Taiwan Data Center Rack Market Size (2024 - 2029)

The market size of Taiwan's data center rack sector is experiencing growth driven by factors such as the rising demand for cloud computing among small and medium enterprises, government regulations for local data security, and increased investments by domestic players. This growth is reflected in the expansion of IT load capacity, raised floor space, and the number of racks planned for installation, with Taipei City anticipated to accommodate the majority. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's expansion.

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Market Size of Taiwan Data Center Rack Industry

Taiwan Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 7.00 %
Market Concentration Medium

Major Players

Taiwan Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Taiwan Data Center Rack Market Analysis

The Taiwan Data Center Rack Market size in terms of production volume is expected to grow from 57.24 Thousand units in 2024 to 85.90 Thousand units by 2030, at a CAGR of 7% during the forecast period (2024-2030).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Taiwan data center market is expected to touch 300 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 1.5 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 76K units by 2029. Taipei City is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 10 submarine cable systems connecting Taiwan, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Toucheng, Taiwan.

Taiwan Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of the usual steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Taiwan Data Center Rack Market is Segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & Telecommunication, BFSI, government, and media and entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Taiwan Data Center Rack Market Size Summary

The Taiwan data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from domestic players. As Taiwan positions itself as a regional hub for enterprises, the demand for local data centers is on the rise, supported by government initiatives to promote digital transformation and cloud-based solutions. The market is witnessing a surge in cloud and telecom sectors, with major companies like Microsoft and TSMC collaborating to enhance cloud services. The expansion of smartphone usage and the robust semiconductor industry further contribute to the growing need for data center racks, as these sectors generate vast amounts of data requiring efficient processing and storage solutions.

The market is characterized by a shift towards fully equipped data centers to accommodate the rapid growth of mobile broadband, e-commerce, and big data analytics. The increasing reliance on data centers for managing databases and storage, coupled with the expansion of hyperscale data centers, is driving the demand for rack space. Major players in the market, such as Eaton Corporation, Rittal GMBH & Co.KG, and Schneider Electric SE, are focusing on expanding their regional presence and offering innovative solutions like the Open Compute Project racks. The construction of new data center facilities and the development of submarine cable systems are expected to further boost the market, as Taiwan aims to lead in data center infrastructure development.

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Taiwan Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Advent of 5G Network Expansion

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Taiwan Data Center Rack Market Size FAQs

The Taiwan Data Center Rack Market size is expected to reach 57.24 thousand units in 2024 and grow at a CAGR of 7% to reach 85.90 thousand units by 2030.

In 2024, the Taiwan Data Center Rack Market size is expected to reach 57.24 thousand units.

Taiwan Data Center Rack Market Report Snapshots

Taiwan Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)