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The server rail kit market size is projected to increase by USD 24.07 million at a CAGR of 5.67% between 2023 and 2028. The growth rate of the market depends on several factors, including the increased demand for cloud-based storage, the rising mobile data traffic, and the upgradation and expansion of data centers by hyper scalers. A server rail kit includes a server rack rail that is used to mount a server onto a rack to help in the movement of the server. Server rails are used in both 2-post and 4-post server racks, and these come in varying sizes and shapes, depending on server size and rack size.
The report includes a comprehensive outlook on the Server Rail Kit Market, offering forecasts for the industry segmented by Application, which comprises rack server and blade server. Additionally, it categorizes Type into threaded rack rail and square hole rack strip and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Rising mobile data traffic is the key factor driving market growth. The rise in digitalization, the growing implementation of automation technologies across end-user industries, and the increasing use of social networking platforms and IoT devices are the factors responsible for the exponential rise in mobile data traffic. Market players are working toward the development and introduction of a new edge computing platform that will help clients improve their data management capability at the edge of the network.
For example, in February 2021, Hewlett Packard Enterprise Development LP announced the launch of a new HPE Edgeline EL8000 Converged Edge System. The system is specifically designed for communication service providers (CSP) to process vast amounts of data in real-time directly at the edge, based on open standards to boost flexibility and reduce costs. Thus, increasing mobile data traffic is expected to have a positive impact on the growth of the edge data center industry, thereby driving market growth during the forecast period.
New developments in server technology is the primary trend shaping market growth. Businesses are increasingly implementing new data analysis models using advanced technologies such as AI, big data, machine learning (ML), and deep learning (DL) on huge volumes of datasets. Nevertheless, many enterprises and data center service providers' current server estate (of x86 servers) is not enough to handle such heavy and complex workloads. This is driving manufacturers to come up with new server designs with high computation power.
In addition, technical companies are introducing servers embedded with field programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and GPUs to match the computing requirements of HPC workloads. For instance, in March 2021, Dell Inc. refreshed the Dell EMC PowerEdge portfolio with 17 next-generation servers, enabling companies to analyze and act on data wherever it resides. Considering the current advancements in server designs by different market players, the global server rail kit market is expected to grow during the forecast period.
Issues associated with the management of servers are a challenge that affects market growth. Data center servers are interlinked and are expected to communicate with other networks. During times of server failure from technical glitches, replacements of racks/ rail kits can be challenging because of the non-compatibility of new racks with the racks in use. The increasing complexity of data center equipment is a challenge for vendors as they must ensure compatibility with the hardware mounted on racks by rail kits.
Moreover, the multi-vendor environment is further increasing the challenges associated with the compatibility of mounting hardware. Therefore, data center enterprises are constantly looking for solutions to achieve flexibility in the server equipment deployed to enhance performance. Hence, the issues associated with the management of servers are expected to impede market growth during the forecast period.
The market share growth by the rack server segment will be significant during the forecast period. A rack server, also known as a rack-mounted server, is specially created to be mounted in the server rack. These mounting racks adhere to the Institute of Electrical and Electronics Engineers (IEEE) standard. The servers are vertically stacked into these racks along with other devices such as storage units, cooling systems, storage area network (SAN) devices, and network peripherals. The market for rack servers will witness growth primarily because it adopts standard server design technology, standard interface, and standard peripherals and enables server flexibility.
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The rack server segment showed a gradual increase in the market share of USD 45.22 million in 2018. The deployment of rack servers has cost advantages over other technologies as the initial costs and the operational costs for rack servers are low. A higher preference for customized configured rack-mounted data servers also increases the demand for these servers in the market. Customization allows customers to opt for cost-effective, high-performing servers, specifically per their requirements. These factors compel major market vendors to introduce products that meet the demand for rack servers. Hence, such factors are expected to fuel the growth of the rack server segment in the global server rail kit market during the forecast period.
The threaded rack rail segment in the global server rail kit market held the largest market share in 2023. Different thread variations are available for threaded rack holes, including the four types (10-32, 12-24, M5, and M6). Most audio equipment and shelving do not require rails. Using a threaded rack rail can save a lot of time since it eliminates the need to add cage nuts. A stripped thread is the worst thing that can happen to a threaded rail. The rack unit is no longer mountable due to the stripped thread; thus, skipping over the rack unit reduces the total rack capacity. Furthermore, market players provide vertical rack rails, four post racks, two post racks, and more with a 12-24 threaded interface. The rising demand and requirement for mounting heavier equipment, such as hard disk arrays, to a server rack is expected to fuel market growth through the threaded rack rail segment during the forecast period.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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