Global Data Center Rack Enclosure Market Overview
Data center rack enclosure market size was estimated at 3.2 (USD Billion) in 2023. The data center rack enclosure market industry is expected to grow from 4.9 (USD Billion) in 2024 to 10.4 (USD Billion) by 2032. The data center rack enclosure market CAGR (growth rate) is expected to be around 9% during the forecast period (2024-2032).
Key Data Center Rack Enclosure Market Trends Highlighted
The data center rack enclosure market is driven by the increasing demand for data storage and processing capacity, which is fueled by the proliferation of cloud computing, big data, and the Internet of Things (IoT). The market is also driven by the growing need for energy efficiency and space optimization in data centers. The key market drivers include the increasing number of data centers, the growing adoption of cloud computing, and the increasing demand for high-performance computing (HPC).
Some of the key trends in the data center rack enclosure market include the adoption of modular and scalable designs, the use of advanced materials for increased durability and efficiency, and the integration of sensors and monitoring systems for improved management and control. The market is also seeing a trend towards the adoption of open standards and the use of software-defined infrastructure (SDI) for greater flexibility and agility.
There are several opportunities to be explored or captured in the data center rack enclosure market. These include the development of new and innovative products, the expansion into new geographic markets, and the targeting of specific vertical industries. The market also presents opportunities for the development of value-added services, such as installation, maintenance, and support.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Rack Enclosure Market Drivers
Growing Demand for Hyperscale Data Centers
The rapid adoption of cloud computing, big data analytics, and artificial intelligence (AI) is driving the need for hyperscale data centers, which are large-scale facilities that house thousands of servers. Hyperscale data centers require high-density rack and enclosure solutions to accommodate the massive number of servers and networking equipment. The increasing demand for hyperscale data centers is expected to be a major growth driver for the Data Center Rack enclosure Market over the forecast period.
Expansion of Edge Computing
Edge computing is a distributed computing paradigm that brings computation and data storage closer to the end-users. Edge computing devices, such as micro data centers and edge servers, require compact and efficient rack and enclosure solutions to support the deployment of applications and services at the edge of the network. The growth of edge computing is expected to create significant opportunities for the Data Center Rack enclosure Market.
Rising Adoption of Colocation Services
Colocation services provide businesses with the infrastructure and environment to host their IT equipment in a secure and reliable facility. Colocation providers offer a range of rack and enclosure solutions to meet the diverse needs of their customers. The increasing adoption of colocation services is expected to drive demand for rack and enclosure solutions in the Data Center Rack enclosure Market.
Data Center Rack Enclosure Market Segment Insights
Data Center Rack Enclosure Market Rack Form Factor Insights
The Data Center Rack enclosure Market is segmented by rack form factor into standard rack, wide rack, and extra-wide rack. Standard racks are the most common type of rack used in data centers, and they come in a variety of sizes and configurations to accommodate different types of equipment. Wide racks are designed to accommodate wider equipment, such as blade servers and storage arrays, and they are becoming increasingly popular as the density of data centers increases. Extra-wide racks are designed to accommodate the widest equipment, such as large storage arrays and mainframes, and they are typically used in high-density data centers.
The demand for data center racks and enclosures is growing rapidly due to the increasing adoption of cloud computing, big data, and the Internet of Things (IoT). These technologies are driving the need for more data storage and processing capacity, which in turn is driving the need for more data center space.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Rack Enclosure Market Enclosure Type Insights
The Data Center Rack enclosure Market segmentation by Enclosure Type includes Open-Frame Rack, Closed-Frame Rack, and Cable Manager Rack. The Closed-Frame Rack segment held the largest market share in 2023, accounting for around 55.3% of the Data Center Rack enclosure Market revenue. The growth of this segment can be attributed to the increased demand for secure and reliable data storage solutions. Open-Frame Rack, on the other hand, is expected to witness a significant growth rate during the forecast period, owing to its cost-effectiveness and flexibility.
Cable Manager Rack is also gaining popularity due to its ability to organize and manage cables, which is crucial for maintaining efficient airflow and preventing cable clutter in data centers. The Data Center Rack enclosure Market data indicates that the Cable Manager Rack segment is expected to grow at a CAGR of 8.2% during the forecast period, reaching a market value of USD 1.2 billion by 2029.
