Rack Market is Segmented By Rack Type (Open Frame, Cabinet), By Product (Pallet Flow Racks, Selective Racks, Drive-In Racks, Automated Storage and Retrieval Systems, Carton Flow Racks, Mobile Sliding Racks, Cantilever Racking Systems, the Others), By Material Type (Structural Steel, Roll Formed Steel, Hybrid, Others), By Distribution Channel (Offline, Online), By End-User (Data Center, Food & Beverages, Retail, Healthcare, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Rack Market Overview
The Global Rack Market is expected to grow at a high CAGR during the forecast period (2024-2031).
The storage and material handling business rely heavily on racks. Rack systems are very adjustable and provide safety, efficient storage, and proper product distribution. Racks are used to store materials, products, and loads for short or lengthy periods. Storage racks keep products organized, give simple access to items in the warehouse, and improve the distribution channels' operational efficiency. The rack market is growing as people become more conscious of making the most of their warehouse space. Storage procedures for heavy and fragile things that are cost-effective and methodical could be a market driver. In addition, the increased demand for systematic and simple material handling is driving up sales and profits for industry players. Technical developments in rack systems are among the most important drivers in the European rack market.
Rack Market Scope
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Metrics |
Details |
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Market CAGR |
High |
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Segments Covered |
By Rack Type, By Product, By Material Type, By Distribution Channel, By End-User, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Rack Market Dynamics
The growing need for data centers with advancing technology and IT services is expected to drive the rack market. However, the high cost of installation and repair of the racks.
The growing need for data centers with advancing technology and IT services is expected to drive the rack market
The rapid expansion of mobile broadband and advances in big data analytics and cloud computing are driving the development of new data centers. Furthermore, the industry will be influenced by enterprises' transition from hardware to software-based services.
According to a survey, between 3 and 5 owned data centers are operated by 33% of the company. 7% of companies, on the other hand, handle more than 50 data centers. Due to several advantages like space savings, decreased downtime, ease of use, easy installation, and better remote management, the growing number of data centers globally will create new opportunities for manufacturers to offer data center racks.
For instance, in 2021, Vertiv launched its pre-assembled micro data center system in Europe, designed for Edge or small IT sites. The VRC-S includes a rack power distribution system, monitoring sensors, a UPS, and software. The single-rack system assembled in a factory will be available in the Middle East, Europe, and Africa.
Moreover, in 2018, Huawei announced the adoption of Open Compute Project Open Rack in its new public cloud data centers. The open rack will improve Huawei's sustainability by utilizing less energy for the servers, decreasing maintenance, and installing shelves.
The high cost of installation and repair of the racks is expected to restraint the market
According to Damotech, a rack management business, over 85% of rack damage happens below 24 inches, but it can also happen at higher heights as forklift drivers load and unload pallets. Rack repair can be a fraction of the rack replacement cost, depending on the racking style. With minimal unloading of racks necessary, downtime in your warehouse operations is minimal. The cost of downtime associated with rack replacement is substantial in contrast. Aside from the cost of the new racking component, your repair person will have to unload and disassemble the damaged rack.
COVID-19 Impact on Rack Market
Consumer behavior has quickly shifted toward internet channels due to the COVID-19 pandemic. Food and beverages, basics and pharmaceuticals supplied in new contactless formats have all seen an increase in online demand. It has accelerated the rise of the e-commerce, third-party logistics, and fast-moving consumer goods industries. Further, the internet market for numerous products has also boosted the demand for warehousing.
Rack Market Segmentation Analysis
The global rack market is segmented into the data center, food & beverages, retail, healthcare, and others based on end-user.
A data center rack is an electronic frame specifically built to house several data centers' computer equipment such as servers, gadgets, and cables. The racks are primarily used to reduce the amount of floor space required. It is provided with security, cooling, and easy system troubleshooting.
Datacenter rack height is one of the popular ways to classify a server. The market is categorized into 42U and below, 42U to 48U, and 52U and above based on rack height. 42U and 48U are the standard height since they are small enough to access equipment easily and large enough to allow room for growth.
Moreover, increasing end-user adoption due to low-cost rack solutions is expected to impact market growth positively. For instance, in 2019, NETRACK launched Data Center racks to cater to the banking and insurance sectors.
Global Rack Market Geographical Share
The global rack market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.
North America has the leading proportion of the global data center rack market, with the United States accounting for most demand. The U.S. is the leading country, with about 2500 data centers and a market share of 35 to 40% globally. Furthermore, more than 250 data centers, such as in Canada, are increasing the demand for data center racks for improved space, power, and cooling management.
With the region's rising potential, top corporations are devising a new strategy to increase their market position. For example, B3 Group Inc, a U.S.-based company, has begun supplying high-density racks in the market as of 2021. The new racks have 2.5 times the energy capacity of those previously available at its Santana do Parnaba high-tech data center.
Moreover, Vertiv introduced a line of local rack access consoles with an integrated KVM switch in 2020. The CLRA local rack access console offers 18.5-inch LCD panels, ideal for data center managers to manage various sites across several locations.
Rack Market Companies and Competitive Landscape
The global rack market is competitive with local and global brands. The significant players contributing to the market's growth include Schneider Electric, Donracks Supermarket Rack Manufacturers, Steiner B. Moore Corporation, Swisslog Holding AG, ABS, Esnova Racks S.A., Dexion, AR Racking, Kardex, MEX Storage Systems Pvt. Ltd., among others. To strengthen their offers in the market, warehouse management system players have used various organic and inorganic growth strategies, such as contracts and alliances, new product development, acquisitions, and expansions.
Schneider Electric
Overview: Schneider Electric is a Europe-bassed multinational company providing energy and digital automation solutions for efficiency and sustainability. It addresses homes, buildings, data centers, infrastructure, and industries by combining energy technologies, real-time automation, software, and services.
Product Portfolio: Schneider Electric offers Easy Racks, and affordable and reliable IT enclosures with essential features and proven design, suitable for network rack, server rack applications, and edge computing applications.
Key Development:
- In May 2021, Schneider Electric launched its easy rack series in Europe and the Commonwealth of Independent States. The rack is available in various sizes and is suitable for many mission-critical applications, including cloud and colocation data centers, network closets, edge computing, and industrial environments.
Why Purchase the Report?
- Visualize the composition of the rack market segmentation by rack type, product, material type, distribution channel, end-user, and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in the rack market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of rack market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global rack market report would provide access to approx. 77 market data tables, 78 figures, and 180 pages.
Target Audience
- Logistics and Supply Chain Companies
- E-Commerce Businesses
- Data Center
- Industrial Rack Manufacturer
