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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

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.

Data Center Rack & Enclosure Market

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.

Data Center Rack & Enclosure Market Analysis

Data Center Rack And Enclosure Market Share, By Component

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.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

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.

Data centers rack and enclosure industry share from the IT & telecom application segment is poised to observe more than 10% CAGR between 2023 and 2032 as to a rapid shift towards 5G communication.

Europe data center rack & enclosure industry is predicted to witness nearly 10% CAGR from 2023 to 2032 attributed to the growing demand for high-capacity networks across the region.

Belden, Panduit Corporation, Chatsworth Products, Delta Power Solutions, Hewlett-Packard Company, Amco Enclosures, IBM Corporation, Dell Inc., and Fujitsu Ltd, are some of the key manufacturers of data center racks & enclosures.

Data Center Rack & Enclosure Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 454
  • Countries covered: 16
  • Pages: 318
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