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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 DATA CENTER RACK MARKET By Rack unit (36U, 42U, 45U & 48U and others), By Frame design (Open Frame, Enclosed and customized), By Frame size (19 inch and others), By Service, By End User, By Verticals and By Regions GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global data center rack market on the basis of data center types, services, and end users To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, industry specific challenges, winning imperatives, and burning issues) To strategically analyze micro markets with respect to individual growth trends, future prospects, and contribution to the total market To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders To forecast the size of market segments with respect to five main regions, namely North America (NA), Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America (LA) To strategically profile key players and comprehensively analyze their market shares and core competencies To track and analyze competitive developments such as joint ventures, Mergers and Acquisitions (M&A), new product developments, and Research and Development (R&D) in the data center rack market 1.2 MARKET DEFINITION The rack is used to accommodate servers in data centers. The data center rack is an essential component of data center infrastructure needs, with specific solutions designed for data center optimization. The racks optimize the data center infrastructure by integrating with air conditioning, Uninterruptible Power Supply (UPS), and wiring management. They are available in a broad range of sizes and features to effectively support enterprise and data center requirements. Racks enable data centers to store, cool, power, manage, and secure critical IT equipment. The data center rack market is segmented into several categories, such as rack unit, frame design, frame size, end user, service, industry vertical, and region. 1.3 MARKET SCOPE The report on data center rack market defines this market as a market comprising racks which are used to hold servers in the data centers. This report includes different segmentation on the basis of rack unit, frame design, frame size, end user, service, industry vertical, and region. This study covers rack solutions as well as service segments to arrive at the overall global market size for data center rack market during the forecast period On the basis of rack unit, the report is segmented into 36U, 42U, 45U & 48U, and others The frame design segment comprises open frame rack, enclosure, and customized rack On the basis of frame size, the report is segmented into 19 inch and others On the basis of end user, the report is segmented into small- and medium-sized organizations and large-sized organizations The service segment comprises consultation services, installation and support services, and professional services 2

5 1.3.1 MARKETS COVERED This research report categorizes the data center rack market into the following segments: Global Data Center Rack Market, By Rack Unit 36U 42U 45U and 48U Others Global Data Center Rack Market, By Frame Design Open Frame Enclosed Customized Global Data Center Rack Market, By Frame Size 19 inch Others 3

6 Global Data Center Rack Market, By End User Global Data Center Rack Market, By Service Consultation Installation and Support Professional Global Data Center Rack Market, By Region NA Europe APAC MEA LA Global Data Center Rack Market, By Vertical Segment Banking, Financial Services, and Insurance (BFSI) IT and Telecommunication Media and Entertainment Public Sector 4

7 Retail Manufacturing Healthcare Others* Note: *Others include oil & gas and energy & power YEARS CONSIDERED IN THIS REPORT Historical Year: 2012 Base Year: 2013 Estimated Year: 2014 Projected Year: CURRENCY AND PRICING The denominated currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenue in U.S. dollars, the revenue were taken from their annual reports For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value in U.S. dollars. The currency conversion rates are as follows: Country Currency China Yuan Japan Yen 1.5 LIMITATION This study focuses only on racks and does not cover the server market used in the data centers. 1.6 STAKEHOLDERS The data center rack market consists of the following stakeholders: Software vendors Telecom operators IT service providers System integrators Network operators 5

8 Communication equipment providers Cloud service providers Data center vendors Colocation providers Virtualization software providers Internet Service Providers (ISPs) 6

9 2 EXECUTIVE SUMMARY The server enclosure can be regarded as the building block of the data centers. The data center racks, server rack cabinets, and enclosure solutions are needed to accommodate IT equipment in data centers of all sizes. The data center rack comes in pre-configured form which makes it easy to select the ideal solution for data centers for supporting critical IT operations. The rack is an important component of data center infrastructure because of the equipment it holds and the data it safeguards. Though it consumes no electricity and has no moving parts, the enclosure orientation of a rack has a significant impact on the energy efficiency of data centers for enterprises. The enclosures come as folded and welded steel with a variety of dimensions (height width depth). The solution provider also offers customized racks as per user's individual needs with provisions for cable management and Power Distribution Units (PDU) installation. The most used standard data center rack is seven feet high and 19 inch wide, capable of accommodating 42U of rack mount server equipment. There are many options in rack size ranging from 19 inch width to 27 inch width. The modern rack features integrate precision cooling, uninterruptible power, rack PDUs, and wiring management with a lockable cabinet. The rack also requires additional accessories for cable management, power distribution, and equipment mounting. The hyper-scale data center operators have started using taller racks than the standard size to pack the most server density per square foot of the data center area. There has been a technological evolution in data centers, which has gradually changed the overall architecture of data center rack. The traditional data centers had separate racks, staffs, and management tools for servers, storage, routers, and other networking infrastructure. To manage the complex environment of data center, the racks were equipped with tools to understand space, power, and cooling. The modern racks are becoming wider and taller to cater to hyperscale needs of data centers. FIGURE 1 DATA CENTER RACK: EVOLUTION Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis The companies are designing data centers by selecting the ideal racks for their needs and designing the room around them. This helps in avoiding under or overprovisioning the new facility s power and cooling resources. The companies are installing the optimal infrastructure for the precise array of hardware and 7

