Data Center Rack Market Analysis

Global Data Center Rack Market Overview

Data Center Rack Market Size was valued at USD 4.6 Billion in 2022. The Data center rack market is projected to grow from USD 5.0 Billion in 2023 to USD 9.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.90% during the forecast period (2023 - 2032). Increasing demand for data storage, growing adoption of cloud services, expansion of data centers, focus on energy efficiency, need for high-density computing, advancements in rack technologies, regulatory compliance and security requirements, are the key market drivers enhancing the market growth.

Figure 1: Data Center Rack Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Rack Market Trends

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  Increasing demand for data storage is driving the market growth

  
  

The market for data center racks is significantly driven by the rising demand for data storage. The amount of data generated internationally over the past few years has increased exponentially. The explosion of digital content, the uptake of cloud computing, the rise of big data analytics, and the widespread use of Internet of Things (IoT) devices are just a few of the reasons that have contributed to this expansion.

The exponential expansion of digital content is one of the main causes of the data explosion. The use of social networking platforms, video streaming services, online gaming, and digital entertainment has increased the amount of data that people and businesses produce and use every day. This includes digital content such as films, pictures, documents, and other media that needs storage infrastructure to handle the rising volume. Additionally, usage of cloud computing services has multiplied in recent years.

Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and Software-as-a-Service (SaaS) solutions are all provided by cloud service providers to both individuals and companies. To store and analyse the enormous volumes of data created by users, these services need a strong data center infrastructure. Data center racks give servers, storage units, and networking gear the structure and organization they need, allowing for effective data storage and retrieval in cloud environments.

The demand for data storage has increased as a result of big data analytics. Big data is being used by businesses in a wide range of sectors to obtain insights, increase operational effectiveness, and make educated decisions. Massive datasets must be processed and analyzed for big data analytics, which calls for a lot of storage space.

The physical foundation for holding the servers and storage devices required to enable big data analytics systems is provided by data center racks. Additionally, a considerable rise in data generation has been brought on by the increasing adoption of Internet of Things (IoT) devices. Sensors, wearables, and other IoT devices produce enormous volumes of data that must be processed and stored. For instance, in industrial settings, IoT devices gather information from sensors built into machinery and equipment to help with operation optimization and increase productivity. The demand for data storage infrastructure is fueled by the requirement to store and analyze this data immediately.

The growing reliance on digital services and applications has increased the demand for data storage. People and organizations rely extensively on programs and services like e-commerce, online banking, streaming media, and social networking in the current digital era. Massive volumes of user data are produced and stored by these apps, necessitating a reliable data storage infrastructure. The computers and storage devices that power these digital services are supported and organized by data center racks.

In addition, the COVID-19 pandemic has spurred digital transformation in a number of industries. A rise in demand for remote work, online learning, telemedicine, and e-commerce has raised need for data storage. Data generation and storage needs significantly increased as a result of organizations' swift adaptation to remote work settings and migration to online operations. Thus, driving the Data center rack market revenue.

Data Center Rack Market Segment Insights

Data Center Rack Component Insights

The Data Center Rack Market segmentation, based on component, includes solution and service. The solution segment dominated the market in 2022. This is mainly because there is a large need for physical infrastructure products that offer the framework required for arranging and housing servers, networking hardware, and storage devices inside data centers.

Figure 1: Data Center Rack Market, by Component, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Rack Rack Type Insights

The Data Center Rack Market segmentation, based on rack type, includes cabinets/ enclosed racks, open frame rack. The cabinets/ enclosed racks segment dominated the market in 2022. Compared to open frame racks, cabinets/enclosed racks offer a higher level of physical security and equipment protection. They have sturdy side panels and lockable doors that assist protect the equipment from dangers like dust and unlawful entry. For data centers that handle sensitive and significant data, this improved security is especially crucial.

Data Center Rack Data Center Size Insights

The Data Center Rack Market segmentation, based on Data center size, includes large data centers, small and mid-sized data centers. The small and mid-sized data centers segment dominated the market in 2022. This group includes data centers with computing space of 20,000 square feet or less. Typically, these data centers may accommodate 1 to 800 racks. The necessity to maximize the utilization of their current data center space drives the development of small and mid-sized data centers. Organizations are moving to high-density data centers so they can accommodate greater data loads by cramming more servers into a small area.

Data Center Rack Rack Height Insights

The Data Center Rack Market segmentation, based on rack height includes 42U and below, 43U up to 52U, above 52U. The 43U up to 52U segment dominated the market in 2022. Organizations' need for more space has led to an increase in rack sizes that can hold more racks.

Data Center Rack Industry Vertical Insights

The Data Center Rack Market segmentation, based on industry vertical, includes BFSI, manufacturing, IT and telecom, retail, healthcare, media and entertainment, others. The retail segment dominated the market in 2022. Large data center facilities are typical in the retail industry. Due to the growing requirement to retain client personal, financial, and stock data, it has become a data-intensive industry.

