High Density Rack Market - Forecast(2024 - 2030)

The Global market for High density rack is forecast to reach $3.52 billion by 2025, estimated to grow at a CAGR of 5.30% from 2020 to 2025. The market growth of high density rack is mainly due to the need for reliability coupled with the need for compact equipment. Moreover, growing demand for data centre operations & rising investment in data centre equipment is also the major factor driving the growth of high density rack industry at a global level. Furthermore, advances in new technology, such as edge computing, IoT and cloud storage, are anticipated to generate sufficient prospects for suppliers of data centre rack servers.

High density racks is segmented into refrigerant, water, direct expansion, air flow and others on the basis of cooling type. Water cooling in high density rack cooling is an increasingly growing consideration of the architecture. Active water-cooled rear door coolers when paired with high performance chillers, provide reduced occupied space, ease of installation and lower cost of operation.  Most significantly they offer a removal of at least 100 % server heat at an affordable initial and operating rate. Thus water cooling technique is gaining traction and preferable in high density rack market. 

Data centres helds the highest market share of high density rack market in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025 owing to the demand of more computational power, storage capacity and improved server technology. The amount of data that everybody uses today is far greater than it was ten years ago, and is anticipated to increase further. Consequently a data centre with high-density capacity is needed to keep up with storing huge volume of data and manage the storage. This also means data centres need to be vigilant to update thereby enhancing the market growth of high density rack market. In April 2019, FusionServer Pro intelligent servers was launched by Huawei. The transition to smart servers helps increase performance and reliability of applications. This cabinets come with full liquid-cooling cabinet and fault management. This new product helps to boost performance and quality.

North America holds the highest market share of the high density rack market in 2019. This is due to the technological development, improved industrial infrastructure, presence of large number of data centres and a higher rate of adoption of new technologies in the region. Moreover high density rack market in APAC is expected to grow at highest rate during the forecast period owing to the various factors such as growing data centres for handling complex data analytics and storage requirements. Furthermore, high investments in different end user verticals including banking and financial services, retail, government, education and others results in growth of data centre which in turn enhance the demand for high density rack. Additionally, data centre market is gaining traction due to adoption of cloud based services, IOT devices, big data analytics research and development activities for the utilisation of artificial intelligence (AI), block-chain, distributed ledger, quantum computing and other technologies across different end user verticals. Agent-AI, Heart-Touching-AI, Ambient-AI, Network-AI are the four directions of artificial intelligence along which the R&D activities is going on in NTT Group. 

Technological advancements and growing digitalization in all verticals such as banking and financial services, information technology, telecommunication, retail, government, education and others makes deployment of data centres across the globe thereby impelling the consumption of data centre racks. The increasing demand for technology services and increasing investments from major companies are also influencing the growth of the market. Hewlett Packard Enterprise (HPE) partnered with National Renewable Energy Laboratory (NREL) in November 2019 to further simplify and increase the operating performance of data centres through incorporating Artificial Intelligence (AI) and Machine Learning (ML). This partnership is a way of reducing energy consumption and raising the running costs.

Power drawn by high-density racks is more thus more cooling is required. Traditional air cooling solutions are less workable at certain stage. Different types of liquid cooling and cold aisle containment systems have been adopted by several data centres to tackle the heat issues high density servers pose. Consequently, high density racks costs increases due to the additional demands for power and cooling. 

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the High density rack market. High density rack driver market is expected to be dominated by major companies such as Ridg-U-Rak, Emerson Electric Co., Eaton, AK Material Handling Systems, Valerak, Hewlwtt Packard Enterprise Development LP, Huawei Technologies co. ltd., Belden Inc., Redirack Storage Systems, Storax Limited and among others.