Data Center Rack Market Size, Share, Opportunities, COVID-19 Impact, And Trends 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), And Geography - Forecasts From 2022 To 2027

Published:  Oct 2022 Report Code: KSI061610008 Pages: 114

The Global Data Center Rack market is expected to grow at a CAGR of 10.07%, reaching a market size of US$6.997 billion in 2027 from US$3.575 billion in 2020.

Datacenter rack includes switches, servers, and routers that highly comprise a data center. The increasing number of data centers across the globe is the major driver of the data center rack market. The growing adoption of cloud networking coupled with the rising volume of big data is pressurizing enterprises to opt for colocation solutions and services. As the volume of big data is rapidly growing across various industries due to the rising adoption of digitization and IoT, the insufficient data center racks in traditional setups are augmenting their demand.

Since data center rack servers have inherent high density with power efficiency, the growing focus on environmental sustainability and reducing power consumption is also a driving factor for the market growth of data center racks. The availability of low-cost rack solutions is further boosting the demand for data center racks, thus positively impacting the overall market growth. Datacenter rack manufacturers are focusing on improving or enhancing their offerings by way of adding innovative features, which are also expected to fuel the market growth of data center racks during the next five years.

Growing data traffic due to the increasing use of connected devices and increasing penetration of the internet, along with investments in 5G technology, will continue to propel the market growth of data center racks during the forecast period. Furthermore, the rising adoption of rack servers on account of advancements in software defines the security market is also going to contribute to the data center market’s growth during the forecast period. Companies are increasingly shifting towards server-based rack data centers to meet their rapidly evolving business needs while aiming to reduce operational as well as capital expenditure. 

The global data center rack market is segmented by unit size, service, enterprise size, industry vertical, and geography. By unit size, the market is segmented into 19U-22U, 23U-36U, 37U-48U, and others. Based on service, the market is segmented into installation, consulting, and maintenance, as well as support. The market is segmented by enterprise size into small, medium, and large. By industry vertical, the market is segmented into BFSI, manufacturing, communication and technology, healthcare, media and entertainment, and others.

Rising demand for data center racks of unit sizes 23U-36U and 37U-48U

The 23U-36U and 37U-48U sizes of data center racks hold significant shares in the market due to their increasing requirements by IT and multinational companies. These sizes are most feasible for medium-sized enterprises making them, a favorable choice for a major sector of the market. Companies are offering various discounts and offer to small and medium-sized enterprises to lure them into buying their products, which is also supporting the market growth of data center racks of various sizes.

Large enterprises hold a significant market share

Large-size enterprises accounted for a significant market share in 2019 owing to the large volume of data being generated across this enterprise-size segment. Even though large enterprises have their own IT infrastructure, it is insufficient to handle rapidly growing data volumes. This, along with the rising cost of land and a skilled workforce to maintain or expand their on-premise data centers, large companies to opt for cost-effective data center racks of bigger unit sizes, thereby driving the market growth. However, the small enterprise segment will experience a substantial CAGR during the forecast period. Small businesses lack the budget to maintain their own IT infrastructure due to which they are moving towards data center racks, which come in various unit sizes and costs. Hence, small enterprises are using data center racks for storing computing information at a lower cost, giving them a helping hand for their personal and private usage, thus bolstering the global data center rack market growth.

APAC will record high market growth

Regionally, the global data center rack market is classified into North America, South America, Europe, the Middle East, and Africa, and Asia Pacific. North America is one of the major markets for data center rack players owing to the presence of major market players in the region. High investments in technologies such as 5G and artificial intelligence will further ramp up the market growth of data center racks in this region. The APAC Data Center Rack market will witness high market growth between 2019 and 2025 owing to the increasing data traffic and a corresponding need to deploy more data centers across the region.

In January 2019, Equinix invested US$85.3 million to build a fourth data center in Singapore. In April 2019, Huawei launched its new servers, FusionServer Pro Intelligent Servers. The transformation to intelligent servers will help in improving application speed and efficiency, and these servers are even provided with fault management and a full liquid-cooling cabinet. The rising number of enterprises of all sizes toward digitalization is further augmenting the demand for data center racks in APAC countries. Moreover, government projects such as Digital India and smart cities in countries like China and India will also continue to fuel the market growth of data center racks across the region. 

Market Players and Competitive Intelligence

The competitive intelligence section deals with major players in the market, their market shares, growth strategies, products, financials, and recent investments, among others.

