Global Data Center Rack & Enclosure Market Insights Forecasts to 2032

• The Global Data Center Rack & Enclosure Market Size was valued at USD 3.51 billion in 2022.
• The market is growing at a CAGR of 8.7% from 2022 to 2032
• The global data center rack & enclosure market is expected to reach USD 8.08 billion by 2032
• Europe is expected to grow the fastest during the forecast period

The Global Data Center Rack & Enclosure Market Size is expected to reach USD 8.08 billion by 2032, at a CAGR of 8.7% during the forecast period 2022 to 2032.

Market Overview

A data center rack and enclosure play a crucial role in the efficient and organized functioning of data centers. These structures provide a secure and structured environment for housing and managing servers, network equipment, and other critical hardware. Data center racks are designed to accommodate multiple servers and networking devices in a compact and space-efficient manner. They offer features like cable management, ventilation, and easy access for maintenance and upgrades. Enclosures, on the other hand, provide an added layer of physical security by enclosing the racks and restricting access to authorized personnel only. They also help in reducing noise levels and maintaining optimal temperature and airflow. Overall, data center racks and enclosures optimize space utilization, streamline equipment management, and enhance the performance and reliability of data center operations.

Report Coverage

This research report categorizes the market for data center rack & enclosure market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the data center rack & enclosure market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the data center rack & enclosure market.

Driving Factors

The data center rack and enclosure market is driven by several factors that contribute to its growth and demand. Firstly, the increasing adoption of cloud computing and the rapid growth of data centers worldwide fuel the demand for rack and enclosure solutions to house and manage the expanding server infrastructure. Additionally, the rising trend of virtualization, big data analytics, and artificial intelligence applications necessitate scalable and efficient data center infrastructure, driving the need for advanced racks and enclosures. Furthermore, the need for better cooling and airflow management to address power density challenges in data centers promotes the adoption of specialized racks and enclosures that offer enhanced thermal management features. Moreover, the growing emphasis on data center security and compliance requirements drives the demand for secure enclosures that protect sensitive equipment and restrict unauthorized access. Lastly, the increasing awareness regarding energy efficiency and sustainability pushes the market towards eco-friendly rack and enclosure solutions that minimize power consumption and environmental impact.

Restraining Factors

While the data center rack and enclosure market has significant growth prospects, it also faces certain restraints that impact its development. One primary restraint is the high initial cost associated with deploying rack and enclosure solutions. These infrastructure investments can be substantial, especially for small and medium-sized data centers with limited budgets. Additionally, the rapid technological advancements in server and networking equipment often result in evolving form factors and sizes, making it challenging for rack and enclosure manufacturers to keep up with compatibility requirements. Moreover, the increasing trend of edge computing and distributed data centers introduces complexities in deploying standardized rack and enclosure solutions. Furthermore, the limited physical space within existing data centers poses a challenge in accommodating larger or specialized rack and enclosure configurations. Lastly, the complexity of retrofitting or upgrading existing data center infrastructure with new rack and enclosure solutions can be a deterrent for some organizations.

Market Segmentation

• In 2022, the solutions segment accounted for around 81.5% market share

On the basis of component, the global data center rack & enclosure market is segmented into solution and service. The solutions segment is dominating with the largest market share in 2022. This segment comprises various physical infrastructure components such as racks, cabinets, enclosures, cable management systems, PDUs, and cooling systems. These solutions form the backbone of data center infrastructure, providing the necessary framework and support for housing and organizing servers, networking equipment, and other critical hardware. The increasing demand for scalable, secure, and well-structured data centers has led to significant adoption of rack and enclosure solutions. Organizations across various industries are investing in these solutions to optimize space utilization, streamline equipment management, and enhance operational efficiency. The solutions segment benefits from a wide range of offerings provided by market players, catering to diverse customer requirements. Thus, with its indispensable role in data center infrastructure, the solutions segment has established itself as the dominant market leader in terms of revenue and market share.

• In 2022, the IT & telecom segment dominated with more than 35.5% market share

Based on application, the global data center rack & enclosure market is segmented into BFSI, colocation, energy, government, healthcare, IT & telecom, manufacturing, and others. Out of this, the IT & telecom segment is dominating the market with the largest market share in 2022. This segment encompasses the data center infrastructure requirements of IT and telecommunications service providers, cloud service providers, and other technology-intensive industries. The increasing adoption of cloud computing, big data analytics, and artificial intelligence applications by these industries is driving the demand for high-performance and scalable data center infrastructure, including racks and enclosures. Additionally, the growth of edge computing and 5G network deployments further amplifies the demand for distributed infrastructure solutions that can support the evolving IT and telecom landscape. As a result, the IT and telecom segment is expected to hold the largest market share in the data center rack and enclosure market, supported by the increasing focus on data security, compliance, and energy efficiency.

Regional Segment Analysis of the Data Center Rack & Enclosure Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America dominated the market with more than 43.5% revenue share in 2022.

Based on region, North America has emerged as a dominant player in the data center rack and enclosure market, holding the largest market share. Several factors contribute to this leadership position. Firstly, North America is home to a large number of established data center facilities, including major cloud service providers, internet giants, and enterprises with significant IT infrastructure requirements. This concentration of data centers creates a substantial demand for rack and enclosure solutions. Secondly, the region has a highly developed IT infrastructure and advanced technology adoption, leading to a greater need for robust and scalable data center infrastructure components like racks and enclosures. Additionally, stringent regulatory requirements regarding data security and compliance drive the adoption of secure and reliable enclosures. Furthermore, North America boasts a strong presence of key market players, including rack and enclosure manufacturers, providing a wide range of product options and competitive pricing.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global data center rack & enclosure market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Companies:

• Belden
• Panduit Corporation
• Chatsworth Products
• Delta Power Solutions
• Hewlett-Packard Company
• Amco Enclosures
• IBM Corporation
• Dell Inc.
• Legrand
• Martin International Enclosures
• Fujitsu Ltd.
• Blackbox Corporation
• Oracle Corporation
• Rittal Gmbh & Co. Kg.
• Eaton Corporation

Key Target Audience

• Market Players
• Investors
• End-Users
• Government Authorities 
• Consulting and Research Firm
• Venture Capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2022, Equinox has unveiled its inaugural Co-Innovation Facility (CIF) located within the DC15 International Business Exchange (IBX) data center at the Equinix Ashburn Campus in the Washington, D.C. area. This cutting-edge facility provides a collaborative environment for partners to engage with Equinix in the creation and experimentation of innovative technologies.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global data center rack & enclosure market based on the below-mentioned segments:

Data Center Rack & Enclosure Market, By Component

• Solution
• Service

Data Center Rack & Enclosure Market, By Application

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

Data Center Rack & Enclosure Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa