Data center rack and enclosure market growth will be sustained by the rise in data center installations across developing regions. Currently, there is massive demand for robust IT infrastructure solutions that can pack various IT components such as servers, networking equipment, and storage in a compact space. The industry will also benefit from the budding popularity and modular and micro data centers.

Racks and enclosures offer active ventilation to IT components and ensure that the equipment doesn’t overheat. Their demand is increasing with the emergence of new hyperscale cloud data centers in developed as well as emerging countries. Leading cloud providers such as IBM, AWS, Google Cloud, Microsoft, and Oracle are likely to invest in high-quality, robust racks and enclosures for future data center expansions.

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Projections based on a research study by GMI, Inc., show that the global data center rack and enclosure market could be worth more than US$5 billion by 2027. Highlighted below are some of the major upcoming trends in the industry.

Open frame racks – a top notch solution for increasingly complex infrastructures

Racks and enclosures are available in a variety of sizes which depend on the size of IT components to be placed within them. Open frame racks are likely to experience notable demand over the coming years. The growing complexity of data center infrastructures is a key factor driving this demand.

Open frame racks are typically designed without sides or doors and find application where the rack doesn’t need to control airflow or offer physical security. They are ideal for distribution frame and network wiring applications which have high-density cabling as they provide convenient access and ample open space for managing cables.

Increasing internet penetration fosters APAC rack & enclosure market

Demand for efficient data center infrastructure solutions such as racks and enclosures in Asia Pacific is increasing because: 

• Internet penetration in the region is increasing led by constant government efforts to boost internet availability. For instance, the Asia Pacific Information Superhighway is an initiative to enhance the affordability and accessibility of internet by strengthening the internet infrastructure.
• Asia Pacific is a major hub for some of the world’s largest tech developers. These companies are leveraging cloud computing, AI, IoT, and other advanced technologies for designing smarter and more efficient solutions, generating massive amounts of data each hour.

The exponentially rising volumes of data generated, and continuous data center expansion will propel Asia Pacific data center rack and enclosure market forward over the forecast period 2021-2027.

Emerging opportunities in manufacturing sector with rise of industrial automation

Today, the manufacturing sector is increasingly driven by industrial automation. The deployment of AI and robotics to power smart factory operations and the penetration of IoT is intensifying data storage demand. High-performance IT and network infrastructures are required to support AI, robotics, IoT, and connected technologies.

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On account of these factors, hyperscale data center adoption in the manufacturing sector is gathering pace. It is estimated that the manufacturing sector will capture a substantial share of data center rack & enclosure market by the end of 2027.

The BFSI sector is likely to create promising new opportunities for the market in the future as internet banking, smart cards, and digital wallets continue to grow in popularity. The recent COVID-19 pandemic has fueled the adoption of cashless payments significantly, resulting in surging amounts of digital data. The trend will only gain momentum in coming years, positively impacting the Data center rack and enclosure market forecast.

Table of Contents (ToC) of the report:

Chapter 1   Methodology & Scope

1.1    Scope & definitions

1.2    Methodology & forecast parameters

1.3    COVID-19 impact

1.3.1    North America

1.3.2    Europe

1.3.3    Asia Pacific

1.3.4    South America

1.3.5    MEA

1.4    Data sources

1.4.1    Secondary

1.4.2    Primary

Chapter 2   Executive Summary

2.1    Data center rack and enclosure market 360⁰ synopsis, 2017 - 2027

2.1.1    Business trends

2.1.2    Regional trends

2.1.3    Component trends

2.1.4    Application trends

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