Data center racks are needed to accommodate IT, networking, and power and cooling equipment inside a data center. Data center racks are crucial due to the critical devices they protect and safeguard. The growing number of colocation facilities across the globe coupled with the increasing server density are forcing data facilities to implement taller, deeper, and wider racks. The enclosure orientation of a rack has a significant impact on the energy efficiency of data centers for enterprises. The development of durable data center racks that can operate in rugged environments is expected to provide significant opportunities for vendors to provide advanced rack solutions. The total data center rack market size is expected to grow from USD 3,771 million in 2020 to USD 5,904 million by 2025, at a Compound Annual Growth Rate (CAGR) of 9.4% during 2020 to 2025.
Factors driving the growth of the data center rack market include the increasing deployment in colocation facilities and the increasing server density. Based on vertical, the Banking, Financial Services, and Insurance (BFSI) vertical to hold the highest market share in 2020. The BFSI vertical is increasingly adopting data center racks owing to the growing number of data centers being set up to handle a large number of customer transactions. The BFSI sector deals with huge amounts of personal data of customers on a regular basis. To store and manage this huge data, the sector requires incredible IT equipment. Reliable data centers are required to offer uninterruptible financial services and improve the response time for running end-user applications. The BFSI sector is also expanding to new markets and handles huge traffic that requires reliable infrastructure for handling transactions.
Based on region, Asia Pacific (APAC) to grow at the highest CAGR during the forecast period. The high growth of the market in the Asia Pacific (APAC) is attributed to the increasing adoption of data center rack software to match the rapid pace of advancement. However, the increasing adoption of hyper-converged infrastructure is expected to restrain market growth across the region.
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