Market Size of Data Center Rack Industry
![Data Center Rack Market Summary](https://s3.mordorintelligence.com/data-centre-rack-market/1667220704626_data-centre-rack-market_Market_Summary.webp)
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 9.16 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Data Center Rack Market Analysis
The Data Center Rack Market size is expected to grow from USD 4.00 billion in 2023 to USD 6.20 billion by 2028, at a CAGR of 9.16% during the forecast period (2023-2028).
Whether private or public, data centers are critical to enterprises hosting mission-critical applications. These data centers help organizations streamline information while enabling easy access to users and customers from anywhere worldwide. Data centers have witnessed growth due to the increasing dependence and spending on cloud technologies.
- Data centers have become a key component in IT infrastructure for many organizations. With large amounts of data being generated daily, companies rely on data centers to efficiently handle data and storage. Therefore, the growing deployment of data centers worldwide is the major driving factor influencing the consumption of data center racks. The increasing demand for technology services and investments from major companies are also changing the market's growth.
- These data center racks are deployed primarily for infrastructure management in the data centers. These racks host servers, switches, cables, and other equipment in the data center. With changing technologies and the adoption of high-density servers, rack infrastructure has become a crucial aspect in data centers, with the need to host servers effectively, manage cables, and facilitate airflow to ensure the optimum performance of data centers.
- Initially, the focus on rack infrastructure in data centers was minimum, with size and cost being the only considerations during deployment. However, the adoption of high-density applications and the importance of cooling and power in the data center also are influential factors in the growth of the market. It is estimated that 39% of the power consumed by the data center is spent on cooling. Thus, companies demand efficient cooling systems to reduce energy consumption and improve overall efficiency.
- Additionally, the key factors driving the market's growth are Big data analytics and the modernization of IT infrastructure trends. Big data analytics aids in the management of complex and jumbled-up organizational data that is processed across multiple data centers.
- The growing cloud demand and data traffic moving from and within the data centers are expected to bolster global demand during the forecast period. Per Cisco, the cloud data center IP traffic is expected to reach 19,509 exabytes annually by 2021, compared to 1,046 exabytes per year of traditional data center traffic.
- COVID-19 negatively influenced business continuity across all economics, affecting organizations of all sizes in every industry. Effective and efficient services that simultaneously accommodate new needs and counteract change and problems have become a strategic and operational necessity for data centers. Two main factors are fueling the tremendous rise in demand. The need for processing power was brought on by the widespread shift of many enterprises and institutions to working from home. Never before had digital infrastructure been more crucial to the global economy. As we all spent more time indoors, the corresponding increase in digital applications for video calling, healthcare, e-learning, and e-commerce, together with those for leisure led to a rise in the demand for data capabilities.
Data Center Rack Industry Segmentation
A data center rack is a type of physical steel and electronic framework designed to house servers, networking devices, cables, and other data center computing equipment. Data center racks are deployed primarily for infrastructure management in data centers. These are being used in the manufacturing, retail, BFSI, IT, and telecom industry.
The data center rack market is segmented by Rack Units (Small, Medium, Large), End-user Industry (BFSI, IT and Telecom, Manufacturing, Retail, and Others), and Geography.
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Rack Units | |
Small | |
Medium | |
Large |
By End-user Industry | |
BFSI | |
IT and Telecom | |
Manufacturing | |
Retail | |
Other End-user Industries |
By Geography | |
North America | |
Europe | |
Asia Pacific | |
Latin America | |
Middle East and Africa |
Data Center Rack Market Size Summary
The data center rack market is poised for significant growth, driven by the increasing reliance on cloud technologies and the expanding need for efficient data management solutions. Data centers, whether private or public, are integral to enterprises hosting critical applications, facilitating streamlined information access for users globally. The surge in data generation and the demand for technology services have made data centers a cornerstone of IT infrastructure, thereby boosting the consumption of data center racks. These racks are essential for infrastructure management, hosting servers, switches, and cables, and are becoming increasingly important with the adoption of high-density servers. The focus has shifted from merely size and cost considerations to the need for effective cooling and power management, as a substantial portion of data center energy consumption is dedicated to cooling systems. The rise of big data analytics and the modernization of IT infrastructure further propel the market, as organizations seek to manage complex data across multiple centers efficiently.
In the banking, financial services, and insurance (BFSI) sector, data centers have become crucial, especially during the digitization movement. The demand for online services and secure data storage has led to increased investments in data center racks, which offer protection against physical risks and allow for modular upgrades. The strong presence of BFSI in developed regions like North America and Europe, along with substantial growth in Asia-Pacific, underscores the market's expansion. The North American region, with its high number of data centers and robust infrastructure providers, is a key player in the market. The region's focus on cloud computing and big data analytics drives the demand for new data center infrastructures. Additionally, government initiatives like the Data Center Optimization Initiative in the United States aim to enhance efficiency and return on investment by consolidating data centers. The market is characterized by high competitive rivalry, with major companies implementing innovative strategies to capture market share, as evidenced by recent partnerships and product launches aimed at meeting the evolving needs of data center infrastructure.
Data Center Rack Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Deployment of Data Center Facilities
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1.1.2 Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers
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1.1.3 BFSI Sector Expected to Hold a Significant Share
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1.2 Market Restraints
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1.2.1 Increasing Utilization of Blade Servers
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2. MARKET SEGMENTATION
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2.1 By Rack Units
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2.1.1 Small
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2.1.2 Medium
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2.1.3 Large
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2.2 By End-user Industry
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2.2.1 BFSI
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2.2.2 IT and Telecom
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2.2.3 Manufacturing
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2.2.4 Retail
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2.2.5 Other End-user Industries
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia Pacific
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2.3.4 Latin America
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2.3.5 Middle East and Africa
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Data Center Rack Market Size FAQs
What is the current Data Center Rack Market size?
The Data Center Rack Market is projected to register a CAGR of 9.16% during the forecast period (2024-2029)
Who are the key players in Data Center Rack Market?
Oracle Corporation, Hewlett Packard Enterprise, Black Box Corporation, Belkin and Dell Technologies are the major companies operating in the Data Center Rack Market.