Data Center Rack and Enclosure Market to Reach USD 5.98 Billion by 2030, Driven by Rising Cloud Adoption

The Data Center Rack and Enclosure Market Size, valued at USD 2.83 billion in 2023, is projected to grow at a CAGR of 11.28%, reaching approximately USD 5.98 billion by 2030. The rapid expansion of cloud computing, increasing deployment of hyperscale data centers, and the growing need for efficient IT infrastructure management are driving market growth.



Market Growth Factors & Opportunities

The surge in data generation, fueled by AI, IoT, and big data analytics, is pushing enterprises to invest in advanced data centers. The need for scalable and efficient server management solutions has led to higher demand for data center racks and enclosures that offer enhanced cooling, power distribution, and cable management. Additionally, the increasing focus on energy efficiency and sustainability in data centers presents lucrative opportunities for manufacturers to develop eco-friendly and modular rack solutions.

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Segmentation Analysis

The Data Center Rack and Enclosure market is segmented based on rack type, rack unit size, data center size, industry vertical, and geography.

by Rack Type: The market includes open frame racks and enclosed racks. Enclosed racks dominate the market due to their superior security, airflow management, and space optimization for large data centers. Open frame racks, on the other hand, are preferred for smaller setups that require easy access and cost-effective solutions.

by Rack Unit Size: The market is categorized into 42U and below, 43U–52U, and above 52U. The 43U–52U segment holds the largest share, as these sizes are widely adopted in enterprise and colocation data centers for optimal server storage and cooling efficiency.

based on Data Center Size: Small and medium-sized data centers, enterprise data centers, and large-scale hyperscale facilities contribute to market growth. The increasing demand for hyperscale data centers, particularly by cloud service providers, is a major driver of high-capacity rack and enclosure adoption.

based on Industry Vertical: The primary industries utilizing data center racks and enclosures include IT & telecommunications, BFSI, healthcare, government, and retail. The IT & telecommunications sector leads the market, with growing investments in cloud computing and edge data centers. The healthcare sector is also witnessing rising demand due to the increasing need for secure and efficient data storage solutions.

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Regional Analysis

United States: The U.S. remains the largest market for data center racks and enclosures, driven by the rapid expansion of hyperscale cloud providers, increasing edge data center deployments, and strong government initiatives for data security.

Germany: As a major European data center hub, Germany is witnessing significant investments in colocation facilities, with a focus on energy-efficient and modular rack solutions.

China: The rapid growth of the Chinese IT sector and government initiatives for digital transformation are propelling the expansion of hyperscale and enterprise data centers, driving demand for advanced rack and enclosure solutions.

United Kingdom: The U.K. market is growing steadily due to increasing cloud adoption and the expansion of colocation facilities, particularly in London and other major cities.

India: India’s booming digital economy and rapid expansion of cloud service providers are fueling demand for data center infrastructure, making it one of the fastest-growing markets for racks and enclosures.

Competitor Analysis

The Data Center Rack and Enclosure market is highly competitive, with key players focusing on product innovation, sustainability, and strategic partnerships. Leading companies include:

Schneider Electric: A global leader in energy management and automation, providing advanced rack and enclosure solutions with integrated power and cooling capabilities.

Vertiv Group Corp.: Specializes in critical infrastructure solutions, offering high-performance racks and enclosures for data centers of all sizes.

Eaton Corporation: A key player in power management, delivering innovative rack and enclosure solutions with intelligent power distribution features.

Rittal GmbH & Co. KG: A major provider of IT infrastructure solutions, known for its modular and energy-efficient rack systems.

Hewlett Packard Enterprise (HPE): Focuses on IT infrastructure solutions, offering rack and enclosure products optimized for enterprise and hyperscale environments.

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Conclusion

The Data Center Rack and Enclosure market is set to witness strong growth, driven by increasing cloud computing adoption, rising data center investments, and the demand for efficient IT infrastructure management. With key players continuously innovating to meet sustainability and scalability requirements, the market is expected to evolve significantly in the coming years.

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