PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1456925
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1456925
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 data centre rack includes switches, servers, and routers that highly comprise a data centre. The increasing number of data centres across the globe is the major driver of the data centre 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 centre racks in traditional setups are augmenting their demand.
Since data centre 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 centre racks. The availability of low-cost rack solutions is further boosting the demand for data centre 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 centre racks during the next five years.
Growing data traffic due to the increasing use of connected devices and increasing penetration of the internet, along with investments in 5G technology, will continue to propel the market growth of data centre racks during the forecast period. Furthermore, the rising adoption of rack servers on account of advancements in software defines the security market is also going to contribute to the data centre market's growth during the forecast period. Companies are increasingly shifting towards server-based rack data centres to meet their rapidly evolving business needs while aiming to reduce operational as well as capital expenditure.
The global data centre 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, as well as support. The market is segmented by enterprise size into 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 centre racks of unit sizes 23U-36U and 37U-48U
The 23U-36U and 37U-48U sizes of data centre racks hold significant shares in the market due to their increasing requirements by IT and multinational companies. These sizes are most feasible for medium-sized enterprises making them, a favourable choice for a major sector of the market. Companies are offering various discounts and offers to small and medium-sized enterprises to lure them into buying their products, which is also supporting the market growth of data centre racks of various sizes.
Large enterprises hold a 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 IT infrastructure, it is insufficient to handle rapidly growing data volumes. This, along with the rising cost of land and a skilled workforce to maintain or expand their on-premise data centres, large companies to opt for cost-effective data centre 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 IT infrastructure due to which they are moving towards data centre racks, which come in various unit sizes and costs. Hence, small enterprises are using data centre racks for storing computing information at a lower cost, giving them a helping hand for their personal and private usage, thus bolstering the global data centre rack market growth.
North America is projected to grow at a high rate during the forecast period
The need for new data centre infrastructures in the North American region is being driven, in part, by the explosive growth of mobile broadband, the rise in big data analytics, and cloud computing. There are also a good number of data centres in the area. There will likely be a market for data centre installations as more businesses transition from hardware to software-based services. With the most data centres per capita in the world, the US is also seeing rapid growth in big data volume and traffic as a result of the rise in hyperscale data centre construction.
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