increasing demand for energy-efficient rack solutions are driving the growth of the Data Center Rack Market at a CAGR of 8.86% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Data Center Rack Market” that contains the information from 2019 to 2035.

The Global Data Center Rack Market is estimated to register a CAGR of 8.86 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Data Center Rack Market — Hewlett Packard Enterprise Development LP, Fujitsu Ltd, Rittal Pvt. Ltd, Great Lakes Data Racks & Cabinets, Eaton Corporation Plc, Oracle, Black Box, Schneider Electric, Dell Inc., Samsung Electronics and others.

The Global Data Center Rack Market accounted for registering a CAGR of 8.86% during the forecast period and is estimated to reach USD 13.16 billion by 2035.

The rapid shift towards digitalization and cloud computing is a key factor driving the data center rack market. The demand for robust and efficient data center infrastructure intensifies as organizations across various industries embrace digital transformation. This shift is driven by the increasing volumes of data generated and processed by modern applications, which require advanced data center racks capable of supporting high-density server configurations and scalable solutions. Digital transformation encompasses a broad range of technologies, including cloud computing, big data analytics, and artificial intelligence. These technologies rely on data centers to handle massive amounts of data and ensure seamless connectivity, performance, and reliability. Organizations are migrating their operations from on-premises infrastructure to cloud environments as cloud computing becomes more prevalent. This transition places substantial demands on data centers to provide the necessary computing power, storage capacity, and scalability.

Data center racks are evolving to support higher rack densities, advanced cooling solutions, and enhanced power management systems. High-density racks are designed to accommodate more servers in a smaller footprint, allowing data centers to maximize space utilization and efficiency. This is essential as cloud environments require dense configurations to support virtualized workloads and ensure optimal performance. Advanced cooling solutions are also critical in managing the increased heat output generated by densely packed servers. Innovations such as in-row cooling systems and liquid cooling technologies help maintain optimal temperatures and prevent overheating, which lead to hardware failures and downtime. Improved power management systems, including intelligent power distribution units (PDUs) and energy-efficient power supplies, further contribute to the overall efficiency and reliability of data centers.

Organizations continue to migrate to cloud-based platforms, the ability of data centers to adapt to evolving requirements becomes increasingly important. The need for rapid scalability and flexibility drives the development of modular rack systems that can be easily expanded or reconfigured to accommodate changing workloads and technologies. This adaptability is crucial for maintaining optimal performance and minimizing downtime, ensuring that data centers can support critical cloud-based services effectively.

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Segmental Analysis

The Global Data Center Rack Market has been segmented based on by Component, by Rack Type, by Size, by Height and by Industry.

Based on Component, this segment includes Service and Solution. The Solution segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. The solution refers to an integrated set of hardware and software components designed to enhance the functionality, efficiency, and overall performance of data center racks. These solutions are crucial for managing the complex environments within which data center racks operate, ensuring that they can meet the growing demands of modern digital infrastructure. Key hardware solutions include rack management systems, cooling solutions, and Power Distribution Units (PDUs). Rack management systems provide centralized control over rack operations, enabling data center operators to monitor and manage various aspects of the rack's performance. These systems often include features like remote monitoring, alert systems for anomalies, and automation capabilities that streamline operations and reduce the need for manual intervention. Cooling solutions are essential for preventing overheating, a critical concern in high-density data center environments.

Based on Rack Type, this segment includes Cabinets/ Enclosed Racks and Open Frame Rack. The Cabinets/ Enclosed Racks segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Cabinets or enclosed racks are critical components in modern data center infrastructure, offering a range of benefits that address both security and efficiency needs. These fully enclosed structures are designed to house servers, networking equipment, and other critical hardware, providing a secure environment that protects against unauthorized access, dust, debris, and other environmental factors that could potentially harm sensitive equipment. One of the advantages of enclosed racks is their ability to enhance security. By limiting physical access to the hardware, these racks protect against tampering, theft, and accidental damage. This is particularly important in large data centers where equipment security is paramount.

Based on Size, this segment includes Large Data Centers, Small and Mid-sized Data Centers. The Large Data Centers segment dominated the global market in 2024, while the Small and Mid-sized Data Centers segment is projected to be the fastest–growing segment during the forecast period. Large data centers are the backbone of the modern digital economy, housing vast amounts of computing power and storage to support a wide range of services and applications, from cloud computing to enterprise resource management. The racks used in these facilities are engineered to meet the demands of large-scale infrastructure, designed to maximize space utilization while ensuring optimal performance, reliability, and scalability. Racks in large data centers are typically taller and built to accommodate high-density configurations. This means they can hold a greater number of servers, networking equipment, and storage devices in a smaller footprint, which is crucial for maximizing the use of available space. These racks often support heights of up to 52U and beyond, allowing data centers to stack more equipment vertically.

