Technology
Data Center Rack Market size is set to grow by USD 2.07 billion from 2024-2028, Increasing investments in data centers to boost the market growth, Technavio
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6 months agoon
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NEW YORK, July 24, 2024 /PRNewswire/ — The global data center rack market size is estimated to grow by USD 2.07 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 12.66% during the forecast period. Increasing investments in data centers is driving market growth, with a trend towards growing need for edge computing. However, increasing focus on data center consolidation poses a challenge. Key market players include Belden Inc., Black Box Ltd., Chatsworth Products Inc., Cisco Systems Inc., CONTEG spol sro, Databricks Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Legrand, nVent Electric Plc, Oracle Corp., Panduit Corp., RackSolutions Inc., Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co..
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Forecast period
2024-2028
Base Year
2023
Historic Data
2018 – 2022
Segment Covered
Type (Server rack and Network rack), Product Specification (Medium, Large, and Small), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)
Region Covered
North America, Europe, APAC, South America, and Middle East and Africa
Key companies profiled
Belden Inc., Black Box Ltd., Chatsworth Products Inc., Cisco Systems Inc., CONTEG spol sro, Databricks Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Legrand, nVent Electric Plc, Oracle Corp., Panduit Corp., RackSolutions Inc., Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co.
Key Market Trends Fueling Growth
The global data center rack market is experiencing significant growth due to the increasing adoption of edge computing. Edge computing, a model that processes IoT device-generated data at the network edge, is gaining popularity with the proliferation of Internet-connected devices. By 2024, IDC projects that 157 zettabytes of data will be generated globally, with 20% originating at the edge. Real-time processing needs for emerging applications such as autonomous vehicles, industrial automation, and smart city solutions demand ultra-low latency data processing, which edge computing facilitates by processing data closer to the source. Additionally, edge computing mitigates bandwidth and cost challenges by reducing the necessity to send all data to the cloud, optimizing bandwidth usage, and reducing costs. Furthermore, edge computing addresses sustainability and efficiency concerns by locally processing data, minimizing the need for cloud data transmission, and diminishing overall energy footprints. Industries such as manufacturing, utilities, retail, automotive, and healthcare are rapidly adopting edge computing solutions to unlock new use cases, enhance operational efficiency, and elevate customer experiences. With the commercial deployment of 5G technology, the market for data center racks is expected to continue growing during the forecast period.
The Data Center Rack market is witnessing significant trends in 2023. Damage and risks to data are top concerns, leading to increased demand for modular racks from NetRack and others. Online payment systems in digital banking require robust data center solutions, driving investments. Containerization, microservices, and blockchain technologies are transforming computing space. Mobile broadband and cloud services are expanding the market, requiring optimization and network services. Integrated power and cooling solutions are essential for high-density data centers. Mega facilities projects in the dataintensive sector continue to drive demand for specialized enclosures, server brands, and hardware. Ventilation and cable management are crucial for server density. Data center optimization and networking devices are key focus areas for businesses.
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Market Challenges
Infrastructure-as-a-Service (IaaS) is a cloud computing concept where companies utilize virtualized computing resources over the Internet. Notable IaaS providers include DigitalOcean, Linode, Rackspace, Amazon Web Services, Cisco Metapod, Microsoft Azure, and Google Compute Engine. The expanding IaaS market is leading to data center consolidation. This involves merging or reducing the scale of data center facilities to decrease operating costs and control emissions. Software companies like Box, Salesforce, Tableau, and SAP are moving towards common cloud platforms, reducing the need for individual data centers. Storage virtualization is essential for storing and processing information, reducing the need for additional storage infrastructure and offering high-availability services. Virtualization increases input and output streams through resource pooling from multiple storage devices, managed via a data management console. However, the efficiency of storage components decreases due to increased IO operations per second. Enterprises must plan for storage efficiency and capacity before implementing virtualization features. Data center consolidation results in fewer investments in new data center establishments due to the growing number of tier-3 and tier-4 data centers globally. This trend decreases demand for data center components, negatively impacting sales and reducing the data center footprint worldwide. Despite the challenges, data center consolidation requires expertise, time, and carries risks. The shrinking data center market may hinder the growth of the global data center rack market during the forecast period.Data Centers are essential for businesses to store, manage, and access their digital assets. Colocation services allow companies to rent computing space in a Data Center, but challenges arise due to data center whitespace limitations. Server density is increasing with the adoption of high-density servers, specialized enclosures, and hyperscale data centers. Data center investments require optimization through network services, cooling systems, and cable management. Server brands, ventilation, and cooling systems are crucial for high-performance computing, mission-critical applications, and cloud technologies. Geographic regions, IT budgets, and IT infrastructure demand data center racks, servers, switches, and cables that support high-density servers and efficient power consumption. Data-intensive sectors like online shopping, cloud computing, big data analytics, digital stores, social networks, and hyperscale data centers require specialized solutions. Business continuity and edge computing add to the complexity. Power consumption, efficiency, and data traffic are key concerns. Data Center Racks play a vital role in managing these challenges, ensuring a reliable and efficient IT infrastructure.
