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South Korea Data Center Rack Market Size (2024 - 2029)

The South Korean data center rack market is experiencing growth driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments by domestic players. This demand is contributing to the expansion of the market size, as more data center racks are needed to accommodate the growing data center infrastructure. The market is set to expand significantly, with Greater Seoul anticipated to host the majority of the new racks. Additionally, the development of submarine cable systems is expected to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of South Korea Data Center Rack Industry

South Korea Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 8.40 %
Market Concentration High

Major Players

South Korea Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Data Center Rack Market Analysis

The South Korea Data Center Rack Market is expected to register a CAGR of 8.40% during the forecast period.

The South Korean data center rack market reached a volume of 175,774 in the previous year, and it is further projected to register a CAGR of 8.4% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country, leading to a growing need for data center racks.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the South Korean data center market is expected to touch around 2,000 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 270K units by 2029. Greater Seoul is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 10 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Geoje, South Korea.

South Korea Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The South Korean data center rack market is segmented by rack type (open frame, closed frame), rack size (quarter rack, half rack, full rack), and end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

By Rack Type
Open Frame
Closed Frame
By Rack Size
Quarter Rack
Half Rack
Full Rack
By End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
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South Korea Data Center Rack Market Size Summary

The South Korean data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from domestic players. The market is characterized by a robust demand for data center racks, which are essential for supporting the expanding infrastructure needed to accommodate the surge in digital activities. The country's advanced telecom infrastructure, coupled with its position as a leader in telecom technology developments, further fuels the need for data centers. The presence of major tech companies like Samsung and LG, along with the government's supportive policies, enhances the market's growth prospects.

The market is dominated by full rack configurations due to space scarcity and the need for efficient data management solutions. The rapid growth of mobile broadband, Big Data analytics, and cloud computing necessitates the construction of fully equipped data centers. Major players such as Olabs Technology Company Limited, Raritan Inc., Delta Power Solutions, and Eaton Corporation are key contributors to the market, focusing on expanding their reach. Upcoming data center projects, including those by Empyrion DC and Digital Edge, are set to further boost demand for data center racks. The market's expansion is also supported by strategic partnerships and new facility developments, underscoring the increasing reliance on data centers across various sectors.

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South Korea Data Center Rack Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

  2. 2. MARKET DYNAMICS

  3. 3. MARKET SEGMENTATION

    1. 3.1 By Rack Type

      1. 3.1.1 Open Frame

      2. 3.1.2 Closed Frame

    2. 3.2 By Rack Size

      1. 3.2.1 Quarter Rack

      2. 3.2.2 Half Rack

      3. 3.2.3 Full Rack

    3. 3.3 By End User

      1. 3.3.1 IT & Telecommunication

      2. 3.3.2 BFSI

      3. 3.3.3 Government

      4. 3.3.4 Media & Entertainment

      5. 3.3.5 Other End Users

South Korea Data Center Rack Market Size FAQs

The South Korea Data Center Rack Market is projected to register a CAGR of 8.40% during the forecast period (2024-2030)

Olabs Technology Company Limited., DOBE Computing Co., Ltd., Raritan Inc. and Delta Power Solutions are the major companies operating in the South Korea Data Center Rack Market.

South Korea Data Center Rack Market Report Snapshots

South Korea Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)