The data center rack & enclosure market is expected to surpass $5 billion by 2024, according to a new research report by Global Market Insights. The data center rack & enclosure market will experience a substantial growth over the forecast time span owing to the rapid increase in the number of data centers globally.
Technological advancements and the increasing adoption of IoT, AI, and cloud for various industrial processes are supporting the growth of the data center rack & enclosure market. Rapid growth in cloud-based solutions, virtualization, enhanced data processing capabilities, high-performance computing solutions, and the requirement to expand the existing infrastructure are the key factors generating a high demand for data center facilities.
The enclosures being offered would provide advantages such as enhanced cable management options, airflow management capacities, security, and stability over open frame racks.
IT & telecom, Colocation, Government
The hardware segment accounted for over 80% of the data center rack & enclosure market and will experience growth owing to the growing demand for high-quality infrastructure from several domains such as BFSI, healthcare, government, manufacturing, IT & telecom, colocation, and government.
Infrastructural upgrading in data centers and a growing importance for high-density server environments are also driving the data center rack & enclosure market. Moreover, increasing efforts directed toward ensuring rack level physical security are expected to aid the industry growth. Racks equipped with cooling systems are gaining significance owing to the growing demand for enhanced cooling solutions. The infrastructure operators are stressing on building sensors and camera-infused rack level security systems.
Asia Pacific, India, Japan
The data center rack & enclosure market in Asia Pacific is projected to experience substantial growth and will reach $1 billion by 2024 owing to the rise in the number of businesses coupled with the shifting trend toward digitalization of all processes. Rapid urbanization in India, growth in the Internet penetration, and the expanding telecommunication sector would lead to a mounting pressure to handle the increasing amount of data. In addition, the advanced electronics industry of Japan will provide strong growth opportunities for the Asia Pacific data center rack & enclosure market.
The data center rack & enclosure market has some chief global players including Hewlett Packard Enterprise (HPE), Rittal, Schneider Electric, Dell, Eaton, Vertiv, Legrand/Minkels, and Emerson Electric.