Based on Height, this segment includes 42U and Below, 43U up to 52U, Above 52U. The Above 52U segment dominated the global market in 2024, while the 43U up to 52U segment is projected to be the fastest–growing segment during the forecast period. Racks taller than 52U are designed for very large data centers where maximizing vertical space is essential. These extra-tall racks are capable of housing a significant number of servers, storage devices, and networking equipment, making them ideal for high density environments that require substantial computing power, storage capacity, and networking capabilities. These racks are particularly useful in facilities with high ceilings and expansive floor space, allowing operators to stack more equipment in a single rack, thereby optimizing space utilization. The main advantage of racks above 52U is their ability to support extremely high-density installations.

Based on Industry, this segment includes BFSI, Healthcare, IT and Telecom, Manufacturing, Media and Entertainment, Others, Retail. The IT and Telecom segment dominated the global market in 2024, while the BFSI segment is projected to be the fastest–growing segment during the forecast period. The IT and telecom sectors are heavily reliant on data center racks to house the servers, storage, and networking equipment essential for providing internet, telecommunications, and cloud services. These racks are designed for high-density configurations, supporting large volumes of data traffic and complex network infrastructures. In these industries, data center racks are critical for ensuring reliable connectivity, data processing, and storage, all of which are fundamental to delivering uninterrupted services to customers and businesses. High-density configurations are a key feature of data center racks in the IT and telecom sectors.

Regional Analysis

Geographically, the Global Data Center Rack Market has been segmented into North America, Europe, Asia-Pacific and Rest of the World.

Major demand factors driving the Asia-Pacific market are the prompt shift towards digitalization and cloud computing and expansion of IOT and edge computing and increasing demand for energy-efficient rack solutions. Asia-Pacific is home to some of the world's fastest growing economies, including China, India, Japan, and South Korea, which are leading the demand for advanced data center infrastructure to support their expanding digital ecosystems. The data center rack market in this region is fueled by several factors, including the rising number of internet users, the growth of e-commerce, and the increasing reliance on digital services across various industries. The proliferation of smartphones and the surge in data consumption have further accelerated the demand for data center expansion, driving the need for efficient and scalable rack solutions. China and India are key contributors to the market, with significant investments in data center construction to meet the needs of their large populations and rapidly digitizing economies. Japan and South Korea, known for their technological advancements, also play a crucial role, with a strong focus on high-density data center solutions that require sophisticated rack systems for optimal performance and efficiency.

The North America data center rack market is a significant segment of the global data center infrastructure industry, driven by the region's robust technological advancements and high adoption of digital services. US is home to some of the world's largest data centers and is a hub for leading technology companies, cloud service providers, and enterprises that rely heavily on data-driven operations. Demand for data center racks in North America is fueled by the growing need for scalable and efficient IT infrastructure. The rapid expansion of cloud computing, big data analytics, and the Internet of Things (IoT) has led to an increased demand for data center space, prompting the need for advanced rack solutions that can support high-density server environments. Additionally, the region's emphasis on data security and regulatory compliance drives the adoption of robust, secure, and reliable rack systems.

The Europe data center rack market is a vital component of the region's broader data center infrastructure industry, characterized by significant growth due to the increasing digitalization across various sectors. Europe is home to a diverse range of industries, including finance, healthcare, manufacturing, and media, all of which contribute to the demand for robust and efficient data center solutions. Countries like Germany, the UK, France, and the Netherlands are key players, hosting large data centers that serve both domestic and international markets. The European market is driven by several factors, including the rapid expansion of cloud computing, big data analytics, and the Internet of Things (IoT). These technologies require high-density data centers equipped with advanced rack solutions to manage the increased load.

The Rest of the World (RoW) data center rack market encompasses Latin America, the Middle East, and Africa regions. These regions are gaining momentum as digital transformation spreads globally, driven by increasing internet penetration, the adoption of cloud computing, and the expansion of digital services across various sectors.

Key Findings of the Study

• The Global Data Center Rack Market is expected to reach USD 13.16 billion by 2035, at a CAGR of 8.86% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on the Industry, the IT and Telecom segment was attributed to holding the largest market in 2024.


• Hewlett Packard Enterprise Development LP, Fujitsu Ltd, Rittal Pvt. Ltd, Great Lakes Data Racks & Cabinets, Eaton Corporation Plc, Oracle, Black Box, Schneider Electric, Dell Inc., Samsung Electronics are some of the players in the market.