10 enclosures. The growing adoption of non-standard racks is mainly driven by the need to pack more servers into data center infrastructure, improve airflow management, and fit more cabling into rack systems. The total data center rack market is expected to grow from $ billion in 2014 to $ billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of from 2014 to FIGURE 2 DATA CENTER RACK MARKET SIZE WAS $ BILLION IN 2014 ATTRACTIVE MARKET OPPORTUNITY Global data center power market is $ billion in 2015, a increase from 2014 $ Billion $ Billion Data center investment in emerging markets and development of intelligent and efficient racks offer huge opportunities for the market players in next 5 years The growing adoption of non standard racks is mainly driven by the need to pack more servers into data center infrastructure Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis The NA region holds the major share in the global market followed by Europe. The major reason for market growth in NA is the need to reduce the space and power consumption of network infrastructure. However, the fastest growing region is APAC due to the increase in development-related projects in emerging economies such as China and India in the banking, insurance, telecom, and government segments. The MEA and LA regions are also expected to register impressive growth in the data center rack market in the forecast period. 8

11 FIGURE 3 APAC TO EXPERIENCE THE HIGHEST GROWTH IN COMING YEARS IN DATA CENTER RACK MARKET Market Share = CAGR = 5 Market Share = CAGR = Market Share = CAGR = Market Share = CAGR = North America Market Share = CAGR = Europe Asia-Pacific Middle East & Africa Latin America Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis The volume of data and power cables in the enclosed cabinets is growing with rising equipment density. Therefore, customers need customization services to accommodate this growth to efficiently manage the data centers for meeting current requirements and planning to fulfill future needs. FIGURE 4 ENCLOSED SEGMENT EXPECTED TO HOLD A MAJOR SHARE IN DATA CENTER RACK MARKET $Million CAGR (%) Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis 9

12 The manufacturers are adding new features such as corrosion protection, system expandability and thermal management, compatibility, and connectivity for making modern racks economically feasible for various verticals. The data center rack market has been broadly segmented by vertical into IT & telecommunication, BFSI, media & entertainment, public sector, retail, manufacturing, healthcare, and others. The growth in the data center rack market is mainly driven by huge data center investments in various industry verticals across the globe. FIGURE 5 IT AND TELECOM VERTICAL TO HOLD A MAJOR SHARE IN GLOBAL DATA CENTER RACK MARKET CAGR% Others* 2013 Manufacturing Retail Healthcare Media & Entertainment Public Sector BFSI IT and Telecom $Million Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis *Others includes Oil & Gas and Energy & Power A standard data center rack accommodates 42 units (42U) of rack mount server equipment in a 19-inch wide slot. The standard 42U racks account for a major share of all rack shipments across the world. However, this share will decline in the coming years due to the growing adoption of non-standard racks which are wider and taller. 10

13 FIGURE 6 DATA CENTER 42U RACKS ARE THE MOST COMMON RACK USED IN DATA CENTERS Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis The market players are incorporating new technologies for competing in the data center rack market. These trends are driven by the need to manage more cabling infrastructure and thermal management within the enclosure in highly dense environment. The tier 1 companies such as Hewlett Packard (U.S.), Dell (U.S.), and IBM (U.S.) are offering rack system solutions by integrating their solutions with third-party manufactured data center racks to their customers. The major rack vendors such as Eaton (Ireland), Emerson Network (U.S.), Schneider Electric (France), and Rittal (Germany) have made this market space highly competitive with their innovative approach to rack solutions for data centers. However, they will face competition from local or regional vendors in this highly fragmented market. The data center rack market research report analyzes market dynamics, future roadmaps, and global trends and also provides competitive intelligence and forecasts for the next 5 years. In this report, the data center rack market has been broadly segmented by frame design: open frame, enclosed and customized; by frame size: 19 inch and others; by rack unit: 36U, 42U, 45U & 48U, and others; by service: consulting services, installation & support services, and professional services; by end user: small- and medium-sized organizations and large-sized organizations; by region: NA, APAC, Europe, MEA, and LA. 11

14 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 12

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