India Data Center Rack Market Size Likely to Surpass at a CAGR of 14.88% By 2033

The India Data Center Rack Market was valued at USD 4.10 million in 2024 and is expected to reach USD 16 million by 2033, at a CAGR of 14.88% during the forecast period 2024 – 2033.

India Data Center Rack Market: Overview

Data racks are now standard components of a contemporary data center, serving as organized structures to deploy servers, switching, routing, and other IT equipment. These enclosures, fabricated from steel or aluminum, provide structural solutions for space cooling and conduits for cables to run, in addition to protecting delicate instruments.

Types of racks include open frame racks, enclosed racks, and wall mounts, sizes of which can also vary, showing that these racks meet various needs of data centers and serve to emphasize their necessity in modern India with its growing digital needs.

Market growth is attributed to the rising demand for cloud services due to the increased adoption of cloud computing and the country’s rising digitalization. The government’s Digital India campaign and the launch of 5G services have significantly increased data consumption, pushing the need for agile, efficient data centers.

The emergence of enterprises adopting cloud computing and government measures means there is a need for improved rack systems for enhanced security and efficiency. Also, according to the Department of Telecommunications, India’s annual data traffic increased at an average of 31% between the years 2015 and 2021, thus highlighting the need for efficient data storage and data management that comes with data center racks.

However, the market is threatened by stiff challenges, especially high energy costs, which account for about 40% of Operating expenditures among data center facilities. Equipment to regulate temperatures essential for efficient operations is cited as the cost’s main determinant by the Energy and Resources Institute (TERI).

This dampens revenue and discourages investment in high-capacity racks. Combined with this is a lack of infrastructure, particularly in rural and semi-urban settings, and regulation, which escalates these difficulties. This makes it challenging to set up the data center, therefore limiting the market growth to the urban region due to constant power breakdowns and reduced power supply.

Nevertheless, green data center growth prospects are promising to overlook the abovementioned restrictions. To some extent, governmental programs such as Bureau of Energy Efficiency (BEE) )-led initiatives have been encouraging innovations in hardware that optimize power usage by as much as 30%.

These developments help allow data center rack manufacturers to provide energy-saving products. Most importantly, rapid urbanization and an $840 billion investment commitment in urban infrastructure over the next fifteen years mean that edge data centers will also take off in Tier Two and Tier Three cities across India. The localised requirement for tailored compact and scalable racks also offers a major growth area for the market.

On a regional basis, cities like Mumbai, Bengaluru, and Hyderabad account for a large market share due to high levels of digital enablement. Mumbai has easy access to undersea cable landing stations, which keeps it connected; Bengaluru is also known as the ‘Silicon Valley of India’ and has a great concentration of IT firms and start-ups.

Hyderabad’s growth is due to low-cost real estate and productive state policies that attract data center investments. In the meantime, secondary and tertiary markets, including Tier 2 and Tier 3 cities such as Pune, Chennai, and Noida, are in high demand of edge and micro data centers, helped by the Digital India campaign and states’ incentives. These developments call for an upgrade in India’s database, which shows an active transformation.

The market segmentation emphasizes different spectrums to show various opportunities within the different categories. Meanwhile, according to rack type, the enclosed rack segment was the largest in 2023 owing to high cooling, organization, and protection requirements for sectors such as BFSI, IT, and telecom, among others.

Open frames, on the other hand, are preferred due to their low costs and installation processes. They are ideal for small and medium-density data centers. Large-type opticals dominate in terms of data center size due to the growth of giants such as AWS, Google, and Microsoft in India.

At the same time, the growth of edge computing has driven demand for racks in small stations such as Ti 2 and Ti 3. Results for the rack height segment show that the demand for racks between 41U and 50U was high due to their versatility and capability of supporting the growth of business architectures, whereas the adoption rate for racks above 51U is gradually increasing due to the rack server density and the helping hand of the cooling mechanism.

The IT and telecoms industry comprises the largest market share by industry, especially through cloud services, new deployments of 5G services, and increasing mobile data use. However, the BFSI industry is the fastest-growing industry, primarily due to data localization policies and growth in demand for digital transactions.

Report Scope

Feature of the Report Details
Market Size in 2024 USD 4.10 Million
Projected Market Size in 2033 USD 16 Million
Market Size in 2023 USD 3.59 Million
CAGR Growth Rate 14.88% CAGR
Base Year 2023
Forecast Period 2024-2033
Key Segment By Rack Type, Data Center Size, Rack Height, Industry and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Country Scope India
Buying Options Request tailored purchasing options to fulfil your research requirements.

CMI has comprehensively analyzed the India Data Center Rack market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an in-depth market scenario. Segment-wise market size and market share during the forecast period have been duly addressed to portray the probable picture of this industry.

The competitive landscape includes key innovators, after-market service providers, market giants, and niche players, who were studied and analyzed extensively with respect to their strengths, weaknesses, and value-adding prospects. In addition, the Report covers key players’ profiles, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships, and emerging business models.

List of the prominent players in the India Data Center Rack Market:

The India Data Center Rack Market is segmented as follows:

By Rack Type

By Data Center Size

By Rack Height

 By Industry