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Data Center Rack Market Size, Share, Trends Analysis Report by Rack Size (Below 42U, 42U, 45U−47U, 48U, and Other Units), Product (Racks Enclosures & Cabinets and Accessories), End-user (Colocation Data Centers and Enterprise Data Centers), and Geography (APAC, North America, Western Europe, Nordic, Central & Eastern Europe, Middle East, South East Asia, Africa, and Latin America), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021–2026
|MARKET SIZE (REVENUE)||USD 2 BILLION (2026)|
|MARKET SIZE (UNIT SHIPMENT)||1029 THOUSAND UNITS (2026)|
|Market Segments||Rack Size (Below 42U, 42U, 45−47U, 48U, and Other Units), Product (Racks Enclosures & Cabinets and Accessories), End-user (Colocation Data Centers and Enterprise Data Centers)|
|Geographic Analysis||APAC, North America, Western Europe, Nordic, Central Eastern Europe, Middle East, Africa, South East Asia, and Latin America|
|Countries Covered||US, Canada, Brazil, UK, Germany, France, Netherlands, Ireland, Denmark, Norway, Sweden, Finland & Iceland, Russia & Czech Republic, Poland & Austria, GCC, South Africa, Kenya, China & Hong Kong, Australia & New Zealand, India, Japan, Singapore, Malaysia, Thailand, Indonesia, Other Latin American Countries, Other Western European Countries, Other Central & Eastern European Countries, Other Middle Eastern Countries, Other African Countries, Rest of APAC, and Other Southeast Asian Countries|
The global data center rack market size was valued at USD 1.7 billion in 2021 and is expected to reach USD 2.3 billion by 2026, growing at a CAGR of 7% during 2021-2026. 45-47 unit racks hold the maximum market share, followed by 48 unit racks.
The data center rack market is experiencing high innovation due to the increased demand from service providers to reduce CAPEX and OPEX. The adoption of OCP-based rack architecture is a significant boost to the growth of 42U and 48U. Also, open 19, 8U, and 12U rack cages are likely to witness growth among data center spaces during the forecast period, fueling growth for below 42U. Moreover, the growing interest of operators toward open rack architecture is increasing opportunities for vendors. These innovative architectures are made to cope up with current infrastructure requirements. The increasing adoption of IT infrastructure at the rack level leads to complexity in cable and airflow management, prompting data center operators to procure deeper and wider rack architecture. This scenario is likely to continue throughout the forecast period. The OCP community is currently working on the Rack & Power Project, focusing on standards designed for data centers, aiming to integrate the rack into the data center infrastructure itself, leading to the interdependence of data center infrastructure.
This research report includes a detailed segmentation by:
In terms of investment, the global 42U rack market is likely to lead the market, accounting for over USD 613 million by 2026. The global 42U racks market expects to reach over 376 thousand units in 2026, growing at a CAGR of 8%. The demand for 42U will continue to be high, with steady growth in revenue due to the construction of new facilities and increased renovations. 42U will continue to dominate the market as they are commonly applied industry-standard racks. With the growing demand for taller racks in North America, the ASP of 42U will decline slowly as colocation providers are likely to adopt units of several sizes depending on their operational requirements. However, they are likely to be replaced by 45U, 47U, and 48U during the forecast period. The global 45U−47U racks market is likely to reach over 321 thousand units in 2026, growing at a CAGR of around 7%. The segment will continue to grow over the next few years as several operators are procuring these racks as they are like 42U in terms of pricing.
Enclosures & cabinets are likely to cross over USD 1.9 billion by 2026, growing at a CAGR of 6%. The adoption of racks and their associated accessories varies from one facility to another. The cost will increase based on accessories adopted. Most facilities are developing hot/cold aisle containment systems, where racks are installed with cable and airflow management accessories. Continuous innovations and advances in technology have led to the increased demand for performance-optimized data centers (POD). Western Europe witnessed a total investment of over 86,000 cabinets in 2020, wherein colocation service providers led market investments with over 85% of the total capacity in the region. In Nordic, the growth in edge data centers due to increasing penetration of 5G services and modular facilities will also increase cabinets and accessories investments.
In 2020, the colocation market witnessed the installation of 400,000 racks. The APAC region was the major contributor, with the addition of 180,000 in over 95 colocation facilities. North America follows it with the acquisition of over 100,000 in over 110 colocation facilities. The Middle East & Africa region witnessed the adoption of over 18,000 rack capacity in over 20 colocation data center facilities. In Europe, the total investment observed around 92,000 cabinets in over 100 colocation facilities in 2020.
Most operators are building facilities using modular data center infrastructure, which includes prefabricated containment solutions for each data hall or containerized modules comprising up to 50 racks. Colocation facilities are also being built with options to install taller, deeper, and wider infrastructure. These facilities are built to support an average of 20 kW per rack, while a few facilities are equipped with racks that can support heat density of up to 40 kW using direct-to-chip cooling solutions.
In terms of investment, the enterprise market is likely to reach over USD 479 million in 2026, growing at a CAGR of over 5%. The adoption of 45U and 47U is likely to grow during the forecast period as racks are embedded with rack-level IT infrastructure solutions. In addition, hyperscale data center operators are significant contributors to the market’s growth. The number of enterprise-owned data centers is still higher than colocation facilities. Over the past decade, enterprises have faced challenges in building, operating, and managing data centers. Hence, they are shifting to colocation, managed hosting, and cloud service providers for operational requirements.
The North American data center rack market share is the largest, and is expected to reach USD 819 million by 2026, growing at a CAGR of approx. 4%. Organizations in North America are currently building high-performance-computing data centers, which are likely to increase the demand for innovative and high-capacity racks. The digital economy in the US grows 10% YoY. The market is the largest in the world in terms of rack infrastructure spending and support infrastructure investments. E-commerce, real estate, BFSI, healthcare, and government sectors are the major contributors toward digitalization in the region. In recent years, the demand for high-bandwidth data services and the increased usage of internet services worldwide have led to the increased adoption of high-capacity racks to hold several servers. Virginia contributed the maximum number of racks, with over 44,000 being deployed between January 2020 and June 2021. This was followed by Texas, which contributed to over 29,000 racks. California, Oregon, Ohio, and Utah contributed to over 10,000 racks each.
The global data center rack market is aided by partnerships between rack vendors and data center operators worldwide. Many support infrastructure providers such as Schneider Electric, Vertiv Group, Eaton, Rittal, and Legrand offer rack infrastructure solutions in the market. IT infrastructure providers such as HPE, Dell Technologies, and IBM provide rack infrastructure solutions in partnership with other vendors supplying pre-installed IT infrastructure to data centers. The range of products, costs of the products, and the pre & post-installation services are significant factors for revenue generation for the vendors. The data center rack market has the presence of both local and global providers.
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