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Data Center Rack Market

Data Center Rack Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Information & Communications Technology | Author Name: Mohit

Data Center Rack Market: Overview

Data Center Rack's market was worth USD 4.1 billion in 2021, and during the forecast period, it is anticipated to expand at a CAGR of 8.5 percent. Data centers are now a vital part of the IT infrastructure for many businesses. Companies rely on data centers to effectively handle and store the massive volumes of data created daily. The main factor impacting the use of data center racks is the expanding deployment of data centers around the globe. The market's growth is also being altered by the rising demand for technology services and investments from big businesses. These data center racks are set up primarily for infrastructure administration. Servers, switches, cables, and other equipment are housed in these racks in the data center. Rack infrastructure has grown in importance in data centers due to evolving technology and the adoption of high-density servers. These data centers must now efficiently house servers, handle cables, and allow airflow to operate at their peak efficiency. The rising data center traffic and demand for cloud services will support demand globally. Cisco predicts that by 2021, IP traffic in cloud data centers will amount to 19,509 exabytes yearly, compared to 1,046 exabytes annually in traditional data centers.

Digital banking is becoming more widely used, motivating the BFSI industry to implement cutting-edge data center infrastructures. The National Payments Corporation of India's Unified Payments Interface (UPI), a real-time payment system, recorded 2.73 billion transactions worth 67.31 billion USD in April 2021. Market limitations could be caused by rising maintenance costs for data center enclosures and racks and the increasing accessibility of containerized data centers. A significant barrier to the market's growth is the demand for highly skilled staff for item development. Issues with interoperability and a lack of uniform standards are the worries. Reduced need for server hardware due to consolidation. For blade and mini servers, there is a large demand.

Data Center Rack Market: COVID-19 Impact

Business continuity has been negatively impacted by COVID-19 across whole economies, affecting enterprises of all sizes and in every sector. Optimizing effective and efficient services while concurrently accommodating new demands becomes a strategic and operational requirement for data centers to counteract change and challenges. Two main factors are fueling the tremendous rise in demand. The need for processing power was brought on by the widespread shift of many enterprises and institutions to working from home. As we all spend more time indoors, there is an increase in demand for data capabilities due to the simultaneous spike in digital apps for video calling, telehealth, e-commerce, and e-learning, along with those for fun (online gaming, video streaming). Data center services company Deutsche Commercial Internet Exchange broke the previous record on March 11, 2020, in Frankfurt by attaining a data throughput of more than 9.1 Tbps.

Data Center Rack Market: Drivers

Big Data Analytics Growth to Drive Market Growth

Due to technological developments in numerous industries, big data analytics has seen tremendous expansion over the past few years. Digital data in texts, geometries, photos, videos, and sounds are primarily called "big data." Various devices and methods can gather data, including sensors, digitizers, scanners, numerical models, mobile phones, the internet, movies, e-mails, and social networks. The need for inbound bandwidth will rise due to big data sources' propensity to deliver enormous amounts of data to data centers. Complex and unstructured organizational data gathered from many sources and processed across several data centers is managed with big data analytics. To store and keep track of the gathered data, businesses worldwide are investing in new data centers. Data centers were originally intended to store logic. Data centers were first intended to house logical data. However, it is now necessary to store both structured and unstructured data in significant quantities; therefore, larger data centers are needed. As a result, the data center network architecture needs to be expanded or changed to handle the data volume and speed growth. These possibilities should hasten improvements in network infrastructure and storage technology for data centers and hasten the adoption of cutting-edge techniques for managing huge data loads in data centers. An increase in the flow of both organized and unorganized data will drive the market for data center racks throughout the forecast period.

Investments in Construction Driving Market Growth

Expanding the IT infrastructure across many industry verticals produces significant amounts of organized and unstructured data. Due to this, hyperscale data centers must be built to store and provide high-security services for the generated data. The use of cloud-based software and services by IBM, Amazon, Google, and Microsoft contributes to the production of a substantial amount of data. As a result, hyperscale data centers are used in place of conventional public cloud data centers to improve data storage capacity. The use of smartphones, social networking websites, and OTT platforms is increasing, producing a lot of data and increasing the need for big data centers. To meet the surge in consumer and business demand for digital services, governments worldwide are investing more and more in constructing hyperscale data center infrastructure. Increased use of cutting-edge technologies like IoT, AI, and ML across various industries further increases the amount of data being produced, necessitating the need for hyperscale data centers for storage. The worldwide data center rack market is therefore driven by increased investments in constructing hyperscale data centers.

Data Center Rack Market: Restraints

Increasing Utilization Of Blade Servers to Hamper Market Growth

Many businesses are developing the flexible data center of the future as data center managers work to make on-demand or utility computing a reality. An infrastructure of commoditized and interchangeable computing, storage, and networking components forms the basis of a flexible data center deployment. The blade server is a vital part of the flexible data center. Blade servers, which are computers on little circuit boards that can be slotted into the slots of a rack-mounted chassis, make up blade systems. Administrators can remove and replace a blade while the system is still running because the chassis handles networking, power, and management. With up to 84 servers in a rack, blade systems can fit a lot of computing power in a little space.

