NEW YORK, July 24, 2024 /PRNewswire/ -- The
global data center rack market size is estimated to grow by
USD 2.07 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a
CAGR of 12.66% during the forecast period. Increasing investments
in data centers is driving market growth, with a trend towards
growing need for edge computing. However, increasing focus on data
center consolidation poses a challenge. Key market players
include Belden Inc., Black Box Ltd., Chatsworth Products Inc.,
Cisco Systems Inc., CONTEG spol sro, Databricks Inc., Dell
Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu
Ltd., Hewlett Packard Enterprise Co., International Business
Machines Corp., Legrand, nVent Electric Plc, Oracle Corp., Panduit
Corp., RackSolutions Inc., Rittal GmbH and Co. KG, Schneider
Electric SE, and Vertiv Holdings Co..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (Server rack and
Network rack), Product Specification (Medium, Large, and Small),
and Geography (North America, Europe, APAC, South America, and
Middle East and Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
Belden Inc., Black Box
Ltd., Chatsworth Products Inc., Cisco Systems Inc., CONTEG spol
sro, Databricks Inc., Dell Technologies Inc., Delta Electronics
Inc., Eaton Corp. Plc, Fujitsu Ltd., Hewlett Packard Enterprise
Co., International Business Machines Corp., Legrand, nVent Electric
Plc, Oracle Corp., Panduit Corp., RackSolutions Inc., Rittal GmbH
and Co. KG, Schneider Electric SE, and Vertiv Holdings
Co.
|
Key Market Trends Fueling Growth
The global data center rack market is experiencing significant
growth due to the increasing adoption of edge computing. Edge
computing, a model that processes IoT device-generated data at the
network edge, is gaining popularity with the proliferation of
Internet-connected devices. By 2024, IDC projects that 157
zettabytes of data will be generated globally, with 20% originating
at the edge. Real-time processing needs for emerging applications
such as autonomous vehicles, industrial automation, and smart city
solutions demand ultra-low latency data processing, which edge
computing facilitates by processing data closer to the source.
Additionally, edge computing mitigates bandwidth and cost
challenges by reducing the necessity to send all data to the cloud,
optimizing bandwidth usage, and reducing costs. Furthermore, edge
computing addresses sustainability and efficiency concerns by
locally processing data, minimizing the need for cloud data
transmission, and diminishing overall energy footprints. Industries
such as manufacturing, utilities, retail, automotive, and
healthcare are rapidly adopting edge computing solutions to unlock
new use cases, enhance operational efficiency, and elevate customer
experiences. With the commercial deployment of 5G technology, the
market for data center racks is expected to continue growing during
the forecast period.
The Data Center Rack market is witnessing significant trends in
2023. Damage and risks to data are top concerns, leading to
increased demand for modular racks from NetRack and others. Online
payment systems in digital banking require robust data center
solutions, driving investments. Containerization, microservices,
and blockchain technologies are transforming computing space.
Mobile broadband and cloud services are expanding the market,
requiring optimization and network services. Integrated power and
cooling solutions are essential for high-density data centers. Mega
facilities projects in the dataintensive sector continue to drive
demand for specialized enclosures, server brands, and hardware.
Ventilation and cable management are crucial for server density.
Data center optimization and networking devices are key focus areas
for businesses.
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Market Challenges
- Infrastructure-as-a-Service (IaaS) is a cloud computing concept
where companies utilize virtualized computing resources over the
Internet. Notable IaaS providers include DigitalOcean, Linode,
Rackspace, Amazon Web Services, Cisco Metapod, Microsoft Azure, and
Google Compute Engine. The expanding IaaS market is leading to data
center consolidation. This involves merging or reducing the scale
of data center facilities to decrease operating costs and control
emissions. Software companies like Box, Salesforce, Tableau, and
SAP are moving towards common cloud platforms, reducing the need
for individual data centers. Storage virtualization is essential
for storing and processing information, reducing the need for
additional storage infrastructure and offering high-availability
services. Virtualization increases input and output streams through
resource pooling from multiple storage devices, managed via a data
management console. However, the efficiency of storage components
decreases due to increased IO operations per second. Enterprises
must plan for storage efficiency and capacity before implementing
virtualization features. Data center consolidation results in fewer
investments in new data center establishments due to the growing
number of tier-3 and tier-4 data centers globally. This trend
decreases demand for data center components, negatively impacting
sales and reducing the data center footprint worldwide. Despite the
challenges, data center consolidation requires expertise, time, and
carries risks. The shrinking data center market may hinder the
growth of the global data center rack market during the forecast
period.
