According to our latest study on "Global Micro Data Center Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Rack Type, Organization Size, and Application," the micro data center market size was valued at US$ 4.04 billion in 2023 and is expected to reach US$ 11.93 billion by 2031; it is estimated to record a CAGR of 14.5% from 2023 to 2031.
The micro data center market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively. The Europe micro data center market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. In terms of revenue, Germany dominated the micro data center market share. The micro data center market in Germany is projected to expand at a significant rate in the coming years, owing to the growing digitalization and increasing demand for advanced learning platforms. The rising investment in the digitization of the retail sector in the country is boosting the demand for micro data centers, as this can help retailers with real-time data analytics and provide enhanced customer experiences. Further, the growing demand for industrial automation and the increasing adoption of Industry 4.0 are expected to offer lucrative growth opportunities for the market. Moreover, significant initiatives taken by the government to promote digitalization and adoption of advanced technologies such as AI, ML, and IoT in various industries, including retail, BFSI, and healthcare, are fueling the market growth.
Key Findings of Global Micro Data Center Market Study:
The micro data center market is segmented into rack type, organization size, and end user. Based on rack type, the market is divided into single rack and multi rack. In terms of organization size, the market is categorized into large enterprises and SMEs. Based on end user, the market is divided into BFSI, retail, IT and telecom, manufacturing, healthcare, and others. By geography, the micro data center market is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.
In terms of organization size, the EMEA micro data center market is bifurcated into large enterprises and SMEs. The large enterprises segment held the largest micro data center market share. Enterprises with more than 250 to 500 employees are considered under the large enterprises. Large enterprises deploy micro-DC for various reasons. Moreover, large enterprises often have operations in remote or distributed locations where deploying large data centers is impractical. In such a scenario, large enterprises often opt for micro-DC. For instance, companies such as Microsoft, Amazon, and Google use micro data centers for effective cloudlet IT strategies. Furthermore, micro data centers are widely adopted by large organizations providing edge computing, 5G deployments, CDNs, IoT, smart cities, drone delivery services, augmented reality (AR), and virtual reality (VR) experiences. Moreover, micro-DC can serve as a part of a disaster recovery strategy for large enterprises in case of a failure in the primary data center. Micro data centers are becoming more popular in large businesses because they can offer high-performance computing and storage capabilities in a localized manner. These small, self-contained facilities are strategically located within the business premises to support important applications, IoT devices, and edge computing needs. Additionally, their modular design permits easy expansion, helping businesses adjust to changing computing needs without requiring major infrastructure changes.