Servers Market

Continuous development of new technologies is driving the market growth

Market CAGR for  servers is being driven by the continuous development of new technologies. Over the course of the projected period, there will likely be a large increase in server demand, mostly due to the growing emphasis on the full updating of IT infrastructure globally. IT network infrastructure is being used more often as a result of companies using data analytics to better understand customer preferences. In addition, it is anticipated that the introduction of 5G networks and other technical developments like cloud computing, virtualization, and the Internet of Things (IoT) would increase demand for high-performance computing servers.

Additionally, edge data center demand is increasing in emerging countries due to ongoing advancements in new technologies including artificial intelligence (AI), the Internet of Things (IoT), big data, cloud computing, and 5G, as well as the expanding adoption of creative solutions based on these technologies across a range of businesses and industry verticals. New data analytics models may now be implemented more easily thanks to the use of virtualization and software-defined networks (SDNs) in data centers, co-location facilities, and edge clouds as enterprises shift to private and public clouds.

But market participants in the area are launching new server designs with more processing power after realizing that the current servers cannot handle the complex workloads.

The expansion of the server during the epidemic has also been made possible by the rising use of OTT platforms and e-commerce websites. Furthermore, the trend toward digital payments has increased demand for servers, which in turn has fueled market expansion. The use of cloud servers is growing as a result of newer applications that require complex setups and high processing demands from users and service providers in order to operate effectively. Businesses are using virtual or cloud servers to improve their ability to network globally and reduce the cost of running and maintaining their IT infrastructure.

Additionally, because physical servers release more heat, cloud service companies must invest heavily in the upkeep of cooling infrastructure.

For instance, the Indian government declared in January 2023 that the Production Linked Incentive (PLI) program will begin in addition to offering other benefits to server and IT hardware producers. Thus, result in driving the Servers market revenue.

The exponential growth of data generation significantly influences the Global Servers Market Industry. With the proliferation of IoT devices, social media, and digital transactions, organizations are confronted with vast amounts of data that require efficient processing and storage solutions. This surge in data necessitates the deployment of high-performance servers capable of handling complex workloads. As businesses strive to harness insights from their data, investments in server infrastructure are likely to escalate. The market's expansion is indicative of the need for advanced server technologies to manage and analyze data effectively, thereby driving growth in the sector.

The Global Servers Market Industry is poised for substantial growth, with projections indicating a market value of 240.5 USD Billion by 2035. This anticipated growth is underpinned by a compound annual growth rate of 6.61% from 2025 to 2035. The increasing reliance on digital technologies, coupled with the demand for advanced server solutions, positions the market for significant expansion. Factors such as the rise of cloud computing, data generation, and cybersecurity concerns are likely to drive this growth trajectory. As organizations continue to invest in server infrastructure, the market is expected to evolve, presenting opportunities for innovation and development.

The emergence of edge computing is reshaping the Global Servers Market Industry by decentralizing data processing. As organizations seek to reduce latency and enhance real-time data processing capabilities, edge computing solutions are gaining traction. This paradigm shift necessitates the deployment of servers closer to data sources, enabling faster response times and improved performance. The market is likely to witness substantial growth as businesses invest in edge server technologies to support applications such as autonomous vehicles, smart cities, and industrial automation. This trend reflects a broader movement towards distributed computing architectures that enhance operational efficiency.

The rising prevalence of cyber threats significantly impacts the Global Servers Market Industry. Organizations are increasingly prioritizing cybersecurity measures to protect sensitive data and maintain operational integrity. As a result, there is a heightened demand for servers equipped with advanced security features, such as encryption and intrusion detection systems. The need for secure server environments is driving investments in hardware that can withstand evolving cyber threats. This focus on cybersecurity not only enhances the resilience of IT infrastructures but also contributes to the overall growth of the server market, as businesses recognize the importance of safeguarding their digital assets.

The Global Servers Market Industry experiences a notable surge in demand for cloud computing solutions. As organizations increasingly migrate to cloud-based infrastructures, the need for robust server systems intensifies. This transition is driven by the desire for scalability, flexibility, and cost-effectiveness. In 2024, the market is projected to reach 119 USD Billion, reflecting the growing reliance on cloud services. Companies are investing in advanced server technologies to support their cloud operations, which is expected to contribute to a compound annual growth rate of 6.61% from 2025 to 2035. This trend underscores the pivotal role of servers in facilitating cloud adoption.

The adoption of virtualization technologies plays a crucial role in shaping the Global Servers Market Industry. Virtualization allows organizations to optimize their server resources by running multiple virtual machines on a single physical server. This approach enhances efficiency, reduces hardware costs, and simplifies management. As businesses seek to maximize their IT investments, the demand for servers that support virtualization is expected to rise. The market's growth trajectory is further supported by the increasing need for disaster recovery solutions and business continuity, which virtualization technologies facilitate. This trend indicates a shift towards more agile and resilient IT infrastructures.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Servers market area will dominate this market. Notable players in the industry, including as Microsoft, Dell Inc., HPE Development LP, Alphabet Inc., and Hewlett Packard Enterprise Development LP, are responsible for the region's success. Furthermore, the region's heavy reliance on cloud services supports the expansion of the regional market.

Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.

Figure 3: SERVERS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Servers market has the second-largest portion of the market. The demand for additional data centers in Europe is being driven by the expansion of data-based applications and services. Further, the German Servers market had the biggest market share, and the UK Servers market was the European market with the quickest rate of growth.

The Asia-Pacific Servers Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. The need for servers is rising due to the rapid expansion of the digital economy, and this is anticipated to support the growth of the Asia Pacific market over the forecast period. Moreover, China’s Servers market had the biggest market share, and the Indian Servers market was the Asia-Pacific region's fastest-growing market.

Leading market players are putting a lot of money into R&D to expand their product ranges, which will help the servers market, keep growing. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Servers industry must provide reasonably priced goods.

Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Servers industry to help customers and expand the market segment. In recent years, the Servers industry has provided some of the biggest benefits to medicine. Major players in the Servers market, including ASUSTeK Computer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Inspur, Intel Corporation, and others, are engaging in research and development activities in an effort to boost market demand.

ASUSTeK Computer Inc. is a global Taiwanese corporation specializing in computer hardware and electronics. The corporation manufactures a broad variety of goods, such as servers, laptops, smartphones, tablets, desktop computers, and computer accessories. According to unit sales, ASUSTeK was the fifth-largest PC vendor in the world in 2020. The ZenBook Pro Duo, a laptop with two 4K screens that ASUSTeK released in 2019, was well-received by both consumers and critics.

Cisco Systems, Inc. is a multinational technological company based in the United States. The company creates, produces, and markets software, networking hardware, and telecom hardware. A major supplier of high-speed coherent optical interconnect devices, Acacia Communications was set to be acquired by Cisco in 2019 for a reported $2.6 billion. After completion in 2021, this acquisition aided Cisco in diversifying its line of optical networking products.