PUBLISHER: KBV Research | PRODUCT CODE: 1219638
PUBLISHER: KBV Research | PRODUCT CODE: 1219638
The Global Data Center Rack Market size is expected to reach $6.8 billion by 2028, rising at a market growth of 9.2% CAGR during the forecast period.
A physical structure in the shape of a data center rack is typically built of steel and other alloys. It stores electronic servers, networking hardware, cooling systems, and other computer equipment in data centers. These racks give the devices enough room and airflow so temperature swings won't harm them, and they also keep cords, wires, and other pricey components from getting tangled.
Three to four mounting rails are the essential components of a level rack, and a supporting structure holds the rails firmly in place. Then, according to their capacity or the amount of equipment they can contain, each shelf is carefully constructed with slots for attaching electrical, internet, and networking connections. The market is expanding primarily due to the increased popularity of big data analytics and the modernization of IT infrastructure.
The administration of intricate and disorganized organizational data that is handled across numerous data centers is aided by big data analytics. As a result, the need for data centers is expanding, increasing the need for the racks needed to store various networking and IT equipment. Additionally, the requirement to store the data produced by smart homes, towns, and grids, which necessitates systems with broader racks and improved designs, is enhancing the use of data center racks.
The development of low-cost rack solutions with features like corrosion resistance, thermal management, system expandability, and compatibility with different organizational verticals is another reason for boosting the adoption rates of these racks. Additionally, the market has tremendous prospects for growth due to the rising investments in data center equipment worldwide.
COVID-19 Impact Analysis
The COVID-19 pandemic has benefited the data center rack industry growth because data center rack technologies are assisting businesses in meeting the high capacity need for data storage. As data storage increases, there is an increasing need to ensure the data center rack service provider has the power and ability to supply data center rack solutions with excellent performance. Because of this, service providers like local data center operators and providers are investing a lot in data center racks for various use cases. Additionally, the COVID-19 pandemic presents an opportunity for the data center rack market forecast since businesses all over the world are implementing data center racks to support work-from-home initiatives and enable their business goals.
Market Growth Factors
An increase in AI usage
Data center rack can make use of AI's predictive analytics skills to discover security device capability that is diminishing. This enables security teams to address any issues before they become serious and endanger a data center. Businesses that integrate AI into their data center network can improve their ability to automate common network tasks, increase security, and spot cyber risks based on behavioral changes. More solutions are required due to the data center racks' rapid expansion in order to guarantee their security. These new trends can help to ensure their protection going forward and can also contribute to the development of an organization-wide security system culture.
Investments in hyper-scale data centers are surging.
Governments all over the world are investing more & more in building hyper-scale data center infrastructure to fulfill the growth in consumer and commercial demand for digital services. The need for hyper-scale data centers for storage is brought on by the increased adoption of cutting-edge technologies like AI, IoT, and ML across numerous industries. Therefore, rising investments in building hyper-scale data centers are what is driving the market for data center racks.
Market Restraining Factors
Growing blade server use will stagnate market expansion
Blade systems can pack a lot of computing power into a small area with up to 84 servers in a rack. When an Enterprise Storage System such as Network Attached Storage (NAS) or a Storage Area Network is required, blade servers are typically deployed (SAN). By offering the maximum processor per RU availability, they maximize the space that is available. Thus, the market growth for data center racks would be hampered by the increasing use of blade servers.
Based on component, the data center rack market is segmented into solution and service. In 2021, the solution segment held the highest revenue share in the data center rack market. Datacenter (DC) administrators and IT specialists need the appropriate configurations and tools to suit the needs of their unique environments, as well as remote management solutions that let them easily and rapidly access servers, network devices, and other mission-critical tools. These items are not only necessary for the system to function properly; they can also contribute to a larger strategy that lowers costs for the business.
Rack Type Outlook
Based on rack type, the data center rack market is segmented into cabinets/enclosed racks and open frame. In 2021, the cabinet/enclosed racks segment witnessed the largest revenue share in the data center racks market. The adoption of cutting-edge technologies and the increasing demand for the cabinet platform is projected to accelerate category expansion. To encourage market expansion, the key players also concentrate on the creation of cabinet platforms and digital infrastructure. The electric and digital infrastructure construction specialist's adaptable, durable, and secure product is made to house devices.
Rack Height Outlook
Based on rack height, the data center rack market is segmented into 42U & below, 43U up to 52U, and above 52U. In 2021, the 43U to 52U segment garnered a significant revenue share in the data center racks market. Due to organizations' increasing need for additional space, rack sizes have increased to accommodate more racks. The utilization of 48U racks is predicted to fuel the expansion of this segment. Additionally, 45U racks are predicted to significantly contribute to the expansion of this industry. With 47U racks, the majority of server brands are compatible. Due to their taller racks, tower, and 19-inch rack-mount servers can be housed in a single unit. The taller racks offer more room for cable management and better ventilation.