Data Center Rack Enclosure Market Depth Insights
The Data Center Rack enclosure Market is segmented by depth into shallow depth, standard depth, and deep depth. Shallow depth racks are typically used in small data centers or in areas where space is constrained. Standard depth racks are the most common type of rack and are used in most data centers. Deep depth racks are used in high-density data centers where there is a need for more space for equipment. The shallow depth segment is expected to grow at a CAGR of 6.5% from 2023 to 2032, reaching a market size of USD 2.5 billion by 2032.
The standard depth segment is expected to grow at a CAGR of 7.0% from 2023 to 2032, reaching a market size of USD 15.2 billion by 2032. The deep depth segment is expected to grow at a CAGR of 7.5% from 2023 to 2032, reaching a market size of USD 11.5 billion by 2032. The growth of the Data Center Rack enclosure Market is being driven by the increasing demand for data centers. The growth of cloud computing, big data, and the Internet of Things (IoT) is driving the need for more data centers. In addition, the increasing adoption of artificial intelligence (AI) and machine learning (ML) is also driving the need for more data centers.
Data Center Rack Enclosure Market Material Insights
Material Segment Insights and Overview The Data Center Rack enclosure Market is segmented by material into steel, aluminum, and polymer composites. The steel segment held the largest market share in 2023, accounting for over 60% of the revenue. Steel racks and enclosures are preferred due to their durability, strength, and ability to withstand heavy loads. The aluminum segment is expected to grow at a significant CAGR during the forecast period, owing to its lightweight, corrosion resistance, and improved thermal conductivity. Polymer composites are gaining popularity due to their high strength-to-weight ratio, non-magnetic properties, and resistance to chemicals and moisture.
The increasing adoption of modular data centers is further driving the demand for polymer composite racks and enclosures.
Data Center Rack Enclosure Market Cooling Type Insights
The Data Center Rack enclosure Market is segmented by Cooling Type into Air-Cooled, Liquid-Cooled, and Hybrid Cooling. Air-Cooled racks and enclosures use fans to circulate air around the equipment to keep it cool. They are the most common cooling type and are typically used in smaller data centers. Liquid-Cooled racks and enclosures use a liquid coolant, such as water or oil, to remove heat from the equipment. They are more efficient than air-cooled racks and enclosures but are also more expensive. Hybrid Cooling racks and enclosures use a combination of air and liquid cooling to achieve the best of both worlds.
They are more expensive than air-cooled racks and enclosures but less expensive than liquid-cooled racks and enclosures. In 2023, the Air-Cooled segment accounted for the largest share of the Data Center Rack enclosure Market revenue, and it is expected to continue to dominate the market over the forecast period. The growing demand for energy-efficient solutions in data centers is driving the growth of the Air-Cooled segment.
Data Center Rack Enclosure Market Regional Insights
The Data Center Rack enclosure Market is segmented by region into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, with a revenue of approximately USD 5.2 billion. The region's growth is attributed to the increasing adoption of cloud and colocation services, as well as the presence of major data center providers such as Equinix, Digital Realty, and CyrusOne. Europe is expected to be the second-largest market, with a revenue of approximately USD 3.8 billion in 2023. The region's growth is driven by the increasing demand for data center infrastructure from various industries, including BFSI, healthcare, and manufacturing.
APAC is expected to be the fastest-growing region, with a revenue of approximately USD 3.5 billion in 2023. The region's growth is attributed to the increasing adoption of digital technologies and the rising demand for data center services from emerging economies such as China and India. South America and MEA are expected to have a relatively smaller market share, but they are expected to grow at a steady pace in the coming years.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Rack Enclosure Market Key Players And Competitive Insights
Major players in Data Center Rack enclosure Market are constantly innovating and developing new products to meet the changing needs of customers. Leading Data Center Rack enclosure Market players are focusing on developing products that are more energy-efficient, have a smaller footprint, and are easier to manage. The Data Center Rack enclosure Market competitive landscape is expected to remain competitive in the coming years, with new entrants and existing players vying for market share. The Data Center Rack enclosure Market development is being driven by the increasing demand for data centers, the need for more efficient and reliable data center infrastructure, and the growing adoption of cloud computing.
Rittal is a leading provider of Data Center Rack enclosure Market products and solutions. The company offers a wide range of products, including racks, enclosures, power distribution units, and cooling systems. Rittal's products are used by a variety of customers, including data centers, telecommunications companies, and cloud service providers. The company has a strong presence, with operations in over 60 countries. Rittal is committed to providing innovative and high-quality products and solutions to its customers. The company's continued investment in research and development has resulted in the development of a number of new products, including the VX25 IT rack system and the RiMatrix S cooling system.
