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Data Center Rack Market To Reach USD 51.77 Billion By Year 2032

The Global Data Center Rack Market Size Was Valued at USD 4.00 Billion in 2023 and is Projected to Reach USD 8.82 Billion by 2032, Growing at a CAGR of 9.18 % from 2024-2032.

11-07-2024
shashidhar kotian
IT and Telecom
Pristine Intelligence LLP

According to a new report published by Pristine Market Research, titled, “Data Center Rack Market by Rack Type, Data Center Size, Rack Height, Industry, and Region Global Market Analysis and Forecast, 2024-2032.

The Global Data Center Rack Market Size Was Valued at USD 4.00 Billion in 2023 and is Projected to Reach USD 8.82 Billion by 2032, Growing at a CAGR of 9.18 % from 2024-2032. A data center rack is a metal structure used for organizing and housing servers, computing equipment, networking devices, and other hardware in a data center or server room. These shelves provide secure and organized spaces for IT gear like servers, switches, routers, storage devices, and more. They are used across various industries such as IT & telecom, banking and financial services, government, retail, and healthcare. The expansion of the data center market is primarily due to businesses and organizations using cloud computing services, substantial investments from private equity firms, infrastructure funds, sovereign wealth funds, and the swift implementation of 5G technology. 5G technology allows for quicker data transfer rates and reduced delays, leading to the increased use of data-heavy applications like high-quality video streaming, AR, VR, and IoT devices.

Data center racks vary in form factor, such as rack-mounted servers or blade servers, and are designed with designated spaces for easy connection of electrical, networking, and internet cables. Proper data center cooling is crucial, as racks that facilitate airflow enable the movement of air to cool parts and protect important equipment from damage caused by accidents or natural disasters like earthquakes. Many companies in sectors such as IT and retail are implementing data center racks due to the advantages they offer.

According to the Data Center Rack, the Market is segmented into Rack type, Data center size, rack height, and Industry. By Rack type, the market is categorized into Cabinets/Enclosed Racks and Open Frame Racks. By Data Centre size, the market is categorized into Plant, Animal, and Microorganism. By Rack Height, the market is categorized into 40U and Below, 41U up to 50U, and Above 51U. By Industry, the market is categorized into BFSI, Retail, IT & Telecom, Government, Healthcare, and Others By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

The Global Data Center Rack Market is experiencing a surge in demand due to the growing global demand for data storage capacity. This demand is primarily driven by the rapid growth of online content and the widespread use of cloud computing. The rise in digital content, including social media, video streaming, gaming, and digital entertainment, necessitates a large storage infrastructure for effective data management. The rise in data analytics has also increased demand for expansive data storage capacity, as businesses increasingly use big data for insights and decision-making. Data center racks play a crucial role in supporting servers and storage units, as they store, process, and analyze large amounts of data. The rise of IoT devices has also contributed to the expansion of data, necessitating instant storage and processing capacities. The growing use of digital services and applications underscores the importance of data center racks in supporting the growing data storage needs of the modern digital age.

The data center sector is increasingly prioritizing energy efficiency and sustainability, with racks playing a crucial role in achieving these goals. Stakeholders, including governments and consumers, are concerned about the environmental impact of data centers, leading to a shift towards energy-efficient designs. These racks, designed to enhance airflow and cooling, are being developed with features like cold aisle containment and hot aisle containment systems. The integration of renewable energy sources and advanced power distribution methods is also being explored, with racks designed to maximize power utilization. Businesses that offer sustainable energy-integrated racks and advanced power distribution will have a competitive advantage in meeting the needs of environmentally conscious data center operators.

Global Data Center Rack Market, Segmentation

The Data Center Rack Market is Segmented Based on Rack Type, Data Center Size, Rack Height, Industry, and Region.

By Rack Type:

The Cabinets/Enclosed Racks Segment Is Expected to Dominate the Market During the Forecast Period. The data center rack market is expected to be dominated by cabinets and enclosed racks due to their physical security. With the rise of generative AI and increasing AI workloads, users are seeking new IT infrastructure. Amazon Web Services, Microsoft, and Google offer computing power to customers, enabling cloud-based app development and management. Enclosed racks offer greater physical security and protection, especially for data centers managing confidential data.

By Application:

The IT & telecom sector holds the largest market share in the data center rack and enclosure market, primarily serving service providers and cloud service providers. The industry requires robust infrastructure for data processing, storage, and networking. The demand for high-density racks is increasing due to the growing demand for cloud services and 5G connectivity. The growth of cloud computing, big data analytics, and artificial intelligence is driving the need for scalable data center infrastructure. The expansion of 5G networks and edge computing are also driving the need for distributed infrastructure solutions. The IT & telecom sector is expected to lead the market due to its focus on data security, compliance, and energy efficiency.

Region:

North America is expected to dominate the data center rack market over the forecast period due to its advanced infrastructure and abundance of data center facilities. The demand for better performance and increased space utilization is expected to drive growth. The development in this area is driven by the rapid use of data centers, the rise in AI applications, and robust technology investment supported by government funding. The presence of reputable IT software and hardware companies like HPE, Dell Inc., and Vertiv Group Corp. also contributes to the local expansion. The market is known for its strong IT infrastructure, advanced technology usage, and the growing importance of data-centric applications, cloud computing, and IoT devices.

Some of The Leading/Active Market Players Are-

  • Hewlett Packard Enterprise Development LP (U.S.)
  • Dell Technologies Inc. (U.S.)
  • IBM Corporation (U.S.)
  • Cisco Systems, Inc. (U.S.)
  • Vertiv Group Corp. (U.S.)
  • Nvent Electric plc (U.S.)
  • Oracle Corporation (U.S.)
  • Super Micro Computer, Inc. (U.S.)
  • Belden Inc. (U.S.)
  • Chatsworth Products, Inc. (U.S.) and Other Active Players

Key Industry Developments

  • In January 2024, Google announced a $1 billion investment in a new data center in Waltham Cross, 15 miles north of central London. The 33-acre site, purchased in 2020, will bolster the tech giant's presence in the UK, meeting growing regional demand for internet services. This significant investment underscores Google's commitment to expanding its infrastructure in key markets.
  • In March 2023, Vertiv, a global leader in digital infrastructure solutions, launched the Vertiv Intelligent Fingerprint Rack Access Control System (iFACS) in India. This next-generation IP-based solution enhances data center security by providing physical protection for racks containing critical equipment, assets, and enterprise data. The innovative system ensures that only authorized personnel can access sensitive areas, significantly boosting security measures for mission-critical operations. The Vertiv iFACS is now available to customers across India, marking a significant advancement in data center protection technology.

Key Findings of the Study:

  • The IT & telecom sector holds the largest market share, driven by the need for robust infrastructure for data processing, storage, and networking.
  • The growing demand for cloud services and 5G connectivity is increasing the need for high-density racks.

North America is expected to dominate the market due to advanced infrastructure, the presence of reputable IT software and hardware companies, and significant investments in technology.

Pristine Intelligence LLP

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