Data Center Rack & Enclosure market is set to witness robust growth between 2023 and 2032, primarily owing to the increasing adoption of various online services. Besides, the rising usage of various IoT and AI platforms in Europe and North America will also fuel the industry demand by 2032.

Furthermore, key providers in the market are working toward securing a better position in the market by expanding their existing portfolio and entering valuable mergers and acquisitions. Citing an instance, in March 2022, UK data center company, Pulsant announced the acquisition of Amito. According to reports, this acquisition will assist Pulsant’s strategy to expand geographically and offer edge computing to various organizations in the UK.

Overall, the data center rack & enclosure market has been segmented in terms of component, application, and region.

In the context of the component, the market is likely to be characterized by the solution segment, which held more than 75% market share in 2022. The segmental growth can be attributed to the advancing technologies, that are proving immensely beneficial for industries such as healthcare, financial services, and manufacturing services. Besides, the rising usage of data center rack solutions for better business and customer experiences will also add fuel to the product adoption. In 2022, Genetec launched a new enclosure management solution that will enable data centers to monitor, secure, and manage access to racks remotely.

On the basis of the application, the energy segment is anticipated to be valued at more than USD 250 million by 2032. Fast digitalization, the rising number of data centers, and the expansion of data transmission networks have led to increased energy consumption. For instance, between 2010 and 2018, the total energy demand for data centers increased from 194 TWh to 205 TWh. In addition, the creation of energy-efficient IT infrastructure facilities and rising demand for modular data centers will also add impetus to the sectoral expansion.

In the regional context, the North America data center rack and enclosure market was valued at more than USD 1.5 billion in 2022. The regional market growth through 2032 will be attributed to the development of cloud computing and big data. Besides, the increasing demand for colocation services across various industry vertices will also fuel the market. Furthermore, different companies in this region are engaging in extensive R&D projects to create technologies, including micro servers and blade servers, pushing the product development over the ensuing years.