NEW YORK, Nov. 14, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global server market size is estimated to grow by USD 47.02 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.31%  during the forecast period. Growing need for edge computing is driving market growth, with a trend towards using ai for server workload optimization. However, cyber security challenges  poses a challenge.Key market players include AMAX Engineering Corp., Amazon.com Inc., ASUSTeK Computer Inc., Bloom Energy Corp., Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Inspur Group, Intel Corp., International Business Machines Corp., Lenovo Group Ltd., NEC Corp., NVIDIA Corp., Oracle Corp., Quanta Computer Inc., SAP SE, SMART Global Holdings Inc., and Super Micro Computer Inc..

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Data centers are utilizing artificial intelligence (AI) to optimize server workloads and enhance efficiency. Vendors are developing advanced servers with AI capabilities to handle complex infrastructure issues, such as energy consumption and security. Traditional methods of enhancing server efficiency through human intervention may not be sufficient due to fluctuating computing resource demands. AI tools, including advanced load balancing systems, analyze historical data to distribute workloads efficiently and intelligently, considering priority, resource availability, and dependencies. This proactive and adaptive approach to resource management enables data centers to meet performance goals while minimizing costs and manual intervention, driving the growth of the global server market. 

In the IT industry, spending on server market is experiencing significant growth, driven by increased demand for GPU server shipments from hyperscalers. The pandemic, inflation, economic activity disruptions, supply chain issues, geopolitical conflicts, and energy prices have impacted the market. IT infrastructure investment is a priority for businesses, leading to modernization through cloud deployments and edge deployments. Workload choices favor CPU platforms, but excess inventory and transportation costs add challenges. Energy-efficient and sustainable systems are essential in the macroenvironment. Mission-critical investments include data centers, cloud service providers, IT and telecom, healthcare, and e-commerce websites. Emerging technologies like 5G, virtualization, big data, cloud computing, and virtualization require advanced server infrastructure. The work-from-home model and digital payments drive cloud servers and virtualization demand. Server sales remain strong in sectors like healthcare and e-commerce. Emerging trends include the adoption of energy-efficient and sustainable systems, and the impact of emerging technologies like 5G and edge data centers. 

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•         The risk of cyberattacks against enterprises has escalated, particularly in sectors like Banking, Financial Services and Insurance (BFSI) and healthcare, due to the sensitive data they handle. Regulations such as GDPR demand data protection. Server solutions face security challenges, and neglecting security measures may lead to data breaches. Enterprises must deploy encryption, firewalls, web application firewalls, IDS, and DPI for protection. The market growth may be hindered due to the IoT, BYOD, and mobility services, increasing network vulnerabilities.

•         The Server Market is experiencing significant growth due to the increasing demand for IT infrastructure from various industries such as data centers, cloud service providers, IT and telecom, healthcare, and e-commerce. The work-from-home model and digital payments have further accelerated this trend. Cloud servers, virtualization, and emerging technologies like AI, IoT, and 5G are driving the need for advanced server designs. IT infrastructure initiatives by IT hardware manufacturers are also contributing to the market’s growth. Key market indicators show that server sales are on an exponential trend, with unit demand increasing in sectors like e-commerce, online services, and digital transformation. Macro-economic factors, level of digitization, and forecasting techniques like Exponential trend smoothing and S-curve function are essential in understanding market sizes and trends. Worldwide, IT infrastructure initiatives are underway, with country-specific associations and National Statistical Offices providing insights into market sizes and key indicators. Server types, including web servers, file servers, network servers, database servers, and dedicated servers, are in high demand. Server shipments for rack servers and cloud servers are expected to continue growing. Overall, the Server Market is poised for continued growth, with processors and storage solutions being critical components.

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This server market report extensively covers market segmentation by  

Product 1.1 Rack1.2 Blade1.3 Micro1.4 Open compute project1.5 TowerEnd-user 2.1 IT and telecom2.2 BFSI2.3 Government and defense2.4 Healthcare2.5 OthersGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Rack-  Rack servers are essential components in data centers, providing the necessary computational power for running applications, processing data, managing databases, hosting websites, handling virtualization, and executing various workloads. These servers are designed to be housed in server racks, allowing for easy installation, diagnosis, and part replacement without system downtime. Rack servers are popular in enterprises with fixed business requirements and among Small and Medium-sized Enterprises (SMEs) due to their space-saving design and scalability. The global server market has experienced significant growth in the past five years, driven by digital transformation initiatives and the increasing demand for powerful computing resources to support modern applications, big data analytics, AI machine learning, and Internet of Things (IoT) deployments. As a result, the rack server segment is anticipated to expand steadily during the forecast period.

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The Server Market is experiencing significant growth worldwide as businesses increasingly rely on data centers, cloud service providers, IT and telecom companies, healthcare organizations, and various industries for digital transformation. The market sizes for server sales are expanding due to the rise of e-commerce, online services, and digital payments. Cloud servers are becoming increasingly popular, leading to increased demand for unit demand and spending growth. Macro-economic factors such as the pandemic, inflation, and economic activity have had an impact on the server market. The work-from-home model has accelerated the adoption of servers for remote work and collaboration. Edge computing is also gaining traction, leading to increased demand for GPUs and other specialized processors and storage solutions. Hyperscalers continue to dominate the market, but smaller players are also making strides. Supply chain disruptions have caused challenges for server manufacturers, but the market is expected to continue its upward trajectory.

The Server Market is experiencing significant growth worldwide, driven by various sectors including data centers, cloud service providers, IT and telecom, healthcare, and e-commerce websites. The shift towards work-from-home models and digital payments has accelerated the demand for cloud servers and virtualization. Emerging technologies such as AI, IoT, and 5G are also fueling the market’s growth. Server designs are evolving to meet the demands of big data and cloud computing, with IT infrastructure initiatives driving spending growth. IT hardware manufacturers are investing in Rack servers, CPU platforms, and storage solutions to meet the increasing demand. Market sizes are forecasted using techniques such as exponential trend smoothing and the S-curve function. Macro-economic factors, such as inflation, economic activity, and supply chain disruptions, are impacting the market. Key market indicators include server shipments, unit demand, spending growth, GPU server shipments, and workload choices. National statistical offices and country-specific associations provide valuable data on the level of digitization and IT industry investment. Energy prices and transportation costs are also important considerations for energy-efficient and sustainable server systems. Modernization, cloud deployments, and edge deployments are top priorities for mission-critical investments. Hyperscalers are leading the way in GPU server infrastructure and AI processing, while the pandemic has accelerated the adoption of cloud computing and edge computing. Geopolitical conflicts and excess inventory are potential challenges for the market.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductRackBladeMicroOpen Compute ProjectTowerEnd-userIT And TelecomBFSIGovernment And DefenseHealthcareOthersGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio