Rack Mount Servers Market Size was valued at USD 65.2 Billion in 2022. The Rack Mount Servers market industry is projected to grow from USD 70.09 Billion in 2023 to USD 125.00 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2024 - 2032). Increasing demand for high-performance computing solutions is the key market driver enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing need for data center solutions in diverse sectors primarily propels the market for rack mount servers. The growing dependence of businesses on data-intensive applications and services has resulted in an augmented demand for server infrastructure that is both scalable and efficient. Rackmount servers provide a scalable and spatially efficient solution for data centers, enabling establishments to utilize the capacity of their server rooms and improve overall operational effectiveness. Demand for dependable and high-performing servers has been fuelled by the proliferation of cloud computing, big data analytics, and the Internet of Things (IoT), which has contributed to the expansion of the rack mount servers market. With the increasing complexity of data management and the need for uninterrupted connectivity, the Market CAGR for rack mount servers is positioned to grow in order to accommodate these evolving technological requirements.
Continuous developments in server technology are pivotal in propelling the market for rack-mount servers. Manufacturers are making ongoing efforts to enhance the overall capabilities, energy efficiency, and performance of rack mount servers. Rackmount servers are attractive to businesses in search of exceptional performance due to the incorporation of robust processors, increased memory capacities, and quicker storage solutions. In addition, attributes such as support for virtualization and compatibility with nascent technologies like 5G enhance the appeal of rack mount servers. In the pursuit of maintaining a competitive edge, organizations are increasingly motivated to upgrade their server infrastructure due to the perpetual advancements in rack mount server technology, which enhance both performance and dependability.
The rise and widespread adoption of edge computing constitute an additional substantial catalyst for the rack mount servers industry. With the proliferation of data produced at the periphery of networks, businesses are embracing edge computing in an effort to reduce latency and improve the ability to make decisions in real-time by processing data in closer proximity to its origin. Due to their small physical footprint, rack-mount servers are highly suitable for peripheral computing environments characterized by restricted space. The implementation of rack mount servers at the periphery expedites the processing and examination of data, thereby assisting with various applications, including industrial IoT, smart cities, and autonomous vehicles. The demand for dependable and effective computing solutions in decentralized environments fuels the sustained expansion of the rack mount servers market, which is aided by the expanding adoption of edge computing architectures across numerous industries. Thus driving the Rack Mount Servers market revenue.
The Rack Mount Servers Market segmentation, based on type, includes 1U Server, 2U Server, and 3U Server. The 2U server segment is the most prominent in the rack mount servers market, and its expansion can be attributed to a number of factors. Due to its 2U form factor's capacity to balance scalability and compactness, it is adaptable to a wide range of applications. The elevated computing power and storage capacity it provides in comparison to 1U servers, all while maintaining a comparatively space-efficient design, contribute to its widespread appeal. Organizations in search of a robust performance and cost-effective solution frequently choose 2U servers, which offer the added benefit of accommodating supplementary components and delivering enhanced processing capabilities. The expanding demand for data-intensive applications, cloud services, and virtualization contributes to the 2U segment's growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Rack Mount Servers Market segmentation, based on Application, includes Enterprise and Data Centers. The data center category arises as the most prominent in the rack mount servers industry, propelled by a multitude of significant factors that contribute to its considerable expansion. As the demand for cloud services rises and businesses become increasingly digitalized, data centers assume a critical function in providing support for a wide range of applications and services. Rackmount servers are critical components of data center infrastructure, as they supply the necessary processing capabilities and scalability to manage enormous volumes of data. The increasing prevalence of technological advancements, including machine learning, artificial intelligence, and big data analytics, exacerbates the need for servers that are both robust and efficient in data center settings.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. Rackmount server sales in North America are the most substantial in the world, driven by advanced technological developments, a well-established IT infrastructure, and extensive implementation of cloud computing solutions. The persistent need for high-performance computation in various sectors, such as healthcare, finance, and technology additionally reinforces the region's supremacy. Furthermore, the leadership position of North America in the rack mount servers market can be attributed to the early adoption of cutting-edge technologies and the presence of significant market players in the region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia-Pacific emerges as the second-largest region in the rack mount servers market, propelled by rising demand for data center solutions, escalating IT investments, and rapid industrialization. The IT industries of nations such as China, Japan, and India are experiencing substantial expansion, which has resulted in a notable upswing in the utilization of rack-mount servers to facilitate the growing demands of data processing. Asia-Pacific occupies a considerable portion of the market due to the region's dynamic economic environment and the proliferation of digital transformation initiatives. Moreover, China’s Rack Mount Servers market held the largest market share, and the Indian Rack Mount Servers market was the fastest-growing market in the Asia-Pacific region.
