Data Center Rack Market 2025 Edition: Industry Size to Reach $9.42 billion by 2030, At a CAGR of 12.7%

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 worldwide data center rack market [https://www.marketsandmarkets.com/Market-Reports/data-center-rack-market-210971325.html?utm_campaign=datacenterrackmarket&utm_source=abnewswire.com&utm_medium=paidpr] is expected to expand at a compound annual growth rate (CAGR) of 12.7% from USD 5.17 billion in 2025 to USD 9.42 billion by 2030. A data center rack is a piece of hardware used to install servers, networking devices, and other computer equipment in a data center in a neat and practical way. The growing demand for edge computing, high-density computing, and modern architecture is causing a dynamic shift in the data center rack market. Compared to traditional server deployments, modern racks offer superior cable management, airflow control, and support for power and cooling infrastructure.

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Smart rack solutions may also be integrated with DCIM software to monitor power consumption, temperature, and equipment health, enabling timely decision-making and avoiding downtime. These features are particularly valuable in financial, telecom, and cloud operations, where performance and availability are critical to the mission. Remote access is supported by secure methodologies such as encrypted communication, audit trails, and multi-factor authentication to meet stringent compliance requirements. With remote IT administration becoming more prominent in hybrid and edge computing environments, there is an increasing need for intelligent, accessible rack solutions.

Based on services, the support & maintenance segment is expected to grow at highest CAGR during the forecast period

The support and maintenance segment is expected to grow at the highest CAGR during the forecast period. This is because the complexity of data center infrastructure is increasing, and there is a greater need for operational efficiency and high availability. With organizations expanding the capabilities of their data centers to support cloud computing, edge computing, and applications of AI, there is an ever-growing requirement for guaranteed and continuous technical support to minimize downtime and ensure peak rack performance. Support and maintenance offerings include preventive maintenance, hardware diagnostics, software updates, and real-time troubleshooting, critical in maintaining uptime and achieving maximum equipment life.

Furthermore, the rise of remote and hybrid workspaces has increased the reliance on dependable IT infrastructure, leading organizations to invest more in proactive support technologies. Managed service providers and data center companies outsource maintenance services to specialized companies to reduce internal overhead and improve service levels. This trend, combined with the increasing uptake of modular and high-density rack solutions, further highlights the importance of ongoing support and maintenance and is, as such, a prime growth area in the data center rack ecosystem.

Based on rack type, the enclosed segment is expected to hold largest market share during the forecast period.

The enclosed segment will likely maintain the highest market share in the data center rack market through the forecast period based on its increased security, better airflow management, and efficient cooling ability. Enclosed racks, for example, cabinet-style racks, ensure a safe environment for high-end IT equipment as they block unauthorized physical access and safeguard against environmental threats such as dust and debris. The growing demand for scalable, modular, and power-efficient infrastructure in hyperscale and colocation data centers also drives the adoption of enclosed racks. As businesses increasingly depend on cloud services and edge computing, the requirement for more reliable and organized server environments becomes necessary. As the importance of data protection and compliance increases in BFSI and healthcare, sealed racks offer an added layer of physical security.

Based on region, the Asia Pacific is expected to grow at the highest CAGR during the forecast period

Asia Pacific is expected to witness the highest CAGR in the data center rack market during the forecast period, driven by rapid digital transformation, cloud adoption, and rising data consumption across emerging economies. The increasing need for finance, healthcare, and e-commerce drives China, India, Indonesia, and Australia to build new hyperscale and edge data centers.

Government initiatives, such as Digital India and China's New Infrastructure Plan, enhance infrastructure development, while regulations requiring data to remain local are establishing more data centers in each country. The integration of facilities such as D1 in Darwin with subsea cables significantly enhances connectivity in the region. This development underscores the increasing demand for well-engineered, modular racks to support evolving infrastructure needs. Simultaneously, the rollout of 5G, the increase in AI workflows, and smart city activities based on the Internet of Things are driving interest in large-scale rack systems that run efficiently on low energy. These trends make APAC a major driver in the global data center rack sector.

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Unique Features in the Data Center Rack Market

Modern data center racks offer modularity, allowing organizations to scale infrastructure easily as per workload demands. These racks support hot-swappable components and customizable configurations, ensuring flexible deployment without major overhauls.

One of the key advancements is the integration of superior airflow designs, such as perforated doors and containment systems. These features help maintain optimal temperature levels, improve energy efficiency, and reduce the need for external cooling systems.

New-generation racks include dedicated cable pathways and management accessories that reduce clutter, minimize signal interference, and improve accessibility during maintenance or upgrades-enhancing both performance and serviceability.

Data center racks are now engineered to handle higher density equipment, including hyper-converged infrastructure and GPU-based computing. This ensures that they can support the processing demands of AI, machine learning, and big data applications.

Major Highlights of the Data Center Rack Market

With the growing need to accommodate more computing power in limited space, high-density racks are gaining traction. These racks support better airflow, cable management, and power distribution, making them ideal for modern hyperscale and enterprise data centers.

The shift towards modular, scalable, and customizable rack solutions is becoming a key trend. Organizations prefer racks that can be tailored to specific needs, support various configurations, and offer ease of integration with evolving technologies like AI, edge computing, and 5G.

