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    China Data Center Rack Market

    ID: MRFR/ICT/57693-HCR
    200 Pages
    Garvit Vyas
    October 2025

    China Data Center Rack Market Research Report By Component (Solution, Service), By Rack Type (Cabinets/ Enclosed Racks, Open Frame Rack), By Data Center Size (Large Data Centers, Small and Mid-sized Data Centers), By Rack Height (42U and Below, 43U up to 52U, Above 52U) andBy Industry Vertical (BFSI, Manufacturing, IT and Telecom, Retail, Healthcare, Media and Entertainment, Others)- Forecast to 2035

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    China Data Center Rack Market Infographic
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    China Data Center Rack Market Summary

    The China Data Center Rack market is projected to experience substantial growth from 910.3 USD Million in 2024 to 2195.4 USD Million by 2035.

    Key Market Trends & Highlights

    China Data Center Rack Key Trends and Highlights

    • The market is expected to grow at a compound annual growth rate (CAGR) of 8.33 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 2195.4 USD Million, indicating robust expansion.
    • In 2024, the market is valued at 910.3 USD Million, reflecting a strong foundation for future growth.
    • Growing adoption of cloud computing due to increasing demand for data storage is a major market driver.

    Market Size & Forecast

    2024 Market Size 910.3 (USD Million)
    2035 Market Size 2195.4 (USD Million)
    CAGR (2025-2035) 8.33%

    Major Players

    Hewlett-Packard Enterprise, ZTE, Huawei, Dell Technologies, Cisco Systems, Lenovo, Tencent Cloud, Inspur, Alibaba Cloud, China Unicom

    China Data Center Rack Market Trends

    The rapid digitalization and higher demand for cloud services are driving substantial trends in the China Data Center Rack Market. Businesses are investing significantly in data centers as a result of the government's initiative to advance its digital economy. Organizations are increasingly recognizing the necessity of sophisticated data center infrastructure in the context of the Internet of Things, artificial intelligence, and big data. Consequently, they are increasing their investments in data center racks and related technologies. Furthermore, energy efficiency has emerged as a critical priority, as organizations endeavor to reduce operational expenses and satisfy regulatory mandates concerning energy consumption.

    Additionally, the data center rack market is presented with numerous opportunities for growth due to the ongoing development of e-commerce and online services in China. As an increasing number of organizations transition to online operations, there is an increasing demand for data center solutions that are both efficient and scalable. The emergence of 5G technology also presents opportunities for data center advancements, necessitating the implementation of more advanced rack solutions to accommodate the increased connectivity and facilitate faster data processing. In recent years, there has been a significant shift toward modular data center designs among Chinese companies.

    These designs enable businesses to rapidly adjust to evolving demands by facilitating flexible expansion.The necessity for more sustainable practices has also driven innovations in data center rack technology, as companies seek eco-friendly solutions to satisfy both regulatory standards and consumer expectations. Consequently, organizations are emphasizing the integration of intelligent technology into their cabinets in order to enhance operational efficiency and optimize performance. In general, the China Data Center Rack Market is adapting to these trends, thereby preparing for future growth and innovation.

    Market Segment Insights

    Data Center Rack Market Component Insights

    The China Data Center Rack Market, particularly in the Component segment, exhibits robust dynamics attributed to the increasing demand for efficient data processing and storage solutions. This market consists of essential elements that contribute significantly to the overall functionality and efficiency of data centers. Among the key components, solutions play a vital role by providing innovative technologies that optimize space, power efficiency, and cooling management. These solutions help organizations enhance their operational capabilities while responding to the growing data processing demands fueled by digital transformation initiatives across various industries in China.

    The trend towards virtualization, cloud computing, and the advancement of Artificial Intelligence has further intensified the need for highly adaptable data center racking solutions.

