Data Center Rack Market

The global Data Center Rack Market is valued at USD 4.2 Billion in 2022 and is projected to reach a value of USD 8.21 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.9% between 2023 and 2030.

Premium Insights

The Data Center Rack industry is expected to grow significantly during forecast period due to the expanding use of high-density racks to maximize space utilization and the incorporation of cutting-edge cooling technologies for increased effectiveness. The crucial role that modular rack designs play in adjusting to changing IT infrastructures and the growing integration of smart technologies for remote monitoring and management.

• The Manufacturers of racks are focused on energy-efficient designs and materials because of the market's association with sustainability and green initiatives. The future of data management and digital transformation strategies as cloud computing, edge computing, and 5G technologies redefine the environment and drives the market during forecast period.
• North America generated more than 43.6% of revenue share in 2022
• Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
• The Solutions segment accounted for the largest market growth. It contributed over 52.5% of the total revenue share in 2022 due to its essential role in ensuring reliability and efficiency of data centers
• Installation services segment revealed the most significant market growth, contributing more than 35.8% of the total revenue share in 2022
• Cabinets dominated the market in 2022 with market share of 53.2%
• 43U up to 52U rack height segment lead the market with 36.4% in 2022
• Rack width 19 Inch segment accounts for largest market share of 42.5% in 2022
• Small and Mid-sized Data Centers dominated the Data Center Rack market in 2022 with market share of 55.8%
• Retail segment accounts for significant revenue share of 31.5%

Economic Insights

The Data Center Rack market will grow substantially during the forecast period. By 2025, global investments in data center infrastructure are anticipated to total about $25 billion as digital transformation and cloud usage soar. With the data center sector forecast to support over 2 million employments by the same year, this increase is anticipated to generate a large number of job possibilities. Every job created in the data center industry results in the creation of up to five more employment in linked industries, demonstrating the market's large multiplier effect. Manufacturers are predicted to cut production costs by up to 15% as a result of the competition that encourages innovation, further enhancing the market's economic impact.

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Top Market Trends

• Increasing demand for higher density racks: Demand for higher density racks is rising as a result of the requirement to expand the volume of data that can be stored in a data center. These racks can help with cost and space savings because they can fit more servers and other equipment in a smaller area.
• Growth of edge computing: Edge computing is a distributed computing paradigm that is gaining popularity because it moves computation and data storage closer to the user. Particularly for applications that demand real-time processing, this can help to boost speed and reduce latency.
• Increasing focus on energy efficiency: Energy efficiency is becoming more of a priority in the data center sector because data centers are a significant energy consumer. Energy-efficient data center racks can lower operational costs and increase the environmental sustainability of data centers.
• Growing adoption of hybrid cloud: Hybrid cloud is a deployment model that blends resources from the public and private clouds, and it is becoming more and more popular.
• Increasing focus on security and compliance: Data centers are a common target for cyberattacks, and as a result, the data center sector is placing more and more emphasis on security and compliance. Data center racks with security locks and intrusion detection capabilities can help to increase data center security.

Market Segmentation

Data Center Rack The global Data Center Rack market can be categorized into Component, Services, Rack Type, Rack Height, Rack Width, Data Center Size, Vertical, By Region. The Data Center Rack market can be categorized into Solutions , Services based on Component. The Data Center Rack market can be categorized into Design and consulting, Installation , Maintenance and support based on Services. The Data Center Rack market can be categorized into Open Frame, Cabinets based on Rack Type. The Data Center Rack market can be categorized into 42U and Below , 43U up to 52U , Above 52U based on Rack Height. The Data Center Rack market can be categorized into 19 Inch, 23 Inch, Others (24 Inch and 28 Inch) based on Rack Width. The Data Center Rack market can be categorized into Small and Mid-sized Data Centers , Large Data Centers based on Data Center Size. The Data Center Rack market can be categorized into BFSI, IT and Telecom , Government and Defense, Retail , Manufacturing , Healthcare , Energy and Utilities , Others(Media and Entertainment and Transportation and Logistics) based on Vertical. The Data Center Rack market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on By Region.

