The Data Center Rack Market Size was valued at USD 4.82 Billion in 2023 and is expected to reach USD 9.31 Billion by 2031 and grow at a CAGR of 8.56 % over the forecast period 2024-2031.
The growth of the data center rack market is Driven by several factors, including the adoption of durable racks, increased deployment in colocation facilities, higher server density, and rising investments in data centers. The need for efficient handling of network services through Software-defined Data Centers (SDDC), data center optimization initiatives, and the benefits of proper airflow and device protection are driving organizations across various sectors to adopt data center racks. Factors such as server virtualization, remote control advancements, and the demand for compact and scalable server types are also positively impacting market growth. However, challenges like data security, power management issues, and UPS battery failures are hindering the market's full potential. The data Centre, data center racks are used mostly for infrastructure management. In the manufacturing, retail, financial services, information technology, and telecommunications industries, these are often utilized.
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Drivers
Adoption of durable racks enhances reliability and longevity.
Increase in deployment in colocation or data center whitespace facilities.
Increasing server density optimizes space and boosts efficiency.
Higher data center investments drive infrastructure upgrades.
Adoption of Software-defined Data Center (SDDC) architecture for efficient network services.
The Proliferation of data center facilities worldwide is important for effectively managing the immense volume of data generated from digital services, IoT devices, social media, and online transactions. This increase in data necessitates growing data center capacities for storage and processing. Cloud service providers such as AWS, Azure, and Google Cloud are expanding their data center presence globally to meet the growing demand for cloud services, leading to the establishment of new facilities in various regions. The businesses are investing more in data centers to ensure uninterrupted operations and disaster recovery capabilities, spreading these facilities across different areas to mitigate downtime risks, thereby driving market growth.
Restraints:
Concern related to Data security creates challenges to market growth.
Improper power management and UPS battery failures impact performance.
Complexity in managing remote control and virtualized servers.
Limited scalability and compactness in traditional rack solutions.
The Data security concerns are a significant challenge for the data center rack market, as they can increase to breaches, data loss, and regulatory issues, undermining trust hindering market growth. Improper power management practices and Uninterruptible Power Supply battery failures also impact performance, system failures, and potential data corruption. These issues not only affect operational efficiency but also help to increase costs and customer dissatisfaction. Growing data security risks and implementing robust power management strategies are essential for ensuring the reliability, resilience, and long-term success of data center rack solutions in the market.
Opportunities:
Increasing growth potential in IT, retail, and other sectors adopting data center racks.
Increasing demand for compact and scalable server types.
Adoption of advanced technologies like edge computing and AI.
Growing emphasis on data center optimization and efficiency.
Rising demand for data storage due to digital content explosion and IoT devices.
Challenges:
Ensuring data security amidst increasing cyber threats.
Addressing power management issues and UPS battery reliability.
Managing complexities in remote control and virtualized server environments.
Adapting to evolving technology trends and industry standards.
Competition from alternative storage solutions like cloud services.
The Russia-Ukraine war has caused disruptions in the supply chain, results to Increasing challenges in sourcing critical components for data center racks. This has resulted in price increases and delays in delivery times, impacting market growth. The conflict has contributed to a 10-15% increase in costs for data center equipment, further straining budgets and investment plans in the data center rack market. The geopolitical tensions and uncertainties have prompted some organizations to reassess their data center strategies, potentially affecting demand in the short term.
The economic downturn can significantly impact the data center rack market, leading to reduced IT budgets and delayed infrastructure investments. During economic downturns, the market for data center equipment, including racks, can experience a decline of up to 20% in demand due to cost-cutting measures by businesses. The uncertainty and financial constraints may cause organizations to prioritize essential infrastructure upgrades over rack expansions, affecting market growth. However, there may be an increased focus on cost-effective and efficient rack solutions to optimize existing data center operations amidst budgetary constraints.
By Component
Solutions
Services
By Rack Type
Open Frame
Cabinets
By Data Canter Size
Small and Mid-sized Data Canters
Large Data Canters
On the basis of data canter size, the sub-segment large data centres dominated the market, with holding revenue share of more than 58%, due to their ability to achieve cost efficiencies through the scale of infrastructure, cooling, and power distribution across Various servers and storage devices. They excel in storing and processing vast data volumes, making them ideal for organizations focusing on big data analytics, machine learning, and data-intensive tasks. The small and mid-sized data canters are expected to grow with the significant growth with a high CAGR during the forecast period, offering flexibility, scalability, ease of management, and simplified operations compared to larger counterparts.
