Data Center Server Market Overview
As per MRFR analysis, the Data Center Server Market Size was estimated at 95.19 (USD Billion) in 2022. The Data Center Server Market Industry is expected to grow from 109.9 (USD Billion) in 2023 to 400.59 (USD Billion) by 2032. The Data Center Server Market CAGR (growth rate) is expected to be around 15.45% during the forecast period (2024 - 2032).
Key Data Center Server Market Trends Highlighted
The global data center server market is characterized by significant growth, driven by the increasing demand for cloud computing, data analytics, and artificial intelligence. Key drivers include the rapid adoption of cloud-based services, the surge in data generation, and the need for efficient data storage and processing. Opportunities lie in the development of next-generation hardware architectures, energy-efficient solutions, and software advancements.
Recent trends include the shift towards disaggregated server designs, the emergence of software-defined servers, and the integration of artificial intelligence into server management. By addressing these trends and drivers, market participants can position themselves for success in the highly competitive global data center server market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Server Market Drivers
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Rise in Cloud Computing and Data Analytics
The proliferation of cloud computing and data analytics is a key driver of growth for the Global Data Center Server Market Industry. Cloud computing provides businesses with the ability to access computing resources on demand, eliminating the need for expensive on-premises infrastructure. This has led to a surge in demand for data center servers, which are used to store and process data in the cloud. Additionally, the growing adoption of data analytics is driving demand for servers that can handle large volumes of data and perform complex computations.The increasing popularity of artificial intelligence (AI) and machine learning (ML) is also contributing to the growth of the market, as these technologies require powerful servers to train and deploy models.
Expansion of Edge Computing
The expansion of edge computing is another major driver of growth for the Global Data Center Server Market Industry. Edge computing brings computing resources closer to the edge of the network, reducing latency and improving performance for applications that require real-time data processing. This is driving demand for servers that are designed for edge deployments, such as microservers and blade servers. Edge computing is also being used to support the growth of IoT devices, which are generating vast amounts of data that need to be processed and analyzed in real time.
Growing Demand for Hyperscale Data Centers
The growing demand for hyperscale data centers is a third major driver of growth for the Global Data Center Server Market Industry. Hyperscale data centers are large-scale facilities that are used to support cloud computing, big data analytics, and other data-intensive applications. These data centers require a massive number of servers to handle the vast amounts of data that they process. The growth of hyperscale data centers is being driven by the increasing adoption of cloud computing and the growing popularity of data-intensive applications.
Data Center Server Market Segment Insights
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Data Center Server Market Form Factor Insights
Form Factor Insights and Overview The global data center server market is segmented based on form factor into rack-mounted servers, blade servers, tower servers, modular servers, and microservers. Among these, rack-mounted servers dominate the market, accounting for over 55% of the revenue share in 2023. The high adoption of rack-mounted servers can be attributed to their space-saving design, scalability, and ease of maintenance. Blade servers, on the other hand, are preferred in high-density computing environments due to their compact size and ability to accommodate multiple blades in a single chassis.
The market for blade servers is expected to grow at a CAGR of over 10% during the forecast period (2023-2032). Tower servers, while less popular than rack-mounted and blade servers in data centers, hold a significant market share in small and medium-sized businesses. They offer a cost-effective and easy-to-deploy solution for non-critical applications. Modular servers are gaining traction in the market as they provide greater flexibility and scalability. These servers are designed with interchangeable components, allowing businesses to customize their systems based on specific requirements.
The modular server segment is projected to witness substantial growth over the coming years. Microservers, the smallest form factor in the data center server market, are primarily used in edge computing and IoT applications. These servers offer low power consumption and a compact design, making them suitable for space-constrained environments. The market for microservers is expected to grow at a healthy rate in the future. Overall, the data center server market is driven by the increasing demand for data storage and processing, the proliferation of cloud computing, and the growing adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML). The market is expected to continue its growth trajectory over the next decade, with key players focusing on innovation and customer-centric solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Server Market Processor Type Insights
The Global Data Center Server Market is segmented by Processor Type into X86 Processors, ARM Processors, Power Processors, and SPARC Processors. Among these, X86 Processors held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. X86 Processors are widely adopted due to their high performance, cost-effectiveness, and compatibility with a vast range of operating systems and applications. ARM Processors are gaining traction in the market due to their low power consumption and high efficiency, making them ideal for cloud and edge computing applications.
Power Processors offer excellent performance and reliability, catering to the needs of high-performance computing and enterprise workloads. SPARC Processors are known for their scalability and fault tolerance, making them suitable for mission-critical applications in sectors such as finance and telecommunications.