Data Center Size Outlook
Based on data center size, the data center rack market is segmented into large data centers and small & mid-sized data centers. In 2021, the small & mid-sized segment recorded a remarkable revenue share in the data center racks market. This group includes data centers with computing space of 20,000 square feet or less. Typically, these data centers may accommodate 1 to 800 racks. The necessity to maximize the utilization of their current data center space drives the development of small and mid-sized data centers. Organizations are moving to high-density data centers to accommodate greater data loads by cramming more servers into a small area.
Based on vertical, the data center rack market is segmented into BFSI, manufacturing, IT & telecom, retail, healthcare, media & entertainment, and others. In 2021, the IT & telecom segment procured a promising growth rate in the data center racks market. This is explained by the volume of data that the sector produces or stores. In addition, the need for data center racks in the IT and telecom industries is rising due to the use of mobile data and subscriptions, increased data traffic, and the introduction of cloud and 5G technology.
Based on Region, the Data Center Rack Market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America region led the data center racks market by generating maximum revenue share in 2021. This is caused by the region's abundance of data center facilities and accessibility to cutting-edge infrastructure. The demand for data center racks is anticipated to rise as a result of the need for higher performance and maximum space utilization. The demand for data center solutions and services among North American businesses is anticipated to increase due to a robust economic environment, high technology assimilation, enormous IT budgets, and the rapid adoption of cutting-edge technologies like High-performance computing (HPC), edge computing, and AI.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Schneider Electric SE, IBM Corporation, Oracle Corporation, Hewlett Packard Enterprise Company (HP Development Company L.P.), Fujitsu Limited, Dell Technologies, Inc., Samsung Electronics Co., Ltd. (Samsung Group), Eaton Corporation PLC, Legrand S.A. (Legrand Group), and Rittal GmbH & Co. KG (Friedhelm Loh Stiftung & Co. KG).
Strategies Deployed in Data Center Rack Market
Nov-2022: Schneider Electric SE unveiled the EcoStruxure™ Micro Data Center R-Series 42U Medium Density. Through this new product, Schneider Electric SE would be able to provide IT solution providers and IT professionals with a completely integrated turnkey solution for ease of ordering and deployment. Additionally, the new Micro Data Center solution features a heavy-weight load and large industrial casters for effortless motion.
May-2022: Legrand Group unveiled the new Nexpand Cabinet Series. This new cabinet series is for Data Centers. Additionally, the Nexpand cabinets have significant design changes. Moreover, they also have a modern design roof and give flexibility and space for handling equipment at the top of the rack.
Oct-2021: Schneider Electric SE unveiled the Easy Micro Data Center Series. By introducing this new product, Schneider Electric SE broadened its Micro Data Center solutions portfolio. This new product is crafted to hold and provide all Storage, computing, and essential infrastructure to keep edge computing applications, reliabel, affordable, and combine speed.
May-2021: Schneider Electric SE launched the new 43U. By launching this new product, Schneider Electric SE elaborated its EcoStruxure Micro Data Center C-Series. This new product delivers the most significant capacity in the company's commercial and office line of micro data centers. Additionally, the new 43U C-Series is the singular solution on the market that automatically swaps between three cooling modes relying on the real-time requirements of the system.
Mar-2021: Eaton Corporation PLC took over Tripp Lite, a leading supplier of power quality products and connectivity solutions. Through this acquisition, Eaton Corporation PLC would be able to advance the extent of its edge computing and distributed IT portfolio. Moreover, Tripp Lite's complementary product offerings would develop Eaton Corporation PLC's single-phase UPS Business.
Mar-2021: Rittal GmbH & Co. KG came into partnership with Stulz GmbH, the leading specialist for data center cooling systems. Under this partnership, Rittal GmbH & Co. KG would be able to provide its customers with a broader portfolio of flexible and end-to-end data center solutions.
Feb-2020: Eaton Corporation PLC acquired Power Distribution, Inc., a leading supplier of mission-critical power distribution, static switching, and power monitoring equipment and services. Through this acquisition, Eaton Corporation PLC would be able to use Power Distribution, Inc.'s complementary portfolio which would further enable it to better serve its data centre customers.
Aug-2019: Rittal GmbH & Co. KG partnered with ABB Ltd., a pioneering technology leader in electrification products, robotics and motion, industrial automation, and power grids, and Hewlett Packard Enterprise, a global technology leader focused on developing intelligent solutions. Under this partnership, Rittal GmbH & Co. KG, ABB Ltd, and Hewlett Packard Enterprise launched the Secure Edge Data Center (SEDC) for Telecommunications and Industrial environments. This new product would further enable customers to operate enterprise-grade IT close to their operational technology environments, equipment, and machines to help with low-latency, reliable, and secure digital processes.
Apr-2019: Legrand Group took over Universal Electric Corporation, makers of the Starline busway products that provide overhead power connections for data center racks. Through this acquisition, Legrand Group is growing its approach, role, and command in this new emerging market of Busways.
Market Segments covered in the Report:
By Rack Height
By Rack Type
By Data Center Size
Unique Offerings from KBV Research
List of Figures