Strategic Forecast for the Data Center Rack And Enclosure Industry: Market Outlook 2025-2034

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Data Center Rack And Enclosure Market Size Growth Forecast: What to Expect by 2025?
In recent times, the market size for data center rack and enclosure has shown significant growth. There's an anticipated growth from $3.79 billion in 2024 to $4.15 billion in 2025, implying a compound annual growth rate (CAGR) of 9.3%. This growth during the historical period is mainly ascribed to the escalating demand for data storage, the proliferation of cloud computing, increased internet usage, growth in e-commerce activities, and the broadening scope of businesses globally.

How Will the Data Center Rack And Enclosure Market Size Evolve and Grow by 2029?
In the coming years, the market size for data center racks and enclosures is predicted to experience significant growth, projected to reach $6.75 billion in 2029, with a compound annual growth rate (CAGR) of 13.0%. This growth in the projection period can be linked to the rising data production by IoT devices, the uptake of edge computing, the escalating demand for hyperscale data centers, and a focus on energy-efficient data center solutions. Key trends anticipated in the forecast period include the integration of liquid cooling solutions, modular data center structures, increased utilization of open-source hardware, a surge in demand for rack-level power distribution, and a concentration on using sustainable and eco-friendly materials for enclosures.

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What Drivers Are Propelling the Growth of Data Center Rack And Enclosure Market Forward?
The growth of the data center rack and enclosure market is anticipated to be driven by the construction of more data centers. Data centers are complex facilities that use an intricate network and storage infrastructure to allow shared access to data and applications. Key components of data centers are the data center racks and enclosures which are crucial for organizing, mounting, and safeguarding servers, networking equipment, and essential hardware. These components play a significant part in ensuring the effective and dependable functioning of the data center infrastructure. For instance, the Korea Data Center Council (KDCC), a Korean-based organization committed to advancing the development of Korea's data center industry, reported in February 2022 that the overall IT load capacity of colocation data centers reached 430 MW, making up 11% of the total IT load in the APAC region. On the heels of projections made by Savills Korea, there's an anticipated growth of the total commercial data center IT load in Korea by 700 MW from 2021 to 2023, which would account for 15% of the total capacity in the Asia-Pacific region. This anticipated expansion of new data centers primarily fuels the growth of the data center rack and enclosure market.

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Which Emerging Trends Are Transforming the Data Center Rack And Enclosure Market in 2025?
The increasing adoption of a tech-based enclosure management system is a notable trend in the data center rack and enclosure market. Major players in this market are embracing innovative enclosure management technologies to maintain their market positions. For instance, Genetec Inc., hailing from Canada, introduced its Genetec Enclosure Management Solution in May 2022, contributing to the trend of advanced enclosure management systems in data centers. The system employs cloud link roadrunner technology to offer a secure, scalable method of managing rack and cabinet access in data centers. Features included secure access control, remote management, and scalability, making it ideally suited for data centers. Furthermore, the solution is a meaningful extension of the company's data center security solutions, adhering to various industry protocols such as the Payment Card Industry Data Security Standard (PCI DSS).

What Are the Key Segments in the Data Center Rack And Enclosure Market?
The data center rack and enclosure market covered in this report is segmented -

1) By Product Type: Open Frame Racks, Rack Enclosures, Wall-Mount Racks
2) By Component: Solution, Service
3) By Installation: Wall-Mounted, Floor Mounted
4) By Size: 18U-22U, 23U-32U, 33U-42U, 43U-48U And Above 49U
5) By Application: Information Technology (IT), Telecommunication, Banking, Financial Services, And Insurance (BFSI), Government, Healthcare, Manufacturing, Education Sector, Other Applications

Subsegments:
1) By Open Frame Racks: Standard Open Frame Racks, Adjustable Open Frame Racks
2) By Rack Enclosures: Full-Height Enclosures, Half-Height Enclosures, Specialty Enclosures
3) By Wall-Mount Racks: Swing-Out Wall-Mount Racks, Fixed Wall-Mount Racks

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Who Are the Key Players Shaping the Data Center Rack And Enclosure Market's Competitive Landscape?
Major companies operating in the data center rack and enclosure market include Dell Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Fujitsu Ltd., Eaton Corporation, Emerson Electric Company, Delta Electronics Inc., Legrand SA, Vertiv Holdings Co., Rittal Gmbh and Co. KG, nVent Electric plc, Belden Inc., Panduit Corporation, Blackbox Corporation, AGC Network Ltd., Rahi Inc., Hammond Manufacturing Co. Ltd., C and F Tooling Ltd., Canovate Group, Innovation First International Inc., Chatsworth Products Inc., AFCO Systems Inc., Great lakes Data Racks and Cabinets Co. Inc., Martin International Enclosures LLC, IMS Engineered Products LLC, Amco Enclosures, Prism Enclosures Ltd.

What Geographic Markets Are Powering Growth in the Data Center Rack And Enclosure Market?
North America was the largest region in the data center rack and enclosure market in 2024. The regions covered in the data center rack and enclosure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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