Data Centre Rack Industry Outlook 2025-2034 | Key Trends & Insights

According to the latest report by Expert Market Research (EMR), the global data centre rack market size was valued at approximately USD 3.60 billion in 2024. The market is projected to expand at a robust CAGR of 10.10% during the forecast period of 2025 to 2034, ultimately reaching a valuation of around USD 9.42 billion by 2034. This impressive growth is driven by the widespread integration of advanced racking solutions, coupled with the expansion of power generation infrastructures and growing digital transformation across industries.

Data centre racks are integral to modern IT infrastructure. These structured enclosures are specifically engineered to accommodate servers, switches, and related computing hardware. They are pivotal in ensuring optimal space utilisation, promoting efficient airflow and cooling, simplifying cable management, and enhancing device security. With a wide variety of configurations and tailored options available, these racks serve multiple industry requirements - from weight-bearing capacity to thermal control.

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Key Market Trends Fueling Growth

One of the most defining trends shaping the data centre rack market outlook is the continuous shift towards digitisation. Companies across sectors are embracing digital-first models, increasing their dependency on resilient and scalable data storage frameworks. This shift is significantly amplifying the demand for modern data centre racks, as managing vast amounts of business-critical data becomes a top priority.

Another major growth catalyst is the explosive rise in cloud computing. With unprecedented levels of data generation from sources such as IoT devices, social media, smart applications, and e-commerce, businesses are scaling their cloud capabilities. These cloud environments rely heavily on high-performance, modular, and scalable racking systems, thereby strengthening the overall data centre rack market share.

The evolving nature of data centre requirements has led to the rise of customised rack solutions. From high-density cooling demands to advanced locking mechanisms for security, manufacturers are continuously innovating to cater to sector-specific challenges. This degree of flexibility is creating lucrative opportunities and expanding the data centre rack market size globally.

Sustainability is now central to IT infrastructure. Next-generation data centre racks are being designed to minimise power usage, improve cooling efficiency, and reduce environmental impact. This alignment with global energy goals makes energy-efficient rack systems essential to data centres aiming to lower their carbon footprint - a factor driving market expansion further.

Technological advancements in Artificial Intelligence (AI) and Machine Learning (ML) have sparked new interest in edge computing. This approach processes data closer to its origin, necessitating compact and powerful micro data centres that rely on robust rack frameworks. This shift is set to accelerate demand in the coming years.

Global regulations surrounding data protection and sovereignty are prompting organisations to establish region-specific data centres. With increased localisation, demand for flexible and secure racking systems is surging. This legal imperative is unlocking new opportunities for players in the data centre rack market.

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Data Centre Rack Market Segmentation

By Type

Server Rack
Network Rack

By Rack Units

36U
42U
45U
47U
48U
51U
Others

By Rack Size

Small
Medium
Large
By Frame Size
19 Inch
Others

By Frame Design

Open Frame
Enclosed
Customised

By Service

Consulting Services
Installation and Support Services
Professional Services

By Application

Small and Medium-Sized Organisations
Large-Sized Organisations

By End Use

IT and Telecom
BFSI (Banking, Financial Services, and Insurance)
Public Sector
Healthcare
Retail
Manufacturing
Media & Entertainment
Others

By Region

North America
Europe
Asia Pacific
Latin America
Middle East and Africa

Competitive Landscape

The EMR report also delves into the competitive dynamics of the market, providing in-depth analysis of company profiles, strategic developments, capacity upgrades, and investments. Key players shaping the industry include:

Eaton Corporation Plc (NYSE: ETN)
Samsung Electronics Co., Ltd. (KRX: 005930)
Vertiv Group Corporation
Black Box Corporation
Schneider Electric
Others

These companies are spearheading innovation and expansion through new product launches, mergers and acquisitions, and enhanced service offerings, playing a vital role in propelling the data centre rack market growth.

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