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Europe Data Center Rack Market Size, Share, & Trends Analysis Report By Product (Cabinets and Accessories), Size (Below 42U, 42U, 45U And 47U, 48U, and Other Units), End-Users (Colocation Providers and Enterprise), and Geography (Eastern Europe, Western Europe, and Nordic) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2024
|MARKET SIZE (REVENUE)||USD 550 MILLION (2024)|
|MARKET SIZE (VOLUME)||322 THOUSAND UNITS (2024)|
|MARKET SEGMENTS||Product (Cabinets and Accessories), Size (Below 42U, 42U, 45U And 47U, 48U, and Other Units), and End-Users (Colocation Providers and Enterprise),|
|GEOGRAPHIC ANALYSIS||Eastern Europe, Western Europe, and Nordic|
|COUNTRIES COVERED||UK, Germany, Netherlands, France, Ireland, Italy, Denmark, Norway, Sweden, Finland & Iceland, Russia, Czech Republic, Poland & Austria, and Other Countries|
The Europe data center rack market is expected to grow due to increased investments by colocation, cloud, internet, and telecommunication providers for the new data center constructions. The computing power of data centers has improved significantly due to the introduction of cloud computing, Internet of Things (IoT), and big data analytics solutions in several industry verticals such as BFSI, healthcare, government, and heavy industries. The increasing rack power density in datacenters has led to the use of innovative and flexible racks and facility designs with hot aisle containment systems and diverse electricity feeds for racks. The high utilization of IT infrastructure has led to an increase in the density of data center racks. The rack density is western Europe has increased between 6 and 8 kW, while for Central and Eastern Europe countries, it is 3–5kW. The growing need for high-performance computing (HPC), led by the adoption of converged and hyper-converged solutions and virtualization, will grow the rack power density to an average of 10-12 kW during the forecast period. Many large and mega data centers are currently being equipped with power and cooling infrastructure that can support the rack density of up to 50 kW. Also, the direct-liquid cooling technique has brought different rack designs that equip the cooling infrastructure with engineered liquids.
In terms of shipments, the UK, Netherlands, Germany, Ireland, France, Denmark, Sweden, and Norway are dominating the Europe data center rack market. Hyperscale data center operators are also actively involved in the adoption of rack architecture designed through open communities such as OCP and Open 19.
The demand for IaaS will continue to grow among enterprise customers adopting public cloud and hybrid infrastructure services
The Europe data center rack market highly depends on the construction of new data centers. The market is aided by the increasing construction of modular and prefabricated data center spaces inside the office environment. The demand for IaaS will continue to grow among enterprise customers adopting public cloud and hybrid infrastructure services during the forecast period. In 2018, the Europe cloud computing market was estimated to be around $20 billion. The demand for data center services such as colocation, managed services, and cloud-connectivity services will gain momentum as over 55% of firms in Europe use advanced cloud services for their financial and accounting software application.
Vertiv, HPE, Rittal, and Schneider Electric dominate the market due to their wide presence across geographies. The adoption of modern rack architecture will enable the mounting of multiple high-performance infrastructure. These architectures are crafted to provide optimized space and improved efficiency to operators. The vendors of Europe data center market are providing customer-centric operational and space requirement solutions. The enforcement of GDPR (General Data Protection Regulation) has increased the awareness about data protection among enterprises, which significantly has led to the adoption of cloud services in Europe and the trend is expected to continue in future. AWS, Microsoft, Google, Alibaba, IBM, and Oracle are major vendors operating data center/cloud faciliites in the region.
The use of enclosure cabinets to mount data centers critical and support infrastructure is growing in the Europe data center rack market
The Europe data center rack market by products is classified into rack enclosure cabinets and accessories. The enclosure/cabinet segment dominated the market share in 2018, growing at a CAGR of more than 6% during the forecast period. The use of these cabinets to mount data centers critical and support infrastructure is increasing the growth of this segment in the Europe data center rack market. Open frame racks are predominantly adopted to equip network infrastructure such as switches, while cabinets are offered as servers and network cabinets by vendors. Open frame rack infrastructure and rack enclosures are two different types of cabinets.
