Global Data Center Rack Market Report 2023: Surging Investments in Hyper-Scale Data Centers Boosts Growth
Global Data Center Rack Market
Dublin, Feb. 28, 2023 (GLOBE NEWSWIRE) -- The "Global Data Center Rack Market Size, Share & Industry Trends Analysis Report By Component, By Rack Height, By Rack Type, By Data Center Size, By Vertical, By Regional Outlook and Forecast, 2022-2028" report has been added to ResearchAndMarkets.com's offering.
The Global Data Center Rack Market size is expected to reach $6.8 billion by 2028, rising at a market growth of 9.2% CAGR during the forecast period.
The administration of intricate and disorganized organizational data that is handled across numerous data centers is aided by big data analytics. As a result, the need for data centers is expanding, increasing the need for the racks needed to store various networking and IT equipment. Additionally, the requirement to store the data produced by smart homes, towns, and grids, which necessitates systems with broader racks and improved designs, is enhancing the use of data center racks.
The development of low-cost rack solutions with features like corrosion resistance, thermal management, system expandability, and compatibility with different organizational verticals is another reason for boosting the adoption rates of these racks. Additionally, the market has tremendous prospects for growth due to the rising investments in data center equipment worldwide.
Market Growth Factors
An increase in AI usage
Data center rack can make use of AI's predictive analytics skills to discover security device capability that is diminishing. This enables security teams to address any issues before they become serious and endanger a data center. Businesses that integrate AI into their data center network can improve their ability to automate common network tasks, increase security, and spot cyber risks based on behavioral changes. More solutions are required due to the data center racks' rapid expansion in order to guarantee their security. These new trends can help to ensure their protection going forward and can also contribute to the development of an organization-wide security system culture.
Investments in hyper-scale data centers are surging.
Governments all over the world are investing more & more in building hyper-scale data center infrastructure to fulfill the growth in consumer and commercial demand for digital services. The need for hyper-scale data centers for storage is brought on by the increased adoption of cutting-edge technologies like AI, IoT, and ML across numerous industries. Therefore, rising investments in building hyper-scale data centers are what is driving the market for data center racks.
Based on component, the data center rack market is segmented into solution and service. In 2021, the solution segment held the highest revenue share in the data center rack market. Datacenter (DC) administrators and IT specialists need the appropriate configurations and tools to suit the needs of their unique environments, as well as remote management solutions that let them easily and rapidly access servers, network devices, and other mission-critical tools. These items are not only necessary for the system to function properly; they can also contribute to a larger strategy that lowers costs for the business.
Rack Type Outlook
Based on rack type, the data center rack market is segmented into cabinets/enclosed racks and open frame. In 2021, the cabinet/enclosed racks segment witnessed the largest revenue share in the data center racks market. The adoption of cutting-edge technologies and the increasing demand for the cabinet platform is projected to accelerate category expansion. To encourage market expansion, the key players also concentrate on the creation of cabinet platforms and digital infrastructure. The electric and digital infrastructure construction specialist's adaptable, durable, and secure product is made to house devices.
Rack Height Outlook
Based on rack height, the data center rack market is segmented into 42U & below, 43U up to 52U, and above 52U. In 2021, the 43U to 52U segment garnered a significant revenue share in the data center racks market. Due to organizations' increasing need for additional space, rack sizes have increased to accommodate more racks. The utilization of 48U racks is predicted to fuel the expansion of this segment. Additionally, 45U racks are predicted to significantly contribute to the expansion of this industry. With 47U racks, the majority of server brands are compatible. Due to their taller racks, tower, and 19-inch rack-mount servers can be housed in a single unit. The taller racks offer more room for cable management and better ventilation.
Data Center Size Outlook
Based on data center size, the data center rack market is segmented into large data centers and small & mid-sized data centers. In 2021, the small & mid-sized segment recorded a remarkable revenue share in the data center racks market. 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 to accommodate greater data loads by cramming more servers into a small area.
Based on vertical, the data center rack market is segmented into BFSI, manufacturing, IT & telecom, retail, healthcare, media & entertainment, and others. In 2021, the IT & telecom segment procured a promising growth rate in the data center racks market. This is explained by the volume of data that the sector produces or stores. In addition, the need for data center racks in the IT and telecom industries is rising due to the use of mobile data and subscriptions, increased data traffic, and the introduction of cloud and 5G technology.
Based on Region, the Data Center Rack Market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America region led the data center racks market by generating maximum revenue share in 2021. This is caused by the region's abundance of data center facilities and accessibility to cutting-edge infrastructure. The demand for data center racks is anticipated to rise as a result of the need for higher performance and maximum space utilization. The demand for data center solutions and services among North American businesses is anticipated to increase due to a robust economic environment, high technology assimilation, enormous IT budgets, and the rapid adoption of cutting-edge technologies like High-performance computing (HPC), edge computing, and AI.
Key Market Players
Schneider Electric SE
Hewlett Packard Enterprise Company (HP Development Company L.P.)
Dell Technologies, Inc
Samsung Electronics Co., Ltd. (Samsung Group)
Eaton Corporation PLC
Legrand S.A. (Legrand Group)
Rittal GmbH & Co. KG (Friedhelm Loh Stiftung & Co. KG)
No. of Pages
2021 - 2028
Estimated Market Value (USD) in 2021
Forecasted Market Value (USD) by 2028
Compound Annual Growth Rate
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