Press Release

Rack Server Market to Grow with a CAGR of 9.72% Globally through to 2028

Rack Server market increasing due to rising demand for data center infrastructure in the forecast period, 2024-2028.


According to TechSci Research report, “Global Rack Server Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028. 
Global Rack Server market has witnessed tremendous growth in recent years, reaching a valuation of USD 4.78 billion in 2022. The market is projected to continue its strong upward trajectory, posting a CAGR of 9.72% from 2024 to 2028.


Global Rack Server market is witnessing significant growth backed by increasing demand from commercial real estate and facilities management organizations worldwide. Real estate firms recognize that advanced fire safety and property management capabilities provided by rack servers are strategic for optimizing operations, managing risks effectively and ensuring regulatory compliance.


any commercial property businesses are partnering with leading rack server solution providers to streamline critical processes such as fire inspection management, equipment maintenance and reporting using rack server platforms. Rack server solutions are helping improve collaboration between different teams and drive efficiencies across distributed property networks. Technologies such as cloud-based fire safety platforms, 3D building design software, and Industry 4.0-ready smart building systems enabled by rack servers provide commercial real estate companies with advanced capabilities to deliver customized safety and compliance solutions. This aids enterprises in gaining competitive advantages through improved productivity, reduced costs, and shortened time to market for new developments.


Adoption is also fueled by corporate digital transformation strategies prioritizing flexibility and remote management supported by rack servers. Real estate companies now understand the strategic value of rack servers in supporting distributed property portfolios, enabling flexible work environments, and facilitating the development of complex building designs. This shift is driving demand as companies seek to optimize costs and quickly respond to changing regulations.


Continued innovation in areas like AI-powered facilities management, smart building platforms and digital twin technologies further propels market growth. Companies can develop customized, data-driven and adaptive property management and fire safety models tailored to their portfolio and business requirements using rack servers.


As commercial real estate businesses discover new ways to leverage rack servers for digital operations and smart building strategies, long-term growth prospects for the global rack server market remain positive. Reliable and advanced fire safety and compliance capabilities have become critical for supporting flexible work environments, enabling customized tenant experiences, and developing complex buildings globally. The market is poised to grow strongly as adoption increases across geographies and property types to support evolving digital property management needs reliant on rack server infrastructure.


Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Rack Server Market.”


Global Rack Server Market is Segmented by Form Factor, Price Range, and End-User Industry:


The global rack server market is segmented based on form factor, price range, and end-user industry. Based on form factor, the market is classified into 1U, 2U, and 4U rack servers. In 2022, the 1U rack server segment accounted for the largest share of over 35% due to high density and balanced processing power.


By price range, the market is bifurcated into entry-level, mid-range, and high-end rack servers. The mid-range rack server category dominated with a share of more than 40% in 2022 as they offer optimal performance and value


On the basis of end-user industry, the market is divided into healthcare, IT & telecom, hospitality, retail, manufacturing, and others. The IT & telecom industry emerged as the fastest growing segment on account of increasing data center deployment.


Going forward, the 2U rack server form factor segment is expected to witness the fastest growth during the forecast period. This is owing to rising demand for balanced storage capacity and processing power. Meanwhile, the high-end rack server price range segment will also exhibit strong growth rates driven by growing requirements for cutting-edge infrastructure among hyperscalers.


Overall, the global rack server market will continue to prosper with increasing adoption of digital technologies across industrial and commercial sectors worldwide.


Major companies operating in Global Rack Server Market are:

  • Dell Technologies Inc
  • Hewlett Packard Enterprise Development LP
  • Lenovo Group Limited
  • Inspur Information
  • Cisco Systems Inc.
  • Huawei Technologies Co. Ltd.
  • Quanta Computer Inc.
  • Iron Systems Inc.
  • NEC Corporation
  • Super Micro Computer Inc.


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“Global Rack Server market has witnessed significant expansion backed by advancements in digital technologies. Technologies such as artificial intelligence, cloud computing, Internet of Things, and data analytics are being leveraged by rack server solution providers to deliver enhanced capabilities to their customers.


Rack server platforms now enable organizations to generate predictive insights, automate complex workflows, offer personalized recommendations, and manage compliance processes at scale. This helps companies across industries optimize and transform both core and non-core operations. Rack servers facilitate customized solutions by collecting and analyzing vast amounts of data through advanced analytics platforms. This allows enterprises to deeply customize solutions, manage regulatory requirements more effectively, and enhance experiences.


The adoption of rack servers is no longer limited to just large enterprises. Small and medium businesses are also partnering with rack server vendors to streamline operations, reduce costs, and strengthen compliance controls. Rack server companies continue investing heavily in R&D to develop industry-specific solutions and address diverse business needs.


Regulatory authorities are developing frameworks to ensure data privacy and security standards are maintained, fostering innovation. Backed by ongoing technological advancements, growing acceptance of data-driven strategies, and continuous product 
innovation, the global rack server market is well-positioned for sustained high growth in the coming years.


As digital technologies become core business capabilities, rack server solutions are cementing their role as indispensable tools to optimize processes across all enterprise sizes and industries. Analysts remain bullish on the future prospects of the global rack server market, projecting strong revenue growth over the next five years driven by the proliferation of digitalization across the globe.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.


Rack Server Market by Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented by Form Factor (1U Rack Servers, 2U Rack Servers,4U Rack Servers), By Price Range (Entry-Level Rack Servers, Mid-Range Rack Servers, High-End Rack Servers), By End-User Industry (Healthcare, IT and Telecom, Hospitality, Retail, Manufacturing), By Region, By Competition”, has evaluated the future growth potential of Global Rack Server Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Rack Server Market.


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