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Segment Overview
This data center rack market report extensively covers market segmentation by
Type 1.1 Server rack1.2 Network rackProduct Specification 2.1 Medium2.2 Large2.3 SmallGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa
1.1 Server rack- The server rack market is experiencing growth due to the increasing demand for servers and storage devices from enterprises to support business trends such as Big Data analytics. Big Data analytics involves analyzing large and varied data sets to identify patterns and trends, necessitating the development of efficient server systems for fast processing and extensive data management. This, in turn, increases investments in Big Data analytics and creates a need for integrating High Performance Computing (HPC) with Big Data analytics. The demand for server infrastructure has grown significantly in the past five years and is expected to continue at a steady pace. This growth is driven by the expansion of data centers, colocation data centers, and HDCs, as well as technology upgrade cycles. The evolution of HPC architecture has led to the management of large amounts of unstructured and structured data, which requires high-throughput and high-availability storage devices and servers. Additionally, the increasing adoption of cloud-based services has resulted in a significant increase in the number of server units required for cloud infrastructure. Server virtualization, which transforms one server into multiple isolated services, is a trend among large enterprises to increase productivity, centralize management, and cut costs. Virtualization eliminates server sprawl and makes better use of server resources, but it also increases the need for switches and routers to connect multiple users to a single server. In summary, the server rack market is growing due to the increasing demand for servers and storage devices for Big Data analytics, the expansion of data centers, technology upgrade cycles, the adoption of cloud services, and server virtualization. The need for efficient and high-capacity server systems, as well as the increasing number of server units required for cloud infrastructure, will drive the growth of the server rack market.
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Learn and explore more about Technavio’s in-depth research reports
The global Data Center Rack PDU Market is experiencing significant growth, driven by the increasing demand for efficient power distribution solutions in data centers. Concurrently, the Data Center Rack Market in Saudi Arabia is expanding rapidly, fueled by the nation’s digital transformation initiatives and investments in IT infrastructure. Additionally, the global Data Center Server Market is witnessing robust growth due to the surge in data generation, cloud computing adoption, and the need for enhanced server performance and scalability. These trends underscore the critical role of data center infrastructure in the evolving digital landscape.
Research Analysis
The Data Center Rack market encompasses the demand for rack solutions in data centers, colocation facilities, and other IT infrastructure environments. Data center whitespace is a critical consideration in the market, as server density continues to increase due to data center optimization and the adoption of high-density data center designs. Data center investments are driving growth in the market, with a focus on network services, ventilation, cable management, and cooling systems to ensure efficient and reliable IT infrastructure. Cloud technologies are also fueling demand for data center racks, as more companies move their IT operations to the cloud. The market includes data centers, servers, switches, cables, storage, and cooling systems, among other components. Data center rack solutions provide computing space for servers, switches, and other IT equipment, and are essential for managing the complex IT infrastructure required in today’s digital economy.
Market Research Overview
The Data Center Rack Market encompasses the demand for rack infrastructure in data centers, colocation facilities, and other IT environments. Data center whitespace is a significant driver, with increasing server density leading to higher demand for efficient rack solutions. Data center investments continue to grow, fueled by the dataintensive sector, including online shopping, cloud computing, big data analytics, digital stores, social networks, and hyperscale data centers. Network services, cooling, and power consumption are key considerations, with specialized enclosures, ventilation, and cable management essential for optimizing computing space. High-density servers and modular racks, such as NetRack, are popular solutions for maximizing IT infrastructure efficiency. Geographic regions, IT budgets, and business continuity plans also impact market trends. Additionally, emerging technologies like edge computing, high-performance computing, and cloud technologies require specialized rack infrastructure. Power consumption and cooling efficiency are critical factors, with integrated power and cooling systems gaining popularity. Data traffic, mission-critical applications, and risks, such as damage and business disruption, further emphasize the importance of reliable rack infrastructure. Other factors include server brands, storage, switches, cables, and hardware, as well as emerging trends like containerization, microservices, blockchain, mobile broadband, and mega facilities projects.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
TypeServer RackNetwork RackProduct SpecificationMediumLargeSmallGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Huawei and IUCN Launch Tech4Nature Project to Protect Kenya’s Coral Reefs
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NAIROBI, Kenya, Jan. 10, 2025 /PRNewswire/ — Huawei, International Union for Conservation of Nature (IUCN), and local partner Kenya Wildlife Service (KWS) have launched a Tech4Nature project to monitor and protect coral reef and biodiversity in Kenya’s Kisite-Mpunguti Marine Park and Reserve.
