Data Center Rack Market - Global Outlook and Forecast 2018-2023
This market research report on global data center rack market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by product (rack cabinets and accessories), by rack size (below 42U, 42U, 45U & 47U, 48U, and other rack units), by end-users (colocation providers and enterprise), and by geography (Americas, EMEA, and APAC).
Data Center Rack Market - Overview
The increase in computing power due to the growing demand for cloud computing, Internet of Things (IoT), and big data analytics solutions are propelling the growth of the global data center rack market through increased construction greenfield, brownfield, and modular facilities. The rising adoption of converged and hyper-converged solutions and virtualization and the need for high-performance computing (HPC) will increase in the rack power density to an average of 8–10 kw. The use of innovative and flexible facility designs with hot aisle containment systems and diverse electricity feed for racks will lead to the transformation of the global market. The construction of large and mega facilities that are equipped with thousands of racks will create lucrative opportunities for leading vendors operating in the global market. The installation of pre-assembled infrastructure along with rack PDUs, rack-level UPS, and IT infrastructure is modernizing the global market. The launch of performance optimized data (POD) centers is promoting innovations in the market and will boost the revenues. The top players are focusing on innovating rack infrastructure in terms of open designs, increased proliferation over 80%, the weight capacity of the rack, and flexibility for service, to meet the varied customer needs in the market. The increasing demand for high density taller rack systems will increase competition among vendors offering 45U, 47U, and 48U rack enclosures in the global data center rack market.
The growing investments in regions such as the US, the UK, Germany, and China for the deployment of new facilities will fuel the revenues and sales in the global market. The increasing complexity in the cable and air flow management has led to the procurement of deeper and wider rack architecture among facilities operators in the market. The global data center rack market is projected to reach revenues of approximately $3 billion by 2023, growing at a CAGR of around 8% during 2017-2023. The report also includes market size analysis in terms of shipment units for the duration during the forecast period.
Data Center Rack Market - Dynamics
The growing interest towards the procurement of taller, deeper, and wider racks is one of the primary factors attributing to the growth of the global data center rack market. The top companies are offering a wide range of taller systems in through their portfolios that includes server and network cabinets that are taller than industry standard 42U configuration. The adoption of these new systems will enable the equipment of multiple high-performance infrastructures such as servers in a single rack, better utilization of facilities floor space, reduces CAPEX, and better cable and airflow management in the global market. These architectures are designed to enable operators to optimize space and improve efficiency. Customization is one of the key factors helping key players attract a larger number of consumers in the global data center rack market. The vendors are offering solutions as per the consumers’ operational and space requirement in the global market.
Data Center Rack Market - Segmentation
This market research report includes a detailed segmentation of the market by products, rack size, end-users, and geography.
Data Center Rack Market – By Product
Increase in rack power density will increase the need for accessories in the global data center rack market during the forecast period
The global data center rack market by products is classified into rack cabinets and accessories. The rack cabinet segment dominated the majority of the market share in 2017, growing at a CAGR of more than 7% during the forecast period. The increasing use of these cabinets to mount data center critical and support infrastructure is augmenting the growth of this segment in the global market. The vendors are providing cabinets of a variety of size and capable of mounting infrastructure that weights up to thousands of pounds to attract a maximum number of consumers in the market. The different kinds of racks manufactured in the market include open frame rack infrastructure and rack cabinets or enclosures. Open frames are adapted to equip network infrastructure such as switches, where cabinets are offered as server and network cabinets by the vendors. The various types of cabinets available in the market include wall mount cabinets, seismic cabinets, soundproofcabinets with integrated modular power and coolinginfrastructure. The procurement of different kind solutions that vary in size, design, and associated components will transform the global data center rack market.
Data Center Rack Market – By Rack Size
Increase in Deployment of taller, deeper and wider rack architecture will continue in the global data center rack market throughout the forecast period
The rack size segment in the global data center rack market is segmented into below 42U, 42U, 45U & 47U, 48U, and other rack units. The 42U segment occupied more than half of the market share in 2017. 42U is the standard infrastructure design and the most commonly used solution in the global market. Colocation facilities are the largest adopters of these designs and it is highly dependent on the service provider and customer preference in the global market. The construction of new data center facilities and renovation processes of old infrastructure are some of the primary reason attributing to the growth of this segment in the global market. The prominent players are innovating with other racks units offerings with increased over 80% of proliferation, deeper and wide racks for between airflow and cable management to boost sales in the global data center rack market. The declining ASP of these systems will also boost the adoption of these products in the global market.
Data Center Rack Market – By End-Users
Investments in hyperscale facilities and flexible design of colocation facilities will augment growth in the global data center rack market
The global data center rack market by end-user is divided into colocation providers and enterprise. Colocation providers dominated the largest market share in 2017, growing at a CAGR of more than 8% during the forecast period. The increasing investments made in the deployment of hyperscale facilities and growing adoption of managed colocationor managed hosting services is propelling the growth of this segment in the global market. Equinix, Digital Realty, CyrusOne, Interxion, NTT, and Global Switch are some of the top investors in the global market. These vendors are involved in the adoption of thousands of innovative rack solutions in the global market. The deployment of modular facilities includes prefabricated containment solutions for each data hall or containerized module adoption comprising of up to 50 racks each. Such facilities are designed to offer higher power density and boost the revenues for the leading vendors in the global data center rack market during the forecast period.
Data Center Rack Market – By Geography
The US to dominate the revenues generated in the global data center rack market during the forecast period
The geographical segment in the global data center rack market is categorized into Americas, EMEA, and MEA. Americas occupied the majority of the market share in 2017, growing at a CAGR of approximately 6% during the forecast period. The strong partnerships are resulting in declining ASPs in Americas and augmenting the growth of this region in the global market. The leading vendors are offering integrated power, cooling, and IT infrastructure to attract a higher number of consumers and gain a larger market share. The US and Canada will witness higher investment in mega facilities projects, contributed heavily by colocation, internet, and cloud service providers, thereby, boosting the demand in the global data center rack market.
Key Countries Profiled
The key countries profiled in the report are:
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