The Global Data Center Rack market is projected to grow at a CAGR of 10.68% during the forecast period, reaching a total market size of US$7.078 billion in 2025 from US$3.851 billion in 2019. 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 rack during the next five years.
Growing data traffic due to the increasing use of connected devices and increasing penetration of the internet along with the investments in 5G technology will continue to propel the market growth of data center rack during the forecast period. Furthermore, the rising adoption of rack servers on account of advancements in software defines security market is also going to contribute to the data center market growth during the forecast period. Companies are increasingly shifting towards server-based rack data centers to meet the rapidly evolving business needs while aiming at reducing 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, and support. The market is segmented by enterprise size as 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 units sizes 23U-36U and 37U-48U
23U-36U and 37U-48U sizes of data center rack hold significant shares in the market due to their increasing requirement by IT and multinational companies. These sizes are most feasible for medium-size enterprises making them, a favorable choice for a major sector of the market. Companies are offering various discounts and offer for small and medium-sized enterprises to lure them in buying their products which are also supporting the market growth of data center racks of various sizes.
Large enterprises to hold 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, those are insufficient to handle rapidly growing data volume. This, along with the rising cost of land and skilled workforce to maintain or expand their on-premise data centers, large companies 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, the small enterprises are using data center rack 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 to 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 the 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 rack in this region. The APAC Data Center Rack market will witness a 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 towards 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 rack 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 industry participants profiled as part of this section are Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Eaton, Rittal Systems Ltd., Panduit, Black Box Corporation, Schneider Electric, Vertiv Co., FUJITSU, and Huawei Technologies Co., Ltd.
|Market size value in 2019||US$3.851 billion|
|Market size value in 2025||US$7.078 billion|
|Growth Rate||CAGR of 10.68% from 2019 to 2025|
|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, Rittal Systems Ltd., Panduit, Black Box Corporation, Schneider Electric, Vertiv Co., FUJITSU, Huawei Technologies Co., Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the global data center rack market size by 2025?
A1. The global data center rack market is projected to reach a market size of US$7.078 billion by 2025.
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 10.68% 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$3.851 billion in 2019.
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.
Hewlett Packard Enterprise Development LP
Cisco Systems, Inc.
Rittal Systems Ltd.
Black Box Corporation
Huawei Technologies Co., Ltd.
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