Market Analysis and Insights

The global server cabinets market was valued at USD 3382.7 billion in 2021 and is expected to be valued at USD 8327.93 billion by 2031, expanding at a 9.05% CAGR throughout the period of prediction.

Server cabinets are vital components of data centers because they provide a safe and structured environment for storing servers, networking equipment, and other critical technology. They are designed to protect equipment from physical damage, environmental hazards, and unauthorized access. Server cabinets are also important for cable management system and thermal management, ensuring that equipment operates efficiently and reliably. The global server cabinets market is expected to grow quickly in the coming years. The industry is being driven forward by rising requirements for data center infrastructure and the widespread implementation of cutting-edge technologies.

Server Cabinets Market Scope:

Market Definition

The global server cabinets market refers to the industry segment that manufactures and supplies specialized enclosures designed to house servers and related equipment, ensuring their physical security, cooling, and organization. These cabinets, also known as server racks or data center cabinets, are a critical component in data management and information technology infrastructure. 

The market encompasses a wide range of server cabinet products, including various sizes, designs, and features, to meet the diverse needs of data centers, IT facilities, and other environments where servers and networking equipment are deployed. The growing need for data storage and processing, the expansion of data centers, and the requirement for effective cooling and server equipment organization are all key drivers in this industry. The global server cabinets market is characterized by constant innovation and the incorporation of advanced technologies to enhance the performance and reliability of these enclosures. It plays a pivotal role in supporting the ongoing digital transformation and the increasing reliance on cloud computing and data-intensive applications across various industries. Market participants include manufacturers, suppliers, and service providers, all contributing to the development and expansion of this essential segment within the broader information technology industry.

Key Market Segmentation

Insights on Type 

Through 2031, the 10U~36U Segment is Predicted to Dominate the Market

This is due to its extensive use in data centers, companies, and other commercial institutions. The most common form of server cabinet is 10U36U, which is used for a variety of purposes such as hosting servers, storage devices, networking equipment, and other IT infrastructure. It is often used in enterprise data centers, internet data centers, and other large-scale IT facilities. In the next years, the market is anticipated to be dominated by the 10U–36U category due to the rising need for data processing and storage.

Below below-10U segment is typically used for small servers, networking equipment, and other IT hardware. It is often used in departmental data centers, edge data centers, and other space-constrained environments. The below 10U segment is expected to grow at a steady pace in the coming years, driven by the increasing demand for edge computing and cloud computing.

The 36U~42U segment is typically used for housing large servers, high-performance computing (HPC) clusters, and other IT equipment that requires a lot of space. It is commonly used in company data centers, research institutions, and other high-performance computing environments. The 36U42U category is predicted to increase faster than the other segments in the next few years, owing to rising demand for high-performance computing (HPC) and artificial intelligence (AI).

The above 42U segment is typically used for housing very large servers, storage devices, and other IT equipment that requires a lot of space and cooling. It is frequently utilized in high-performance computing situations, such as huge internet data centers. The above-42U category is predicted to increase slowly in the next few years, owing to rising demand for data storage and processing.

Insights on Application

The Internet data Center (IDC) Segment is Likely to Capture the Highest Market Share 

This growth is attributed to the increasing demand for data storage and processing capabilities from internet service providers (ISPs), cloud computing providers, and other online businesses. IDC cabinets are designed to house a large number of servers and other networking equipment in a secure and efficient manner.

The enterprise data center segment is also expected to grow considerably throughout the forecast period. The rising use of digital technologies by organizations across all industries is driving this development. Enterprise data centers house critical business applications and data, and server cabinets play a vital role in protecting this infrastructure.

The departmental data center segment is expected to grow at a slower pace than the IDC and enterprise data center segments. This is because departmental data centers are typically smaller and less complex than IDC and enterprise data centers. However, departmental data centers are still essential for many businesses, and the demand for server cabinets in this segment is expected to remain strong.

The other application segment includes small and medium-sized organizations (SMEs), government agencies, and educational organizations. This category is expected to grow somewhat throughout the forecast period.

Insights on Region

North America is Expected to Hold the Largest Market Share This is due to the presence of a large number of data center facilities and the availability of advanced infrastructure in the region. The United States is the biggest contributor to North American market growth.

During the projection period, Europe is predicted to be the second-largest market. The largest contributors to European market growth are the United Kingdom, Germany, and France. The growing demand for data center cabinets from the enterprise and telecom sectors is driving market growth in Europe.

During the projection period, Asia-Pacific is predicted to be the fastest-growing market. The growing demand for data centers from the IT and telecom sectors is driving market growth in Asia and the Pacific. China and India are the two most important contributors to Asia-Pacific market growth.

During the projected period, the Middle East and Africa are likely to be relatively minor markets. However, due to increased demand for data centers from the government and corporate sectors, the market is likely to develop at a substantial CAGR throughout the forecast period.

During the projection period, Latin America is likely to be a relatively minor market. However, due to increased demand for data centers from the corporate and telecommunications sectors, the market is likely to develop at a substantial CAGR throughout the forecast period.

During the projected period, the global server cabinets market is predicted to develop at a considerable CAGR. The rising need for data centers from different industries such as IT, telecom, government, and corporate is driving market expansion.

Key Company Profiles

The global server cabinets market has a fragmented competitive environment, with a number of important competitors active in the field. The major competitors compete on issues such as product quality, pricing, and customer service. To fulfill the increased demand, the leading businesses are extending their product ranges and global reach. They have a good track record of innovation and are always inventing new products and solutions to satisfy their customers' evolving demands. The market's top players are well-positioned to benefit from these developments.

