Global Data Centre Rack Server Market Segmentation, By Component (Solutions and Services), Form Factor (1U, 2U, 4U and Others), Service (Design and Consulting, Installation and Deployment, Support and Maintenance), Tier Type (Tier 1, Tier 2, Tier 3, Tier 4 and Others), Data Centre Type (Mid-Sized Data Centres, Enterprise Data Centres, and Large Data Centres), Industry (BFSI, IT and Telecom, Government and Defense, Healthcare, Research and Academic, Retail, Energy, Manufacturing and Others) – Industry Trends and Forecast to 2031.
Data Centre Rack Server Market Analysis
The data centre rack server market is witnessing significant growth driven by advancements in technology and methodologies. Key innovations include the integration of high-density servers, which maximize space efficiency and energy consumption. These servers utilize virtualization technologies, allowing multiple workloads to run on a single physical server, enhancing resource utilization.
Recent developments in cooling technologies, such as liquid cooling systems, are being adopted to manage heat generated by densely packed servers. This not only improves efficiency but also extends the lifespan of equipment. Additionally, the rise of edge computing is prompting data centres to adopt modular rack systems that can be easily scaled and deployed closer to data sources.
Furthermore, the introduction of AI and machine learning in server management optimizes performance and predicts hardware failures before they occur, reducing downtime. The market is projected to grow as businesses increasingly rely on cloud computing and data analytics, driving demand for robust and efficient data centre solutions. As organizations prioritize agility and performance, investments in advanced rack server technologies are expected to continue rising, shaping the future of data infrastructure.
Data Centre Rack Server Market Size
The global data centre rack server market size was valued at USD 77.31 billion in 2023 and is projected to reach USD 286.68 billion by 2031, with a CAGR of 17.8% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Data Centre Rack Server Market Trends
“Increased Adoption of Cloud Services”
The data center rack server market is experiencing significant growth due to the increasing adoption of cloud services. As businesses migrate to cloud-based solutions for enhanced flexibility and scalability, the demand for efficient and high-density rack servers rises. For instance, in June 2020, Huawei launched the FusionServer Pro 2488H V6, an intelligent data center rack server designed to improve operational speed and efficiency. This innovative server is equipped with advanced capabilities that enhance performance in demanding environments. By introducing the FusionServer Pro, Huawei aims to capture a larger share of the Data Center Rack Server Market, addressing the increasing demand for high-performance computing solutions in various industries.
Report Scope and Data Centre Rack Server Market Segmentation
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Attributes
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Data Centre Rack Server Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Cisco Systems, Inc. (U.S.), Broadcom (U.S.), Oracle (U.S.), Eaton (U.S.), Cannon Technologies Ltd (U.K.), C & F Tooling (U.S.), Huawei Technologies Co., Ltd. (China), Preformed Line Products (U.S.), Legrand SA (France), Tokyo Century Corporation (Japan), Infiniti Research Ltd (India), Vertiv Group Corp. (U.S.), Tripp Lite (U.S.), RS Components & Controls (I) Ltd. (India), Rittal India Pvt. Ltd. (India), Hewlett Packard Enterprise Development LP (U.S.), Black Box Corporation (U.S.), CtrlS Datacenters Ltd (India), Nextra Online Services (India), and Contabo (Germany)
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Market Opportunities
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Value Added Data Infosets
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Data Centre Rack Server Market Definition
A data center rack server is a type of server that is designed to be mounted in a standardized rack frame, maximizing space efficiency and facilitating organization in data centers. These servers typically follow the 19-inch rack standard and are available in various heights, measured in "rack units" (U). Rack servers are favored for their scalability, allowing multiple units to be stacked vertically, which optimizes cooling and power management. They are widely used for hosting applications, storing data, and supporting cloud services, making them integral to modern IT infrastructure and enterprise operations.
Data Centre Rack Server Market Dynamics
Drivers
- Growing Data Generation
The exponential increase in data generated by IoT devices, social media platforms, and big data analytics is a significant driver of the data center rack server market. For instance, according to Statista, the global data volume is projected to reach 175 zettabytes by 2025. This surge necessitates efficient storage and processing solutions, prompting businesses to invest in high-performance rack servers. Companies such as Amazon and Google are expanding their data center infrastructures to accommodate this data deluge, leveraging advanced rack servers to optimize performance and scalability. Consequently, the demand for rack servers continues to rise as organizations seek to effectively manage and analyze vast amounts of data.
- Increased Cybersecurity Needs
The surge in cyber threats, including ransomware and data breaches, has compelled organizations to prioritize cybersecurity, significantly driving the data center rack server market. For instance, In May 2021, Dell introduced the Dell EMC PowerEdge R750, a state-of-the-art rack server equipped with 80 processors and up to 8TB of storage capacity. This new offering is designed to enhance performance and efficiency in data center environments. With these advancements, Dell aims to strengthen its competitive position within the Data Center Rack Server Market, meeting the growing needs of businesses for robust computing solutions.
