Data Center Rack Market Size, Share and Competitive Landscape 2022-2027

Data Center Rack Market

The global Data Center Rack Market size is expected to grow from $4.4 billion in 2022 to $6.6 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 8.7% during the forecast period.

Factors driving the growth of the data center rack market include the emerging demand of data center colocation facilities by enterprises, growing trend of big data analytics and modernization of IT infrastructure, and increasing server density.

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The major players in the data center rack market are Schneider Electric (France), HPE (US), Rittal (Germany), IBM (US), Cisco (US), Fujitsu (Japan), Eaton (Ireland), Dell (US), Vertiv (US), AGC Network (India), Legrand S.A. (France), Oracle (US), Belden (US), nVent (UK), Panduit (US), Great Lakes Data Racks & Cabinets(US), Tripp Lite (US), IMS Engineered Products (US), Rahi Systems (US), and Chatsworth Products (US). The study includes an in-depth competitive analysis of these key players in the data center rack market with their company profiles, recent developments, and key market strategies.

The services segment to grow at a higher CAGR during the forecast period

The process of preparing the physical environment to support the deployment of racks requires the presence of robust services, such as design and consulting, installation, and maintenance and support. Major vendors provide these services to carry out the deployment of these racks efficiently. Data center rack services further help integrate new data center racks into an organization’s current data center infrastructure. These densely packed server requires high power and cooling capacities. Therefore, customers need consultation services to optimize energy usage. Companies are increasingly contributing to developing data center and cloud-related technologies within organizations. Many companies are increasing their data center-related spending and adopting advanced data center technologies to meet the rising customer demands. Such higher spending on data center technology and related services to attract and retain customers is expected to open new avenues for market growth which would eventually drive growth for the services segment.

The maintenance and support services segment to grow at the highest CAGR during the forecast period

Maintenance and support services help end users understand the changing business conditions, client insights, market trends, and service inconveniences to help smoothen the support process within organizations. The data center facilities require regular inspection, maintenance, and replacement of racks and cabinets. These services also include on-site support to ensure the proper functioning of cabinet doors and open frames. The increasing demand from data center operators for regular maintenance and support is expected to drive the adoption of these services.

The open-frame rack type segment to grow at higher CAGR during the forecast period

Open frame racks are typically used for mounting networking equipment. These are very popular due to their versatility and affordability. 2 post racks are ideal for lighter networking equipment because of their limited weight capacity and mounting orientation. 4 Post racks can carry more weight, and therefore are better suited for full sized servers, desktops, uninterruptible power supplies (UPS) and can still mount lighter equipment that are used in 2 post racks. When we have something like a vertical cable management tray on an open frame rack, it’s much easier to organize cables. In order to route cables on these, these/they need to be tethered to the tray using zip ties or hook & loop straps. When one is able to access the tray from both the front and the back, it makes the organization process much easier.

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The 23 inch segment to grow at the highest CAGR during the forecast period

Growing data center densities and increasing power requirements have forced vendors to offer data center racks in wider sizes to satisfy the ever-increasing consumer demands. 23 inch racks are mostly used for housing telecommunications equipment within data centers. These racks have enough space for power and cabling equipment and further offer adequate access to the equipment.

Asia Pacific to account for the highest CAGR during the forecast period

Asia Pacific is the fastest-growing region in the data center rack market and has witnessed huge investments in data center construction. Factors such as increasing internet penetration, cloud computing, a growing economy, and rapid infrastructure development have attributed to the growth of the data center rack market in the region. Asia Pacific region hosts a large number of colocation facilities and hyperscale data centers. The region hosted over 700 data centers by hyperscale providers in late 2021. Moreover, countries including India, Australia, Singapore, and Hong Kong have also seen to grow considerably in terms of overall data center deployments in the coming years.

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