Data Center Rack Market by Rack Type (Open Frame, Enclosed), Type (Server Racks, Network Racks), Rack Height (42U & Below, 43U up to 52U), Rack Width (19 Inch, 23 Inch), Data Center Type (Enterprise, Colocation, Hyperscale) - Global Forecast to 2030
The global data center rack market will grow from USD 5.17 billion in 2025 to USD 9.42 billion by 2030 at a compounded annual growth rate (CAGR) of 12.7% during the forecast period. Data center racks are widely used as data centers grow internationally, with the rise of cloud computing, IoT, AI, and big data analytics. The surging demand for colocation and hyperscale data centers boosts the use of high-density and energy-efficient scalable rack systems. Furthermore, the rise in edge computing is making it necessary for compact, flexible, and strong racks appropriate for remote or crowded locations. More attention to energy efficiency and using sustainable options leads organizations to choose racks that improve their airflow systems and combine advanced cooling.
Scope of the Report
Years Considered for the Study
2020-2030
Base Year
2024
Forecast Period
2025-2030
Units Considered
USD (Billion)
Segments
By Offering, Type, Rack Height, Rack Width, Data Center Size, Data Center Type, On-premises/Enterprise Vertical
Regions covered
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
A major restraint in this sector is the high cost for small and medium-sized firms to start with even basic advanced racks. Many companies find their data centers overcrowded and lack the infrastructure for updated systems. Integration with existing IT, supply chain issues, and thermal management in high-density systems also hinders market growth. Nonetheless, innovations in modular and intelligent racks are promoting expansion.
Based on services, the installation & deployment segment is expected to hold the largest market share during the forecast period
The installation & deployment segment is expected to hold the largest market share in the data center rack market during the forecast period due to the growing need for seamless integration of increasingly complex infrastructure. With data centers developing according to high-density computing and edge deployments, organizations and colocation vendors focus on professional services to correct rack configuration, cable routing and management, airflow planning, and power delivery.
Professional deployment services help reduce downtime, ensure regulatory compliance, and offer faster time-to-market for data center operations, making them extremely important in the fast-moving digital economy. In addition, the growing use of modular and prefabricated data centers has fueled demand for effective deployment services. As hyperscalers, cloud service providers, and enterprises continue to increase their data center presence to address the rising data demand, the installation & deployment segment will continue to facilitate effective, scalable, and affordable infrastructure deployment.
Based on the rack type, the server rack segment is expected to grow at the highest CAGR during the forecast period
The server rack segment is expected to grow at the highest CAGR during the forecast period due to the increasing demand for high-density computing and scalable IT infrastructure. With enterprises and hyperscale data centers increasing their IT operations for handling AI, big data analytics, and cloud computing, efficient and stable server deployment becomes a high-priority requirement. Server racks provide organized, secure, and space-efficient enclosures to install multiple servers, which results in better airflow management, easier maintenance, and better power distribution.
The rising need for edge computing and modular data centers drives demand for efficient, flexible, and space-saving server rack solutions with fast deployment. In addition, continued developments of rack designs to accommodate increasing power densities and cable management integration boost the attractiveness of server racks over other forms, making them a key growth factor within the changing data center environment.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
Considering the boom in digital transformation, rapid adoption of the cloud, and the deployment of 5G and edge infrastructure, the Asia Pacific data center rack market is carving out a unique identity as the fastest-growing regional segment globally. China, India, and Japan are at the helm of this growth trajectory. China is the largest market, undergoing huge investments in hyperscale data centers by domestic giants and backed with government protocols such as the New Infrastructure Plan. India is the fastest-growing country, along with the Digital India campaign, which benefits startups on a large scale and the growing cloud footprint of global players.
There is an increasing demand for enclosed racks with integrated power and cooling to support high-density computing workloads such as AI and big data analytics. Modular, seismic-resistant, and wall-mount configuration racks are gaining popularity to cater to the requirements of various environments extending from hyperscale to the edge. Moreover, due to space constraints and environmental regulations, Singapore and Japan aim for sustainable and energy-efficient rack solutions.
Breakdown of primaries
We interviewed Chief Executive Officers (CEOs), directors of innovation and technology, system integrators, and executives from several significant data center rack market companies.
By Company: Tier I: 35%, Tier II: 40%, and Tier III: 25%
By Designation: C-Level Executives: 35%, Director Level: 25%, and Others: 40%
By Region: North America: 30%, Europe: 25%, Asia Pacific: 35%, Rest of World: 10%
Some of the significant data center rack market vendors are Schneider Electric (France), HPE (US), Rittal (Germany), Eaton (Ireland), Vertiv (US), Dell Technologies (US), Fujitsu (Japan), IBM (US), Cisco (US) and Legrand (France).
Research coverage:
The market report covered the data center rack market across segments. We estimated the market size and growth potential for many segments based on offerings, rack type, rack height, rack width, data center size, data center type, and on-premises/enterprise verticals and regions. It contains a thorough competition analysis of the major market participants, information about their businesses, essential observations about their product and service offerings, current trends, and critical market strategies.
Reasons to buy this report:
With information on the most accurate revenue estimates for the whole data center rack industry and its subsegments, the research will benefit market leaders and recent newcomers. Stakeholders will benefit from this report's understanding of the competitive environment, which will help them better position their companies and develop go-to-market strategies. The research offers information on the main market drivers, constraints, opportunities, and challenges, as well as aids players in understanding the pulse of the industry.
