Data Center Rack and Enclosure Market size to surpass $8 Bn by 2032

Data Center Rack and Enclosure Market size to cross USD 8 billion by 2032, according to a recent research report announced by Global Market Insights Inc.
 

Advancements in the field of robotics, artificial intelligence (AI), and machine learning (ML) will fuel the demand for data centers that possess high operational efficiency. The development of smart city infrastructure across emerging economies will likewise support the deployment of new data centers for effective data storage and communication.
 

Rising number of colocation providers as well as cloud service and internet providers in Asia Pacific countries is expected to stimulate the demand for data center racks and enclosures. Many cloud-based service providers rely on colocation providers to store their servers and other hardware. Continuous investments by cloud companies like Tencent, AWS, Alibaba, Microsoft, and Facebook would create a steady demand for these equipment. Expanding data center infrastructure for government organizations in APAC could further support market expansion over the forecast timeframe.
 

Emerging demand for professional data center rack services

Based on component, the data center rack and enclosure market is segmented into solutions and services. Services segment is expected to record over 10% CAGR from 2023 to 2032. Enterprises are opting for data center rack services as it optimizes existing installation and minimizes deployment costs & risks, among other things. The need for deep analyses of the performance and vulnerabilities of data center infrastructure is expected to boost the demand for professional services over the coming years.
 

Adoption of advanced verification solutions in the BFSI sector

Data center rack and enclosure market size from the BFSI application is anticipated to reach over USD 1 billion by 2032. Cloud technology and data centers have emerged as the backbone of the BFSI business in recent years. With the continuous use of AI-powered customer identification, video KYCs, chat solutions, video-based engagement tools, and others, it is predicted that demand for racks and enclosures would rise at a decent pace across future data centers.
 

The demand for Video KYC skyrocketed in the banking sector post the pandemic. Furthermore, nearly 1,50,000 accounts were opened using this feature per month. Customer support solutions like chatbots are also revolutionizing the functioning of the BFSI sector. Recently, Route Mobile has launched an AI-based chatbot, Robot, that can be customized according to industry requirements. Adoption of such solutions would generate the need to manage large volumes of consumer data, influencing the data center rack and enclosure industry.
 

Browse key industry insights spread across 318 pages with 425 market data tables and 30 figures & charts from the report “Data Center Rack & Enclosure Market Size By Component (Solution [Frame Size {19 Inch Rack, Other Racks}, Frame Design {Open Frame Rack, Enclosed Rack, Customized Rack}, Rack Unit {36u Rack, 42u Rack, 45u & 48u Rack}], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032” , in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/data-center-rack-and-enclosure-market
 

Adoption of digital platforms in the APAC region

Asia Pacific region accounted for more than 15% share of the global data center rack and enclosure market in 2022. People are using digital solutions to access everything from banking services to leisure. Businesses use digital platforms to expand their reach and provide improved customer services. Government investments in digital infrastructure, increasing internet users, and the digital transformation of industries are some of the factors that have elevated data traffic across countries like India and China, generating lucrative growth prospects for industry players operating in APAC data center rack & enclosure market.
 

Competitive landscape of the global data center rack and enclosure industry

Companies operating in the global data center rack and enclosure market include Belden, Blackbox Corporation, Martin International Enclosures, Legrand, Delta Power Solutions, Amco enclosures, Fujitsu Ltd, Panduit Corporation, Rittal Gmbh & Co. Kg, and Oracle Corporation, among others. Strategic mergers and acquisitions by industry participants are expected to promote market expansion. In August 2022, the data center division of Lincoln Property Company, Lincoln Rackhouse, announced the acquisition of a data center in the heart of Atlanta's high-tech district. The development of advanced data center racks & enclosures will further help these firms to expand their business reach over the forecast period.