The global server operating systems market size was valued at USD 18.68 Billion in 2022 and is likely to reach USD 40.24 Billion by 2031, expanding at a CAGR of 8.9 % during 2023 – 2031. The market's growth is attributed to increasing spending on data center infrastructure and rising usage of 5G services.
Increasing spending on data center infrastructure is estimated to boost the demand for server operating systems. Data center works on server operating systems for storing, processing, and disseminating data and applications. Data centers offer greater security of data by separating data into different zones where access to the zone is required and verified.
Rising adoption of 5G services is projected to drive market growth. 5G services offer faster speeds, lower latency, and wider bandwidth, which increases the adoption of server operating systems. Server operating systems require quick internet to run, update, and control user devices through several servers.
A server operating system is designed to be installed and used on a server computer. It is loaded with features and capabilities required within a client-server architecture. It is an advanced version of an operating system and offers advanced capabilities to manage, run, monitor, control, process applications, and client devices such as different servers including file servers, mail servers, web servers, application servers, and database servers.
Impact of Artificial Intelligence (AI) on Server Operating System
AI-powered server operating systems enhance automation and security. AI automates repetitive tasks such as troubleshooting and monitoring servers, networks, and storage systems, freeing up the user to focus on more critical tasks. Artificial intelligence enables server operating systems to use predictive analytics to identify potential issues and take proactive measures to prevent system failures. AI analyzes usage patterns and optimizes storage and computing power allocation, helping users and enterprises save costs. AI provides insights about servers operating systems and recommends improvements, helping users to make data-driven decisions.
The COVID-19 pandemic propelled the demand for server operating systems. The rise in COVID-19 infection led governments to impose lockdowns, social distancing, and closure of offices, schools, and non-essential activities, which increased remote working culture and online education. The increase in remote working and online education propelled the need for desktops and laptops, which boosted the demand for server operating systems. Server operating systems are utilized in desktops and laptops to manage the computer's memory, software, and hardware. It allows users to communicate with the computer without knowing the computer's language.
Server Operating Systems Market Dynamics
Major Drivers
Rising incidence of ransomware attacks is expected to drive market growth. Server operating systems use server-hardening practices to reduce ransomware attacks. Server-hardening practices include upgrading software, setting firewalls, and eliminating superfluous services. The server operating system consists of user authentication that ensures the legitimacy of user access, which lessens ransomware attacks.
Existing Restraints
Soaring cost coupled with server operating systems is anticipated to restrict market growth. Moreover, the high downtime of server operating systems is hindering the market. High downtime occurs in server operating systems due to hardware failures, power outages, network problems, and software issues.
Emerging Opportunities
Increasing technologically advanced servers and software is an immense opportunity in the market. Companies are heavily investing in innovating new advanced features in server operating systems to enhance security.
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For instance, on August 18, 2021, Microsoft launched Microsoft Server 2022 (LTSC). It is Microsoft's most reliable, secure, and Azure-compatible OS. Microsoft Server 2022 offers organizations greater security and improved cloud integration that helps protect their data from malicious actors.
Scope of the Server Operating Systems Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Server Operating Systems Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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System (Windows, Linux, Unix, and Others), Virtualization (Physical Server and Virtual Server), Subscription (Paid Subscription and Non-Paid Subscription), and Industry Vertical (IT & Telecom, BFSI, Manufacturing, E-Commerce, Government, Healthcare, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Cisco Systems, Inc.; IBM Corporation; Oracle; Amazon Web Services, Inc.; NEC Corporation; Microsoft; Unisys; Canonical Ltd.; Fujitsu; Red Hat, Inc.; Dell Inc.; and Hewlett Packard Enterprise Development LP.
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Market Segment Insights
System Segment Analysis
Based on system, the server operating system market is categorized into Windows, Linux, Unix, and others. Windows held a large market share in 2022 and is expected to grow at a robust pace during the projected period owing to its user-friendly interface and compatibility with all hardware. Moreover, it offers both cloud and on-premise solutions, which propels users to adopt Windows systems. Windows provides software development support that encourages programmers and software engineers to use the Windows operating system to develop video games, utilities, and other applications. Additionally, key companies in the market are launching new Windows systems to boost the demand for server operating systems.
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For instance, on October 5, 2021, Microsoft launched Windows 11 for Windows PCs. Windows 11 is secure and designed to be centered around the user, empowering one to be a more productive and creative operating system.
The Linux segment is estimated to witness a high CAGR growth during the assessment period due to low cost and open source. Linux systems are cost-effective as they run on commodity hardware and do not require expensive licensing fees. Linux is also highly scalable, making it ideal for cloud computing as it is an open-source nature model, which provides the freedom and flexibility to choose technologies like Kubernetes and edge computing for meeting organizations' business goals. Moreover, major companies are developing new Linux systems to enhance the market for server operating systems.
