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Data Center Rack Market - Forecasts from 2020 to 2025

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    Report

  • 127 Pages
  • March 2020
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5009267
Global Data Center Rack market is projected to grow at a CAGR of 10.68% during the forecast period, reaching a total market size of US$7.078 billion in 2025 from US$3.851 billion in 2019

Datacenter rack includes switches, servers, and routers that highly comprises of a data center. The increasing number of data centers across the globe is the major driver of data center rack market. Growing adoption of cloud networking coupled with the rising volume of big data is pressurizing enterprises to opt for colocation solutions and services. As the volume of big data is rapidly growing across various industries due to the rising adoption of digitization and IoT, the insufficient data center racks in traditional setups is augmenting their demand. Since data center rack servers inherent high density with power efficiency, the growing focus on environmental sustainability and reducing power consumption is also a driving factor for the market growth of data center rack. The availability of low-cost rack solutions is further boosting the demand for data center racks, thus positively impacting the overall market growth. Data center rack manufacturers are focusing on improving or enhancing their offerings by way of adding innovative features which is also expected to fuel the market growth of data center rack during the next five years.

Growing data traffic due to the increasing use of connected devices and increasing penetration of internet along with the investments in 5G technology will continue to propel the market growth of data center rack during the forecast period. Furthermore, rising adoption of rack servers on account of advancements in software defines security market is also going to contribute to the data center market growth during the forecast period. Companies are increasingly shifting towards server-based rack data center in order to meet the rapidly-evolving business needs while aiming at reducing the operational as well as capital expenditure.

The global data center rack market is segmented by unit size, by service, by enterprise size, by industry vertical, and by geography. By unit size, the market is segmented into 19U-22U, 23U-36U, 37U-48U, and others. On the basis of service, the market is segmented into installation, consulting, and maintenance and support. The market is segmented by enterprise size as small, medium, and large. By industry vertical, the market is segmented into BFSI, manufacturing, communication and technology, healthcare, media and entertainment, and others.

Rising demand for data center racks of units sizes 23U-36U and 37U-48U

23U-36U and 37U-48U sizes of data center rack hold significant shares in the market due to their increasing requirement by IT and multinational companies. These sizes are most feasible for medium-size enterprises making them, a favorable choice for a major sector of the market. Companies are offering various discounts and offer for small and medium-sized enterprises to lure them in buying their products which is also supporting the market growth of data center racks of various sizes.

Large enterprises to hold significant market share

Large size enterprise accounted for a significant market share in 2019 owing to the large volume of data being generated across this enterprise size segment. Even though large enterprises have their own IT infrastructure, those are insufficient to handle rapidly growing data volume. This, along with the rising cost of land and skilled workforce to maintain or expand their on-premise data centers, large companies opt for cost-effective data center racks of bigger unit sizes, thereby driving the market growth. However, the small enterprise segment will experience a substantial CAGR during the forecast period. Small businesses lack the budget to maintain their own IT infrastructure due to which they are moving towards data center racks which come in various unit size and costs. Hence, the small enterprises are using data center rack for storing computing information at a lower cost, giving them a helping hand for their personal and private usage, thus bolstering the global data center rack market growth.

APAC to record high market growth

Regionally the global data center rack market is classified into North America, South America, Europe, Middle East and Africa, and Asia Pacific. North America is one of the major markets for data center rack players owing to the presence of major market players in the region. High investments in technologies such as 5G and artificial intelligence will further ramp up the market growth of data center rack in this region. The APAC Data Center Rack market will witness a high market growth between 2019 and 2025 owing to the increasing data traffic and a corresponding need to deploy more data centers across the region. In January 2019, Equinix invested US$85.3 million to build a fourth data center in Singapore. In April 2019, Huawei launched its new servers FusionServer Pro Intelligent Servers. The transformation to intelligent servers will help in improving application speed and efficiency and these servers are even provided with fault management and full liquid-cooling cabinet. The rising number of enterprises of all sizes towards digitalization is further augmenting the demand for data center racks in APAC countries. Moreover, government projects such as Digital India and smart cities in countries like China and India will also continue to fuel the market growth of data center rack across the region.

Market Players and Competitive Intelligence

The competitive intelligence section deals with major players in the market, their market shares, growth strategies, products, financials, and recent investments among others. Key industry participants profiled as part of this section are Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Eaton, Rittal Systems Ltd., Panduit, Black Box Corporation, Schneider Electric, Vertiv Co., FUJITSU, and Huawei Technologies Co., Ltd.

