According to the Market Statsville Group (MSG), the global data center rack market size was valued at USD 4,103.7 million in 2022, which is expected to reach USD 10,391.5 million by 2033, at a CAGR of 10.1% from 2023 to 2033.

A data center rack is a type of electronic framework and physical steel that is designed for networking devices, house servers, cables and other data center computing equipment. This physical structure provides orchestration and equipment placement within a data center facility. The factors that are driving the data center rack market are surge in deployment in colocation or data center whitespace facilities, higher data center investments, increasing server density and adoption of the data center rack architecture. A certain amount of market growth is hampered by hyperconverged infrastructure that provides rack-scale platforms in data centers. Hyperscale transformation and the adoption of durable racks can provide opportunities for vendors in the global data center rack market around the globe.

Global Data Center Rack Market Definition

A data center rack is a type of electronic framework and physical steel that is designed to networking devices, house servers, cables and other data center computing equipment. This physical structure provides orchestration and equipment placement within a data center facility. This physical structure provides orchestration and equipment placement within a data center facility. A data center rack is primarily intended to host servers in various configurations such as rack-mounted or blade servers.. Although they are mainly designed to hold the servers, some are designed to hold other components, such as cooling systems,  networking equipment, cooling systems, telecommunication equipment and uninterruptible power supply (UPS).

Electrical, networking, and Internet cables are usually connected to each rack through slots that are prefabricated. Racks in data centers are designed systematically and classified according to their capacity or number of bays - to put it simply, how much equipment they can hold.   

COVID-19 Impact on the Global Data Center Rack Market

COVID-19 has impacted business continuity across entire economies. The COVID-19 pandemic is affecting organizations of all sizes, in every industry. The effect of COVID-19 has disrupted data center transformation. Data center services such as video gaming, cloud computing, internet exchanges, content delivery networks, and other online services have grown as a result of initiatives such as work from home and lockdown. Data center companies are being forced to improve their infrastructure, which is expected to drive the market's growth in the forecast period.

A large number of companies use hyperscale data centers' web services to build algorithms that recognize, classify, and analyze relationships in data to recommend content, tag photos, and deliver relevant advertising. As a result of COVID-19, a handful of data center projects have been slowed down            

Global Data Center Rack Market Dynamics

Drivers: Increase of data center colocation facilities

Instead of renting a server in colocation, client rents a rack space and then get a server of his own. The idea behind colocation is to make data center as easy as possible. Thus, when clients collocates server, they move some essential hardware to convenient data center. It is advantageous to use server colocation services in order to ensure high availability of servers without requiring firms to spend money on features such as rack space, bandwidth, firewalls, or cooling. Another big advantage for companies that opt for colocation services is data privacy and security. Colocation allows the organizations to expand its infrastructure without investing too much on capital expenses. A factor that promotes the growth of the market is also effective cable management, host servers, and airflow facilitation for high-performance data centers.

Restraints: Inadequate cooling system

It is a complex task to manage the data center cable. An improper cable management system can cause problems throughout an entire enterprise, including unstructured cabinets, difficulty installing equipment, and lengthy maintenance periods. Inadequate cooling system in data centers create dangerous environment for the organization that are dealing with large quantity of data. Many organizations are investing resources and time in the implementation, planning, and ongoing maintenance of their network infrastructure.

Opportunities: Increase in investment and upgrade in technology

Data center growth is attributed to the growing number of data centers due to government, large business and organization investment in IT infrastructure, as the businesses adopting cloud based technology to maintain or to secure their data privacy. In additional, the rising penetration of 5G specially in India and in some countries are adopting the advanced technologies such as AI, IoT, machine learning, big data, and other are also propelling the opportunities of the data center rack in the market around globally.

Scope of the Global Data Center Rack Market

The study categorizes the data center rack market based on component, service, rack type, vertical, rack height, and data central size at the regional and global levels.