Data Center Rack Market: Segment Overview

Banking, Financial Services, and Insurance (BFSI) to Dominate market due to its Pressure Building Ability

The cloud and data centers have evolved into the BFSI sector's skeleton during the digitization push. The market for data centers and, by extension, data center racks are driven by rising competitiveness and the demand for online services in the banking and finance industries. For financial services, data centers have become essential. The racks used in the banking industry must offer additional security against dangers like theft and damage. With racks, banking service providers can host their systems on a platform that shields them from unforeseen physical threats. Because these racks are modular, banking service providers can upgrade as needed. The cloud and data centers have evolved into the BFSI sector's skeleton during the digitization push. The market for data centers and, by extension, data center racks are driven by rising competitiveness and the demand for online services in the banking and finance industries. For financial services, data centers have become essential. The racks used in the banking industry must offer additional security against dangers like theft and damage. With racks, banking service providers can host their systems on a platform that shields them from unforeseen physical threats. Because these racks are modular, banking service providers can upgrade as needed.

Better Ventilation and More Space for Cable Management, 43U to 52U Category Dominated Market

Due to tighter business space requirements, rack sizes have grown to allow more racks.48U racks are predicted to be the source of this section's increase. 45U racks are another item that is projected to significantly impact this market. 47U racks are compatible with the majority of server brands. Thanks to their taller racks, tower and 19-inch rack-mount servers can be housed in the same unit. The taller racks provide better ventilation and more space for cable management.

Data Center Rack Market: Regional Landscape

North America to Dominate market due to  Presence Of Numerous Data Center Facilities

 The North American market dominated the largest revenue share. Due to numerous data center facilities and the availability of cutting-edge infrastructure in the region, North America is anticipated to represent the largest market throughout the projection period. The demand for data center racks is anticipated to rise due to the need for higher performance and maximum space utilization. The demand for data center solutions and services among North American businesses is anticipated to increase due to a robust economic environment, enormous IT budgets, high technology assimilation, and the early adoption of cutting-edge technologies like edge computing, High-performance computing (HPC), and AI. The demand for new data center infrastructures in the North American region is fueled by several causes, including the quick development of mobile broadband, the rise of big data analytics, and cloud computing. A substantial number of data centers are also present in the area. It is projected that the market for data center installations would be able to accommodate the numerous businesses transitioning from hardware to software-based services.

Additionally, there are about 250 data centers in Canada and over 2500 in the United States, according to the cloud scene. Due to the rise in the number of hyperscale data centers, the United States now has the most data centers in the world and is also experiencing rapid development in terms of big data volume and traffic. By the end of 2021, Cisco projects that the amount of big data stored in data centers worldwide would amount to 403 exabytes, with the United States accounting for a significant portion of that total. Additionally, the US government launched the Data Center Optimization Initiative (DCOI) to consolidate numerous data centers nationwide to provide better services to the general public while maximizing taxpayer return on investment. Building hyperscale data centers and turning off underperforming ones are both steps in the consolidation process. Over 3,215 square feet of a campus in Northern Virginia have been closed by the government to date.

Global Data Center Rack Market: Competitive Landscape

In June 2021, With adjustable flooring and server row doors, the HPE DC8 (EMEA) offered frequent come-and-go traffic and simple access for testing and adjustments. HPE's Modular Data Center (MDC) unit was intended for agility in performance. The device has a chilled water cooling system, is tightly connected, and is energy efficient. Easy front and rear rack access from inside the HPE MDC is made possible by its mobile rack floor. Moreover, in March 2021, Essential hardware building components from IBM's Cloud Pak for Data System 1.0.7.7 were assembled in the factory to produce consolidated, single-rack or multi-rack systems that could be ordered separately using a small number of part numbers. Racks are delivered to the location already pretested, preconfigured, and ready for deployment. The system is constructed using tried-and-true building components tailored for data and AI workloads.

Few of the players in the Data Center Rack Market include HPE (US), Schneider Electric (France), Rittal (Germany), Cisco (US), IBM (US), Fujitsu (Japan), Dell (US), Eaton (Ireland), Vertiv (US), Legrand S.A. (France), AGC Network (India), Oracle (US), nVent (UK), Belden (US), Panduit (US), Tripp Lite (US), Great Lakes Data Racks & Cabinets(US), Rahi Systems (US), IMS Engineered Products (US), and Chatsworth Products (US).

Global Data Center Rack Market is Segmented as Below:

By Component

  • Solutions
  • Services

By Service

  • Design and Consulting
  • Installation
  • Maintenance and Support

By Rack Type

  • Open Frame
  • Cabinets

By Rack Height

  • 42U and Below
  • 43U up to 52U
  • Above 52U

By Rack Width

  • 19 Inch
  • 23 Inch
  • Others (24 Inch and 28 Inch)

By Data Center Size

  • Small and Mid-sized Data Centers
  • Large Data Centers

By Vertical

  • Banking, Financial Services, and Insurance (BFSI)
  • IT and Telecom
  • Government and Defense
  • Retail
  • Manufacturing
  • Healthcare
  • Energy and Utilities
  • Others (Media and Entertainment, and Transportation and Logistics)

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Data Center Rack Market

  • Data Center Rack Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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