Rackmount Server Market Size, Share & Analysis | 2031

Report Description

Market Outlook:

The global rackmount server market was valued at USD 64.2 Billion in 2022 and is projected to reach USD 115.5 Billion by 2031, expanding at a CAGR of 7.0% during the forecast period.

A rackmount server is a form of server hardware that is designed to be mounted inside a cabinet or rack of similar equipment. It is frequently used in data centers and server rooms where there is a need to maximize space as well as effectively house and manage several machines. The term rackmount refers to the server form factor, which is specifically designed to fit into a rack. Various networking and server equipment are installed vertically in a rack, which is a metal frame with several slots that are typically 19 inches wide. The rack consists of multiple mounting slots that are called bays, which are designed to hold server hardware units secured in a screw. A rack server is a compact and low-profile enclosure, which is built into a standalone cabinet. Rackmount servers are known for their high density and compact design, which enables businesses to maximize their server capacity in limited physical space.

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Market Dynamics

Market Driver- Rising Adoption of the Cloud Computing Services

The rising trend of cloud computing is rapidly driving the demand for rackmount servers. Rackmount servers are essential components of cloud infrastructure, as they offer the computational performance and storage space required to enable cloud-based services and applications. The rapid expansion of cloud-based services such as software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) is a significant factor driving the need for rackmount servers. These services require a stable and scalable server infrastructure to keep up with the growing workload and consumer demands. Rackmount servers offer high-density configuration, which enables data centers to maximize their computing capacity in a small form factor.

Market Driver- Rising Advancement in the Processor Technology

The processor in the rackmount server plays a major role while performing several applications such as web hosting, data storage, data transfer, and data management. A rackmount server comes with in-built processors offered by different manufacturers. Leading players in the market are developing advanced processors in order to meet the growing demand for high-performance computing globally. For instance, in May 2023, Ampere Computing, a chips manufacturer, launched a custom-designed, Arm-compatible server processor. It has around 192 cores which is the highest core count offered by the company. In April 2021, Inspur Information, an IT infrastructure solutions provider, launched Xeon scalable processor-based advanced M6 servers, which support high computing applications such as big data, artificial intelligence (AI), cloud computing, and other intelligent technologies. The company launched 16 server products in this segment.

Market Restraint- High Power Usage and Maintenance

Rackmount servers are noted for their high power consumption and maintenance needs. These servers require a high amount of electricity, which boosts the energy expenses for data centers. Furthermore, they produce a significant quantity of heat, which demands efficient cooling systems to prevent overheating and assure peak performance. Maintenance tasks such as regular hardware updates, firmware upgrades, and troubleshooting are time-consuming and resource-intensive. For instance, Large-scale data centers with several racks of servers often invest in advanced cooling systems such as liquid cooling or hot aisle design to reduce power usage and maintain appropriate operating temperatures. These additional power and maintenance considerations are critical for organizations when adopting and managing rackmount servers.

Market Opportunity- Growth in Mobile Data Traffic

The exponential growth in mobile traffic represents a big opportunity for rackmount server companies. The growing popularity of smartphones, tablets, and other mobile devices has increased the need for mobile applications, mobile-based transactions, and streaming services. The rise in mobile traffic demands a powerful server infrastructure to manage mobile data processing, storage, and delivery. Rackmount servers play an important role in managing mobile traffic by providing the necessary computing power and storage capacity. These servers are ideal for data-intensive operations such as administering huge databases, handling real-time user requests, and providing content to mobile devices. Companies are able to offer a seamless mobile experience for their users by utilizing rackmount servers.

The increasing use of mobile internet is resulting in a rise in mobile data traffic. According to GSMA, Mobile internet use has reached 55% of the world's population. By the end of 2021, 4.3 billion people were using mobile internet, which is an increase of almost 300 million from 2020. Growth in mobile internet adoption is increasing among people living in low- and middle-income countries (LMICs). All such factors are expected to create opportunities for the market.

Scope of the Report

The report on the global rackmount server Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

The global Rackmount Server Market is segmented on the basis of type, application, and region.

In terms of type, the rackmount server market is segmented into 1U servers, 2U servers, 4U servers, and others. The 1U servers segment is expected to dominate the market in 2022 owing to the increasing demand for 1U servers across various small and medium-scale applications.

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On the basis of application, the Rackmount Server market is segmented into industrial data center, commercial data center, and others. The industrial data center segment is expected to hold a substantial share of the market during the forecast. As rackmount servers provide a scalable, reliable, and space-efficient solution for processing and managing a significant amount of data generated in various industrial applications.

Regional Outlook

Based on regions, the rackmount server market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the North America market is growing in the region, owing to the availability of modern infrastructure and the presence of multiple data center facilities in the region. The US is home to various world’s major data-consuming and data-producing companies such as Meta, Amazon.com Inc., Microsoft Corporation, and Alphabet LLC. These companies invested a considerable amount the data centers and IT infrastructures which has strengthened the rackmount server market growth in this region.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global Rackmount Server Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Rackmount Server Market