The market is seeing widespread adoption across industries such as BFSI, IT & telecom, healthcare, retail, and manufacturing. Each of these sectors is generating vast volumes of data, thereby boosting the demand for efficient rack infrastructure within their data centers.

The growth of hyperscale facilities and the emergence of edge computing are driving demand for versatile rack solutions. Edge data centers, in particular, require compact and ruggedized racks that support remote deployment and efficient thermal management in harsh environments.

Innovations such as smart racks integrated with environmental sensors, power monitoring, and remote management capabilities are reshaping the market. These advancements help improve operational efficiency, ensure uptime, and reduce energy costs.

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Top Companies in the Data Center Rack Market

Various globally established players, such as Schneider Electric (France), HPE (US), Rittal (Germany), Eaton (Ireland), and Vertiv (US), dominate the market. Major firms have used various strategies to increase their market domination, including partnerships, contracts, mergers and acquisitions, and introducing new products.

Schneider Electric

Schneider Electric is a multinational company based in France that specializes in energy management and automation solutions. Its operations span over 100 countries. The firm offers various products and services to enhance efficiency and sustainability for residential, commercial, and industrial customers. Schneider Electric serves utilities, oil and gas, transportation, and healthcare industries. It is also engaged in smart grid, microgrid, and modular data center initiatives for improving infrastructure resilience and enabling sustainability objectives. Schneider Electric provides data center rack solutions in its APC brand, such as the NetShelter SX and SV series, geared for high-density, scalable, and power-efficient deployments. These enclosures are integrated with the EcoStruxure platform to enable real-time monitoring, enhanced security, and efficient power distribution, serving enterprise, colocation, and edge data center environments. The company also delivers pre-integrated rack systems and micro data centers that support quick installation and remote management in response to evolving demands such as AI workloads, edge computing, and sustainability. With its broad market reach and focus on digital technologies, Schneider Electric supports the development of reliable and adaptable infrastructure for modern data center operations.

HPE

HPE is a global edge-to-cloud technology company that delivers IT infrastructure, high-performance computing, data storage, and cloud services solutions. HPE supports enterprises in accelerating digital transformation through its hardware, software, and as-a-service offerings. HPE's GreenLake, a hybrid cloud platform offering consumption-based IT across data centers, colocation facilities, and edge locations. It offers its ProLiant server family and integrated rack infrastructure solutions in the data center rack market.

HPE offers pre-configured and custom rack configurations designed to host a range of workloads from core enterprise computing to high-density, AI-based applications. HPE's partnerships with vendors such as Nexalus for liquid cooling and sustainability activities enhance its value proposition by enabling it to provide increased energy efficiency, reduced carbon impact, and improved thermal management. These racks are optimized to seamlessly integrate with HPE's computing, storage, and network solutions, providing scalability and simplicity.

Rittal

Rittal GmbH & Co. KG, headquartered in Herborn, Germany, is a leading global provider of IT infrastructure solutions, particularly renowned in the data center rack market. Holding approximately 15% of the global market share, Rittal specializes in modular and scalable rack systems designed to meet the evolving demands of modern data centers, including high-density workloads associated with AI and cloud computing . Their flagship products, such as the VX IT and TX Colo racks, offer flexibility, energy efficiency, and rapid deployment capabilities. Complementing their rack solutions, Rittal provides integrated cooling systems like the Liquid Cooling Package (LCP), intelligent power distribution units (PDUs), and comprehensive monitoring tools, forming a cohesive ecosystem tailored for colocation, enterprise, and hyperscale data centers . Additionally, Rittal collaborates with industry leaders, including Meta, to develop high-power rack solutions compliant with the Open Compute Project (OCP) standards, addressing the increasing power and cooling requirements of next-generation processors.

Eaton

Eaton Corporation plc, headquartered in Dublin, Ireland, is a prominent player in the data center rack market, offering a comprehensive range of solutions tailored for modern data center environments. The company provides modular and scalable rack systems, including the Open Rack v3 (ORV3) compatible solutions developed in collaboration with the Open Compute Project (OCP), aimed at enhancing efficiency and scalability in data centers . Eaton's SmartRack modular data centers integrate IT racks, cooling, and service enclosures, designed to support critical IT equipment with loads up to 150 kW, facilitating rapid deployment and adaptability to diverse requirements . Additionally, the company's fourth-generation Rack PDU G4 offers high-security power distribution with features like locking mechanisms and built-in high retention systems, ensuring secure and reliable power management across various data center configurations . Eaton's strategic focus on innovation and collaboration positions it as a key contributor to the evolving data center infrastructure landscape.

Vertiv

Vertiv, headquartered in Westerville, Ohio, is a leading U.S. provider of critical digital infrastructure solutions, prominently serving the data center rack market. The company offers a diverse portfolio of rack and enclosure systems, including the Vertiv Trademark VR Rack, designed for high-density environments and supporting a wide range of IT equipment such as servers, storage, and networking devices. Vertiv's integrated solutions, like SmartAisle and SmartCabinet, combine racks with power, cooling, and monitoring systems, enabling rapid deployment and scalability for various data center configurations. With a global presence and a commitment to innovation, Vertiv continues to support the evolving needs of data centers worldwide.

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