Data Center Server Market Memory Type Insights
The Global Data Center Server Market is segmented by Memory Type into DRAM, SRAM, NVDIMM, and Optane. DRAM is expected to dominate the market in the coming years due to its high performance and low cost. SRAM is also expected to witness significant growth due to its low power consumption and high speed. NVDIMM is a new type of memory that is gaining traction in the market due to its ability to provide both high performance and low latency. Optane is a revolutionary new type of memory that is expected to disrupt the market in the coming years due to its extremely high speed and low latency.
Data Center Server Market Storage Type Insights
The Storage Type segment of the Global Data Center Server Market is expected to experience significant growth in the coming years, driven by the increasing demand for high-performance storage solutions. The segment is expected to grow from a value of USD 109.9 billion in 2023 to USD 400.59 billion by 2032, at a CAGR of 15.45%. The growth of the HDD segment is primarily driven by the increasing demand for low-cost and high-capacity storage solutions. HDDs are typically used for storing large amounts of data, such as backups, archives, and surveillance footage.
The SSD segment is expected to grow at a faster rate than the HDD segment, due to the increasing demand for high-performance storage solutions. SSDs are typically used for storing critical data, such as databases, operating systems, and applications. The NVMe segment is expected to grow at the fastest rate among all the storage types, due to the increasing demand for high-speed storage solutions. NVMe drives are typically used for storing mission-critical data, such as financial transactions and medical records. The All-Flash Storage segment is expected to grow at a significant rate, due to the increasing demand for high-performance and scalable storage solutions.
All-Flash Storage arrays are typically used for storing large amounts of data, such as big data analytics and artificial intelligence applications.
Data Center Server Market Networking Technology Insights
The Global Data Center Server Market segmentation by Networking Technology includes Ethernet, InfiniBand, Fibre Channel, and RoCE. Ethernet technology dominated the market in 2023, accounting for nearly half of the revenue share. This dominance is attributed to its wide adoption in data centers due to its cost-effectiveness, scalability, and high bandwidth. InfiniBand is another popular networking technology used in data centers, particularly in high-performance computing (HPC) environments. It offers low latency and high throughput, making it suitable for applications that require fast data transfer speeds.
In 2023, the InfiniBand segment is expected to grow at a CAGR of 12.5%, driven by the increasing demand for HPC systems. Fibre Channel is a mature networking technology that has been widely used in data centers for storage connectivity. It provides high reliability and performance, making it suitable for mission-critical applications. The Fibre Channel segment is expected to grow steadily over the forecast period, driven by the need for reliable and high-speed storage connectivity. RoCE (RDMA over Converged Ethernet) is a relatively new networking technology that combines the benefits of Ethernet with the performance of RDMA (Remote Direct Memory Access).
It offers low latency and high throughput, making it suitable for applications that require fast data transfer speeds and low overheads. The RoCE segment is expected to witness significant growth in the coming years, driven by the increasing adoption of RDMA-enabled applications.
Data Center Server Market Regional Insights
The regional segmentation of the Data Center Server Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is expected to dominate the market in 2023, with a significant market share, driven by the region's advanced technological infrastructure and high demand for data storage and processing. Europe is anticipated to follow closely, propelled by stringent data protection regulations and a growing emphasis on digital transformation. The APAC region is projected to witness substantial growth, fueled by rapid economic development, rising internet penetration, and increasing cloud adoption.
South America and MEA are expected to contribute a smaller share to the Global Data Center Server Market revenue, but they present significant growth opportunities due to government initiatives to improve digital infrastructure and increasing investments in data center infrastructure.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Server Market Key Players And Competitive Insights
Major players in Data Center Server Market industry are continuously developing and launching new products to gain a competitive edge. For instance, in March 2023, Hewlett Packard Enterprise (HPE) launched the HPE ProLiant DL385 Gen11 server, which is designed for demanding workloads and features the latest Intel Xeon Scalable processors. Leading Data Center Server Market players are also forming partnerships and alliances to expand their market reach and gain access to new technologies. For example, in February 2023, Dell Technologies partnered with VMware to offer a joint solution that combines Dell's PowerEdge servers with VMware's virtualization software. Data Center Server Market development is being driven by the increasing demand for data storage and processing capabilities in various industries, such as healthcare, finance, and manufacturing. This growth is expected to continue in the coming years as more businesses adopt digital technologies and move towards a data-driven approach.
