South Korea Data Center Rack Market Insights Forecasts to 2033

• The South Korea Data Center Rack Market Size was valued at USD 66.4 Million in 2023.
• The Market is growing at a CAGR of 10.29% from 2023 to 2033
• The South Korea Data Center Rack Market Size is Expected to Reach USD 176.8 Million by 2033

The South Korea Data Center Rack Market Size is Anticipated to Exceed USD 176.8 Million By 2033, Growing at a CAGR of 10.29% from 2023 to 2033.

Market Overview

A data center rack is an array of a mounting structure used to hold and arrange servers, computing equipment, networking devices, and other hardware in a data center or server room. It is made of metal and features vertical posts equipped with holes for mounting. Data center racks come in various sizes and configurations, from 23-inch racks, to 19-inch racks, and more, according to industry standards. These racks provide safe and organized spaces for IT equipment, which includes servers, switches, routers, storage devices, and many more. In addition to this, they feature inbuilt features or can be customized with a cooling system so as to provide the right temperature for the enclosed equipment. Data center rack solutions are used in various sectors such as IT & telecom, BFSI, government, retail, and healthcare. The role of a data center rack is to provide holding space for servers of various sizes and heights, like rack-mounted or blade servers. Although they are designed to host servers, some racks are designed to support several components like networking equipment, Telcom equipment, cooling systems, and UPS.

Report Coverage

This research report categorizes the market for South Korea data center rack market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea data center rack 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-segment of the South Korea data center rack market.

Driving Factors

The Ministry of ICT and Science announced that 10,000 TB's worth of video content is consumed by South Koreans every day, using smartphones and such other mobile devices. Such developments only add to the demand for more racks in the country. Companies are increasingly using data centers for efficient management of their databases and storage because they generate significant amounts of data every day. Increased deployment of fully configured data centers remains the main driving factor for data center rack usage. Interestingly, market growth is also driven by a growing demand for IT services as well as major investments that have been made by big companies.

Restraining Factors

Current geopolitical instability, as well as continuous material shortages, macroeconomic volatility, manufacturing delays, and transportation bottlenecks, cause widespread supply chain disruptions that impact the availability and cost of the data center racks. These supply chain challenges are sure to cause delays in timely deployments, and also strain procurement of rack components and accessories.

Market Segment

The South Korea data center rack market share is classified into rack type and end user.

• The closed-frame segment is expected to hold the largest market share through the forecast period.

The South Korea data center rack market is segmented by rack type into open frame and closed frame. Among these, the closed-frame segment is expected to hold the largest market share through the forecast period. This is attributed to these racks consisting of locked enclosures. This ensures that the equipment is physically secured. In fact, with the rise of generative AI and the mandate to expand AI workloads quickly, many users quickly went in search of new IT infrastructure.

• The IT & telecommunication segment is expected to hold the largest market share through the forecast period.

The South Korea data center rack market is segmented by end-user into IT & telecommunication, BFSI, government, and media & entertainment. Among these, the IT & telecommunication segment is expected to hold the largest market share through the forecast period. This is attributed to the increased demand for data processing and cloud services, as well as connectivity solutions for digital transformation across several industries. The growth is further experienced in the increased use of internet services, mobile applications, and 5G technology.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea data center rack 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 Key Companies

• Olabs Technology Company Limited.
• DOBE Computing Co., Ltd.
• Raritan Inc.
• Delta Power Solutions
• Eaton Corporation
• Black Box Corporation
• Schneider Electric SE
• Rittal GMBH & Co.KG
• Dell Inc.
• Hewlett Packard Enterprise
• Others

Key Target Audience

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

Recent Development

• In February 2024, South Korea built a major data center cluster with an IT capacity of up to 1GW in the Gangwon Province. The site, near Gangneung and Donghae in the east of the country, could be home to up to 50 data centers, each with a capacity of 20MW.

Market Segment

This study forecasts revenue at regional, and country levels from 2022 to 2033. Spherical Insights has segmented the South Korea data center rack market based on the below-mentioned segments

South Korea Data Center Rack Market, By Rack Type

• Open Frame
• Closed Frame

South Korea Data Center Rack Market, By End User

• IT & Telecommunication
• BFSI
• Government
• Media & Entertainment