In the intensely competitive global market for server cabinets, there are numerous prominent businesses. Top market participants include Hewlett Packard Enterprise (HPE), Dell Technologies, Schneider Electric, Chatsworth Products, Inc., Rittal GmbH & Co. KG, Black Box Corporation, Vertiv Group Corporation (EMERSON), Knurr GmbH, Crenlo Corporation, and Great Lakes Case & Cabinet Co.

COVID-19 Impact and Market Status

The global server cabinets market was substantially impacted by the COVID-19 crisis. In the short term, the pandemic led to a decline in demand for server cabinets as businesses delayed or canceled IT investments. The epidemic hastened organisations' digital transition, which is fueling a long-term increase in demand for server cabinets.

Additionally, the epidemic hastened the uptake of cloud computing and other digital technologies, which has resulted in a steady rise in demand for server cabinets. Additionally, the need for bigger and more advanced server cabinets is being driven by the rising trend of data centre consolidation.

Global server cabinet sales have been affected in different ways by the COVID-19 outbreak. On the one side, the pandemic has reduced consumption of server cabinets in various businesses, including retail and hospitality. On the other side, the worldwide crisis has hastened the adoption of cloud computing and other digital technologies, resulting in increased demand for server cabinets from other areas such as healthcare and finance.

Latest Trends

1. Growing demand for high-density server cabinets: The growing deployment of high-performance computing (HPC) and artificial intelligence (AI) applications is driving the demand for high-density server cabinets. These cabinets can house more servers in a smaller space, which can help reduce costs and improve energy efficiency.

2. Edge computing is becoming more popular. It is a distributed computing paradigm that relocates data processing and storage nearer to the instruments that generate the information. This is driving the demand for server cabinets that are designed for deployment in edge computing environments, such as microdata centers and telecom shelters.

3. Attention on energy efficiency: Because data centers consume a lot of energy, there is a rising emphasis on enhancing the strength of the energy use of server cabinets. This is leading to the development of new technologies, such as intelligent cooling systems and liquid cooling systems, which can help reduce the energy consumption of server cabinets.

4. Growing demand for secure and compliant server cabinets: The increasing threat of cyberattacks and data breaches is driving the demand for secure and compliant server cabinets. These cabinets are intended to safeguard servers against illegal access and physical damage.

Recent Developments in the Global Server Cabinets Market: A Snapshot

? In September 2023, Vertiv announced a new partnership with Google Cloud to provide server cabinets for Google Cloud Platform (GCP). This collaboration is intended to assist Vertiv in expanding its presence in the cloud computing sector.

? In August 2023, Rittal launched its new RiMatrix S server cabinet series, which is designed for high-density computing and AI workloads. The RiMatrix S series cabinets feature a modular design that makes them easy to scale and maintain.

? This acquisition is expected to help Eaton expand its portfolio of products for data centers and other critical IT environments. Eaton revealed its takeover of Tripp Lite, a developer of power protection and communication products, in July 2023.

Significant Growth Factors

Increasing demand for data centers: Data centers are essential for storing and processing the vast amounts of data generated by businesses and consumers around the world. As the demand for data centers continues to grow, so too will the demand for server cabinets.

Rising adoption of cloud computing: cloud computing is another major driver of the server cabinets market. Cloud computing providers rely on large data centers to store and process customer data. The need for server cabinets is likely to rise as more organizations and individuals use cloud computing.

Artificial intelligence (AI) and machine learning (ML) are becoming increasingly popular in a variety of areas, from healthcare to finance to manufacturing. AI and ML applications often require large amounts of computing power, which is why they are often deployed in data centers. This is driving the demand for server cabinets.

Need for energy efficiency and security: Server cabinets play an important role in ensuring the energy efficiency and security of data centers. By increasing ventilation and cooling efficiency, server cabinets can help minimize energy use. They can also help protect servers from physical and environmental threats.

Restraining Factors 

High initial cost: Deploying server cabinets can be a significant investment, especially for small and medium-sized businesses. The price of server cabinets varies according to their size, features, and brand.

Rapid technological advancements: The rapid pace of technological advancements in the server and networking equipment market can make it difficult for server cabinet manufacturers to keep up with the evolving form factors and sizes. This can lead to compatibility issues and make it more difficult for businesses to find the right server cabinets for their needs.

Blade servers are becoming more popular due to their ability to pack a lot of computational power into a compact area. This can reduce the need for server cabinets, as fewer blade servers are required to achieve the same level of performance as traditional servers.

Qualified IT workers are in short supply: There is an increasing lack of qualified IT professionals with the knowledge to design, implement, and manage server cabinets. This might make it challenging for enterprises to efficiently install and manage server cabinet systems.

Despite these obstacles, the worldwide server cabinet industry is likely to expand in the future. This is owing to the increased popularity of data centers and cloud computing, as well as the greater use of emerging technologies such as artificial intelligence and machine learning.

Key Segments of the Global Server Cabinets Market

Type Overview
• Below 10U
• 10 U ~ 36 U
• 36 U ~ 42 U
• above 42 U

Application Overview
• Internet Data Centre
• Enterprise Data Centre
• Departmental Data Centre 
• Others

Regional Overview

North America
• U.S.
• Canada
• Mexico
Europe 
• Germany
• France
• U.K.
• Spain
• Italy
• Russia
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• South Korea
• ASEAN
• Australia
• Rest of Asia Pacific
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Egypt
• Ghana
• Rest of MEA
Latin America
• Brazil
• Argentina
• Colombia
• Rest of Latin America