Data Center Rack Market Research Report Information by Component (Service and Solution), by Rack Type (Cabinets/ Enclosed Racks and Open Frame Rack), by Size (Large Data Centers, Small and Mid-sized Data Centers), by Height (42U and Below, 43U up to 52U, Above 52U), by Industry (BFSI, Healthcare, IT and Telecom, Manufacturing, Media and Entertainment, Others, Retail) and Region (North America, Europe, Asia-Pacific, Rest of the World) - Forecast till 2035

Data Center Rack Market Overview

The Data Center Rack Market was valued at USD 5.43 Billion in 2024. The Data Center Rack Market industry is projected to grow from USD 5.90 Billion in 2025 to USD 13.16 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.86% during the forecast period (2025-2035).

The prompt shift towards digitalization and cloud computing and expansion of IOT and edge computing and increasing demand for energy-efficient rack solutions are driving the growth of the Data Center Rack Market.

As per the Analyst at MRFR, 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.

 FIGURE 1: DATA CENTER RACK MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Rack Market Opportunity

ADOPTION OF MODULAR AND CUSTOMIZABLE SOLUTIONS

Space constraints become a more pressing issue in densely populated urban areas, increasing demand for flexible and adaptable solutions is rising. Modular and customizable rack systems offer a way to efficiently utilize limited physical space while providing the necessary scalability and performance. These solutions allow data centers to optimize their infrastructure within compact footprints, addressing the challenges of space limitations effectively.  Modular racks are designed to be easily reconfigured and expanded, making them ideal for environments where space is restricted. They can be adjusted or scaled up incrementally, providing a cost-effective and adaptable approach to managing growing data needs. Customizable racks further enhance this flexibility by allowing data centers to tailor their infrastructure to specific requirements, such as high-density configurations or specialized cooling needs.

• For instance, Equinix, a global leader in data center services, build a facility Equinix AM7 in Amsterdam which exemplify how high-density rack configurations and advanced design layouts can maximize space utilization within existing buildings. Equinix’s approach includes implementing vertical stacking to house more servers in the same floor area and using modular designs to allow incremental expansion as needed.

Innovations in cooling technologies, such as in-row cooling systems and liquid cooling, also play a critical role. These technologies reduce the physical space required for traditional cooling units, enabling more efficient use of available space. By adopting these advanced cooling solutions, data centers can enhance their capacity without necessitating significant physical expansions.

Additionally, the trend towards colocation services provides a strategic response to space constraints. By sharing data center space and resources with other tenants, organizations can access high-performance infrastructure without the need for extensive physical expansion. Colocation services offer a scalable and flexible solution that meets the growing demands for data processing and storage while managing limited space efficiently.

Data Center Rack Market Segment Insights

Data Center Rack System by Component Insights

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.

FIGURE 2: DATA CENTER RACK MARKET SHARE BY COMPONENT 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Rack System by Rack Type Insights

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.

Data Center Rack System by Size Insights

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.

Data Center Rack System by Height Insights

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.

Data Center Rack System by Industry Insights

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.

Data Center Rack System Regional Insights

Based on the Region, the global Data Center Rack is 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.

FIGURE 3: DATA CENTER RACK MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, Middle East, Africa, Latin America and others.

Global Data Center Rack Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Data Center Rack Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are 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 among others. The Data Center Rack Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Data Center Rack Market include

• 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

Data Center Rack Market Industry Developments

January 2023: Fujitsu launch its next-generation PRIMERGY M7 servers leveraging the new 4th gen of Intel® Xeon® Scalable Processor Platform technology. Offering best-in class performance and energy efficiency on industry-standard CPU technology, the PRIMERGY M7 series provides the simplicity and cost profile needed for backbone operations as well as the power to bring affordable AI operations within reach for sustainability transformation programs.

August 2023: Oracle is offering a single-rack Oracle Cloud system that customers can deploy on-’ @ features a number of on-premises offerings, including a 12-rack Dedicated Region that offers all the same services as OCI public regions, but in a private cloud deployment.

November 2023: Eaton announced a new, innovative rack power distribution solution for data centers and edge facilities with the global launch of its Rack PDU G4. By accommodating power demands for a broad range of equipment and facility types, the Rack PDU G4 allows data center operators to deploy a single PDU across multiple locations, saving time, reducing costs and simplifying power management.

October 2019: Schneider Electric has launched a tiny Edge micro data center, which can be screwed to the wall and managed remotely with the EcoStruxure service. As the name implies, the C-series 6U Wall Mount EcoStruxure Micro Data Center has a capacity of six rack units and can be mounted on a wall.

Data Center Rack Market Segmentation

Data Center Rack by Component Outlook

• Service


• Solution

Data Center Rack by Rack Type Outlook

• Cabinets/ Enclosed Racks


• Open Frame Rack

Data Center Rack by Size Outlook

• Large Data Centers


• Small and Mid-sized Data Centers

Data Center Rack by Height Outlook

• 42U and Below


• 43U up to 52U


• Above 52U

Data Center Rack by Industry Outlook

• BFSI


• Healthcare


• IT and Telecom


• Manufacturing


• Media and Entertainment


• Others


• Retail

Data Center Rack Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the world
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America
  
  
  
  

Report Attribute/Metric	Details
Market Size 2024	USD 5.43 Billion
Market Size 2025	USD 5.90 Billion
Market Size 2035	USD 13.16 Billion
Compound Annual Growth Rate (CAGR)	8.86 % (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Volume, Value (USD Billion, 000' Units)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Component, By Rack Type, By Size, By Height, By Industry
Geographies Covered	North America, Europe, Asia Pacific, Rest of the World
Countries Covered	The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, Middle East, Africa, Latin America
Key Companies Profiled	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
Key Market Opportunities	·         Adoption of modular and customizable solutions
Key Market Dynamics	·         Prompt shift towards digitalization and cloud computing ·         Expansion of IOT and edge computing ·         Increasing demand for energy-efficient rack solutions