Servers Market Analysis, Share, Industry, Opportunities 2031

Report Description

Server Market Outlook 2031

The global server market size was valued at USD 94.22 Billion in 2022 and is expected to reach USD 170.33 Billion by 2031, expanding at a CAGR of 6.8% during the forecast period, 2023 and 2031. The growth of the market is attributed to the growing number of new data cerents globally.

Servers provides a network transition of new workloads and previous data by vendors and their technology into different directions. This transition is leading towards new market platforms such as both cloud vendors and enterprises. The technology has a wide range of application across various industries such as healthcare, IT and telecom, BFSI, government authorities, and defense organizations.

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Moreover, cloud service providers are constantly engaged in updating their servers to manage the perennial rising volume of data. The modification of the IT infrastructure provides enhanced storage, security, and processing speeds for managing higher data volumes.

The COVID-19 pandemic has affected the market growth in 2020 due to strict lockdown regulations by several governments worldwide and the emergency shutdown of manufacturing units of the IT industry. Several organizations have adopted the work-from-home facility for their employees to curb the spread of the disease. However, the usage of e-commerce websites and OTT platforms have increased rapidly during the pandemic due to the movement restrictions. People had to stay at home and resorted to these platforms for shopping and entertainment purposes.

The adoption of contactless methods of  transactions has boosted the usage of payment wallets and hence, created a large avenues for the market expansion. Recent applications demanding high computing and specific configurations requirements from users and service providers are rising the adoption of cloud servers for effective functioning. Enterprises are accepting cloud servers to stabilize their worldwide networking capabilities and lower down on their IT infrastructure’s maintenance and operational costs.

Servers Market Trends, Drivers, Restraints, and Opportunities

• Growing investments in the formation of hyper scale data centers by public cloud providers and continuous usage of 5G networks technology are expected to boost the overall revenue of the servers market.
• Rising demand for modification of the IT infrastructure to provide enhanced storage, security, and managing speeds for managing higher data volumes efficiently are expected to fuel the market growth in the coming years.
• Increasing demand for high-performance computing servers offering supporting software-defined solutions, big data analytics, and hyper converged infrastructure are further expected to accelerate the market growth.
• The Bring Your Own Device Policy (BYOD) for centralized access systems are expected to cater the rising demand for several platforms using advanced servers. This is expected to drive the market growth during the forecast period.
• Challenges associated to set the suitable server coupled with specific configuration systems along with high installation and maintenance cost of the technology are some restraints expected to hamper the market growth.

Scope of Servers Market Report                               

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

Servers Market Segment Insights

Product Segment Analysis

Based on products, the global servers market is segmented into blade, rack, tower, micro, and open compute project. The rack segment accounted for a key share of the market in 2019 and is expected to grow at a rapid pace during the projected period owing to high of adoption rate of rack servers across varied verticals.

However, the open compute project segment is anticipated to expand at a substantial growth rate during the forecast period as these are low-cost installations and open-source ecosystems.

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Enterprise Size Segment Analysis

On the basis of enterprise size, the market is divided into micro, small, medium, and large. The large segment is projected to expand at a considerable CAGR during the forecast period due to huge investments made by large enterprises on their IT infrastructure. On the other hand, the micro and small segments are expected to represent a substantial growth rate in the coming years owing to various cost benefits offered by government policies especially in major economies.

Channels Segment Analysis

In terms of channels, the global servers market is classified into direct, reseller, integrator, systems, and others. The reseller segment expected to register a robust growth rate in the coming years due to customized designs and competitive prices provided by server ODMs. Meanwhile, the direct segment is anticipated to register a high CAGR during the forecast period as they sell the servers directly to the customer, which shoot down the intermediary and shoot costs.

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Verticles Segment Analysis

In terms of verticals, the market is segregated into BFSI, IT & Telecom, healthcare, government & defense, energy, and others The IT & telecom segment is projected to account for a large market share during the forecast period owing to rise in the high penetration of smartphones and network connections globally.

Meanwhile, the BFSI segment is anticipated to grow substantially due to rising usage of high-performance applications to handle large data volumes and increase in the number of digitized transactions during the COVID-19 pandemic.

Regional Analysis

In terms of regions, the global servers market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to constitute a key market share in the coming years due to presence of large number of several data center and cloud service providers.

The market of Asia Pacific, however, is attributed to expand at a robust CAGR during the forecast period owing to government bodies in this region have led to the development of new data centers and growing rate of high-frequency trading in the region.

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