MarketsandMarkets forecasts the global data center rack server market to grow from USD 52.1 billion in 2019 to USD 102.5 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 14.5% during the forecast period.
With new trends and technologies, the need for scalable data centers and high-density computing is growing at a faster pace. Data center rack servers have been catering to these needs with low power consumption and high efficiency. The data center rack server market is projected to have an increasing growth owing to the increase in hyperscale and colocation data centers and cloud technology-related spending.
Data center rack servers are witnessing major technological changes and are evolving with technological advancements, such as edge computing, IoT, and cloud computing. Data center rack servers are expected to offer more economical solutions that facilitate reduced capital and operational expenditure. Additionally, they provide ease of servicing and maintenance.
The 2U rack server solution by form factor is projected to have the highest share in the data center rack server market during the forecast period. Companies are facing an increasing need for effective solutions that provide high-density facilities and faster computation speed. Rack servers are easily scalable servers that multiple processors use to provide high performance for critical applications. Rack server vendors take advantage of this requirement by providing 2U servers that are high-end systems that provide excellent performance.
The tier 4 data centers are an advanced type of data centers that provide redundancy across the entire data-center computing and non-computing infrastructure. The tier 4 data centers are expected to be the fastest-growing segment in the data center rack server market over the forecast period. The Tier 4 data centers are considered most robust data centers and less prone to failures. These data centers are fault-tolerant, provide full redundancy, and can bear up to 96 hours of power outage, which enables maximum uptime. They provide high-volume, low-power computing that caters to the increasing demand from high-density data centers. The geographic analysis of the data center rack server market is mainly segmented into 4 regions, namely, North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW). North America is expected to be the leader in the adoption and implementation of data center rack server, followed by Europe and APAC. The presence of major data center rack server providers in the region and increasing investments by North American companies in advanced technologies, would drive the market growth for North America. Moreover, the rising technological sophistication, technology adoption, and increasing demand in the region are expected to drive the high growth of the data center rack server market in APAC. The market players are also expanding their coverage in APAC.