The adoption of racks and associated accessories -mounting rail kit and brackets, grommets, blanking panels, shelves, rackmount lighting, vented gland plates, and other components - varies from one facility to another based on its design. The cost of the rack will increase based on the accessories adopted. Most data centers are developing hot/cold aisle containment systems, whereas racks are adopted with cable and air-flow management accessories.
Vendors are innovating their 42U racks offerings with deeper and wider ones for better airflow and cable management
The Europe data center rack market by rack size is segmented into below 42U, 42U, 45U & 47U, 48U, and other units. The 42U segment occupied nearly half of the market share in 2018. The 42U rack adoption highly depends on the service provider and customer preference. Vendors are also continually innovating their 42U racks offerings with over 80% proliferation as well as deeper and wider racks for better airflow and cable management. This segment also includes the adoption of racks based on the OCP design to hyperscale providers.
In addition, SMEs with limited computing requirements prefer racks below 42U. They include racks with integrated power and cooling infrastructure. Modern racks with below 42U are being equipped with advanced features that can support any type of IT equipment with better cable management and improved rack-level cooling. These are also customizable and can support loads up to 1,000 kg. The growing number of data centers worldwide is expected to drive the demand for racks that are taller than 36U.
Vendors are collaborating with IT infrastructure providers to expand their offerings to all-in-one package plug-and-play solutions in the Europe data center rack market
Colocation providers and enterprises are the largest end-users of the Europe data center rack market. Colocation data centers are the dominating segment, which is growing at a CAGR of more than 7%. The colocation of wholesale facilities is expected to increase the demand for data centers construction. Europe is likely to receive continuous investment from colocation providers such as Equinix, Digital Realty, CyrusOne, Interxion, NTT, and Global Switch.
Enterprise data center operators include hyperscale data center operators such as Google, Microsoft, Facebook, and Apple. Vendors are also partnering with IT infrastructure providers to expand their offerings to all-in-one package plug-and-play solutions in Europe data center rack market.
Western Europe to dominate the Europe data center rack market
The Europe data center rack market by geography is categorized into Eastern Europe, Western Europe, and Nordic. Western Europe witnessed significant investments in 2018, with multiple projects carried out by colocation, cloud, telecommunication, and internet service providers in the UK, Germany, France, Ireland, Spain, Italy, Netherlands, Switzerland, Portugal, and Austria. In Ireland, hyperscale data center providers such as Facebook have set up large-scale data centers and have announced expansion plans in the coming years. Also, the market witnessed an increase in M&A activities by Equinix, ST Telemedia, and CyrusOne.
The Nordic region has emerged as a highly sought-after location in the last few years as it has attracted foreign investment from hyperscale computing companies such as Apple, Facebook, and AWS. Local and global service providers such asGlobalConnect, Equinix, Interxion, Hydro66, EcoDataCenter, TeliaSonera, HETZNER, Arctic sites, and Multigrid have also witnessed in the construction of facilities or expansion of existing datacenters. The ASP of racks highly depends on the vendor and the cost of associated accessories.
The Europe data center rack market is witnessing partnerships between vendors and facilities operators, thereby driving the competition in the market. The construction of modular and prefabricated facility spaces is creating lucrative opportunities for leading players operating in the market. Companies are focusing on expanding their product portfolios, reducing expenditure, increasing warranty, providing additional services to sustain the intense competition in the market. The incorporation of innovative solutions such as rack-level UPS systems, PDUs, rack-level security systems, Ethernet cabling, and others will increase the competition and boost revenues in the Europe data center rack market. The increase in system scale high-performance computing infrastructure offerings will enable vendors to attract new consumers and increase the market share during the forecast period.
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