    On the other hand, services related to data center racks are equally crucial in maintaining the infrastructure, ensuring operational continuity, and optimizing performance. The service segment encompasses a broad range of offerings, including installation, maintenance, and technical support, which are indispensable for the efficient management of data racks. As China experiences rapid urbanization and an uptick in internet usage, the expansion of data center facilities has prompted an increased focus on these services. This facet of the market supports the scalability and durability of data center operations, allowing businesses to implement growth strategies aligned with the ever-evolving technological landscape.

    The synergy between solutions and services within the Component segment reinforces the necessity for innovation in the China Data Center Rack Market, ultimately driving growth and enhancing customer experiences. With China being one of the largest digital markets globally, the significance of both solutions and services in this segment cannot be overstated, as they cater to the growing need for efficient and high-capacity data centers across the region.

    Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

    Data Center Rack Market Rack Type Insights

    The China Data Center Rack Market is primarily categorized by Rack Type, which includes Cabinets/Enclosed Racks and Open Frame Racks. Enclosed Racks are prevalent due to their ability to provide optimal security and temperature control for sensitive equipment, making them essential in maintaining data integrity. This segment addresses the increasing concerns regarding data security and equipment protection among organizations in China. Open Frame Racks, on the other hand, are gaining traction for their flexibility and ease of access, catering to the growing demand for efficient airflow and cable management in data centers.

    Their design facilitates efficient maintenance, a critical factor as businesses prioritize operational uptime in a rapidly evolving digital landscape. With the industry’s growth fueled by the expansion of cloud computing and the increasing need for server capacity, the significance of these Rack Types will continue to rise as they play a crucial role in optimizing the performance of data centers. The demand for data center infrastructure in China is expected to boost the adoption of both Cabinets/Enclosed Racks and Open Frame Racks, reflecting the evolving trends in the data center landscape.

    Data Center Rack Market Data Center Size Insights

    The China Data Center Rack Market is witnessing significant growth, particularly within the Data Center Size segment, which includes Large Data Centers and Small and Mid-sized Data Centers. Large Data Centers are gaining prominence due to the increasing demand for cloud computing services and advanced data storage solutions, driven by the surge in digital transformation across various sectors in China. Simultaneously, Small and Mid-sized Data Centers are essential for accommodating the needs of emerging enterprises and localized services, providing agility and cost-effectiveness.These smaller facilities often utilize innovative designs and energy-efficient technologies, which align with China's focus on sustainability.

    The market environment is also influenced by the Chinese government’s initiatives aimed at promoting digital infrastructure development, effectively boosting the requirements for both large-scale and smaller data center facilities. As a result, the diversity within this segment caters to a wide range of industries and applications, contributing significantly to the overall landscape of the China Data Center Rack Market.

    Data Center Rack Market Rack Height Insights

    The Rack Height segment of the China Data Center Rack Market plays a vital role in the overall industry dynamics, characterized by various categories such as 42U and Below, 43U up to 52U, and above 52U. Each of these categories serves different needs within data centers, providing solutions that help optimize space and enhance operational efficiency. The 42U and Below segment is prevalent due to its combination of standardization and flexibility, making it favorable for small to mid-sized data centers.

    The 43U up to 52U segment is gaining traction as the industry demands increased storage capacity while maintaining manageable footprints, reflecting the growing data requirements.

    Lastly, the Above 52U segment, although niche, is significant for hyper-scale data centers that need extensive capacity and cooling solutions. This segment's growth is driven by rising data consumption and cloud services expansion in China, where the market is expected to witness increased investments in infrastructure. Overall, the segmentation within the Rack Height category highlights a diverse approach aimed at addressing the needs of different data center configurations, which is critical for the advancement of the China Data Center Rack Market industry.

