Market Overview
According to fortune business insights, the global data center rack market size was valued at USD 6.69 billion in 2025. The market is projected to grow from USD 7.26 billion in 2026 to USD 14.55 billion by 2034, exhibiting a CAGR of 9.10% during the forecast period. North America dominated the data center rack market with a market share of 36.40% in 2025.
The analysis has deep-dived into these insights in its latest research report, titled “Data Center Rack Market, 2026-2034.”
The analysis shows that top companies are investing more in data center racks because of the widespread adoption of cloud services and the rapid rollout of 5G. For example, Microsoft announced plans to invest around USD 80 billion in FY2025 on installing data centers to train AI models and support cloud-driven implementations. This trend indicates a strong demand for data center racks worldwide.
Major Players Profiled in the Market Report:
• Schneider Electric SE (France)
• Vertiv Group Corp. (U.S.)
• Eaton Corporation plc (Ireland)
• Legrand S.A. (France)
• nVent Electric plc (U.K.)
• Hewlett Packard Enterprise Development LP (U.S.)
• Rittal GmbH & Co. KG (Germany)
• Dell Technologies Inc. (U.S.)
• Cyber Power Systems, Inc. (Taiwan)
• FUJITSU Limited (Japan)
Segments
Growing Importance of Physical Security to Propel Cabinets/Enclosed Racks Segment Growth
Based on rack type, the market is divided into cabinets/enclosed racks and open frame racks. The cabinets/enclosed racks segment holds the largest market share due to the growing need for physical security for sensitive IT equipment, especially as companies deploy computing power to on-premises and edge locations.
High Security and Space Optimization to Drive 41U up to 50U Segment Dominance
By rack height, the market is categorized into 40U and below, 41U up to 50U, and above 51U. The 41U up to 50U segment is leading the market as these racks provide advanced locking mechanisms and allow for higher equipment density, helping enterprises optimize space and add an extra layer of physical security.
Increasing Dependence on E-commerce to Dominate the Market Due to High Infrastructure Needs
Based on industry, the market is segmented into BFSI, retail, IT & telecom, government, healthcare, and others. The retail segment holds the largest market share owing to the high dependence of retailers on data center racks for hosting e-commerce websites, managing databases, and facilitating online shopping applications.
Source: https://www.fortunebusinessinsights.com/data-center-rack-market-108475
Report Coverage
The report offers:
• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Increasing Number of Global Data Center Facilities to Propel Market Growth
The rapid growth in digital services, IoT, and big data analytics has raised the demand for data center capacity to store and process vast amounts of data. The resulting construction of new data center facilities is a primary driver for the market, boosting the demand for racks to house server equipment.
However, supply chain disruptions and high initial investment may hamper market growth. Global geopolitical instability, material shortages, and high costs related to construction, cooling, and electricity can delay deployments and strain procurement budgets.
Regional Insights
Strong Technology Investment and AI Adoption Propel Market Growth in North America
North America holds the dominant data center rack market share and is projected to experience growth during the forecast period. The region’s growth is attributed to the rapid adoption of data centers, a surge in AI applications, strong technology investment, and the presence of major IT hardware and software providers.
Asia Pacific is one of the fastest-growing regions in the market. The growth is attributed to the increasing demand for data storage and processing capacity, the proliferation of digital services and cloud computing, and the widespread rollout of 5G networks across the region.
Data Center Rack Market Future Growth:
The data center rack market is experiencing robust growth, fueled by the explosive computational demands of generative AI, the widespread adoption of cloud computing, and a strong shift toward high-density and modular rack designs. Today's data center operators are increasingly drawn to racks that can accommodate more computing power in smaller footprints, favoring options that support advanced liquid cooling and offer easy scalability. Additionally, there's a growing interest in pre-configured and ruggedized racks for edge computing deployments in sectors like manufacturing and retail. The rapid expansion of hyperscale data centers to handle AI workloads is also a key growth driver. While North America continues to dominate, the Asia-Pacific region is seeing a surge in demand, driven by 5G rollouts and massive investments in digital infrastructure.
Competitive Landscape
Growing Adoption of Innovation and Strategic Acquisitions to Propel Market Growth
The market features prominent players like Schneider Electric, Vertiv Group Corp., and Eaton. These leading companies are accelerating growth through strategic initiatives such as mergers, acquisitions, and innovative product launches designed for high-density AI workloads. Their proactive approach to developing solutions like modular data centers and advanced liquid cooling systems to meet evolving customer requirements continues to fuel the market’s momentum.
Key Industry Development
• June 2025: Schneider Electric announced the launch of data center solutions to meet the difficulties of high-density AI and fast-tracked compute implementations, including new rack systems designed for direct-to-chip liquid cooling.
• July 2025: Vertiv announced the acquisition of Great Lakes Data Racks & Cabinets. The integration is expected to offer substantial customer benefits through combined infrastructure sourcing and pre-engineered solutions.