The Rest of the World (RoW) region, which includes Africa, the Middle East, and Latin America, is the sector of the rack mount servers market with the highest rate of growth. The surge in investments in infrastructure development, the proliferation of digital technologies, and the expansion of internet connectivity all contribute to the accelerated expansion of these emerging markets. A discernible surge in demand for rack mount servers is occurring as organizations in these areas modernize their IT infrastructures and adopt cloud-based solutions. Government initiatives and an emphasis on economic diversification serve to enhance the growth potential of the Rest of the World market for rack mount servers.
Leading market players compete fiercely in the market, and in order to obtain an advantage, major firms prioritize innovation, strategic alliances, and global development. Market participants are actively involved in ongoing research and development endeavors with the aim of introducing cutting-edge server solutions that effectively address the changing demands of enterprises and data centers. Such market developments create a huge impact on the market. Strategic partnerships and acquisitions are widely observed in the business sector as organizations strive to expand their range of products and enhance their standing in the Rack Mount Servers industry.
Moreover, in order to capitalize on the increasing global Rack Mount Servers industry demand for cloud-based solutions, strategic alliances with cloud service providers and integrators have emerged as crucial components for participants. With the ongoing evolution of the global Rack Mount Servers industry, it is anticipated that advancements in edge computing, virtualization, and AI integration will have a significant impact on the competitive environment. Major players in the Rack Mount Servers market include DELL, HPE, Inspur, Lenovo, IBM, Huawei, Cisco, and Fujitsu.
Dell Technologies, a multinational technology conglomerate, has gained widespread recognition for its extensive range of offerings, including software, personal computing, enterprise solutions, and cybersecurity. Since its inception by Michael Dell, the organization has been an innovator in direct-to-customer business models. The server division of Dell provides a wide selection of rack mount servers with an emphasis on performance, scalability, and innovation to meet the changing demands of data centers and enterprises. Through strategic acquisitions such as EMC and VMware, the organization has firmly established itself as an industry frontrunner in information technology.
Prominent in the IT sector, Hewlett Packard Enterprise (HPE) is committed to delivering solutions that address the challenges posed by hybrid cloud, periphery computing, and data-driven insights. Since its separation from Hewlett-Packard in 2015, HPE has maintained its position as a market leader in networking, storage, and server solutions. HPE provides rackmount servers of every conceivable variety to satisfy the requirements of contemporary data centers. HPE, driven by a steadfast dedication to innovation and a customer-centric philosophy, maintains a leading position in the provision of state-of-the-art technologies that enable enterprises to flourish amidst an ever-changing digital environment.
March 2023: IBM introduced a rack-mounted iteration of its most recent mainframe. Big Blue introduced new single frame and rack mount configurations of the LinuxONE 4 server and the IBM z16 this week.
May 2023: Supermicro, Inc. further broadens its data center portfolio by introducing rack scale solutions powered by liquid cooling NVIDIA HGX H100. By utilizing advanced liquid cooling technologies developed exclusively by Supermicro, data center PUE is reduced by a substantial amount, performance is enhanced, and operating expenses are decreased. Compared to an air-cooled data center, the implementation of Supermicro liquid cooling solutions is anticipated to result in a 40% reduction in power consumption for a data center. Additional savings of up to 86% in direct cooling expenses may be realized in comparison to current data centers.
March 2021: A leader in the industrial computer and peripherals market, Stealth (a Sparton company), introduced two Fanless 2U Rackmount Servers. The SR-2950 and SR-2960 are versatile, well-equipped rackmount computer variants that are intended for a wide range of demanding environments and applications.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 65.2 Billion |
| Market Size 2023 | USD 70.09 Billion |
| Market Size 2032 | USD 125.00 Billion |
| Compound Annual Growth Rate (CAGR) | 7.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | DELL, HPE, Inspur, Lenovo, IBM, Huawei, Cisco, and Fujitsu |
| Key Market Opportunities | · Increasing Demand for High-Performance Computing |
| Key Market Dynamics | · Rise of Data-Intensive Applications · Advancements in Technology · Expansion of Data Centers |
Frequently Asked Questions (FAQ) :
The Rack Mount Servers Market size was valued at USD 65.2 Billion in 2022.
The global market is projected to grow at a CAGR of 7.50% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are DELL, HPE, Inspur, Lenovo, IBM, Huawei, Cisco, and Fujitsu.
The 2U server category dominated the market in 2022.
The data center segment had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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