Key Developments:

  • May 2022: Cisco's Duo has opened its first data center in India to satisfy client demands for cyber-defence and data localization. The investment is said to be part of Cisco's plan to develop in India perspective, data-compliant security infrastructure with Duo, a cloud-based supplier of secure access. With a variety of service delivery locations, Duo's new data center will enable customers in the public sector, medical, and BFSI to achieve local data localization requirements.
  • July 2022: In order to support market trends for data center optimization and the quickening shift to a low-carbon, sustainable future, Eaton, a Data Center Solutions company is investing more in its presence in the Triangle region of North Carolina. In order to accommodate the evolving requirements of a hybrid work environment and increase operational flexibility at its three new manufacturing plants, the business recently remodeled its 90,000 sq ft Raleigh office. By making these changes, Eaton is better positioned to meet the growing demand from customers for infrastructure solutions for EV charging stations and data center management systems.

Product Offerings:

  • Rittal IT rack systems (VX IT): All server and network applications can be solved with VX IT. The new VX IT is a platform for fitting a modern IT architecture and its many distinct requirements, whether the demand is for a network rack to house a distributor board or server racks for an edge, colocation, or hyperscale data centre. The new VX IT is built on a modular idea and comes with a user-friendly configurator to help customers choose a solution that is specifically suited to their needs quickly and efficiently.
  • Cisco UCS X-Series Modular System: The Cisco UCS X-Series offers computing capacity, storage capabilities, and expandability in a unified system, encompassing a wide range of applications in data centers and providing functions of both blade and rack servers. The Cisco Intersight cloud-operations platform is used to build the system's modular components into solutions. In order to provide proactive monitoring, automation, and workload optimization across hybrid cloud systems, Intersight leverages the power of SaaS.

Data Center Rack Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$3.575 billion
 Market Size Value in 2027  US$6.997 billion
 Growth Rate  CAGR of 10.07% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Unit Size, Service, Enterprise Size, Industry Vertical, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Eaton, Friedhelm LOH Group, Panduit, Black Box, Schneider Electric, Vertiv Group Corp., FUJITSU, Huawei Technologies Co., Ltd.
 Customization Scope  Free report customization with purchase

 

Segmentation

  • 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
      • Israel
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the global data center rack market size by 2027?
A1. The global data center rack market is projected to reach a market size of US$6.997 billion by 2027.


Q2. What factors are anticipated to drive the data center rack market growth?
A2. The increasing number of data centers across the globe is the major driver of the data center rack market.


Q3. What are the growth prospects for the data center rack market?
A3. The data center rack market is projected to grow at a CAGR of 10.07% during the forecast period.


Q4. What is the size of the global data center rack market?
A4. Data Center Rack Market was valued at US$3.575 billion in 2020.


Q5. Which region holds the largest market share in the data center rack market?
A5. North America is one of the major markets for data center rack players owing to the presence of major market players in the region.


1. Introduction

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. Research Methodology

2.1. Research Data

2.2. Assumptions

 

3. Executive Summary

3.1. Research Highlights

 

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. Data Center Rack Market Analysis, By Unit Size

5.1. Introduction

5.2. 19U-22U

5.3. 23U-36U

5.4. 37U-48U

5.5. Others

 

6. Data Center Rack Market Analysis, By Service

6.1. Introduction

6.2. Installation

6.3. Consulting

6.4. Maintenance and Support

 

7. Data Center Rack Market Analysis, By Enterprise Size

7.1. Introduction

7.2. Small

7.3. Medium

7.4. Large

 

8. Data Center Rack Market Analysis, By Industry Vertical

8.1. Introduction

8.2. BFSI

8.3. Manufacturing

8.4. Communication and Technology

8.5. Healthcare

8.6. Media and Entertainment

8.7. others

 

9. Data Center Rack Market Analysis, By Geography

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. France

9.4.3. United Kingdom

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. Israel

9.5.3. UAE

9.5.4. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. South Korea

9.6.4. India

9.6.5. Taiwan

9.6.6. Thailand

9.6.7. Indonesia

9.6.8. Others

 

10. Competitive Environment and Analysis

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

 

11. Company Profiles

11.1. Hewlett Packard Enterprise Development LP

11.2. Cisco Systems, Inc.

11.3. Eaton

11.4. Friedhelm LOH Group

11.5. Panduit

11.6. Black Box

11.7. Schneider Electric

11.8. Vertiv Group Corp.

11.9. FUJITSU

11.10. Huawei Technologies Co., Ltd.

Hewlett Packard Enterprise Development LP

Cisco Systems, Inc.

Eaton

Friedhelm LOH Group

Panduit

Black Box

Schneider Electric

Vertiv Group Corp.

FUJITSU

Huawei Technologies Co., Ltd.

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