Aligned with Huawei’s TECH4ALL initiative and the IUCN Green List, the objective of the three-year project is to strengthen monitoring and management efficacy of the protected area. Located on the southern coast of Kenya, Kisite-Mpunguti Marine Park and Reserve faces a number of nature conservation challenges. These include:
Illegal fishing and insufficient human resources to effectively patrol the area.A lack of remote monitoring of the reserve’s three coral islands coupled with pressures created by tourism, as the fringing reefs are popular diving sites.Limited community awareness of the importance of reef and biodiversity protection.Insufficient communications network infrastructure for underpinning tech-driven monitoring.
“Tech4Nature is an expansive project that falls under Huawei’s digital inclusion initiative TECH4ALL, where we look at ways to implement technology and innovation in various sectors of our day today life and improving global standards and ensure that we have a sustainable way of life in the world,” said Khadija Mohamed, Director of Media and Government Relations for Huawei Kenya.
Underwater cameras, photogrammetry, and audio monitoring technologies will be deployed to monitor marine life, including the biomass and population of parrot fish. In many coral reef ecosystems, parrot fish are a keystone species that, due to their diet, help prevent coral from being smothered by seaweed and algae. The solution will also monitor substrate cover in the reef ecosystems, seagrass cover, and the occurrence of green turtles and bottlenose dolphins, which are classified on the IUCN Red List as endangered and vulnerable, respectively.
“The technology we are introducing is a groundbreaking development for marine conservation in Kenya. It will serve as the first monitoring tool for data collection, analysis, and management in a marine protected area. Additionally, this innovation presents an opportunity to assist the park in attaining IUCN Green List certification, aligning with the sustainability goals valued by tourists and ensuring that future generations can continue to benefit from our marine parks,” said Innocent Kabenga, Country Representative for the IUCN Kenya Country Office.
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A digital power solution and improved network connectivity covering the park and watch tower will enable the rapid transmission of collected data to a cloud server for analysis by AI.
The project will be implemented in partnership with Kenya Wildlife Service (KWS) and Wildlife Research and Training Institute (WRTI). Based on the project’s data-driven insights, the Tech4Nature partners will be able to develop targeted conservation measures for the reserve.
“For us to deliver our mandate of protecting and conserving our wildlife in both terrestrial and marine ecosystems, you have to understand your resources very well. We are partnering with Huawei and IUCN to deploy underwater cameras to acquire some data on marine mammal, corals, and fisheries to make informed decisions. The advantage of this technology it can be deployed in wider area that we couldn’t patrol every single day to get data for day and night for us to make good, informed decisions,” said Adan Kala, Senior Assistant Director, Coast Conservation Area, Kenya Wildlife Service.
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About Tech4Nature
Huawei and IUCN launched the Tech4Nature global partnership in 2020 to scale up success in nature conservation through technological innovation. Aligned with Huawei’s TECH4ALL initiative and the IUCN Green List, Tech4Nature has supported 11 flagship projects in 8 countries with tailored solutions to conservation challenges.
Visit the Tech4Nature website: https://tech4nature.iucngreenlist.org/what-is-tech4nature/
About TECH4ALL
TECH4ALL is Huawei’s long-term digital inclusion initiative and action plan. Enabled by innovative technologies and partnerships, TECH4ALL is designed to enable inclusion and sustainability in the digital world.
