Data Center Rack and Enclosure Market to Surpass USD 10.5 Billion by 2034

The global data center rack and enclosure market was valued at USD 4.6 billion in 2024 and is projected to grow at a CAGR of 8.4% from 2025 to 2034, according to a recent report by Global Market Insights Inc.

The increasing adoption of edge computing, spurred by the proliferation of Internet of Things (IoT) devices, is a significant driver of market growth. The surge in modular data centers, known for their portability and scalability, boosts demand for adaptable racks and enclosures. These systems enable businesses to expand data center capacity incrementally without committing to large-scale infrastructure. Modular designs often require specialized racks and enclosures that are quick to deploy and flexible enough to meet evolving operational demands.

By component, the data center rack and enclosure market is segmented into solutions and services. In 2024, the solutions segment captured 75% of the market share and is expected to reach USD 7 billion by 2034. The increasing complexity of tasks like artificial intelligence (AI), machine learning (ML), and big data processing drives demand for high-density rack solutions. These racks optimize space utilization, a critical factor in environments with constrained power, cooling, and availability. Advanced cooling mechanisms, such as liquid cooling and airflow optimization, are essential features supporting these dense configurations.

In terms of application, the market is categorized into manufacturing, BFSI, colocation, government, healthcare, IT & telecom, energy, and others. The IT & telecom segment accounted for 32% of the market share in 2024. The shift towards cloud computing is revolutionizing IT and telecom industries, increasing the demand for robust data center infrastructure. Scalable and efficient racks and enclosures are essential to handle growing data volumes while ensuring optimal performance in cloud-based operations.

North America dominated the global data center rack and enclosure market in 2024, holding a 40% market share, with the U.S. leading the region. The presence of major cloud service providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure has driven significant data center expansion in the region. This growth necessitates modular, flexible, scalable rack and enclosure solutions to support dynamic storage needs. Additionally, substantial investments by government entities and private enterprises in digital transformation and IT infrastructure upgrades further fuel market expansion.

The demand for innovative, high-performance data center racks and enclosures continues to rise as industries embrace digital transformation and advanced technologies. This trend ensures a positive outlook for the market through the forecast period.

The post Data Center Rack and Enclosure Market to Surpass USD 10.5 Billion by 2034 appeared first on Data Center POST.