Leading Data Center Server Market player Hewlett Packard Enterprise (HPE) offers a wide range of data center servers, including rack-mounted, blade, and tower servers. HPE's servers are designed to meet the needs of various industries and applications, and they are known for their reliability, performance, and security. The company has a strong global presence and a large customer base, including many Fortune 500 companies. HPE also offers a range of services and support to help customers optimize their data center operations, including consulting, deployment, and managed services.
A key competitor in the Data Center Server Market is Dell Technologies. Dell Technologies offers a comprehensive portfolio of data center servers, including the PowerEdge series, which is designed for performance, reliability, and security. Dell Technologies also offers a range of services and support to help customers design, deploy, and manage their data center infrastructure. The company has a strong global presence and a large customer base, including many Fortune 500 companies. Dell Technologies is also actively involved in research and development, and it has a number of patents in the field of data center servers.
Key Companies in the Data Center Server Market Include
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Wipro Limited
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Lenovo Group
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PowerEdge
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Inspur
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Cisco Systems
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Fujitsu
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NEC Corporation
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Huawei Technologies
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Atos
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Oracle Corporation
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Microsoft
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HPE
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IBM
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Sugon
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Dell Technologies
Data Center Server Market Industry Developments
The global data center server market is expected to grow from an estimated USD 131.6 billion in 2023 to USD 400.59 billion by 2032, exhibiting a CAGR of 15.45% during the forecast period. The growing demand for cloud computing, big data analytics, and artificial intelligence (AI) is driving the market growth. The proliferation of 5G networks and the increasing adoption of edge computing are further fueling market expansion. Key industry players like Dell, HPE, and Lenovo are investing heavily in research and development to enhance their product offerings and gain a competitive edge.
The market is witnessing a surge in the adoption of hyperscale data centers, driven by the need for massive data storage and processing capabilities. Additionally, the growing adoption of green data centers is expected to create new opportunities for market growth.
Data Center Server Market Segmentation Insights
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Data Center Server Market Form Factor Outlook
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Rack-Mounted Servers
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Blade Servers
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Tower Servers
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Modular Servers
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Microservers
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Data Center Server Market Processor Type Outlook
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X86 Processors
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ARM Processors
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Power Processors
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SPARC Processors
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Data Center Server Market Memory Type Outlook
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Data Center Server Market Storage Type Outlook
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HDD
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SSD
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NVMe
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All-Flash Storage
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Data Center Server Market Networking Technology Outlook
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Ethernet
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InfiniBand
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Fibre Channel
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RoCE
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Data Center Server Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
95.19(USD Billion) |
| Market Size 2023 |
109.9(USD Billion) |
| Market Size 2032 |
400.59(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.45% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Wipro Limited, Lenovo Group, PowerEdge, Inspur, Cisco Systems, Fujitsu, NEC Corporation, Huawei Technologies, Atos, Oracle Corporation, Microsoft, HPE, IBM, Sugon, Dell Technologies |
| Segments Covered |
Form Factor, Processor Type, Memory Type, Storage Type, Networking Technology, Regional |
| Key Market Opportunities |
Artificial intelligence Edge computing Cloud computing Highperformance computing Hyperscale data centers |
| Key Market Dynamics |
Cloud adoption IoT proliferation 5G expansion sustainability concerns AIdriven data analytics |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Data Center Server Market is projected to reach a valuation of 400.59 billion USD by 2032, exhibiting a CAGR of 15.45% from 2023 to 2032.
In 2023, the Global Data Center Server Market is valued at 109.9 billion USD.
North America is anticipated to dominate the Global Data Center Server Market throughout the forecast period.
The increasing demand for cloud computing, big data analytics, and artificial intelligence, coupled with the proliferation of 5G networks, are propelling the growth of the Global Data Center Server Market.
Leading players in the Global Data Center Server Market include Dell Technologies, Hewlett Packard Enterprise (HPE), Cisco Systems, Lenovo, and Inspur.
Data Center Servers are primarily categorized into three types: Rack Servers, Blade Servers, and Tower Servers.
Key industry verticals driving demand for Data Center Servers include IT & Telecom, BFSI, Healthcare, Retail & E-commerce, and Government.
The adoption of energy-efficient servers, the rise of edge computing, and the integration of artificial intelligence (AI) into server management are key trends shaping the Global Data Center Server Market.
The Global Data Center Server Market is segmented based on type, form factor, processor type, end-use industry, and geography.
The Global Data Center Server Market is projected to grow at a CAGR of 15.45% from 2023 to 2032.
