Global Data Center Rack And Enclosure Industry Outlook 2025-2029: Market Set to Cross $6.64 Billion Milestone

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How Large Will the Data Center Rack And Enclosure Market Size By 2025?
The market size for data center rack and enclosure has seen significant growth in the past few years. The market is forecasted to expand from $3.79 billion in 2024 to $4.11 billion in 2025, with a compound annual growth rate (CAGR) of 8.4%. The previous growth period's success can be traced back to factors like rising demand for data storage, the expansion of cloud computing, elevated internet usage, an increase in e-commerce activities, and the globalization of businesses.

How Big Is the Data Center Rack And Enclosure Market Size Expected to Grow by 2029?
The market for data center racks and enclosures is projected to experience substantial expansion in the forthcoming years, ballooning to a value of $6.64 billion in 2029 with a CAGR of 12.7%. This anticipated growth during the forecast period can be credited to the escalating generation of data from IoT devices, the uptake of edge computing, the amplified necessity for hyperscale data centers, and a focus on energy-efficient data center systems. Within the forecast duration, significant trends to note are the adoption of liquid cooling mechanisms, use of modular data center structures, a heightened dependency on open-source hardware, an increase in demand for power distribution at the rack level, and the concentration on eco-friendly and sustainable enclosure materials.

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Which Key Market Drivers Powering Data Center Rack And Enclosure Market Expansion and Growth?
The growth of the data center rack and enclosure market is set to be driven by the development of new data centers. Data centers, which are facilities that use a complex network, computing, and storage infrastructure to provide shared access to applications and data, utilize data center racks and enclosures as key components. These elements are used to organize, mount, and protect servers, networking equipment, and other vital hardware, playing a significant role in the efficient and reliable functioning of the data center infrastructure. In February 2022, the Korea Data Center Council (KDCC), a dedicated body for the advancement of the data center industry in Korea, reported that the total capacity of colocation data centers' IT load was 430 MW, which made up 11% of the total APAC IT load. Savills Korea predicts that the total commercial data center IT load in Korea will increase by 700 MW between 2021 and 2023, contributing to 15% of the entire Asia-Pacific capacity. Hence, the establishment of new data centers is fuelling the growth of the data center rack and enclosure market.

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Which Fast-Growing Trends Are Poised to Disrupt the Data Center Rack And Enclosure Market?
The current trend of adopting advanced enclosure management systems is gathering momentum in the data center rack and enclosure market. Big market players are integrating this revolutionary technology to maintain their competitiveness. For instance, Genetec Inc., a leading technology firm based in Canada, launched its Genetec Enclosure Management Solution in May 2022. Through the use of cloud link roadrunner technology, this management system for data centers enables secure and scalable access to racks and cabinets. Key features include secure access controls, remote administration, and expandability, making it particularly fit for data center settings. Furthermore, this addition enriches Genetec's range of security solutions for data centers. The system is in line with multiple industry regulations, including the Payment Card Industry Data Security Standard (PCI DSS).

What Are the Emerging Segments in the Data Center Rack And Enclosure Market?
The data center rack and enclosuremarket 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 Global Leaders in the Data Center Rack And Enclosure Market?
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.

Which are the Top Profitable Regional Markets for the Data Center Rack And Enclosure Industry?
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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