Segmentation

By Unit Size
  • 19U-22U
  • 23U-36U
  • 37U-48U
  • Others

By Service
  • Installation
  • Consulting
  • Maintenance and Support

By Enterprise Size
  • Small
  • Medium
  • Large

By Industry Vertical
  • BFSI
  • Manufacturing
  • Communication and Technology
  • Healthcare
  • Media and Entertainment
  • Others

By Geography

North America
  • USA
  • Canada
  • Mexico

South America
  • Brazil
  • Argentina
  • Others

Europe
  • Germany
  • France
  • United Kingdom
  • Spain
  • Others

Middle East and Africa
  • Saudi Arabia
  • Israel
  • UAE
  • Others

Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Others

Table of Contents

1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global Data Center Rack Market Analysis, By Unit Size
5.1. Introduction
5.2. 19U-22U
5.3. 23U-36U
5.4. 37U-48U
5.5. Others
6. Global Data Center Rack Market Analysis, By Service
6.1. Introduction
6.2. Installation
6.3. Consulting
6.4. Maintenance and Support
7. Global Data Center Rack Market Analysis, By Enterprise Size
7.1. Introduction
7.2. Small
7.3. Medium
7.4. Large
8. Global Data Center Rack Market Analysis, By Industry Vertical
8.1. Introduction
8.2. BFSI
8.3. Manufacturing
8.4. Communication and Technology
8.5. Healthcare
8.6. Media and Entertainment
8.7. others
9. Global Data Center Rack Market Analysis, By Geography
9.1. Introduction
9.2. North America
9.2.1. North America Data Center Rack Market, By Unit Size
9.2.2. North America Data Center Rack Market, By Service
9.2.3. North America Data Center Rack Market, By Enterprise Size
9.2.4. North America Data Center Rack Market, By Industry Vertical
9.2.5. By Country
9.2.5.1. USA
9.2.5.2. Canada
9.2.5.3. Mexico
9.3. South America
9.3.1. South America Data Center Rack Market, By Unit Size
9.3.2. South America Data Center Rack Market, By Service
9.3.3. South America Data Center Rack Market, By Enterprise Size
9.3.4. South America Data Center Rack Market, By Industry Vertical
9.3.5. By Country
9.3.5.1. Brazil
9.3.5.2. Argentina
9.3.5.3. Others
9.4. Europe
9.4.1. Europe Data Center Rack Market, By Unit Size
9.4.2. Europe Data Center Rack Market, By Service
9.4.3. Europe Data Center Rack Market, By Enterprise Size
9.4.4. Europe Data Center Rack Market, By Industry Vertical
9.4.5. By Country
9.4.5.1. Germany
9.4.5.2. France
9.4.5.3. United Kingdom
9.4.5.4. Spain
9.4.5.5. Others
9.5. Middle East and Africa
9.5.1. Middle East and Africa Data Center Rack Market, By Unit Size
9.5.2. Middle East and Africa Data Center Rack Market, By Service
9.5.3. Middle East and Africa Data Center Rack Market, By Enterprise Size
9.5.4. Middle East and Africa Data Center Rack Market, By Industry Vertical
9.5.5. By Country
9.5.5.1. Saudi Arabia
9.5.5.2. Israel
9.5.5.3. UAE
9.5.5.4. Others
9.6. Asia Pacific
9.6.1. Asia Pacific Data Center Rack Market, By Unit Size
9.6.2. Asia Pacific Data Center Rack Market, By Service
9.6.3. Asia Pacific Data Center Rack Market, By Enterprise Size
9.6.4. Asia Pacific Data Center Rack Market, By Industry Vertical
9.6.5. By Country
9.6.5.1. China
9.6.5.2. Japan
9.6.5.3. South Korea
9.6.5.4. India
9.6.5.5. Others
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. Hewlett Packard Enterprise Development LP
11.2. Cisco Systems, Inc.
11.3. Eaton
11.4. Rittal Systems Ltd.
11.5. Panduit
11.6. Black Box Corporation
11.7. Schneider Electric
11.8. Vertiv Co.
11.9. FUJITSU
11.10. Huawei Technologies Co., Ltd.

Companies Mentioned

  • Hewlett Packard Enterprise Development LP
  • Cisco Systems, Inc.
  • Eaton
  • Rittal Systems Ltd.
  • Panduit
  • Black Box Corporation
  • Schneider Electric
  • Vertiv Co.
  • FUJITSU
  • Huawei Technologies Co., Ltd.

Methodology

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