Global Data Center Rack Market Set to Reach $9.42 Billion by 2030, Driven by Cloud Computing, IoT, and Edge Computing Demand

The global data center rack market is expected to grow from $5.17 billion in 2025 to $9.42 billion by 2030 at a CAGR of 12.7%. The market is driven by the growing demand for cloud computing, IoT, AI, and big data analytics. However, high costs, supply chain issues, and thermal management in high-density systems are restraining market growth. Leading vendors include Schneider Electric, HPE, Rittal, Eaton, Vertiv, Dell Technologies, Fujitsu, IBM, Cisco, and Legrand.

The global data center rack market is poised for significant growth, projected to expand from USD 5.17 billion in 2025 to USD 9.42 billion by 2030, at a compounded annual growth rate (CAGR) of 12.7% [1]. This robust growth is driven by the surging demand for cloud computing, IoT, AI, and big data analytics, which are increasingly integral to modern data centers. The market is further fueled by the rise in colocation and hyperscale data centers, which necessitate high-density and energy-efficient scalable rack systems.

However, several challenges are restraining market growth. High initial setup costs for advanced rack infrastructure and space and power limitations in legacy data centers are significant barriers, particularly for small and medium-sized enterprises. Integration with existing IT systems, supply chain issues, and thermal management in high-density systems also pose challenges. Despite these hurdles, innovations in modular and intelligent racks are promoting market expansion.

Key market players include Schneider Electric (France), HPE (US), Rittal (Germany), Eaton (Ireland), Vertiv (US), Dell Technologies (US), Fujitsu (Japan), IBM (US), Cisco (US), and Legrand (France). These vendors are at the forefront of developing advanced rack solutions that address the evolving needs of data centers.

The server rack segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing demand for high-density computing and scalable IT infrastructure. Asia Pacific is projected to grow at the highest CAGR, primarily due to the rapid digital transformation and deployment of 5G and edge infrastructure in countries like China, India, and Japan.

Innovations in thermal management and smart rack technologies are key opportunities in the market. Additionally, the rising adoption of AI and ML workloads, which require optimized rack infrastructure, is expected to drive market growth. However, ensuring physical security and compliance with data protection regulations remains a significant challenge.

Overall, the global data center rack market is expected to witness substantial growth over the next few years, driven by technological advancements and the increasing demand for high-performance data center solutions.

References:
[1] https://www.globenewswire.com/news-release/2025/07/16/3116574/0/en/Data-Center-Rack-Market-Forecasts-2025-2030-Server-Rack-Segment-to-Lead-in-Growth-with-Rising-Demand-for-High-density-Computing.html