NEW YORK, Jan. 14, 2025 /PRNewswire/ — The global server market size is estimated to grow by USD 41.95 billion from 2025 to 2029, according to Technavio. The market is estimated to grow at a CAGR of 7.6% during the forecast period. The report provides a comprehensive forecast of key segments below-
Segmentation Overview
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 AfricaCountry
US, China, Germany, France, Canada, India, Japan, South Korea, UK, and Italy
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1.1 Fastest growing segment:
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.
Analyst Review
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.
Market Overview
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.
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Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
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.
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
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