By Component Outlook (Sales, USD Million, 2017-2033)

• Solution
• Services

By Service Outlook (Sales, USD Million, 2017-2033)

• Design and Consulting
• Installation
• Maintenance and Support

By Rack Type Outlook (Sales, USD Million, 2017-2033)

• Open Frame
• Cabinets

By Vertical Outlook (Sales, USD Million, 2017-2033)

• Banking, Financial Services, and Insurance (BFSI)
• IT and Telecom
• Government and Defense
• Retail
• Manufacturing
• Healthcare
• Energy and Utilities

By Rack Height Outlook (Sales, USD Million, 2017-2033)

• 42U and Below
• 43U up to 52U
• Above 52U

By Data Center Size Outlook (Sales, USD Million, 2017-2030)

• Small and Mid-sized Data Centers
• Large Data Centers

By Region Outlook (Sales, USD Million, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

The small and mid-sized data centers segment is projected to exhibit the highest CAGR during the forecast period, by data center size

On the bases of data size there are two type of size small and mid-sized data centers and large data centers. Small and mid-sized data centers accounts the highest CAGR for the forecasting period. Data centers with only 21,000 square feet and below of computing space are come under this segment. These data centers usually hold anywhere between 1 to 700 racks. With high-density data centers, organizations can handle higher volumes of data by packing multiple servers into a small space. However, high-density facilities need to be specialized enclosures to support their additional cooling system. Rack enclosures are expected to drive the adoption of data center rack solutions in small and mid-sized data centers.

North America accounts for the highest market share for the forecast period  

North America is expected to account for the largest market size during the forecast period because of the huge amount of a modern infrastructure and data center facilities available in that region. The demand for data center racks is expected to rise due to optimum space utilization and better performance requirements in this side of the region. A strong economic landscape,  high technology assimilation, huge IT budgets and the early adoption of advanced technologies, including edge computing, High Performance Computing (HPC), and artificial intelligence (AI), are expected to boost enterprise demand for data center services and solutions.

Competitive Landscape - Global Data Center Rack Market

Major players in the global data center rack market 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
• HPE
• IBM
• Eaton
• AGC Network
• Legrand S.A.
• nVent
• Panduit
• Great Lakes Data Racks & Cabinets
• Tripp Lite
• IMS Engineered Products
• Rahi Systems

Recent Developments

• In June 2022, Iceotope, one of the global leader in Precision Immersion Cooling, announced that its chassis-level cooling system is being demonstrated in the Intel at HPE Discover. Collaboration between Intel, Iceotope and HPE that promises a faster path to net zero operations by reducing edge and data center energy use by nearly a third.
• In May 2022, Hewlett Packard Enterprise (HPE) had announced their new supercomputer factory in Europe. Hewlett Packard Enterprise (HPE) dedicated to developing high-performance computing (HPC) and AI systems. This has given the company a opportunities to expand its business in Europe. A new factory was constructed specifically to accommodate HPE's liquid-cooled systems, and the floor was reinforced to withstand the weight of HPE Cray EX supercomputers, which weigh up to 8,000 pounds (3,628kg).
• In June 2021, Schneider Electric had announced the industry-first, all-in-one liquid cooled, EcoStruxure Modular Data Center. New prefabricated modules from Avnet and Iceotope had allowed CPU- and GPU-intensive high performance computing (HPC) edge applications to be deployed in harsh and remote environments with greater reliability. As a custom-made solution, the All-In-One solution can accommodate an IT load of up to 336kW.
• In March 2021, Cisco Systems, Inc had announced Cisco UCS rack server models, based on AMD EPYCTM 7003 processors, are designed for workloads requiring high input/output (I/O) and core counts, as well as a high level of memory density.

Key Issues Addressed

• What is the market size by various segmentation of the data center rack by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the data center rack market?
• What are the key opportunities and trends for manufacturers involved in the data center rack supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of data center rack in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.