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For instance, on September 13, 2022, IBM launched LinuxONE Servers, a highly scalable Linux and Kubernetes-based platform. LinuxONE server is designed to deliver scalability to support thousands of workloads in the footprint of a single system.
Virtualization Segment Analysis
In terms of virtualization, the global market is bifurcated into physical servers and virtual servers. The virtual servers segment dominated the market in 2022 owing to centralized management, cost-saving, and full compatibility with applications. Virtual servers enable better use of physical resources, which increases agility, IT flexibility, and scalability, reducing operating expenses, and significantly increasing the demand for virtual servers.
The physical server is anticipated to grow at a quick pace over the projection period due to greater control and security. Physical servers offer enhanced security and control to companies or users as they're physically present on-site and are managed directly. It provides powerful performance, reducing lags since it does not share processors or other components with other users as it is designated to a single client. Thus, propelling the market growth.
Subscription Segment Analysis
Based on subscription, the server operating systems market is categorized into paid subscriptions and non-paid subscriptions. The paid subscription held a large market share and is anticipated to grow at a robust pace during the projected period owing to more features and greater capabilities. Paid server operating systems offer advanced network optimizations, efficient performance, and greater security to the users. Moreover, paid server operating systems include technical support, upgradation, and maintenance of the operating system, which encourages companies and IT professionals to adopt paid server operating systems.
Industry Vertical
Based on industry vertical, the global market is segregated into IT & telecom, BFSI, manufacturing, e-commerce, government, healthcare, and others. IT & telecom accounted for a large market share owing to unlimited user connections, more memory, and advanced network optimizations. Server operating system uses LAN and other connections where multiple users connect and share information at the same time, which significantly encourages IT companies to adopt server operating system.
Moreover, server operating systems offer high-level software and network configuration procedures that handle complex tasks such as massive data transfers with ease and execute huge programs, thus increasing demand for server operating systems in the IT & Telecom industry.
The BFSI is estimated to witness a high CAGR growth in the coming years due to managing mission-critical activities and the need for greater security. A server operating system in banking is the software that banks use to manage their most critical processes, such as risk management, transactions, and customer accounts. Moreover, banks are adopting server operating systems to digitize their routine operations and ensure their services are accessible remotely.
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For instance, on January 3, 2023, HDFC Banks partnered with Microsoft for a digital transformation journey and unlock business value. With this partnership, HDFC is set to use a Microsoft server for modernizing the data landscape and securing the enterprise.
Regional Outlook
In terms of region, the server operating systems market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2022 and is anticipated to grow at a significant pace owing to the presence of established market players such as Microsoft, Amazon Web Services, Inc., and Oracle. Moreover, increasing adoption of servers in the region for the management of the company by managing software, user permissions, and security is estimated to boost the demand for server operating systems.
Asia Pacific is projected to grow at a robust pace during the forecast period due to the increasing need for cloud computing solutions and growing IT industry. The rise in the IT industry in the region boosted the demand for server operating systems. IT professionals use server operating systems to manage and control the entire programs and applications of computers
Segments
The server operating systems (TPMS) market has been segmented on the basis of
System
- Windows
- Linux
- Unix
- Others
Virtualization
- Physical Server
- Virtual Server
Subscription
- Paid Subscription
- Non-Paid Subscription
Industry Vertical
- IT & Telecom
- BFSI
- Manufacturing
- E-Commerce
- Government
- Healthcare
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Cisco Systems, Inc
- IBM Corporation
- Oracle
- Amazon Web Services, Inc
- NEC Corporation
- Microsoft
- Unisys
- Canonical Ltd
- Fujitsu
- Red Hat, Inc
- Dell Inc
- Hewlett Packard Enterprise Development LP
Competitive Landscape
Key players competing in the global market are Cisco Systems, Inc.; IBM Corporation; Oracle; Amazon Web Services, Inc.; NEC Corporation; Microsoft; Unisys; Canonical Ltd.; Fujitsu; Red Hat, Inc.; Dell Inc.; and Hewlett Packard Enterprise Development LP.
These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,
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On November 16, 2022, Microsoft launched SQL Server 2022. It includes several performance features and improvements, such as Query Store and Intelligent Query Processing to create superior execution plans.
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On September 8, 2021, IBM introduced the IBM Power E1080 server for a frictionless, scalable hybrid cloud. IBM Power E1080 server is engineered to be a secured server platform and is designed to help clients operate a secured, frictionless, and hybrid cloud experience across their entire IT infrastructure.
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