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Data Center Rack & Enclosure Market - By Component (Solution [Frame Size, Frame Design, Rack Unit], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom) & Forecast, 2023-2032
- Report ID: GMI2599
- Published Date: Feb 2023
- Report Format: PDF
Industry Statistics
Data Center Rack & Enclosure Market size was valued at more than USD 3 billion in 2022 and is anticipated to record over 9% CAGR from 2023 to 2032. The growing application of IoT and multi-cloud architectural solutions are expected to influence industry development.
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Introduction of advanced technologies like 5G, Internet of Things (IoT), and edge computing will transform the data center racks and enclosures market. Government initiatives like Digital India are promoting measures to improve data privacy and security through data localization. These measures will prompt data centers to transform from captive to colocation. The introduction of 5G, rising mobile penetration, and increased data traffic have triggered the need for establishing edge nodes close to the data consumer which may accelerate the demand for data center racks and enclosures.
Government Initiation of new smart city projects should also drive the adoption of data centers across major economies. Countries like India are currently exploring ways to create "smart cities" by utilizing technology like automation, IoT, machine learning, artificial intelligence, etc. Integration of advanced online services and rising internet usage will drive the need for data center infrastructure and parts like racks and enclosures over the next few years.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 3 billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 9% |
| 2032 Value Projection: | USD 8 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 318 |
| Tables, Charts & Figures: | 454 |
| Segments covered: | Component, Application, and Region |
| Growth Drivers: | |
| Pitfalls & Challenges: |
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The growing worries over data security are anticipated to hinder the data center racks and enclosures market growth. Concerns over cybersecurity have increased drastically in the past few years owing to rising cases of cyberattacks. Record-breaking public data breaches have occurred due to a rapid increase in vulnerabilities. For instance, in July 2022, Neopets, a virtual pet website, was breached and the data of nearly 69 million users was stolen. Such breaches and hacks impact the performance, availability, and security of applications stored by a data center.
Rising demand for cloud services to influence frame design segment development
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Data center rack & enclosures market share from frame design component segment is expected to reach over USD 6.5 billion by 2032. The segment is further divided into open frame rack, enclosed rack, and customized rack. The demand for frame designs for housing, protecting, and cooling routers, switches, servers, etc. in data center is estimated to be high in the coming years. Innovation is frame designs and technologies will consolidate segment growth. Highlighting an instance, in 2022, Canadian startup Infinidium Power developed a new data-center cooling system that can generate power from heat generated by servers placed within its enclosed, floor-to-ceiling Vortex Vacuum Chamber. This could consequently help reduce both operating and capital costs by as much as 50% through air cooling.
Investments in 5G technology to product deployment across IT and telecom data centers
Data centers rack and enclosure industry share from IT & telecom application segment is poised to observe more than 10% CAGR between 2023 and 2032. The telecom sector has experienced rapid growth over the past few years. Factors like reasonable calling rates, the availability of a wider choice of services, shifting customer consumption habits, and a supportive regulatory environment have influenced the telecom sector development.
Telecom giants are also investing heavily in 5G technology which will include product demand across data centers. For instance, as per Ericsson’s November 2020 mobility report, the growth of 5G will be faster than that of 4G and it is predicted that in the US, more than 195 million 5G subscriptions will be fulfilled by 2026. Apart from this, expansion activities in the IT and Telecom sectors in nations like China and Germany will fuel the need for racks & enclosures in data centers.
Higher spending on cloud computing services across Europe to drive market share
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Europe data center rack & enclosure market is predicted to witness nearly 10% CAGR from 2023 to 2032. The demand for high-capacity networks is expected to rise owing to growing popularity of edge computing solutions across Europe. The development of technologies like autonomous vehicles, IoT, cloud computing, and advanced robotics has fueled the growth of these solutions in developed economies like the UK, France, and Germany.
As per estimates by the International Data Corporation (IDC), in 2023, the public cloud services spending in Europe will reach USD 148 billion, further reaching USD 258 billion by 2026. The increasing use of cloud technologies and imminent need for faster processing speeds and larger bandwidths will drive expansion activities across data centers, favoring the deployment of rack & enclosure.
New product launches by leading manufacturers to fuel market trends
Belden, Panduit Corporation, Chatsworth Products, Delta Power Solutions, Hewlett-Packard Company, Amco Enclosures, IBM Corporation, Dell Inc., Legrand, Martin International Enclosures, Fujitsu Ltd, Blackbox Corporation, Oracle Corporation, Rittal Gmbh & Co. Kg, and Eaton Corporation, among others, are participants actively operating in the global data center rack & enclosure market.
Companies are focusing on product innovation and strategic developments to boost business reach. For instance, in January 2022, Equinox announced the launch of its first Co-Innovation Facility (CIF), housed in the DC15 International Business Exchange (IBX) data center at the Equinix Ashburn Campus in the Washington, D.C. region. The facility will enable partners to work with Equinix on developing and testing new technologies.
Impact of the COVID-19 pandemic on the data center rack and enclosure market
The COVID-19 pandemic had a positive impact on data center rack & enclosure market as to increasing awareness among businesses regarding the benefits of cloud services. A shift to remote working models during lockdown added pressure on companies to provide more secure and robust IT environments, along with setup of local data centers. Increase in data volume and internet users during the pandemic also led to expansion activities across data centers, reinforcing the demand for related infrastructure. A rapid shift towards 5G and AI technologies will fuel the demand for data center racks and enclosures in the next few years.
The data center rack & enclosure market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD Million from 2018 to 2032 for the following segments:
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by Component
- Solution
- Frame size
- 19-inch rack
- Other racks
- Frame design
- Open frame rack
- Enclosed rack
- Customized rack
- Rack unit
- 36u rack
- 42u rack
- 45u & 48u rack
- Other rack units
- Frame size
- Service
- Professional
- Managed
by Applications
- BFSI
- Colocation
- Energy
- Government
- Healthcare
- IT & telecom
- Manufacturing
- Others
The above information is provided on a regional and country basis for the following:
North America
- U.S.
- Canada
- Mexico
Europe
- UK
- Germany
- France
- Italy
- Poland
- Spain
- Benelux
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
South America
- Brazil
- Chile
- Colombia
- Argentina
MEA
- GCC
- South Africa
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