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Data Center Rack & Enclosure Market Size 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}], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI2599
  • Published Date: Jul 2021
  • Report Format: PDF

Industry Trends

Data Center Rack & Enclosure Market size exceeded USD 3 billion in 2020 and is anticipated to grow at a CAGR of over 9% from 2021 to 2027.

Racks organize data center equipment, such as network switches and servers, into standardized assemblies that make effective use of space and other IT components. Enclosures are responsible for IT equipment storage. Rack enclosures feature removable side panels, removable front & rear doors, and four adjustable vertical mounting rails. Although standard enclosures do not have much room for cabling as open frame racks, deeper or wider cabinets that offer extra room are available in the data center rack & enclosure market.

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The increasing adoption of data-intensive applications, such as big data analytics, machine learning, coupled with the use of cloud computing and IoT has resulted in the data center rack & enclosure market growth. Data centers implement rack systems that can accommodate more servers per unit area to maximize productivity and performance. Companies operating in the market are also providing customized racks & enclosures to cater to the specific needs of data centers. Recent high-density server & networking applications, such as AI and IoT, demand a rack infrastructure that can mount a wide range of equipment, support cable management, and manage airflow in a flexible design. The expanding global cloud computing and machine learning market will boost the industry.

The coronavirus (COVID-19) pandemic hindered the expansion of data center rack & enclosure market in the first half of 2020 due to the lockdowns imposed by government organizations. There were delays in the procurement of raw materials and electronic components on account of restrictions on international logistics during the lockdown period. Relaxations in lockdowns in the second half of 2020 enabled data center operators to execute their industry growth plans and new construction projects. The market will witness significant growth in 2021 with the increasing demand for data traffic management across several industry verticals. The sudden transition to remote working and e-learning technologies by corporate & academic institutions will fuel the demand for high-performance data center rack & enclosure solutions for equipment housing.

The developing cloud computing industry in the U.S. will spur demand for efficient rack configurations to host IT equipment

The U.S. data center rack & enclosure market will expand at 8% growth rate through 2027 led by the growing penetration of cloud computing. The developing cloud computing market is also attributed to the presence of technology leaders, such as IBM Corporation and Microsoft Corporation, which will foster the demand for scalable data center racks & enclosures. The typical heights for floor-standing racks & enclosures are 48U, 45U, and 42U, with customed sizes of up to 58U for high-density data center applications including cloud computing. Enclosures with additional width have side channels that house high-density cabling, PDUs, and cable managers without obstructing the airflow. Furthermore, market players will also focus on offering racks & enclosures designed as per specific cloud computing requirements.

The modernizing BFSI sector in India is resulting in high demand for advanced IT infrastructures for data traffic management

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The India data center rack & enclosure market is estimated to attain a CAGR of 12% by 2027 on account of the penetration of digitalization across the BFSI sector, leading to the establishment of new IT infrastructures for data management. There is an increasing proliferation of digital banking, encouraging the BFSI sector to adopt advanced data center infrastructures. In April 2021, Unified Payments Interface (UPI), a real-time payment system developed by the National Payments Corporation of India, recorded 2.73 billion transactions worth USD 67.31 billion. The BFSI sector is investing highly in the upgrading of data center infrastructure while focusing on cloud solutions for cost-effectiveness and agility. This factor will stress the existing IT facilities to adopt new & advanced data center racks & enclosures to cater to the requirements of the developing BFSI sector. Data center operators will focus on deploying flexible, compact & scalable rack infrastructures, supporting the industry expansion.

The acceptance of digital technologies across the manufacturing sector in European region will propel the market progression

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Europe data center rack & enclosure market accounted for over 25% of revenue share in 2020 impelled by the growing penetration of technologies, such as AI, IoT & robotics, in manufacturing facilities. Large automotive manufacturers, such as BMW and Mercedes-Benz, implement robotics and machine learning at their manufacturing facilities. This factor influences the demand for advanced data center racks & enclosures that can organize an extensive IT infrastructure to handle surging amounts of data. Automotive manufacturing facilities require constant & efficient data handling that enables them to take critical decisions based on predictive analysis. Increasing demand to host IT components in spacious yet compact racks & enclosures that ensure optimum airflow management and cooling solutions will stimulate the market revenue.

Introduction of differentiated rack & enclosure solutions form a key strategy amongst market players

Key companies operating in the data center rack & enclosure market include AFCO Systems, Belden, Blackbox Corporation, Chatsworth Products, Dell Inc., Delta Power Solutions, Fujitsu Ltd., Eaton Corporation, Hewlett Packard Enterprise, IBM Corporation, Panduit Corporation, Rittal GMbH & Co. Kg, Schneider Electric, Tripp Lite and Vertiv Co. The industry participants are focusing on introducing innovative racks & enclosures to sustain the increasing competition and strengthen their product portfolio.

The data center rack & enclosure market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

Market, By Component

  • Solution
    • Frame size
      • 19-inch rack
      • Other racks
    • Frame design
      • Open frame rack
      • Enclosed rack
      • Customized rack
    • Rack unit
      • 36u
      • 42u
      • 45 & 48u
      • Other rack units
  • Service
    • Managed
    • Professional

Market, By Application

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & telecom
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
  • South America
    • Brazil
    • Colombia
    • Chile
    • Argentina
  • MEA
    • GCC
    • South Africa
Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

Market size of data center rack & enclosure surpassed USD 3 billion in 2020 and will record a CAGR of over 9% through 2027.
U.S. market will exhibit a CAGR of 8% through 2027 with the increasing penetration of cloud computing.
India market will record a CAGR of 12% by 2027 with rising adoption of digitalization in BFSI sector, leading to the establishment of IT infrastructures for data management.
Europe industry captured over 25% revenue share in 2020 on account of growing penetration of technologies like AI, IoT & robotics, in manufacturing facilities.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 20
  • Tables & Figures: 451
  • Countries covered: 20
  • Pages: 300
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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