Data Center Rack Market - Forecasts from 2024 to 2029

The data centre rack market is valued at US$5.137 billion in 2024, growing at a CAGR of 10.20%, reaching a market size of US$8.426 billion by 2029.

A structure called a data center rack is used to store cables, servers, and other components. Devices can be arranged and synchronized within a data center facility thanks to this steel and electronic framework. A lot of hardware components and services are stacked using colocation racks and other standalone mounting structures. They provide easy system troubleshooting, security, and ventilation. Sturdy data center cabinets are primarily used for servers of all sizes and shapes, including blade and rack-mounted servers. Each rack typically has slots where cables for electricity, internet, and networking can be connected. Server cabinets in a data center are arranged and classified based on how many bays they have or how much space they have.

Data Centre Rack Market Drivers:

Rise in adoption of high-density and modular rack designs

Data centers are loading up high-density racks in an attempt to build a lot more computing power in smaller spaces. The reason behind inventing this trend was to have hyperscale data centers using space properly and being energy efficient. Furthermore, liquid cooling solutions are primarily used in high-density racks to control the heat servers produce. These methods effectively disperse heat from servers and other hardware using coolant. In addition, modularity is growing the scalability of data center racks. Therefore, you can add or remove some pieces of equipment depending on business needs thanks to this method. On top of that, these racks have efficient cable management systems that reduce entanglement and support better air circulation.

Increasing data traffic and storage needs

There is an exponential growth of data traffic and storage needs in the global market for data center racks. In the present digital age, large quantities of data are created by business organizations, government institutions, and people. Social media, streaming services, e-commerce, and Internet of Things devices are continuously generating data. Data centers must, therefore, increase their capacity to handle this increase in data. In these kinds of facilities, data center racks are essential for making the most use of available space and organization. They make it possible to stack and cool servers, networking hardware, and storage devices effectively. Organizations invest in advanced data center rack solutions because they need to store and process data effectively and securely.

Technological advancements and rack innovation

The data center rack industry's technological breakthroughs and inventiveness are propelling market expansion. Rack manufacturers have responded to data centers' demands for improved cooling, space optimization, and efficiency with state-of-the-art solutions. High-density racks are an excellent example of modern technology. These racks are made to hold more gear while requiring less room and still providing effective cooling. Due to the growing popularity of blade servers and other small hardware configurations, high-density racks are essential. Operators of data centers are also spending money on rack-level cooling systems, which improve energy efficiency by cooling the equipment inside the rack directly. This lowers operating costs and the data center's overall cooling load.

Rise in edge computing

One major factor propelling the global data center rack market is the emergence of edge computing. By processing data closer to the source, edge computing lowers latency and enhances decision-making in real-time. Demand for edge data centers is rising as enterprises adopt IoT devices, self-contained systems, and applications that need to operate with low latency. Comparing edge data centers to traditional centralized data centers, they are typically more dispersed and smaller. To fit into limited spaces, they need rack solutions that are both efficient and compact. Edge deployment-specific data center racks are often ruggedized and able to withstand challenging environmental conditions, which makes them appropriate for deployment in a range of remote locations.

Increasing adoption of cloud computing

The current cloud service usage significantly influences the data center rack market worldwide. Cloud computing serves as a basis for the structure of information systems for companies and citizens today. Cost efficiency, fast scalability, and availability make companies embrace cloud computing. There is a necessity for different server racks to store servers, storage facilities as well as network connections due to the reason huge cloud provider data centers exist.

These racks are specially designed to suit the unique requirements of CSPs, which may include high-density settings and efficient cooling mechanisms. Thus, to embrace such a hybrid approach, these data center racks must be flexible enough to work as per the location, i.e., on-premise or as a cloud infrastructure.

Data Centre Rack Market Restraint:

Supply chain disruptions.

Data center rack availability and costs are influenced by persistent geopolitical unrest that led to delays in manufacturing, macroeconomic instability, absence of materials, supply chain disruptions, and transportation-related problems. It is projected that these supply chain issues will strain the acquisition of rack components and accessories and postpone deployments promptly. Furthermore, it is costly to construct and maintain data center infrastructure, including racks. This covers building, cooling systems, electricity, and continuous maintenance costs. For certain customers who are sensitive to price, the decision to upgrade or expand rack infrastructure may be influenced by costs.

Data Centre Rack Market Geographical Outlook

North America is witnessing exponential growth during the forecast period

The current cloud service usage significantly influences the data center rack market worldwide. Cloud computing serves as a basis for the structure of information systems for companies and citizens today. Cost efficiency, fast scalability, and availability make companies embrace cloud computing. There is a necessity for different server racks to store servers, storage facilities as well and network connections due to the existence of huge cloud providers’ data centers.

High levels of technological adoption and a strong IT infrastructure define the North American data center rack market. A well-developed data center ecosystem exists in the area because it has many data centers that cater to different industries. In North America, the demand for data center racks has been driven by the increased use of IoT devices, cloud computing, and data-oriented applications. North American businesses place a high priority on effective data management and storage, which drives a consistent market for high-density racks and cutting-edge cooling technologies. Furthermore, the adoption of eco-friendly rack designs is being driven by the region's commitment to sustainability and energy efficiency.

Data Centre Rack Market Developments:

• In January 2024, Excel Networking Solutions, the infrastructure provider that provides copper and optical fibre, FTTx, racks, PDUs, voice, and a wide range of accessories, introduced a new line of racks made especially for data centres. With its innovative design and abundant features, Excel's Environ DCR Rack is perfect for a data centre setting. The racks come in 42U, 47U, and 52U heights, 600 or 800-mm wide widths, and 1000 or 1200-mm deep options in grey-white or black finishes.
• In October 2022, NetRack developed iRack Block primarily to address large requirements, as opposed to the smaller installations offered by the iRack solution. The rack's self-cooking, self-powered, and self-contained features are a step toward intelligent infra capsules or modular data centers.

Key Market Segmentation:

Data centre rack Market is segmented and analyzed as below:

By Unit Size

• 19U-22U
• 23U-36U
• 37U-48U
• Others

By Service

• Installation
• Consulting
• Maintenance and Support

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• Manufacturing
• Communication and Technology
• Healthcare
• Media and Entertainment
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Taiwan
• Thailand
• Indonesia
• Others