Data Center Rack and Enclosure Market worth over $5bn by 2027

Data Center Rack and Enclosure Market size is set to surpass USD 5 billion by 2027, according to a new research report by Global Market Insights Inc.
 

The increasing penetration of digitalization across end-use industries, such as BFSI, IT & telecom, healthcare, and retail, has resulted in the rise in the number of data center establishments. With the rise in the number of data center construction projects, there is a high demand for advanced infrastructure solutions that optimize data center operations. Data center racks & enclosures offer cooling arrangements, heat dissipation, cable management, and effective power consumption. Compact data center racks & enclosures enable floor space optimization, provide unrestricted airflow for ventilation, and easy mounting of components. The growing popularity of micro & modular data centers will spur the demand for high-quality data center rack & enclosure solutions for IT infrastructures.

 

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The coronavirus (COVID-19) pandemic hindered the data center rack and enclosure market growth in the first half of 2020. Disturbances in the supply chains resulted in the delays in product shipment, while new data center expansion projects were halted due to the lockdowns imposed by government organizations. However, the market witnessed rapid growth in the second half of 2020, attributed to the high demand for robust IT infrastructures that support the surging data traffic from online services such as video on demand, e-learning, and remote working. Increasing data center establishments to handle the data traffic will fuel the demand for data center rack & enclosure solutions in 2021. The market regained traction in the second half of 2020 with relaxations in the lockdowns imposed and the recommencement of industrial activities. The gradual streamlining of global supply chains will support the market expansion in 2021.
 

Growing demand of managed service providers for installation and support services will impel the market progression

U.S. Data Center Rack & Enclosure Market Size, By Component

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The managed services include installation, design & consulting, and maintenance & support. The installation of data center rack & enclosure solutions is a complex process that requires skilled technical support. Installation services include mounting servers, power distribution units, cooling components, and robust cable management. Managed security services deliver network, application, and infrastructure security with regular support for maintenance. Enterprises are hiring several managed and professional service providers to optimize the IT infrastructure and manage systems & data center racks & enclosures to achieve the desired business objectives. The penetration of cloud computing will further propel the demand for managed services that enable efficient transition from traditional infrastructures to cloud-based solutions. The rise in the number of cloud data centers will foster the industry expansion.
 

Browse key industry insights spread across 300 pages with 420 market data tables and 31 figures & charts from the report, “Data Center Rack and 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” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/data-center-rack-and-enclosure-market
 

The increasing use of colocation technology by small and medium businesses will stimulate the market value

Small and medium businesses (SMBs) prefer to adopt colocation services as they provide them access to high-quality data center services and enterprise-grade redundancy and availability. SMBs face the challenges of lack of sufficient IT budget and expertise to build and own a data center. Colocation enables such organizations to address their storage issues and reduce operational costs. The U.S., China, France, and Germany are the largest markets for the colocation industry. Colocation providers are increasingly expanding their presence in these countries. With the increasing adoption of colocation services, there will be an increasing demand for high performance data center rack & enclosure solutions, in turn, fueling the industry progression.
 

Growing demand for new data center infrastructures owing to the rising acceptance of cloud computing in North America region will boost the market revenue

The expanding cloud computing industry in the region will offer strong growth opportunities to the data center rack and enclosure market. The presence of major cloud service providers, such as IBM Corporation and Microsoft Corporation, strengthens the region’s cloud computing market. Cloud providers are increasingly expanding their presence in the region. For instance, in January 2020, iland, a cloud service provider of secure hosting of infrastructure, launched a new cloud region in Canada, with its new data center facility in Ontario. There will be a high demand for advanced data center rack & enclosure solutions that ensure scalability and flexibility for installation in cloud data centers. With increasing number of IT infrastructure establishments, the market will observe rapid growth.
 

Launching new innovative solutions to expand the product portfolio forms a key strategy amongst the market players

Prominent companies operating in the market include Delta Power Solutions, AFCO Systems, Belden, Blackbox Corporation, Chatsworth Products, Dell Inc., IBM Corporation, Panduit Corporation, Fujitsu Ltd., Eaton Corporation, Rittal GMbH & Co. Kg, Schneider Electric, Hewlett Packard Enterprise, Tripp Lite, and Vertiv Co. The industry participants are focusing on launching new innovative solutions to sustain the increasing competition.
 

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