDCs across SMEs in the region to protect data and ensure compliance with industry regulations.

Key Players

The key players operating in the micro data centers market Schneider Electric SE (France), Vertiv Group Corporation (U.S.), Eaton Corporation plc (Ireland), Delta Electronics, Inc. (Taiwan), Hewlett Packard Enterprise (U.S.), Cannon Technologies Ltd (U.K.), Legrand SA (France), Shenzhen Kstar Science & Technology Co., Ltd. (China), Zella DC (Australia), Panduit Corp. (U.S.), Advanced Facilities, Inc. (U.S.), Attom Technology Inc. (U.S.), Sicon Chat Union Electric Co. (China), Stulz GmbH (Germany), and Dataracks t/a Stagwood Industries Ltd (U.K).

Download Sample Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=5858

Key Questions Answered in the Report:

Which are the high-growth market segments in terms of offering, organization size, application, and end user?
What is the historical market size for the micro data centers market?
What are the market forecasts and estimates for 2024–2031?
What are the major drivers, restraints, opportunities, challenges, and trends in the micro data centers market?
Who are the major players in the micro data centers market, and what are their market shares?
What is the competitive landscape like?
What are the recent developments in the micro data centers market?
What are the different strategies adopted by major market players?
What are the trends and high-growth countries?
Who are the local emerging players in the micro data centers market, and how do they compete with other players?

Contact Us:
Meticulous Research®
Email- sales@meticulousresearch.com
Contact Sales- +1-646-781-8004
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research