Global Data Center Rack Market - 2021-2028
The global data center rack market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX % during the forecast period (2021-2028).
A data center rack is a type of physical frame constructed primarily of steel and other alloys. Electronic servers, cables, networking devices, cooling systems, and other data center computing equipment are kept. The racks provide sufficient ventilation and room for the devices, ensuring that temperature fluctuations do not damage them and that cords, wires, and other costly components are not destroyed. A simple level rack comprises three to four mounting rails and a supporting framework that holds the rails in place. Each shelf has slots for attaching electrical, internet, and networking cables dependent on its capacity or the number of pieces of equipment it can hold.
For many businesses, data centers have become an essential part of their IT infrastructure. Companies rely on data centers to handle and store massive volumes of data generated regularly. As a result, the increasing deployment of data centers worldwide is the primary factor impacting data center rack consumption. The market's growth is also influenced by rising demand for technology services and increased investments from major corporations.
Servers, switches, cables, and other data center equipment are housed in these racks. Rack infrastructure has become a critical feature in data centers due to changing technologies and the adoption of high-density servers, with the need to effectively host servers, manage cables, and permit airflow for maximum data center operation.
Initially, data centers placed a low priority on rack infrastructure, with size and cost being the sole factors to consider during deployment. However, as high-density applications become more popular, the need for power, cooling, and data center efficiency grow, and so does the demand for efficient rack enclosures.
In response to growing concerns about product and customer safety, the market is expected to expand. Other factors, such as technological developments and increasing digitization, are projected to drive global data center rack market forward. The urge to improve corporate performance is fueling data center growth around the world. Furthermore, the growing adoption of industrial IoT-driven technologies such as data and analytics, artificial intelligence, security, and communication would impact market growth.
Rising applications of data center racks
The speedy growth of mobile broadband with development in big data analytics linked with cloud computing are the major factors driving for growth of new data centers. Moreover, the shift of companies from hardware to software-based services will also act as an important factor in the market. According to a survey, 33% of the company operates between 3 and 5 owned data centers. In comparison, 7% of organizations manage more than 50 data centers.
The desire to improve business performance is accelerating the growth of the data center globally. Moreover, the increasing use of industrial IoT-driven technologies, including data and analytics, artificial intelligence, security, and communication, will also impact the market growth.
The growing number of data centers globally will create new opportunities for the manufacturers to offer data centers racks due to its numerous advantages such as space savings, reduced downtime, ease of use, easy installation and better remote management.
The increasing adoption of data-intensive applications
The rise of the data center rack & enclosure market can be attributed to the rising acceptance of data-intensive applications such as big data analytics and machine learning and cloud computing and IoT. Data centers use rack configurations that can handle more servers per unit area to increase productivity and performance.
Companies in the industry are also offering customized racks and enclosures to meet the unique requirements of data centers. Recent high-density server and networking applications, such as AI and IoT, necessitate a rack infrastructure that can accommodate various equipment, enable cable management, and flexibly regulate ventilation.
Insufficient cooling requirements may hamper the market
Data center cable management is a difficult operation. Inefficient cable management can cause problems throughout an organization, including unorganized cabinets, difficulty installing equipment, and longer maintenance and troubleshooting times.
Due to restricted airflow to cabinets, insufficient cooling requirements in data centers create a dangerous environment. Furthermore, as rack density and multi-hop connections grow, keeping cabinets on excel spreadsheets becomes more difficult.
COVID-19 Impact Analysis
As a result of the global coronavirus outbreak, containerization, cloud computing, microservices, APIs, and blockchain are projected to become more widely used in digital banking solutions. As a result, the financial and banking industries will likely present several growth prospects for data centers.
With the increasing demand for data traffic management across several industry verticals, the market will experience significant growth in 2021. Corporations and academic institutions' abrupt adoption of remote working and e-learning technologies will drive demand for high-performance data center rack and enclosure solutions for equipment housing.
By component, global data center rack market is classified into solutions and services.
The services segment is expected to be the dominant type.
The services sector is likely to be the most significant. Data center installation is one of the services offered, and it is a complicated operation that necessitates experienced technical assistance. Data center rack enclosures are inspected with the assistance of installation service providers. Mounting the server, power, cooling, and cabling infrastructure over the data center racks and installing this equipment to remain stable and do not slide out of place are all included in installation services.
North America holds the largest market share global data center rack market.
The North America region holds the largest market share of the worldwide data center rack market, with the U.S accounting for most demand. U.S is the leading country with a home of more than 2500 data centers, accounting for 35 to 40% of market share globally. Moreover, other countries like Canada have more than 250 data centers, fueling the global data center rack market demand for better space, power, and cooling management.
Multiple enterprises are switching from hardware to software-based services, which is anticipated to grow data center installations in the region. Moreover, the U.S government has been taking various initiatives in the field, impacting the market growth. For instance, the U.S government has commenced Data Center Optimization Initiative to offer more reliable services to the public.
With growing opportunities in the region, leading companies are coming up with a new solution to strengthen their market position. For instance, from 2021- B3 Group Inc, a U.S company, has started offering high-density racks in the market. The new racks have 2.5 times greater energy capacity than previously provided at its high-technology data center at Santana do Parnaíba.
The market for data center racks is fragmented. Rack infrastructure has become an important part of data centers due to evolving technologies and the adoption of high-density servers, with the need to effectively host servers, manage cables, and permit airflow to maintain optimum data center operation. Overall, there is fierce competition among the existing competitors. Large organizations' new innovative methods are driving the data center racks industry. Eaton, Rittal, HPE, IBM, Cisco, Fujitsu, Dell, Schneider Electric, AGC Networks, and Oracle are the major participants in the worldwide data center rack market.
Overview: Eaton is committed to producing power management solutions that are more dependable, efficient, safe, and sustainable to improve people's lives and the environment. It is a global power management corporation with over 92,000 workers operating in over 175 countries. Customers can manage electrical, hydraulic, and mechanical power more reliably, efficiently, safely, and sustainably with the support of energy-efficient products and services. By providing individuals with the tools, they need to use power more effectively.
Product Portfolio: The Company provides a wide variety of products in various markets such as aerospace, buildings, data center, food & beverages, government & military, healthcare, machine building, mining & minerals, oil & gas, rail, renewables, residential, utilities, and vehicles.
Key Developments: In Jan 2019, Eaton announced the launch of its High-Density rack power distribution unit (PDU) platform in North America. The High-Density rack PDU offers superior configurability and is an ideal option for applications requiring high power density. It is based on Eaton's ePDU G3 technology, which offers best-in-class power distribution capabilities.
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