    Data Center Rack Market Industry Vertical Insights

    The China Data Center Rack Market is influenced significantly by various industry verticals, each contributing to the overall dynamics of the market. The Banking, Financial Services, and Insurance (BFSI) sector plays a crucial role, as it demands high-security solutions and consistent reliability for its operations. The Manufacturing sector increasingly adopts advanced data management solutions, utilizing data center racks to enhance process efficiency and reduce operational costs. The IT and Telecom industry remains a major driver, as it relies heavily on effective data management and storage solutions to support rapid technological advancements and the growing demand for digital services.

    Retail businesses are leveraging data center racks to manage inventory and improve customer experience by utilizing data analytics. In Healthcare, the necessity for secure patient data management and the processing of large volumes of information underscores the demand for robust data solutions. Furthermore, the Media and Entertainment segment thrives on vast data storage needs to cater to digital content delivery and streaming, thus contributing to the market’s expansion. The 'Others' category reflects diverse industries that also embrace data center technologies, enhancing overall market growth.

    Collectively, these segments illustrate the integral role of the China Data Center Rack Market in driving efficiency and innovation across various sectors.

    Get more detailed insights about China Data Center Rack Market Research Report—Global Forecast till 2035

    Key Players and Competitive Insights

    The China Data Center Rack Market is experiencing significant growth driven by the rise of cloud computing, increasing data storage needs, and the demand for energy-efficient solutions. Competitive insights in this market reflect an evolving landscape characterized by a multitude of players, each vying for market share through innovation, advanced technology offerings, and strategic partnerships. Domestic firms are leveraging their understanding of the local market dynamics, while international companies are focusing on establishing a strong presence through collaborations and localized services.

    The competition is also influenced by the rapid advancements in automation, cooling technologies, and modular design capabilities, which are essential for meeting the diverse requirements of data center infrastructure.

    Huawei is a leading force in the China Data Center Rack Market through its development of highly integrated and energy-efficient rack solutions. The company offers advanced rack systems tailored for cloud computing, AI workloads, and edge data centers. Huawei’s solutions are known for modularity, supporting rapid deployment and flexible scaling to meet evolving enterprise needs. With its CloudMatrix platform and AI-powered infrastructure, Huawei enhances performance optimization and resource management across rack environments. The company’s vertical integration—from servers and networking to power and cooling—ensures seamless interoperability and cost efficiency.

    Additionally, Huawei collaborates with local operators and government-backed projects, aligning its innovations with national digitalization goals and reinforcing its dominant role in shaping China’s data center infrastructure.

    Hewlett-Packard Enterprise holds a prominent place in the China Data Center Rack Market, driven by its comprehensive range of products and services designed to support diverse data center environments. The company offers advanced racks, integrated solutions, and power management technologies that cater to the increasing demands of businesses in China. With a strong focus on innovation, Hewlett-Packard Enterprise has developed a suite of products that emphasize performance, reliability, and energy efficiency. Its market presence is bolstered by strategic mergers and acquisitions that enhance its capabilities and expand its footprint in the region.

    HPE is committed to providing tailored solutions that align with local market needs, reinforcing its position as a key player in the competitive landscape of the China Data Center Rack Market.

    Key Companies in the China Data Center Rack Market market include

    Industry Developments

    The China Data Center Rack Market is experiencing significant growth and developments, driven primarily by increasing demand for cloud services and digital transformation initiatives among enterprises. In recent months, notable trends include a heightened focus on energy-efficient and scalable data center solutions, reflecting China's commitment to sustainability as outlined in government policies. Companies like Alibaba Cloud and Tencent Cloud are investing heavily in expanding their infrastructure to support growing data processing needs.

    Mass shipments of Huawei's CloudMatrix 384 AI rack clusters across China commenced in February 2025. These rack-scale systems, which are equipped with dual-chiplet Ascend 910C processors, provide high-bandwidth optical interconnects and unparalleled compute density for AI workloads in data centers. In September 2024, Inspur introduced a novel rack-scale cooling technology that is specifically designed for high-density server environments and AI. The thermal efficiency of Chinese data centers is substantially enhanced by the design, which was unveiled at a significant data center conference.

