Data Center Rack & Enclosure Market Size

Data Center Rack & Enclosure Market Size

The global data center rack & enclosure market size was valued at USD 4.6 billion in 2024 and is estimated to register a CAGR of 8.4% between 2025 and 2034. The rise of edge computing, driven by the increased deployment of Internet of Things (IoT) devices, is a major market driver.

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According to Statista, the total number of IoT connections across the globe are growing rapidly and are projected to exceed 39 billion by 2028. As more businesses use IoT devices to process and analyze data closer to the edge, the need for localized data centers increases. These edge data centers need racks and enclosures to organize servers, storage, and networking equipment efficiently. The increasing demand for edge computing, particularly in industries such as manufacturing, transportation, and retail is driving the need for high-density racks and effective enclosures to support this decentralized data processing.
 

The rise of modular data centers, which are portable and scalable, is contributing to the growing demand for flexible and adaptable racks and enclosures. These modular systems allow businesses to expand their data center capacity as needed without building large-scale, permanent infrastructures. They often require specialized racks and enclosures that can be quickly deployed and adjusted to meet changing capacity and operational requirements.
 

Companies are launching innovative modular data center systems for a variety of industry applications. For instance, in April 2024, Vertiv, a global provider of digital infrastructure solutions launched the Vertiv SmartAisle 3, a micro modular data center system that uses Artificial Intelligence (AI), to improve efficiency and operations.