Data Center Rack Market Size worth $7.57 billion, Globally, by 2030- Exclusive Study by The Research Insights

CHICAGO, June 11, 2025 /PRNewswire/ -- The global data center rack market size is projected to be valued at USD 4.48 billion in 2024 and reach USD 7.57 billion by 2030, growing at a CAGR of 9.1% according to a new report by The Research Insights. The data center rack market share is now undergoing major expansion due to comprehensive digital transformation initiatives across multiple industries. The BFSI sector must deploy robust IT infrastructure because the rise in online banking and fintech services requires seamless and secure operational systems. The retail industry is currently transitioning toward digital commerce and omnichannel operations which creates a demand for real-time data analytics along with customer personalization engines and supply chain optimization that require scalable high-performance server setups.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the data center rack market growth of 9.1% comprises a range of rack, height, width, vertical and geography which are expected to register strength during the coming years.

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Market Overview and Growth Trajectory:

Data Center Rack Market Growth: According to an exhaustive report by The Research Insights, the Data Center Rack Market is undergoing significant growth, driven by increased adoption of modular and prefabricated data centers that quickly change IT infrastructure deployment methods. Modern businesses must avoid traditional data center construction as the lengthy and expensive process no longer fits today's digital speed requirements. The introduction of prefabricated and containerized solutions provides businesses with a speedy, expandable, and budget-friendly data center option. The fully equipped facilities with power systems and IT infrastructure are constructed off-site and then moved to their final location where they are installed while ensuring minimal operational downtime.

Growing Demand for Edge Computing: As edge computing grows quickly it transforms the IT world and the data center rack market adapts simultaneously. The growth of Internet of Things (IoT) technologies together with autonomous vehicles and smart cities requires real-time data processing at the source location instead of depending exclusively on centralized cloud data centers. The requirement for low latency, quick decision-making capabilities, and processing power situated near data sources drives the expansion of edge computing facilities that serve as smaller decentralised data centers for time-sensitive applications. The data center rack market sees increasing demand for racks that are designed to function optimally in edge environments. The transformation of enterprise infrastructure toward the edge for better responsiveness and user experience turns data center racks into strategic elements of distributed digital systems. The emerging data center paradigm demands that rack solutions demonstrate flexibility and scalability while maintaining efficiency.

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Integration of Smart and Connected Racks: The fast-paced evolution of digital infrastructure is driving a smart transformation in the data center rack market. Traditional server racks that were originally considered passive storage frames have evolved into intelligent connected systems which optimize data center operations. The increasing complexity of IT systems alongside escalating energy expenses and downtime costs drives businesses to demand smart racks which include sensors for power monitoring and temperature/humidity management as well as asset tracking and predictive maintenance capabilities. The data center rack market is undergoing a transformation to meet current needs through IoT-enabled solutions that can be managed remotely to deliver both performance improvements and customer reassurance. Modern racks have evolved beyond static infrastructure to become smart assets that enhance the efficiency and resilience of digital systems.

Cabinet Racks Lead as the Preferred Choice for Secure, Scalable Data Center Infrastructure: The data center rack market now favors cabinet racks as the leading segment because they deliver enhanced security features, scalability solutions and efficient cable and airflow management systems. Cabinet racks differ from open frame or wall-mount racks because they provide enclosed structures that shield critical equipment from physical damage, dust accumulation and unauthorized access which makes them optimal for enterprise and colocation data centers. The modular design of cabinet racks enables high-density server deployment while supporting efficient power distribution and cooling systems to meet increasing data requirements and space restrictions today. The emergence of edge computing and remote IT infrastructure requires flexible and contained deployment solutions that cabinet racks provide across various environments. The cabinet rack segment maintains its dominance in the data center rack market as organizations focus on achieving data integrity while optimizing operational efficiency and space utilization.

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Geographical Insights: North America dominates the data center rack market share because of its major hyperscale cloud providers and colocation facilities combined with extensive IT spending from various industries. Data-heavy applications such as AI, IoT, and video streaming require advanced rack systems to support their infrastructure needs which leads to the U.S. having a significant portion of the market share. The Asia Pacific data center rack market experiences the fastest expansion supported by digital transformation initiatives, 5G network growth, and increased local data center investments in China, India, Japan, and Southeast Asia. Data center rack market dynamics in Europe are driven by strict data sovereignty laws alongside sustainability requirements and the fast growth of cloud and colocation providers.

