Data Center Rack & Enclosure Market Size

Data Center Rack & Enclosure Market Size

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

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.