    . Major players such as Huawei and Lenovo are also competing aggressively in developing innovative racks and modular solutions, aligning with the evolving technological landscape. Over the past two to three years, the market has seen substantial investments aimed at advancing Research and Development capabilities, allowing companies to offer enhanced features that cater to the diverse requirements of various industries across China. The overall market sentiment remains positive as demand accelerates, reflecting the significance of digital infrastructure in national economic growth.

    Market Segmentation

    Outlook

    • BFSI
    • Manufacturing
    • IT and Telecom
    • Retail
    • Healthcare
    • Media and Entertainment
    • Others

    Data Center Rack Market Component Outlook

    • Solution
    • Service

    Data Center Rack Market Rack Type Outlook

    • Cabinets/ Enclosed Racks
    • Open Frame Rack

    Data Center Rack Market Rack Height Outlook

    • 42U and Below
    • 43U up to 52U
    • Above 52U

    Data Center Rack Market Data Center Size Outlook

    • Large Data Centers
    • Small and Mid-sized Data Centers

    Data Center Rack Market Industry Vertical Outlook

    • BFSI
    • Manufacturing
    • IT and Telecom
    • Retail
    • Healthcare
    • Media and Entertainment
    • Others

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 698.07(USD Million)
    MARKET SIZE 2024 910.3(USD Million)
    MARKET SIZE 2035 2195.4(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 8.332% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Kingsoft Cloud, Hewlett Packard Enterprise, Digital China, ZTE, Supermicro, Huawei, Dell Technologies, China Telecom, Cisco Systems, Lenovo, Baidu Cloud, Tencent Cloud, Inspur, Alibaba Cloud, China Unicom
    SEGMENTS COVERED Component, Rack Type, Data Center Size, Rack Height, Industry Vertical
    KEY MARKET OPPORTUNITIES Increased cloud computing demand, Growing AI and big data applications, Expansion of 5G infrastructure, Rising energy efficiency regulations, Demand for scalable solutions
    KEY MARKET DYNAMICS growing demand for cloud services, increased data consumption, energy efficiency regulations, rise in colocation facilities, technological advancements in racks
    COUNTRIES COVERED China

    FAQs

    What is the expected market size of the China Data Center Rack Market in 2024?

    The China Data Center Rack Market is expected to be valued at 910.3 million USD in 2024.

    What is the projected market size for the China Data Center Rack Market by 2035?

    By 2035, the China Data Center Rack Market is projected to reach a valuation of 2195.4 million USD.

    What is the expected compound annual growth rate (CAGR) for the China Data Center Rack Market from 2025 to 2035?

    The expected CAGR for the China Data Center Rack Market from 2025 to 2035 is 8.332%.

    Which companies are major players in the China Data Center Rack Market?

    Key players in the China Data Center Rack Market include Kingsoft Cloud, Hewlett Packard Enterprise, Digital China, ZTE, Supermicro, Huawei, and others.

    What was the market value of the solution segment in the China Data Center Rack Market in 2024?

    The solution segment of the China Data Center Rack Market is valued at 455.2 million USD in 2024.

    What is the forecasted market value for the service segment of the China Data Center Rack Market in 2035?

    The service segment is projected to reach a value of 1112.9 million USD in 2035.

    What are the expected growth opportunities in the China Data Center Rack Market?

    The China Data Center Rack Market presents growth opportunities driven by increased demand for data center efficiency and scalable solutions.

    What trends are currently influencing the China Data Center Rack Market?

    Emerging trends in the market include the adoption of advanced cooling techniques and an increase in cloud-based solutions.

    How is the regional demand shaping the China Data Center Rack Market?

    The regional demand is shaped by the rapid growth of technology infrastructures across major cities in China.

    What challenges might the China Data Center Rack Market face in the coming years?

    Challenges may include rising competition and keeping pace with technological advancements in data center solutions.

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