Data Center Rack and Enclosure Global Market Report 2024

The data center rack and enclosure market size has grown rapidly in recent years. It will grow from $3.5 billion in 2023 to $3.88 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The growth observed in the historical period can be attributed to the growing demand for data storage, the expansion of cloud computing, increasing internet usage, the rise in e-commerce activities, and the globalization of businesses.

The data center rack and enclosure market size is expected to see rapid growth in the next few years. It will grow to $5.89 billion in 2028 at a compound annual growth rate (CAGR) of 11.0%. The anticipated growth in the forecast period can be attributed to the surging data generation from IoT devices, the adoption of edge computing, increasing demand for hyperscale data centers, and an emphasis on energy-efficient data center solutions. Major trends expected in the forecast period include the adoption of liquid cooling solutions, modular data center designs, increasing use of open-source hardware, a rise in demand for rack-level power distribution, and a focus on sustainable and environmentally friendly enclosure materials.

The anticipated expansion of new data centers is set to drive the growth of the data center rack and enclosure market. Data centers are complex facilities that utilize advanced network, computing, and storage infrastructure to facilitate shared access to applications and data. Within these data centers, racks and enclosures play a crucial role, serving as essential components to organize, mount, and safeguard servers, networking equipment, and other critical hardware. This organizational framework is vital for ensuring the efficient and reliable operation of the data center infrastructure. For example, as reported by the Korea Data Center Council (KDCC) in February 2021, the overall capacity of colocation data centers in Korea reached 430 MW by the end of 2020, representing 11% of the total APAC IT load. Projections from Savills Korea indicate an expected expansion of Korea's commercial data center IT load by 700 MW between 2021 and 2023, constituting 15% of the overall Asia-Pacific capacity. Therefore, the ongoing expansion of new data centers serves as a driving force for the data center rack and enclosure market.

The increasing adoption of cloud-based services is poised to contribute to the growth of the data center rack and enclosure market. Cloud-based services involve delivering various computing services over the internet on a pay-as-you-go or subscription basis, encompassing storage, processing, databases, networking, software, and analytics. Data center racks and enclosures play a foundational role in housing and organizing the hardware that supports the operational infrastructure of cloud services. Eurostat reported in December 2023 that 42.5% of EU enterprises utilized cloud computing, marking a 4.2% increase compared to 2021. Thus, the rising adoption of cloud-based services is a key driver for the growth of the data center rack and enclosure market.

A notable trend in the data center rack and enclosure market is the adoption of technological enclosure management systems. Major companies in the market are incorporating innovative enclosure management system technologies to maintain their competitive position. For instance, Genetec Inc., based in Canada, introduced the Genetec Enclosure Management Solution in May 2022 - a system utilizing cloud link roadrunner technology to securely and scalably manage access to racks and cabinets in data centers. This solution, compliant with industry standards such as PCI DSS, offers secure access control, remote management, and scalability, making it well-suited for data centers.

Companies in the data center rack and enclosure market are actively introducing next-generation solutions, including data center cooling equipment. These systems are crucial for maintaining optimal temperatures and humidity levels within data center racks, ensuring the peak performance of information technology equipment. Airedale International Air Conditioning, a UK-based manufacturer, launched the Cooling System Optimizer in November 2022. This sophisticated control package is designed to optimize performance in data center designs by measuring conditions at the rack level, stabilizing server inlet air temperatures and maintaining the white space.

In July 2021, nVent Electric plc., a UK-based electrical connection and protection manufacturer, completed the acquisition of CIS Global for $200 million. Through this strategic move, nVent Electric plc. aims to enhance revenue, broaden its product portfolio, enter new markets, and reinforce its competitive standing. CIS Global, a US-based provider of data center racks and enclosure services, aligns with nVent Electric plc.'s growth objectives in the data center industry.

Major companies operating in the data center rack and enclosure market report are Dell Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Fujitsu Ltd., Eaton Corporation, Emerson Electric Company, Delta Electronics Inc., Legrand SA, Vertiv Holdings Co., Rittal Gmbh and Co. KG, nVent Electric plc, Belden Inc., Panduit Corporation, Blackbox Corporation, AGC Network Ltd., Rahi Inc., Hammond Manufacturing Co. Ltd., C and F Tooling Ltd., Canovate Group, Innovation First International Inc., Chatsworth Products Inc., AFCO Systems Inc., Great lakes Data Racks and Cabinets Co. Inc., Martin International Enclosures LLC, IMS Engineered Products LLC, Amco Enclosures, Prism Enclosures Ltd.

North America was the largest region in the data center rack and enclosure market in 2023. The regions covered in the data center rack and enclosure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center rack and enclosure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main types of products in the data center rack and enclosure category include open-frame racks, rack enclosures, and wall-mount racks. Open-frame racks are made of high-quality metal sheets and feature special holes for fastening equipment to mount servers and other network devices. These racks include solutions and service components and can be fixed with wall-mounted or floor-mounted installations. They come in various sizes, such as 18U–22U, 23U–32U, 33U–42U, 43U–48U, and above 49U. Data center rack and enclosure solutions find applications in various industries, including information technology (IT), telecommunications, banking, financial services, and insurance (BFSI), government, healthcare, manufacturing, education, and others.

The data center rack and enclosure market research report is one of a series of new reports that provides data center rack and enclosure market statistics, including data center rack and enclosure industry global market size, regional shares, competitors with a data center rack and enclosure market share, detailed data center rack and enclosure market segments, market trends and opportunities, and any further data you may need to thrive in the data center rack and enclosure industry. This data center rack and enclosure market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The data center rack and enclosure market consists of revenues earned by entities by providing services such as rack design and manufacturing, rack maintenance and installation, cable management solutions, power distribution management, and rack decommissioning and disposal services. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center rack and enclosure market also include sales of server racks, rack cabinets, rack mounting hardware, rack cooling solutions, and blanking panels. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.