Opportunities
- Rising Remote Work Trends
The rise in remote work has significantly reshaped the demand for data center rack servers, creating substantial market opportunities. Companies are increasingly investing in robust IT infrastructures to facilitate remote access and seamless collaboration. For instance, In September 2022, AMAX launched the AceleMax X-122-Flex Server, powered by Intel’s next-generation GPU Flex series. This cutting-edge data center rack server is specifically designed to handle high-density, complex workloads. Targeted at applications such as media delivery and cloud gaming, the AceleMax X-122-Flex positions AMAX as a key player in the emerging visual cloud applications market, catering to the increasing demand for robust processing capabilities.
- Edge Computing Expansion
The expansion of edge computing presents a significant opportunity for the rack server market, as businesses seek to process data closer to its source for improved latency and efficiency. Compact and efficient rack servers are essential for this purpose, enabling localized data processing in various environments, such as smart cities and autonomous vehicles. For instance, companies such as Dell Technologies have developed edge-specific solutions tailored for IoT applications, facilitating real-time analytics and decision-making. This trend not only boosts demand for high-performance rack servers but also encourages innovations in server design, creating new revenue streams and competitive advantages for manufacturers in this evolving landscape.
Restraints/Challenges
- High Initial Investment
High initial investment is a significant restraint in the data center rack server market. Establishing a data center demands considerable capital expenditure on hardware, software, and infrastructure, which can be prohibitive for small and medium enterprises. This financial barrier limits their ability to compete effectively, ultimately hindering market growth. The cost of acquiring advanced technologies, coupled with ongoing operational expenses, deters potential entrants and constrains the market's expansion. As larger corporations dominate the space, the lack of participation from smaller players restricts innovation and diversity within the sector, further entrenching existing market dynamics and limiting overall growth potential.
- Space Constraints
Physical space limitations in data centers significantly hinder the growth of the rack server market. As the demand for additional servers rises, managing available space becomes increasingly challenging. Inefficient layouts can lead to overcrowded environments, complicating maintenance and increasing the risk of hardware failure. Additionally, inadequate space can hinder proper cooling, resulting in overheating and decreased server performance. These constraints create operational inefficiencies and escalate costs, as companies struggle to optimize their data center configurations. The inability to expand or reconfigure spaces effectively can deter investments, ultimately stalling market growth and innovation in data center technologies.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Data Centre Rack Server Market Scope
The market is segmented on the basis of component, form factor, service, tier type, data centre type and industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Solutions
- Services
Form Factor
- 1U
- 2U
- 4U
- Others
Service
- Design and Consulting
- Installation and Deployment
- Support
- Maintenance
Tier Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
- Others
Data Centre Type
- Mid-Sized Data Centres
- Enterprise Data Centres
- Large Data Centres
Industry
- BFSI
- IT and Telecom
- Government and Defense
- Healthcare
- Research and Academic
- Retail
- Energy
- Manufacturing
- Others
Data Centre Rack Server Market Regional Analysis
The market is analyzed and market size insights and trends are provided by component, form factor, service, tier type, data centre type and industry as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America is expected to dominate the data centre rack server market, driven by the rising adoption of advanced technologies among enterprises. The region boasts a significant number of data centres, enhancing its market presence. Additionally, the increasing demand for efficient data management and storage solutions supports the growth of this market segment, with substantial investments in infrastructure expected during the forecast period.
Asia-Pacific is expected to show lucrative growth in the data center rack server market during the forecast period. This growth is driven by rapid technological advancements in information technology and increasing demand from IT and telecommunication sectors. Countries in this region are investing heavily in data center infrastructure, enhancing efficiency and scalability, which further propels market expansion and attracts new investments.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Data Centre Rack Server Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Data Centre Rack Server Market Leaders Operating in the Market Are:
- Cisco Systems, Inc. (U.S.)
- Broadcom (U.S.)
- Oracle (U.S.)
- Eaton (U.S.)
- Cannon Technologies Ltd (U.K.)
- C & F Tooling (U.S.)
- Huawei Technologies Co., Ltd. (China)
- Preformed Line Products (U.S.)
- Legrand SA (France)
- Tokyo Century Corporation (Japan)
- Infiniti Research Ltd (India)
- Vertiv Group Corp. (U.S.)
- Tripp Lite (U.S.)
- RS Components & Controls (I) Ltd. (India)
- Rittal India Pvt. Ltd. (India)
- Hewlett Packard Enterprise Development LP (U.S.)
- Black Box Corporation (U.S.)
- CtrlS Datacenters Ltd (India)
- Nextra Online Services (India)
- Contabo (Germany)
Latest Developments in Data Centre Rack Server Market
- In October 2022, NetRack unveiled the iRack Block, designed to meet the needs of larger installations. This innovative solution marks a significant advancement toward intelligent infrastructure, incorporating features such as self-cooking, self-powered, and self-contained systems. By catering to extensive requirements, the iRack Block represents a transformative step toward modular data centers, enhancing operational efficiency and adaptability in large-scale environments
- In June 2022, Schneider Electric announced a partnership with Stratus Technologies and Avnet Integrated to facilitate streamlined, zero-touch edge computing. This collaboration aims to drive the next wave of industrial innovation by integrating advanced technologies into data centers. Schneider Electric, a leader in energy management and automation, seeks to enhance operational effectiveness and security at the edge, supporting evolving digital transformation initiatives across industries
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