By Rack Height
42U and Below
43U up to 52U
Above 52U
By Rack Width
19 Inch
23 Inch
Others
By Vertical
Banking, Financial Services, and Insurance (BFSI)
IT and Telecom
Government and Défense
Retail
Manufacturing
Healthcare
Energy and Utilities
Others
On the basis of vertical, the Retail sector dominated the data canter rack market with holding Revenue share of more than 26%, due to its heavy Dependence on these racks for managing online stores, e-commerce platforms, and inventory databases. This sector's need for efficient data storage and management drove significant market share. The healthcare industry is expected to grow with the substantial growth with highest CAGR, driven by the increasing adoption of digital technologies such as electronic health records and medical imaging, which require secure and organized data canter infrastructure for storage and protection, contributing to market expansion in the coming years.
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North America region is dominating the data center rack market with holding Revenue share of more than 34%, due to its extensive data center infrastructure and technological advancements. The region's focus on space optimization and performance enhancement drives the demand for data center racks, supported by a robust economic landscape, high IT budgets, and early adoption of edge computing, HPC, and AI technologies.
The Asia Pacific is projected to Growing with the highest growth rate, driven by its consistently growing e-commerce markets, 5G network rollout, and expanding telecommunications sector, all of which necessitate reliable data center infrastructure. The Europe anticipates moderate growth as cloud computing services gain traction, prompting investments in data center infrastructure for scalable cloud services and government initiatives such as digital governance and data analytics, emphasizing secure data storage and processing through advanced racks.
REGIONAL COVERAGE:
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The major key players are Schneider Electric SE, Belden Inc., Cisco Systems, Inc., Chatsworth Products, Dell Inc., Hewlett Packard Development LP, Oracle Corporation, Rittal, Fujitsu Limited, Vertiv Group Corp. & OtherPlayers
In May 2023, Legrand unveiled their latest generation of intelligent rack PDUs, featuring state-of-the-art hardware for enhanced security. These racks are equipped with Server Technology PRO4X and Raritan PX4 technology to optimize workloads, provide digital access control, and offer environmental monitoring.
In October 2022, Eaton introduced a new innovation as part of the Open Compute Project, specifically designed to meet the unique needs of data centers. This technology is tailored to deliver the necessary power for customers looking to deploy ORV3 racks.
In October 2022, Cisco Systems, Inc. established a data center in India to support their WebEx infrastructure. This move is aimed at enhancing user experience services and expanding the company's presence in India.
In July 2022, Eaton launched their xModular system, designed for the planning, deployment, and operation of data center facilities. The xModular system provides ample space for IT computing equipment, also known as white space.
| Report Attributes | Details |
| Market Size in 2023 | US$ 4.82 Bn |
| Market Size by 2031 | US$ 9.31 Bn |
| CAGR | CAGR of 8.56% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2024-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Component (Solutions, Services) • By rack type (Open Frame, Cabinets) • By data canter size (Small and Mid-sized Data Canters, Large Data Canters) • By rack height (42U and Below, 43U up to 52U, Above 52U) • By rack width (19 Inch, 23 Inch, Others) • By vertical (Banking, Financial Services, and Insurance (BFSI), IT and Telecom, Government and Defense, Retail, Manufacturing, Healthcare, Energy and Utilities, Others) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
| Company Profiles | Schneider Electric SE, Belden Inc., Cisco Systems, Inc., Chatsworth Products, Dell Inc., Hewlett Packard Development LP, Oracle Corporation, Rittal, Fujitsu Limited, and Vertiv Group Corp |
| Key Drivers |
• Increase in deployment in colocation or data center whitespace facilities. • Increasing server density optimizes space and boosts efficiency. • Higher data center investments drive infrastructure upgrades. |
| Market Opportunities |
• Increasing demand for compact and scalable server types. • Adoption of advanced technologies like edge computing and AI. |
Ans: The projected market size for the Data Center Rack Market is USD 9.31 billion by 2031.
Ans: - Limited power supply and increasing rack density are two issues that need to be addressed.
Ans: - The segments covered in the Data Center Rack Market report for study are on the basis of component, rack type, data center size, and industry verticals.
Ans: - The major key players are Schneider Electric SE, Belden Inc., Cisco Systems, Inc., Chatsworth Products, Dell Inc., Hewlett Packard Development LP, Oracle Corporation, Rittal, Fujitsu Limited, and Vertiv Group Corp.
Ans. The study includes a comprehensive analysis of Speech-to-text API Market trends, as well as present and future market forecasts. DROC analysis, as well as impact analysis for the projected period. Porter's five forces analysis aids in the study of buyer and supplier potential as well as the competitive landscape etc.
