Data Center Rack & Enclosure

Global Data Center Rack & Enclosure Market to Reach US$6.7 Billion by 2030

The global market for Data Center Rack & Enclosure estimated at US$4.5 Billion in the year 2024, is expected to reach US$6.7 Billion by 2030, growing at a CAGR of 6.9% over the analysis period 2024-2030. Data Center Rack & Enclosure Solutions, one of the segments analyzed in the report, is expected to record a 8.3% CAGR and reach US$4.0 Billion by the end of the analysis period. Growth in the Data Center Rack & Enclosure Services segment is estimated at 5.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.2 Billion While China is Forecast to Grow at 11.1% CAGR

The Data Center Rack & Enclosure market in the U.S. is estimated at US$1.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.4 Billion by the year 2030 trailing a CAGR of 11.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.3% and 6.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.6% CAGR.

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.

SCOPE OF STUDY:

The report analyzes the Data Center Rack & Enclosure market in terms of units by the following Segments, and Geographic Regions/Countries:

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.

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 FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
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EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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