Dublin, Aug. 02, 2024 (GLOBE NEWSWIRE) -- The "Data Center Rack Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The data center rack market, a crucial component of information technology infrastructure, is witnessing an exponential growth trajectory. It is anticipated to expand from US$4.268 billion in 2022 to US$8.426 billion by 2029, flourishing at a Compound Annual Growth Rate (CAGR) of 10.2%.
This robust growth can be attributed to the accelerating demand for data centers around the world, as enterprises confront the surge in cloud networking and big data applications.
Growing big data volumes, along with increased digitization and IoT applications across diverse industries, are creating a massive demand for modernized data center facilities. This demand is not merely for expansion but also for efficiency, given the prevailing focus on environmental sustainability and reducing power consumption. Moreover, the availability of cost-effective rack solutions has stimulated market growth. Enhancements and innovations in data center rack offerings are expected to sustain market development over the coming half-decade.
The market's upswing is also fueled by the increasing data traffic from connected devices, burgeoning internet penetration, and significant investments in 5G technology. Furthermore, the urge for enhanced security in software-defined storage solutions has catalyzed the need for advanced rack servers, especially in large enterprises aiming to cut operational and capital expenditures.
Market Segmentation Insights
Data center racks sized between 23U-36U and 37U-48U are witnessing a substantial increase in demand, particularly from IT and multinational companies. The market has identified these unit sizes as most suitable for medium-sized enterprises, leading to their widespread adoption. This uptake is complemented by strategic pricing and offers extended by vendors to small and medium-sized enterprises, spurring growth in this sector.
In the enterprise segment, large enterprises hold a substantial share attributable to their high volume of data. The continuous data proliferation necessitates the adoption of more extensive and efficient data center racks, thereby propelling market demand. Conversely, the small enterprise sector is projected to observe a considerable growth rate over the forecast period due to its increasing reliance on data center racks as a cost-effective solution for IT infrastructure.
Geographical Market Developments
North America holds a commanding position in the data center rack market and is expected to maintain a high growth rate throughout the forecast period. The region's market is propelled by the escalating need for data center infrastructure, driven by the exponential growth in mobile broadband, big data analytics, cloud computing, and the proliferation of hyperscale data centers. The United States, with the highest number of data centers per capita globally, continues to spearhead this growth.
Significant Market Developments and Product Launches
Recent market developments include the launch of innovative rack systems and the opening of new data centers. Innovations such as the modular IT rack systems from leading manufacturers are tailored to fit into a range of IT architectures. Market players continue to push for advancement, making waves with new offerings that suit customers' evolving needs more effectively.
Similarly, the inauguration of new data centers with unparalleled IT load capacities marks a significant step forward in meeting the demands of digital transformation globally.
In summary, the staggering expansion of the data center rack market is a reflection of the digital acceleration in global business ecosystems, emphasizing the need for agile, efficient, and sustainable IT infrastructure solutions. With continued innovation and strategic product offerings, the market is well-positioned for sustained growth and transformation in the years to come.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 135 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value (USD) in 2022 | $4.27 Billion |
| Forecasted Market Value (USD) by 2029 | $8.43 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Global |
Companies Featured
- Hewlett Packard Enterprise Development LP
- Cisco Systems, Inc.
- Eaton
- Friedhelm LOH Group
- Panduit
- AGC Networks (Black Box)
- Schneider Electric
- Vertiv Group Corp.
- FUJITSU
- Huawei Technologies Co., Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/ja4192
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