Data Center Rack Market Segmentation and Geographical Insights:

• Based on rack, the data center rack market share is divided into open frame rack, cabinet and others. The cabinet segment held the largest share of the data center rack market in 2024.
• Based on height, the data center rack market share is divided into below 42 U, 42 U and above 42. The 42 U segment held the largest share of the data center rack market in 2024.
• Based on width, the data center rack market size is divided into 19 Inch, 23 Inch and others. The 19 Inch segment held the largest share of the data center rack market in 2024.
• Based on vertical, the data center rack market value is divided into BFSI, government & defense, healthcare, IT & telecom, energy, retail and others. The IT & telecom manufacturing segment accounted for a larger share of the data center rack market in 2024.
• The data center rack market analysis is segmented into five major regions: North America; Europe; Asia Pacific; Latin America; Middle East & Africa.

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Key Players and Competitive Landscape:

The Data Center Rack Market is characterized by the presence of several major players, including:

• AMCO Enclosures
• Belden Inc.
• Chatsworth Products
• Cisco Systems, Inc.
• Dell Inc.
• Eaton
• Fujitsu
• Hewlett Packard Enterprise Development LP
• International Business Machines Corporation
• Legrand
• nVent
• Panduit Corp.
• Rittal GmbH & Co. KG
• Schneider Electric
• Vertiv Group Corp.

These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.

Global Data Center Rack Market Recent Developments and Innovations:

• In February 2025, Vertiv partnered with Oxigen to build its largest and most energy-efficient data center in Sant Cugat del Vallès, Spain.
• In March 2024, Eaton announced the North American launch of an innovative modular data center solution designed to swiftly address the growing demands for edge computing, machine learning, and AI. The SmartRack modular data centers from Eaton can be deployed within days in various settings, including colocation or enterprise data centers, warehouses, and manufacturing facilities.
• In November 2023: Eaton announced a new, innovative rack power distribution solution for data centers and edge facilities with the global launch of its Rack PDU G4.

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Key Questions Addressed:

1. What is the key opportunity in the data center rack market?
   ➢ The shift toward containerized and prefabricated data centers creates a strong opportunity for rack vendors offering modular, plug-and-play solutions.
2. What is the expected market size for data center rack market by 2030? 
   ➢ The expected market size for data center rack is USD 7.57 Billion in 2030.
3. Which are the major vertical where data center rack is used?
   ➢ Major vertical includes BFSI, government & defense, healthcare, IT & telecom, energy, retail and others.
4. Which width segment for data center rack market has the potential to register the highest market share?
   ➢ 19-inch segment for data center rack market is expected to register highest market share of 72% in 2024.
5. Which region is estimated to witness a high demand for data center rack over the forecast period? 
   ➢ Asia Pacific is estimated to witness a high demand for data center rack growing at a CAGR of 9.9% over the forecast period.
6. Who are the key players in data center rack market?
   ➢ The key players in the data center rack market are AMCO Enclosures, Belden Inc., Chatsworth Products, Cisco Systems, Inc., Dell Inc., Eaton, Fujitsu, Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Legrand, nVent, Panduit Corp., Rittal GmbH & Co. KG, Schneider Electric and Vertiv Group Corp.

Conclusion:

The data center rack market is experiencing rapid transformation due to the increasing complexity of digital infrastructure along with fast-paced global digitalization together with emerging technologies like edge computing and AI and IoT. Cabinet racks are now the most popular rack choice for enterprise, colocation, and edge deployments due to their enhanced security characteristics and ability to maintain efficiency through scalable airflow and effective cable management solutions. Smart rack systems that offer real-time power monitoring and thermal control along with asset tracking capabilities are transforming racks from basic storage spaces into active contributors to data center performance enhancement. Edge data centers along with containerized infrastructure systems drive increased development of compact modular plug-and-play rack systems. The data center rack market will experience steady growth driven by organizational needs for efficient IT infrastructure while data volumes expand and innovation, regional spread and intelligent rack systems gain strategic importance in the digital economy.

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The report from The Research Insights, therefore, provides several stakeholders—including component suppliers, data center rack manufacturers, OEMs, system integrators, distributors and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

With projected growth to US$ 7.57 billion by 2030, the Data Center Rack Market represents a significant opportunity for component suppliers, data center rack manufacturers, OEMs, system integrators, distributors, end-users, investors, industry stakeholders, and others. By staying abreast of market trends, embracing innovation, and focusing on quality and performance, companies can position themselves for success in this dynamic and evolving market landscape.

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