Data Center Rack Market Size, Share, Opportunities, 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 2024 To 2029

The data centre rack market is evaluated at US$4.268 billion for the year 2022 growing at a CAGR of 10.2% reaching the market size of US$8.426 billion by the year 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.

Rise in adoption of high-density and modular rack designs

Data centers are loading up high-density racks as an attempt to build a lot more computing power in smaller spaces. The reason behind inventing this trend was to have hyper-scale data centers using space properly as well as being energy efficient. Furthermore, liquid cooling solutions are primarily used in high-density racks to control the heat produced by servers. These methods effectively disperse heat from servers and other hardware using coolant. Furthermore, data center racks are becoming easier to scale due to their increased modularity. This method made it easier to adjust equipment to meet changing business needs by adding or removing pieces as needed. Furthermore, these racks are equipped with effective cable management systems to lessen clutter and enhance ventilation. Optimizing data center performance was made possible by innovations in cable management within racks.

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 organisations, 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 in order 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 all over the world. 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 be high-density settings and efficient cooling mechanisms. Additionally, there is an increase in the number of companies deploying hybrid cloud strategies – a combination of cloud resources and on-premise data centers. Thus, in order to embrace such kind of 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.

North America is witnessing exponential growth during the forecast period

The current cloud service usage significantly influences the data center rack market all over the world. 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 of different server racks to store servers, storage facilities as well as network connections due to the reason that huge cloud provider’s data centers exist.

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 due to the fact that it has many data centers that cater for 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.

Market key launches

• In January 2024, A new line of racks made especially for data centres was introduced by Excel Networking Solutions, the infrastructure provider that provides copper and optical fibre, FTTx, racks, PDUs, voice, and a wide range of accessories. With its innovative design and abundance of 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.

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