INDUSTRY OUTLOOK

Market Growth & Segmentation

Data center rack segment (a key category of enclosure systems) is set to surge from approximately USD 99 million in 2023 to USD 210.5 million by 2030, exhibiting aCAGR of about 11.3%.

Another analysis estimates the India data center rack market rising from USD 4.21 million in 2025 to USD 11.96 million by 2031, with a robust 19% CAGR.

More broadly, the overall electrical enclosure market (covering enclosures beyond IT racks) was valued at around USD 250 million in 2024, projected to grow at 5.9% annually through 2033, reaching USD 420 million.

Driving Factors & Trends

Data center boom: India’s data center capacity could rise from 950 MW (2024) to as much as 4,500 MW by 2030—driven by substantial investments and expansion, with $20–25 billion expected to flow into new data center projects.

Geographic hotspots: Major urban hubs like Mumbai, Chennai, Bangalore, Noida, and Hyderabadare central to this growth. Mumbai leads due to undersea cable connectivity and hyperscale presence, while Chennai is rapidly growing due to infrastructure investments and favorable costs.

Evolving technology needs:Higher performance demands from AI, cloud, and high-density computing are fueling demand for advanced racks featuring better cooling, energy efficiency, modularity, and security.

Telecom infrastructure expansion:Government initiatives like National Broadband Mission 2.0 (2025–30) are supporting vast telecom rollouts via improved regulatory frameworks and improved right-of-way processes, indirectly boosting demand for telecom enclosures.

Summary Outlook

TheIndia enclosure systems market, especially in data centers and telecom, is on a solid upward trajectory—withdouble-digit CAGR projections in key segments.

Driversinclude booming data center capacity, AI and cloud service growth, supportive policy measures, and urban infrastructure expansion.

Peaks of growth are expected in high-density, specialized enclosures tailored to modern requirements like energy efficiency, cooling, and modularity.

Opportunitiesare strong—not just for manufacturers like Schneider Electric and others—but also for innovation in sustainable, scalable, and secure enclosure solutions.

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