Visit the Huawei TECH4ALL website at https://www.huawei.com/en/tech4all
Follow us on X at https://x.com/HUAWEI_TECH4ALL
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CES 2025 | AAC Technologies Unveils Comprehensive Automotive Solutions, Paving the Way for Cabin Experience Evolution
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AAC’s Automotive Acoustic Solutions for Digital Cockpits
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DELRAY BEACH, Fla., Jan. 10, 2025 /PRNewswire/ — The smart food packaging market is estimated at USD 26.42 billion in 2024 and is projected to reach USD 35.69 billion by 2029, at a CAGR of 6.2% from 2024 to 2029, according to a report published by MarketsandMarkets™.
The study ‘Active Packaging in the Food Industry’, published in October 2024, explores the growing significance of active packaging in response to changing consumer demands and market trends. Unlike traditional packaging, which is designed to be inert, active packaging interacts with the product and its environment to extend shelf life and maintain food quality. This can involve incorporating additives into packaging systems, such as oxygen and ethylene scavengers, antimicrobial agents, antioxidants, and flavor-absorbing or releasing compounds. Intelligent packaging systems, like time-temperature indicators and gas detectors, are also discussed, emphasizing the importance of consumer acceptance for the commercial success of these technologies. The study reviews key mechanisms used in active packaging, including oxygen scavengers, which reduce the presence of oxygen in food packaging by using iron-based or ascorbic acid-based systems. These methods help maintain product freshness by limiting oxidative damage. Carbon dioxide-generating systems are also used to suppress microbial growth, particularly in meat, poultry, fish, and cheese packaging. Furthermore, ethylene scavengers are vital for extending the shelf life of fruits and vegetables by controlling ripening processes.
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Other applications discussed include the use of flavor and odor absorbers/releasers, which enhance the sensory properties of packaged food, and antimicrobial packaging that inhibits microbial growth to ensure food safety. The potential of nanotechnology to develop new and more effective active and intelligent packaging solutions is highlighted, paving the way for further innovations in the food packaging industry. This study underscores the need for advanced packaging technologies to meet consumer demand for fresh, safe, and high-quality food products and their critical role in prolonging shelf life and improving food safety.
The Meat, Poultry & Seafood is the having a largest share within the application sector of the smart food packaging market.
Due to growing global demand, meat, poultry, and seafood accounts for the highest market share of application in the smart food packaging market. Its needs lie in extending shelf life, safety, and traceability. As per data provided by the USDA from October 2024, Brazil dominates global chicken meat exports during 2025 as the production will be 11.8 million tons. Australia’s poultry production will increase by 2 percent to 2.6 million tons, as high global demand is expected. Beef exports from Australia will also reach a record 1.9 million tons in the year, as its demand increases in the US. These trends point towards the increasing international meat trade and export opportunities.
Increased production and exports require more advanced smart packaging technologies, such as modified atmosphere packaging and active packaging, for freshness, less food waste, and greater safety. This will fuel innovation and adoption of smart packaging solutions, especially in global markets like East Asia and North America.
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The active packaging segment holds significant market share in the smart food packaging market during the forecasted period 2024-2029.
Active food packaging accounts for a major market share in the smart food packaging industry, which is mainly attributed to the quality improvement, safety, and shelf life that active packaging can offer. Technologies, including oxygen scavengers, moisture absorbers, and antimicrobial agents, respond to some of the most important consumer needs related to freshness and reduction of food waste.
It is primarily gaining adoption across key industries, including meat, poultry, seafood, and dairy, where growing concerns about global food safety and sustainability are driving growth. Additionally, increasing export of perishable food products, particularly in North America, Europe, and Asia-Pacific, further supports the increasing demand for active packaging. As manufacturers look for more innovative ways to meet their regulatory requirements and consumer demands, active packaging will maintain its position in the market.
Based on region, Europe has a significant share in the smart food packaging market.
The growth of the food and beverage industry in Europe is a major driving force for the smart food packaging market, which is motivated by the increasing demand for advanced packaging solutions that would ensure food safety, traceability, and extended shelf life. According to European Commission data (March 2024), the food and drinks industry generates ~USD 245 billion (€227 billion) in added value and employs 4.6 million people, making it the EU’s largest manufacturing sector in terms of jobs and value. SMEs are over 99% of businesses in this ecosystem. The sector has also recorded a food trade surplus, with exports doubled over the last decade to exceed ~USD 196 billion (€182 billion), contributing a positive balance of nearly ~USD 32 billion (€30 billion). These strong figures, combined with growing trade opportunities and EU Single Market benefits, are driving demand for smart food packaging technologies to support efficient, sustainable, and competitive food supply chains.
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