Data Center Rack Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Data center rack Market dominated this market in 2022 (45.80%). due to the region's availability of cutting-edge infrastructure and the existence of numerous data center facilities. The demand for data center racks is anticipated to rise as a result of the need for higher performance and maximum space utilization. Further, the U.S. Data center rack market held the largest market share, and the Canada Data center rack market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: DATA CENTER RACK MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Data center rack market accounts for the second-largest market share. In Europe, strong data privacy laws have been put into place, most notably the General Data privacy Regulation (GDPR). Data centers must comply with stringent security and compliance standards as a result of the GDPR's mandate for the protection and privacy of personal data. Due to the importance placed on data security, data center racks that can support regulatory compliance are in high demand. Further, the German Data center rack market held the largest market share, and the UK Data center rack market was the fastest growing market in the European region

The Asia-Pacific Data center rack Market is expected to grow at the fastest CAGR from 2023 to 2032. The digitalization of several industries, including e-commerce, telecommunications, finance, and manufacturing, has accelerated dramatically throughout the Asia-Pacific area. The need for data center infrastructure and data center racks has increased as a result of the significant growth in data generation brought on by the digital transformation. Moreover, China’s Data center rack market held the largest market share, and the Indian Data center rack market was the fastest growing market in the Asia-Pacific region.

Data Center Rack Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Data center rack market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Data center rack industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Data center rack industry to benefit clients and increase the market sector. In recent years, the Data center rack industry has offered some of the most significant advantages to medicine. Major players in the Data center rack market, including Hewlett Packard Enterprise Development LP, Fujitsu, Rittal GmbH & Co. KG, Great Lakes Data Racks & Cabinets, Eaton Corporation, Oracle Corporation, Black Box, Samsung Electronics Co., Ltd, Dell Technologies Inc., Schneider Electric and others, are attempting to increase market demand by investing in research and development operations.

Consumer electronics, information technology, mobile communications, and device solutions are all produced by Samsung Electronics Co. Ltd. (Samsung), a division of the Samsung Group. Televisions (TV), refrigerators, washing machines, air conditioners, medical equipment, printers, monitors, computers, network systems, and digital cameras are among the company's product offerings. Additionally, it produces tablets, smartphones, LCD and LED panels, mobile phones, and other accessories. The retail, hospitality, healthcare, financial, educational, transportation, and government sectors can all benefit from Samsung's solutions. In addition to Asia-Pacific, the corporation also operates in the Americas, Europe, Africa, and the Middle East. Seoul, South Korea serves as the home base for Samsung.

Provider of desktop personal computers, software, and accessories is Dell Technologies Inc. The business creates, develops, produces, promotes, and sells information technology infrastructure, including laptops, desktops, mobile devices, workstations, storage devices, software, and cloud solutions. It also provides support for this infrastructure. It sells goods under the brands Dell, Pivotal, Dell EMC, SecureWorks, and Alienware. In addition, Dell provides a number of financial services relating to the use of its goods, software, and service solutions, such as creating, collecting, and maintaining client receivables financing arrangements. Dell provides services to large corporations, the government, as well as small and medium-sized businesses, as well as educational institutions, law enforcement agencies, and healthcare organizations. The corporation operates throughout the Middle East, Africa, Asia-Pacific, the Americas, and Europe. The headquarters of Dell are in Round Rock, Texas, in the US.

Key Companies in the Data center rack market include

• Hewlett Packard Enterprise Development LP


• Fujitsu


• Rittal GmbH & Co. KG


• Great Lakes Data Racks & Cabinets


• Eaton Corporation


• Oracle Corporation


• Black Box


• Samsung Electronics Co., Ltd


• Dell Technologies Inc.


• Schneider Electric

Data Center Rack Industry Developments

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.

May 2022 A new enclosed management system from Genetec makes it possible for data centers to remotely secure, keep an eye on, and maintain access to racks and cabinets. The new light-architecture operating system sets expand the options available to people working in scalable data center environments by utilizing NEMA TS2 compliant hardware that is industry-specific via Cloud Link Roadrunner technology.

Data Center Rack Market Segmentation

Data Center Rack Component Outlook

• Solution


• Service

Data Center Rack Rack Type Outlook

• Cabinets/ Enclosed Racks


• Open Frame Rack

Data Center Rack Data Center Size Outlook

• Large Data Centers


• Small and Mid-sized Data Centers

Data Center Rack Rack Height Outlook

• 42U and Below


• 43U up to 52U


• Above 52U

Data Center Rack Industry Vertical Outlook

• BFSI


• Manufacturing


• IT and Telecom


• Retail


• Healthcare


• Media and Entertainment


• Others

Data Center Rack Regional Outlook

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  North America

  
  
  
  
  • US.
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America