- Data Centers are essential for businesses to store, manage, and
access their digital assets. Colocation services allow companies to
rent computing space in a Data Center, but challenges arise due to
data center whitespace limitations. Server density is increasing
with the adoption of high-density servers, specialized enclosures,
and hyperscale data centers. Data center investments require
optimization through network services, cooling systems, and cable
management. Server brands, ventilation, and cooling systems are
crucial for high-performance computing, mission-critical
applications, and cloud technologies. Geographic regions, IT
budgets, and IT infrastructure demand data center racks, servers,
switches, and cables that support high-density servers and
efficient power consumption. Data-intensive sectors like online
shopping, cloud computing, big data analytics, digital stores,
social networks, and hyperscale data centers require specialized
solutions. Business continuity and edge computing add to the
complexity. Power consumption, efficiency, and data traffic are key
concerns. Data Center Racks play a vital role in managing these
challenges, ensuring a reliable and efficient IT
infrastructure.
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challenges - Download a Sample Report
Segment Overview
This data center rack market report extensively covers market
segmentation by
- Type
- 1.1 Server rack
- 1.2 Network rack
- Product Specification
- 2.1 Medium
- 2.2 Large
- 2.3 Small
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Server rack- The server rack market is
experiencing growth due to the increasing demand for servers and
storage devices from enterprises to support business trends such as
Big Data analytics. Big Data analytics involves analyzing large and
varied data sets to identify patterns and trends, necessitating the
development of efficient server systems for fast processing and
extensive data management. This, in turn, increases investments in
Big Data analytics and creates a need for integrating High
Performance Computing (HPC) with Big Data analytics. The demand for
server infrastructure has grown significantly in the past five
years and is expected to continue at a steady pace. This growth is
driven by the expansion of data centers, colocation data centers,
and HDCs, as well as technology upgrade cycles. The evolution of
HPC architecture has led to the management of large amounts of
unstructured and structured data, which requires high-throughput
and high-availability storage devices and servers. Additionally,
the increasing adoption of cloud-based services has resulted in a
significant increase in the number of server units required for
cloud infrastructure. Server virtualization, which transforms one
server into multiple isolated services, is a trend among large
enterprises to increase productivity, centralize management, and
cut costs. Virtualization eliminates server sprawl and makes better
use of server resources, but it also increases the need for
switches and routers to connect multiple users to a single server.
In summary, the server rack market is growing due to the increasing
demand for servers and storage devices for Big Data analytics, the
expansion of data centers, technology upgrade cycles, the adoption
of cloud services, and server virtualization. The need for
efficient and high-capacity server systems, as well as the
increasing number of server units required for cloud
infrastructure, will drive the growth of the server rack
market.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Data Center Rack PDU Market is experiencing
significant growth, driven by the increasing demand for efficient
power distribution solutions in data centers. Concurrently, the
Data Center Rack Market in Saudi
Arabia is expanding rapidly, fueled by the nation's digital
transformation initiatives and investments in IT infrastructure.
Additionally, the global Data Center Server Market is witnessing
robust growth due to the surge in data generation, cloud computing
adoption, and the need for enhanced server performance and
scalability. These trends underscore the critical role of data
center infrastructure in the evolving digital landscape.
Research Analysis
The Data Center Rack market encompasses the demand for rack
solutions in data centers, colocation facilities, and other IT
infrastructure environments. Data center whitespace is a critical
consideration in the market, as server density continues to
increase due to data center optimization and the adoption of
high-density data center designs. Data center investments are
driving growth in the market, with a focus on network services,
ventilation, cable management, and cooling systems to ensure
efficient and reliable IT infrastructure. Cloud technologies are
also fueling demand for data center racks, as more companies move
their IT operations to the cloud. The market includes data centers,
servers, switches, cables, storage, and cooling systems, among
other components. Data center rack solutions provide computing
space for servers, switches, and other IT equipment, and are
essential for managing the complex IT infrastructure required in
today's digital economy.
Market Research Overview
The Data Center Rack Market encompasses the demand for rack
infrastructure in data centers, colocation facilities, and other IT
environments. Data center whitespace is a significant driver, with
increasing server density leading to higher demand for efficient
rack solutions. Data center investments continue to grow, fueled by
the dataintensive sector, including online shopping, cloud
computing, big data analytics, digital stores, social networks, and
hyperscale data centers. Network services, cooling, and power
consumption are key considerations, with specialized enclosures,
ventilation, and cable management essential for optimizing
computing space. High-density servers and modular racks, such as
NetRack, are popular solutions for maximizing IT infrastructure
efficiency. Geographic regions, IT budgets, and business continuity
plans also impact market trends. Additionally, emerging
technologies like edge computing, high-performance computing, and
cloud technologies require specialized rack infrastructure. Power
consumption and cooling efficiency are critical factors, with
integrated power and cooling systems gaining popularity. Data
traffic, mission-critical applications, and risks, such as damage
and business disruption, further emphasize the importance of
reliable rack infrastructure. Other factors include server brands,
storage, switches, cables, and hardware, as well as emerging trends
like containerization, microservices, blockchain, mobile broadband,
and mega facilities projects.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Product Specification
-
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
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Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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