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Opportunities
4.4 Challenges
5. Impact Analysis
5.1 Impact of Russia-Ukraine Crisis
5.2 Impact of Economic Slowdown on Major Countries
5.2.1 Introduction
5.2.2 United States
5.2.3 Canada
5.2.4 Germany
5.2.5 France
5.2.6 UK
5.2.7 China
5.2.8 Japan
5.2.9 South Korea
5.2.10 India
6. Value Chain Analysis
7. Porter’s 5 Forces Model
8. Pest Analysis
9. Data Center Rack Market, By Component
9.1 Introduction
9.2 Trend Analysis
9.3 Solution
9.4 Service
10. Data Center Rack Market, By Rack Type
10.1 Introduction
10.2 Trend Analysis
10.3 Open Frame
10.4 Cabinets
11. Data Center Rack Market, By Data Canter Size
11.1 Introduction
11.2 Trend Analysis
11.3 Small and Mid-sized Data Canters
11.4 Large Data Canters
12. Data Center Rack Market, By Rack Height
12.1 Introduction
12.2 Trend analysis
12.3 42U and Below
12.4 43U up to 52U
12.5 Above 52U
13. Data Center Rack Market, By Rack Width
13.1 Introduction
13.2 Trend analysis
13.3 19 Inch
13.4 23 Inch
13.5 Others
14. Data Center Rack Market, By Vertical
14.1 Introduction
14.2 Trend analysis
14.3 Banking, Financial Services, and Insurance (BFSI)
14.4 IT and Telecom
14.5 Government and Défense
14.6 Retail
14.7 Manufacturing
14.8 Healthcare
14.9 Energy and Utilities
14.10 Others
15. Regional Analysis
15.1 Introduction
15.2 North America
15.2.1 USA
15.2.2 Canada
15.2.3 Mexico
15.3 Europe
15.3.1 Eastern Europe
15.3.1.1 Poland
15.3.1.2 Romania
15.3.1.3 Hungary
15.3.1.4 Turkey
15.3.1.5 Rest of Eastern Europe
15.3.2 Western Europe
15.3.2.1 Germany
15.3.2.2 France
15.3.2.3 UK
15.3.2.4 Italy
15.3.2.5 Spain
15.3.2.6 Netherlands
15.3.2.7 Switzerland
15.3.2.8 Austria
15.3.2.10 Rest of Western Europe
15.4 Asia-Pacific
15.4.1 China
15.4.2 India
15.4.3 Japan
15.4.4 South Korea
15.4.5 Vietnam
15.4.6 Singapore
15.4.7 Australia
15.4.8 Rest of Asia Pacific
15.5 The Middle East & Africa
15.5.1 Middle East
15.5.1.1 UAE
15.5.1.2 Egypt
15.5.1.3 Saudi Arabia
15.5.1.4 Qatar
15.5.1.5 Rest of the Middle East
15.5.2 Africa
15.5.2.1 Nigeria
15.5.2.2 South Africa
15.5.2.3 Rest of Africa
15.6 Latin America
15.6.1 Brazil
15.6.2 Argentina
15.6.3 Colombia
15.6.4 Rest of Latin America
16. Company Profiles
16.1 Schneider Electric SE
16.1.1 Company Overview
16.1.2 Financials
16.1.3 Products/ Services Offered
16.1.4 SWOT Analysis
16.1.5 The SNS View
16.2 Belden Inc.
16.2.1 Company Overview
16.2.2 Financials
16.2.3 Products/ Services Offered
16.2.4 SWOT Analysis
16.2.5 The SNS View
16.3 Cisco Systems, Inc.
16.3.1 Company Overview
16.3.2 Financials
16.3.3 Products/ Services Offered
16.3.4 SWOT Analysis
16.3.5 The SNS View
16.4 Chatsworth Products
16.4 Company Overview
16.4.2 Financials
16.4.3 Products/ Services Offered
16.4.4 SWOT Analysis
16.4.5 The SNS View
16.5 Dell Inc.
16.5.1 Company Overview
16.5.2 Financials
16.5.3 Products/ Services Offered
16.5.4 SWOT Analysis
16.5.5 The SNS View
16.6 Hewlett Packard Development LP
16.6.1 Company Overview
16.6.2 Financials
16.6.3 Products/ Services Offered
16.6.4 SWOT Analysis
16.6.5 The SNS View
16.7 Oracle Corporation
16.7.1 Company Overview
16.7.2 Financials
16.7.3 Products/ Services Offered
16.7.4 SWOT Analysis
16.7.5 The SNS View
16.8 Rittal
16.8.1 Company Overview
16.8.2 Financials
16.8.3 Products/ Services Offered
16.8.4 SWOT Analysis
16.8.5 The SNS View
16.9 Fujitsu Limited
16.9.1 Company Overview
16.9.2 Financials
16.9.3 Products/ Services Offered
16.9.4 SWOT Analysis
16.9.5 The SNS View
16.10 Vertiv Group Corp.
16.10.1 Company Overview
16.10.2 Financials
16.10.3 Products/ Services Offered
16.10.4 SWOT Analysis
16.10.5 The SNS View
17. Competitive Landscape
17.1 Competitive Benchmarking
17.2 Market Share Analysis
17.3 Recent Developments
17.3.1 Industry News
17.3.2 Company News
17.3.3 Mergers & Acquisitions
18. USE Cases and Best Practices
19. Conclusion
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