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Data Center Rack And Enclosure Market Value Growth And Long-Term Outlook
The data center rack and enclosure market size has experienced rapid expansion in recent years. This market is projected to grow from $4.11 billion in 2025 to $4.63 billion in 2026, achieving a compound annual growth rate (CAGR) of 12.5%. Historically, its growth was driven by factors such as the expansion of enterprise data centers, an increase in server deployments, rising IT equipment density, the adoption of structured cabling, and the emergence of colocation facilities.
The data center rack and enclosure market size is anticipated to expand significantly in the coming years. It is projected to reach $7.54 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 13.0%. This anticipated growth is largely fueled by the development of edge computing infrastructure, the need for scalable rack designs, the expansion of hyperscale facilities, a heightened focus on airflow optimization, and a rise in retrofit data center projects. Throughout the forecast period, prominent trends are expected to encompass the implementation of high-density rack systems, flexible modular rack configurations, improved thermal management techniques, specialized edge data center enclosures, and tailored customized rack solutions.
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Data Center Rack And Enclosure Market Growth Backed By Core Demand Fundamentals
The data center rack and enclosure market is projected to grow as new data centers expand. A data center is a facility utilizing a complex network, computing, and storage infrastructure to facilitate shared access to applications and data. Data center racks and enclosures are vital components within these facilities, used for organizing, mounting, and protecting servers, networking equipment, and other critical hardware. They are instrumental in ensuring the efficient and reliable operation of the data center infrastructure. For instance, in July 2025, GOV.UK, a UK-based government agency, forecast that the UK will need at least 6GW of AI-capable data center capacity by 2030, which is a threefold increase on the current data center capacity available in the UK. Furthermore, plans include establishing a core group of nationally significant sites, each capable of serving at least 500MW of demand by 2030, with at least one AI Growth Zone scaling to more than 1GW by 2030. Therefore, the expansion of new data centers is a key driver for the data center rack and enclosure market.
Data Center Rack And Enclosure Market Breakdown By Product Type And Application
The data center rack and enclosure market covered in this report is segmented –
1) By Product Type: Open Frame Racks, Rack Enclosures, Wall-Mount Racks
2) By Component: Solution, Service
3) By Installation: Wall-Mounted, Floor Mounted
4) By Size: 18U-22U, 23U-32U, 33U-42U, 43U-48U And Above 49U
5) By Application: Information Technology (IT), Telecommunication, Banking, Financial Services, And Insurance (BFSI), Government, Healthcare, Manufacturing, Education Sector, Other Applications
Subsegments:
1) By Open Frame Racks: Standard Open Frame Racks, Adjustable Open Frame Racks
2) By Rack Enclosures: Full-Height Enclosures, Half-Height Enclosures, Specialty Enclosures
3) By Wall-Mount Racks: Swing-Out Wall-Mount Racks, Fixed Wall-Mount Racks
Data Center Rack And Enclosure Market Growth Trends Reshaping The Competitive Landscape
Leading companies in the data center rack and enclosure market are prioritizing technological advancements, such as modular rack-and-service enclosures, to maximize deployment speed, enhance scalability, and strengthen the integration of cooling, power, and IT infrastructure. A modular rack-and-service enclosure consolidates server racks, in-row cooling units, and power/cable management into a single pre-configured unit, offering quicker installation, superior airflow management, and simplified maintenance compared to conventional standalone racks and custom cooling/power arrangements. For example, in March 2024, Eaton Corporation, a U.S.-based intelligent power management company, introduced the SmartRack Modular Data Center. This product is engineered for swift deployment in enterprise, colocation, and edge environments, featuring IT rack enclosures accommodating up to 44U of equipment, in-row cooling with 12–25 kW capacity, service enclosures for power distribution and cable management, and seamless integration with Eaton’s PDUs, UPSs, and Brightlayer monitoring suite. This enables a load of up to 150 kW per unit while reducing installation time from months to days.
Data Center Rack And Enclosure Market Company Landscape And Competitive Strategy
Major companies operating in the data center rack and enclosure market are Dell Inc.; Hewlett Packard Enterprise Development LP; Cisco Systems Inc.; Schneider Electric SE; Eaton Corporation; Emerson Electric Company; Delta Electronics Inc.; Legrand SA; Vertiv Holdings Co.; Rittal Gmbh and Co. KG; nVent Electric plc; Belden Inc.; Panduit Corporation; Blackbox Corporation; AGC Network Ltd.; Rahi Inc.; Hammond Manufacturing Co. Ltd.; C and F Tooling Ltd.; Canovate Group; Chatsworth Products Inc.; AFCO Systems Inc.; Great lakes Data Racks and Cabinets Co. Inc.; Martin International Enclosures LLC; IMS Engineered Products LLC; Amco Enclosures; Prism Enclosures Ltd.
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Data Center Rack And Enclosure Market Top Region: Where Does Most Revenue Come From?
North America was the largest region in the data center rack and enclosure market in 2025. The regions covered in the data center rack and enclosure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
