According to a new report by Vantage Market Research, the data center rack market is expected to reach USD 6.56 Billion by 2028, growing at a CAGR of 8.9% from 2021 to 2028. The increasing demand from end-use industries coupled with the increasing number of data colocation centers is anticipated to augment the growth of the data center rack market within the forecast period.
- The solutions segment is projected to grow at a CAGR of over 7.34% over the forecast period owing to the benefits offered with the use of it.
- The open frame segment held a market share of around 32.12% in 2020. This share is due to the increasing cloud services across the globe.
- The BFSI segment is projected to grow at a CAGR of over 6.52% over the forecast period owing to the rising competition and the demand for online services across the segment.
- North America is expected to expand at a CAGR of over 6.56% from 2021 to 2028. This surge is attributed to the early adoption and emergence of new technologies in the region.
Some of the key players in the data center rack market include Dataracks, Emerson Electric, Dell, AMCO Enclosures, Schneider Electric, Belden, Black Box Corporation, Chatsworth Products, Oracle Corp, Eaton, Tripp Lite, Fujitsu, IBM, Cisco, Rittal Corp, and HPE, among others.
The increasing demand from various end-use industries across the world is anticipated to augment the growth of the data center rack market during the forecast period. The data center rack is widely used in various industries like banking, financial services, and insurance (BFSI), IT and telecom, government and defense, retail, manufacturing, healthcare, and energy and utilities, among others. The increasing use of data center rack in the BFSI sector is owing to the rising competition and the demand for online services. The data center racks provide additional protection against theft, damage, and other risks in the banking sector which is a necessity of the current situation. Furthermore, in order to provide more efficient solutions required by the sector, most of the solution providers are developing more enhanced and effective products for this segment. Additionally, in most of the developed regions like North America and Europe, there is a strong presence of the BFSI industry which has resulted in increased use of digital and online services. This is due to the increased awareness related to digitization in these regions. Moreover, the increasing shift towards the use of cloud-based technologies is also expected to support the growth of the data center rack market over the forecast period. Most of the major players are focusing on developing more innovative technologies and launching new products to increase their market value and shares.
Asia Pacific region is projected to grow at a substantial CAGR over the forecast period. This is attributable to the due to increasing consumer base for these services in economies like China and India, which are witnessing a strong shift toward cloud services in all the industry verticals in the region.