Taller, wider racks and enclosures, smarter PDUs push markets upward

July 13, 2016
IHS says the rack, enclosure, and rack PDU markets will enjoy single-digit growth this year despite headwinds from Russia, Middle East, Brazil and Brexit.

In its most recent data released by market-intelligence firm IHS, the global information technology (IT) rack and enclosure market will grow 4.7 percent this year, to reach $1.5 billion. “Unit shipments of IT racks and enclosures are mainly driven by new data center construction,” according to Sarah McElroy, IHS senior research analyst for data centers, cloud and IT infrastructure. “However, revenue growth rates are predicted to be higher than unit growth rates because of shifts to products with larger dimensions, to premium models over basic models, and increased sales of accompanying airflow and cable management accessories, which customers often want integrated into the rack prior to shipping.”

Along with information about the IT rack and enclosure market, IHS released information about the global rack power distribution unit (PDU) market. That market is forecast to grow 5.6 percent in 2016 to reach $999 million.

Despite the fact that both the rack/enclosure and rack-PDU markets are experiencing mid-single-digit growth in 2016, IHS noted, “Both markets have been and continue to be negatively affected by the slowness in the markets in Russia, the Middle East, and Brazil due to their respective economic and political struggles. Uncertainty surrounding the impact that Brexit will have on the economies of the U.K., and the Eurozone as a whole, is expected to negatively affect market growth through 2017.”

The rack PDU market is driven by shifts toward products with higher power ratings and more-intelligent features, IHS stated, “especially rack PDUs with switched outlets, which saw significant growth in 2015.” The researcher added that as demand for more automation within data centers increases, so does the need for power provisioning, capacity planning, and remote control. These functions, along with the environmental monitoring and security features that rack PDUs enable, also drive growth of the rack PDU market.

IHS analyzes rack-and-enclosure, as well as rack-PDU markets in the Americas, Europe/Middle East/Africa, and Asia.

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