A recent report from Beige Market Intelligence states that, even though 42U cabinets currently dominate the data centre rack market, their sales are expected to decline from this year as operators turn to taller cabinets.
According to the report, entitled ‘Global Data Centre Rack Market – Strategic Assessment and Forecast 2017- 2022’, the market share of 42U rack is likely to decline moderately from 2017 onwards, although still expected to account for more than 50% market share in 2022. The demand for taller racks will be high with steady growth in revenue due to the construction of new data centre facilities and renovation processes to an extent.
Currently, most enterprises are procuring 42U rack units and above. Analysts at Beige say that the data-centre operators are procuring data-centre equipment such as servers and storage from different vendors, which make it difficult for enterprises to procure standardised rack solutions. Due to this, demand for customised racks is increasing.
The 42U rack segment comprised of almost 62% of the global data-centre rack market in 2016, followed by the 36U racks segment. Many data centres, which were built five to seven years ago, are now being upgraded through the installation of taller racks. In certain cases, this process involves the addition of taller racks alongside existing 36U or 42U racks. The number of servers being deployed in data centres is also likely to increase, prompting data-centre operators to opt for taller racks. 47U, 48U, and 51U racks are expected to increase at a CAGR of more than 20% in 2018-2022.
The market for 36U racks is likely to decline substantially on the year-on-year (YoY) basis as there a few customers for these products. The dominance of 42U racks will persist during the forecast period; however, some of its market share will likely be lost to taller rack products. The shipment of data-centre racks will grow threefold during the period 2016-2022. However, the YoY growth rate will be increasing in 2016-2017; after that it will decline and remain almost constant in 2018-2022.