The global market for Data Center Rack & Enclosure was estimated at US$4.5 Billion in 2024 and is projected to reach US$6.7 Billion by 2030, growing at a CAGR of 6.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Data Center Rack & Enclosure market.
The rise of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) workloads has necessitated advanced rack designs that accommodate increased power consumption and heat dissipation. Additionally, the transition to liquid-cooled servers has influenced rack and enclosure innovation, with manufacturers developing solutions that support direct-to-chip and immersion cooling technologies. As data centers continue to evolve, the demand for adaptable, high-performance rack solutions is expected to grow.
Another major innovation is the development of open-frame and micro-modular racks, which support rapid deployment in edge computing environments. Additionally, liquid-cooled rack enclosures are becoming increasingly popular, addressing the thermal challenges of AI-driven workloads and HPC clusters. The integration of AI-based asset tracking and predictive maintenance systems is also transforming rack management, improving reliability and reducing downtime risks.
Market trends indicate a shift toward customizable rack configurations, where enterprises can tailor enclosures to accommodate specific hardware requirements. Additionally, hyperscale and colocation data centers are adopting taller, deeper racks to maximize space utilization. The increasing adoption of white space cooling solutions and containment strategies has further influenced rack design, optimizing airflow management in high-density computing environments.
End-use expansion is another key driver, with hyperscale cloud providers, telecom operators, and industrial IoT (IIoT) deployments requiring scalable and robust rack solutions. The shift toward AI-powered IT asset management and predictive maintenance is further enhancing rack efficiency. Additionally, collaborations between rack manufacturers and data center solution providers are fostering innovation, ensuring that next-generation data centers remain high-performing, cost-effective, and environmentally sustainable.
Segments: Component (Data Center Rack and Enclosure Solutions, Data Center Rack and Enclosure Services); Application (IT and Telecom Application, Colocation Application, BFSI Application, Healthcare Application, Government Application, Manufacturing Application, Energy Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Data Center Rack & Enclosure Market - Key Trends & Growth Drivers Summarized
Why Are Data Center Racks & Enclosures Essential for IT Infrastructure?
Data center racks and enclosures are critical components for organizing and securing IT equipment, including servers, storage devices, and networking hardware. As enterprises deploy high-density computing environments, racks and enclosures play a vital role in optimizing airflow, cable management, and power distribution. The increasing adoption of hyperscale and edge data centers has further fueled the demand for modular, scalable, and energy-efficient rack solutions.The rise of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) workloads has necessitated advanced rack designs that accommodate increased power consumption and heat dissipation. Additionally, the transition to liquid-cooled servers has influenced rack and enclosure innovation, with manufacturers developing solutions that support direct-to-chip and immersion cooling technologies. As data centers continue to evolve, the demand for adaptable, high-performance rack solutions is expected to grow.
What Are the Latest Innovations in Data Center Racks & Enclosures?
Recent advancements in data center rack technology have introduced intelligent rack power distribution units (PDUs), AI-powered thermal monitoring, and modular enclosure designs. Smart racks equipped with IoT sensors provide real-time insights into temperature, humidity, and power consumption, enabling data center operators to optimize energy efficiency.Another major innovation is the development of open-frame and micro-modular racks, which support rapid deployment in edge computing environments. Additionally, liquid-cooled rack enclosures are becoming increasingly popular, addressing the thermal challenges of AI-driven workloads and HPC clusters. The integration of AI-based asset tracking and predictive maintenance systems is also transforming rack management, improving reliability and reducing downtime risks.
How Are Market Trends and Industry Standards Influencing Rack & Enclosure Adoption?
The growing emphasis on sustainability and data center efficiency has influenced rack and enclosure design. Organizations are prioritizing airflow-optimized racks that enhance cooling efficiency and reduce power usage effectiveness (PUE). Industry standards such as the Open Compute Project (OCP) and EIA-310 are shaping rack specifications, ensuring compatibility across IT infrastructure components.Market trends indicate a shift toward customizable rack configurations, where enterprises can tailor enclosures to accommodate specific hardware requirements. Additionally, hyperscale and colocation data centers are adopting taller, deeper racks to maximize space utilization. The increasing adoption of white space cooling solutions and containment strategies has further influenced rack design, optimizing airflow management in high-density computing environments.
What Is Driving the Growth of the Data Center Rack & Enclosure Market?
The growth in the data center rack & enclosure market is driven by increasing IT infrastructure expansion, the rise of AI-driven workloads, and advancements in energy-efficient rack designs. The demand for high-performance enclosures that support liquid cooling and smart monitoring systems has accelerated market adoption.End-use expansion is another key driver, with hyperscale cloud providers, telecom operators, and industrial IoT (IIoT) deployments requiring scalable and robust rack solutions. The shift toward AI-powered IT asset management and predictive maintenance is further enhancing rack efficiency. Additionally, collaborations between rack manufacturers and data center solution providers are fostering innovation, ensuring that next-generation data centers remain high-performing, cost-effective, and environmentally sustainable.
Report Scope
The report analyzes the Data Center Rack & Enclosure market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Component (Data Center Rack and Enclosure Solutions, Data Center Rack and Enclosure Services); Application (IT and Telecom Application, Colocation Application, BFSI Application, Healthcare Application, Government Application, Manufacturing Application, Energy Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Data Center Rack & Enclosure Solutions segment, which is expected to reach US$4.0 Billion by 2030 with a CAGR of a 8.3%. The Data Center Rack & Enclosure Services segment is also set to grow at 5.0% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $1.2 Billion in 2024, and China, forecasted to grow at an impressive 11.1% CAGR to reach $1.4 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Data Center Rack & Enclosure Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Data Center Rack & Enclosure Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Data Center Rack & Enclosure Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as AMCO Enclosures, Belden Inc., Black Box Corporation, Canovate Elektronik A.S., Chatsworth Products, Inc. and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 34 Featured):
- AMCO Enclosures
- Belden Inc.
- Black Box Corporation
- Canovate Elektronik A.S.
- Chatsworth Products, Inc.
- Cisco Systems, Inc.
- Dell Technologies Inc.
- Eaton Corporation
- Great Lakes Case & Cabinet
- Hubbell Incorporated
- IBM Corporation
- Legrand SA
- nVent Electric plc
- Orion Industries Incorporated
- Panduit Corp.
- Rittal GmbH & Co. KG
- Schneider Electric
- Schroff GmbH
- Tripp Lite
- Vertiv Group Corp
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AMCO Enclosures
- Belden Inc.
- Black Box Corporation
- Canovate Elektronik A.S.
- Chatsworth Products, Inc.
- Cisco Systems, Inc.
- Dell Technologies Inc.
- Eaton Corporation
- Great Lakes Case & Cabinet
- Hubbell Incorporated
- IBM Corporation
- Legrand SA
- nVent Electric plc
- Orion Industries Incorporated
- Panduit Corp.
- Rittal GmbH & Co. KG
- Schneider Electric
- Schroff GmbH
- Tripp Lite
- Vertiv Group Corp
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 283 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 4.5 Billion |
| Forecasted Market Value ( USD | $ 6.7 Billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | Global |