The report provides insights on the following pointers:
Analysis of key drivers (rapid growth in data generation and storage need from cloud computing, AI and IoT, Adoption of modular and edge data centers, driving demand for flexible rack systems, Rise in number of data center facilities across geographies, Increasing server density), restraints (space and power limitation in legacy data centers, high initial setup cost associated with advanced rack infrastructure), opportunities (innovation in thermal management and smart rack technologies, innovation in thermal management and smart rack technologies, Increasing hyperscale deployment), and challenges (integration with legacy infrastructure and backward capability, ensures physical security and compliance with data protection regulations), influencing the growth of the data center rack market.
Product Development/Innovation: Comprehensive analysis of emerging technologies, R&D initiatives, and new service and product introductions in the data center rack market.
Market Development: In-depth details regarding profitable markets: the paper examines the global data center rack market.
Market Diversification: Comprehensive details regarding recent advancements, investments, unexplored regions, new goods and services, and the data center rack market.
Competitive Assessment: Thorough analysis of the market shares, expansion plans, and service portfolios of the top competitors in the data center rack industry, such as Schneider Electric (France), HPE (US), IBM (US), Eaton (Ireland), Rittal (Germany), Dell Technologies (US), Fujitsu (China), Vertiv (US), Cisco (US), Legrand (France), CommScope (US), Oracle (US), Belden (US), Panduit (US), Huawei (China), NEC Corporation (Japan), Asus (Taiwan), Lenovo (Hong Kong), Great Lakes Data Racks & Cabinets (US), IMS Engineered Products (US), Black Box (US), Chatsworth Products (US), Cheval (Thailand), Iron Systems (US), Vantage Data Centers (US), Aligned Data Centers (US), Yotta Infrastructure (India), RackBank Datacenters (India), Inspur Systems (China), and nVent (US).
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 STAKEHOLDERS
1.6 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
2.1.1.1 Key data from secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 List of key primary interview participants
2.1.2.2 Breakup of primary profiles
2.1.2.3 Key data from primary sources
2.1.2.4 Key insights from industry experts
2.2 MARKET BREAKUP AND DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION
2.3.1 TOP-DOWN APPROACH
2.3.2 BOTTOM-UP APPROACH
2.4 GROWTH FORECAST
2.5 RESEARCH ASSUMPTIONS
2.6 RESEARCH LIMITATIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN DATA CENTER RACK MARKET
4.2 NORTH AMERICA: DATA CENTER RACK MARKET, BY OFFERING & COUNTRY, 2025
4.3 ASIA PACIFIC: DATA CENTER RACK MARKET, BY OFFERING & COUNTRY, 2025
4.4 DATA CENTER RACK MARKET, BY OFFERING
4.5 DATA CENTER RACK MARKET, BY RACK TYPE
4.6 DATA CENTER RACK MARKET, BY TYPE
4.7 DATA CENTER RACK MARKET, BY SERVICES
4.8 DATA CENTER RACK MARKET, BY RACK HEIGHT
4.9 DATA CENTER RACK MARKET, BY RACK WIDTH
4.10 DATA CENTER RACK MARKET, BY DATA CENTER SIZE
4.11 DATA CENTER RACK MARKET, BY DATA CENTER TYPE
4.12 DATA CENTER RACK MARKET, BY ON-PREMISES/ENTERPRISE VERTICALS
5 MARKET OVERVIEW AND INDUSTRY TRENDS
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Increasing demand for data generation and storage needs from cloud computing, AI, and IoT
5.2.1.2 Adoption of modular and edge data centers
5.2.1.3 Surge in data center facilities across geographies
5.2.1.4 Increase in server and storage density
5.2.2 RESTRAINTS
5.2.2.1 Space and power limitations in legacy data centers
5.2.2.2 High initial setup cost associated with advanced rack infrastructure
5.2.3 OPPORTUNITIES
5.2.3.1 Innovations in thermal management and smart rack technologies
5.2.3.2 Rising adoption of AI & ML workload, requiring optimized rack infrastructure
5.2.3.3 Surge in hyperscale deployment
5.2.4 CHALLENGES
5.2.4.1 Integration of modular racks with legacy infrastructure and backward compatibility
5.2.4.2 Ensuring physical security and compliance with data protection regulations
5.3 INDUSTRY TRENDS
5.3.1 BRIEF HISTORY OF DATA CENTER RACK MARKET
5.3.1.1 1990-2000
5.3.1.2 2000-2010
5.3.1.3 2010-2020
5.3.1.4 2020 to Present
5.3.2 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
5.3.3 PRICING ANALYSIS
5.3.3.1 Average selling price trend of key players, by rack height, 2025
5.3.3.2 Indicative pricing analysis of data center rack market, by rack height, 2025
5.3.4 SUPPLY CHAIN ANALYSIS
5.3.5 ECOSYSTEM/MARKET MAP
5.3.6 TECHNOLOGY ANALYSIS
5.3.6.1 Key technologies
5.3.6.1.1 Rack enclosures
5.3.6.1.2 Power distribution units
5.3.6.1.3 Cable management system
5.3.6.2 Complementary technologies
5.3.6.2.1 Uninterruptible Power Supplies (UPS)
5.3.6.2.2 Data center infrastructure management (DCIM) software