Based on Component

Solutions holds the largest share

The largest market share belongs to the solutions category, which includes vital parts including power distribution units (PDUs), cooling systems, and monitoring systems. These essential goods support the dependability and efficacy of data centres and guarantee top performance and operational effectiveness.

Based on Services

Installation will dominate the market during Forecast Period

The installation services emerge as the significant revenue share in Data Center Rack market. This significance is related to the complexity of data center infrastructure, which is becoming more complex and demands specialized expertise for effective deployment. Planning, rack assembly, cabling, power distribution, cooling, and security are just a few of the crucial components that installation services cover. Together, these components guarantee a seamless and effective data center environment.

Based on Rack Type

Cabinets generates significant revenue

The cabinets sector in rack type of Data Center Rack market generates the most revenue. This is as a result of the rise in high-density server demand as well as the requirement for effective cooling and power management in data centers. Cabinets offer a safe and arranged method to store and handle these important components.

Based on Rack height

43U up to 52U will lead the market

The 43U to 52U rack height sector is expected to grow at a rapid rate due to increased demand for high-density servers, which calls for efficient cooling and power management, as well as the expanding use of virtualization and cloud computing, all of which require more rack space.

Based on Rack width

19 Inch rack width dominate the market

The 19-inch rack width segment, which leads the data center rack market in revenue due to its widespread use as the de facto industry standard, enabling interoperability with a wide range of servers and IT hardware. Due to its reputation as the most affordable option across a range of data center installations, its convenience also extends to the availability of a wide variety of 19-inch rack components and accessories.

Based on Data center size

Small and Mid-sized Data Centers accounts for major revenue share

A majority of revenue share is by small and midsize data centers due to increased adoption of cloud computing and IT technologies, which is further supported by the need for scalable and adaptable data center infrastructure. Additionally, the appeal of smaller and mid-sized data centers cheaper prices relative to those of their larger competitors strengthens their position in the market.

Based on Vertical

Retail sector accounts for majority of market share

The retail sector holds a significant position in Data Center Rack market due to the rapid adoption of omnichannel retail and e-commerce, which is reinforced by the requirement for strong data centers to support online transactions and apps seamlessly. The crucial need for flexible and adaptive data center infrastructure, ready to handle the accelerating expansion of the online retail domain, also reinforces the retail sector's leadership position.

Based on Region

North America will lead the market

North America will lead the market in 2022 due to concentration of data center facilities, which has benefited from the rapid uptake of IT and cloud computing technologies. The favorable environment in North America is further supported by the region's easy access to skilled labor and plenty of resources, as well as by the strong demand for data center racks from key industries including BFSI, retail, IT, and telecom.

Competitive Landscape

The global Data Center Rack market is fragmented, including key players striving to offer innovative solutions while catering to the evolving demands of the industry. Market leaders, technology innovators, and regional players contribute to this landscape, vying for market share and differentiation. The competitive environment is further enriched by collaborative efforts, partnerships, and strategic acquisitions aimed at expanding portfolios and market foothold. For instance, in May 2022 Genetec introduced a new enclosed management system that will allow data centers to remotely protect, monitor, and maintain access to racks and cabinets. The new light-architecture operating system sets provide further possibilities for those operating in scalable data center environments by leveraging industry-specific NEMA TS2 compliant hardware via Cloud Link Roadrunner technology.

The players in the global Data Center Rack market include Dataracks, Emerson Electric, Dell, AMCO Enclosures, Schneider Electric, Belden, Black Box Corporation, Chatsworth Products, Oracle Corp, Eaton, Tripp Lite, Fujitsu, IBM, Cisco, Rittal Corp, HPE among others.

Recent Market Developments

• April 2022: TD SYNNEX, a global distributor and solutions aggregator for the IT ecosystem, and Rittal, a global manufacturer and system solutions provider of industrial and IT enclosures, have established a cooperation in the United States. Through the collaboration, Rittal provides IT customers with IT rack enclosures, solutions, and accessories via TD SYNNEX.
• September 2022: In India, Vertiv launched its prefabricated modular data center infrastructure products. The integrated solutions are adaptable platforms that are designed for the adoption of IT assets and offer a quick and easy way to increase capacity.

Segmentation of the Global Data Center Rack Market