Data Center Rack and Enclosure Market to record unprecedented growth by growing popularity of colocation services, industry to record double-digit growth rate over 2018-2024
Publisher : Fractovia | Published Date : 2018-06-12Request Sample
Innovations in technology have taken place at an unparalleled speed, boosting the data center rack and enclosure market in accordance with the advancement of critical IT infrastructure. The vertical has emphatically thrived on the growing need for data collection, tracking and storage services provided by data centers. Data center facilities contain networked computers and storage devices that businesses use to organize, store, process and safeguard multi-sourced data. These centers need physical racks with protective enclosures for holding network devices, servers, cables and other equipment that constitute an effective electronic framework.
UK data center rack & enclosure market, by application, 2017 & 2024 (USD Million)
Digitization of sectors like IT & Telecom, BFSI, Healthcare, retail, manufacturing and government administration is at its peak with modern, sophisticated server cabinets now being a prerequisite for data storage. IT giants from Europe and North America provide high quality data center management to businesses and governments globally, using cabinets that have up-to-date security features like biometric systems, cameras and motions sensors. The worldwide data center rack and enclosure market size was valued at over USD 2 billion in 2017 and is estimated to exhibit a 10% CAGR over 2018-2024, forecasts Global Market Insights, Inc. This growth is attributed to rising number of businesses worldwide and their efforts to gather and analyze consumer or market information. Apart from security and physical sturdiness, the data center enclosures must allow for cooling and efficient power supply to eliminate any possibility of damage to servers. Development of products that fulfill these requirements has indeed revolutionized the data center rack and enclosure industry landscape.
Over the recent years, data center rack and enclosure industry has been broadly characterized by tremendous propagation of the colocation applications, which consists of data centers offering the infrastructure, space and bandwidth that are rented by other companies to provide hosting services or for own use. One colocation facility can be hired by multiple business depending on the size and capacity of storage. This method is less expensive than setting up one’s own data center, especially for smaller businesses. In fact, the colocation data center rack and enclosure market accounted for almost 23% of the revenue share in 2017. This is evidently a promising segment and manufacturers around the globe have multiplied their efforts to produce high-density cabinets that can house more number of server systems.
Increasing number of businesses are demanding a framework that can mount a combination of various equipment, supplementing high-capacity cable management and airflow to regulate the heat emerging from multiple servers in one rack. As a result, there is an increasing emphasis of infrastructure manufacturers on miniaturization of hardware. Augmented influence of virtualization, where more than one application can operate on a single server, has resulted in increased processing power demanding data center racks to facilitate more specialized servers. In an era where cloud-based storage and systems are being employed exponentially, companies and data center services are compelled to extend their server capacities signifying unequivocal development of data center infrastructure industry.
With the advent of MNCs like Google, Microsoft, Oracle, and other IT giants establishing their markets across the world, the need for database management displays incredible potential as information gathered from thousands of businesses and billions of consumers is processed every day. This made the necessity for multiple data storage centers mandatory to minimize any losses from physical damage, power failures or even cyber-attacks. This presents an opportunity for developing industry specific and customizable infrastructure to manage data from many locations efficiently. Citing an instance, Excel Networking recently introduced cabinets designed especially suited to colocation service providers.
The growth of data center rack and enclosure market is dominated not only by developed countries but also emerging economies in Asia-Pacific which have been a home for thriving IT industry. For the record, APAC data center rack and enclosure market is estimated to surpass USD 1 billion by 2024. South America is another region entailing a booming data center rack and enclosure industry expansion, with reportedly 88 colocation facilities in numerous locations. Brazil is leading the South American data center rack and enclosure market as it enables companies to build facilities at lower cost and the improved telecommunication sector offering enhanced connectivity.
All in all, the data center rack and enclosure market is expected to evolve massively further inspiring many innovations to accommodate the upcoming challenges in data storage and management. The key players leading the industry hierarchy are Schneider Electric, HP, Eaton Corporation, Dell, Emerson Electric, etc.