Schneider Electric is a provider of energy management and automation solutions. The company offers a wide range of products and services, including Data Center Rack enclosure Market products, power distribution systems, and building management systems. Schneider Electric's Data Center Rack enclosure Market products are used by a variety of customers, including data centers, telecommunications companies, and cloud service providers. The company has a strong presence, with operations in over 100 countries. Schneider Electric is committed to providing innovative and energy-efficient solutions to its customers. The company's continued investment in research and development has resulted in the development of a number of new products, including the EcoStruxure Data Center Operation solution and the Galaxy VS UPS system.
Key Companies in the Data Center Rack Enclosure Market Include
Data Center Rack Enclosure Industry Developments
The data center rack and enclosure market is projected to grow from an estimated USD 15.87 billion in 2023 to USD 29.2 billion by 2032, at a CAGR of 7.01% from 2024 to 2032. This growth is attributed to the increasing adoption of cloud and edge computing, the proliferation of data centers, and the growing need for efficient and reliable storage solutions.
Recent market developments include the launch of new products, such as Schneider Electric's EcoStruxure Rack and Enclosure Management System, which provides real-time monitoring and control of data center infrastructure. Additionally, key players are focusing on sustainability initiatives, such as Vertiv's GreenEdge line of racks and enclosures, which are designed to reduce energy consumption and environmental impact.
Data Center Rack Enclosure Market Segmentation Insights
Data Center Rack Enclosure Market Rack Form Factor Outlook
- Standard Rack
- Wide Rack
- Extra-Wide Rack
Data Center Rack Enclosure Market Enclosure Type Outlook
- Open-Frame Rack
- Closed-Frame Rack
- Cable Manager Rack
Data Center Rack Enclosure Market Depth Outlook
- Shallow Depth
- Standard Depth
- Deep Depth
Data Center Rack Enclosure Market Material Outlook
- Steel
- Aluminum
- Polymer Composites
Data Center Rack Enclosure Market Cooling Type Outlook
- Air-Cooled
- Liquid-Cooled
- Hybrid Cooling
Data Center Rack Enclosure Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2023 |
3.2 (USD Billion) |
| Market Size 2024 |
4.9 (USD Billion) |
| Market Size 2032 |
10.4 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Tripp Lite, Emerson Electric, Panduit, Vertiv Holdings Co., APC by Schneider Electric, HP Enterprise, Arista Networks, Legrand, Juniper Networks, Dell Technologies, Rittal, Chatsworth Products, Cisco Systems, Schneider Electric, Equinix |
| Segments Covered |
Rack Form Factor, Enclosure Type, Depth, Material, Cooling Type, Regional |
| Key Market Opportunities |
Highdensity computing Edge data centers IoT and 5G adoption Cloud and colocation growth Green and sustainable data centers |
| Key Market Dynamics |
Increased cloud and edge computing Rising demand for highdensity racks Growing adoption of modular and scalable solutions Expansion of hyperscale data centers Technological advancements in cooling systems |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Data Center Rack enclosure Market is expected to reach a valuation of 3.2 billion USD in 2023.
The Data Center Rack enclosure Market is projected to grow at a CAGR of 9% from 2024 to 2032.
The Data Center Rack enclosure Market is expected to reach a valuation of 10.4 billion USD by 2032.
North America is expected to hold the largest market share in the Data Center Rack enclosure Market in 2023.
The enterprise segment is expected to drive the growth of the Data Center Rack enclosure Market.
Key competitors in the Data Center Rack enclosure Market include Rittal, Schneider Electric, Vertiv, and Emerson Network Power.
Key trends driving the growth of the Data Center Rack enclosure Market include the increasing adoption of cloud computing, the growing need for data storage, and the rising demand for high-performance computing.
Challenges faced by the Data Center Rack enclosure Market include the rising cost of raw materials, the shortage of skilled labor, and the increasing competition.
Key opportunities for the Data Center Rack enclosure Market include the growing adoption of modular data centers, the increasing demand for green data centers, and the rising popularity of edge computing.
Key growth strategies adopted by players in the Data Center Rack enclosure Market include product innovation, strategic partnerships, and geographic expansion.
