Servers Market Size was valued at USD 106.8 Billion in 2022. The Servers market industry is projected to grow from USD 114.3 Billion in 2023 to USD 196.35 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2023 - 2032). The growing use of OTT platforms and e-commerce websites are the key market drivers boosting the expansion of the market.
Figure 1: Servers Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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 Servers Market segmentation, based on Product includes Blade, Micro, Open Compute Project, Rack, and Tower. The rack segment dominated the market. Rack servers are independently mounted on a rack and are customized to support a wide variety of requirements. The construction and design of the rack servers accommodate both high and low processing demands.
The Servers Market segmentation, based on Enterprise Size, includes Micro, Small, Medium, and Large. The large category generated the most income. Because hosted application servers can manage workloads from several sites, usually from the same database, large organizations are turning their attention toward them. Because hosted application servers don't need to be installed upfront and require fewer system integrations, they may be deployed more easily than traditional application servers, which lower running and maintenance expenses.
Figure1: Servers Market, by Enterprise size, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Servers Market segmentation, based on Channel includes Direct, Reseller, Systems Integrator, and Others. The reseller segment dominated the market. The technology distribution channel between a vast network of IT service providers and sales representatives is made up of resellers. Using a reseller might also make it easier for customers to locate things.
The Servers Market segmentation, based on End-Use, includes BFSI, Energy, Government & Defense, Healthcare, IT & Telecom, and Others. The IT & telecom category generated the most income. The implementation of fixed-to-mobile broadband services has undergone a revolution in the IT and telecom industries during the past several years. Cloud-based services are increasingly being used in the IT industry instead of on-premise ones.
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 2: SERVERS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR 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.
November 2023: Fujitsu and the Andalusian Regional Government signed a cooperation agreement to improve the regional healthcare cybersecurity ecosystem.
June 2021: Fujitsu disclosed the development of a revolutionary technology for real-time CPU and GPU processing optimization in response to the global shortage of GPUs.
December 2022: Hewlett Packard Pathfinder increased its initial investments as it progressed into new areas of growth.
June 2019: Huawei announced in December that it was relocating to Canada after laying off employees at its Santa Clara research facility.
| Report Attribute/Metric | Details |
| Market Size2022 | USD 106.8 Billion |
| Market Size 2023 | USD 114.3 Billion |
| Market Size2032 | USD 196.35 Billion |
| Compound Annual Growth Rate (CAGR) | 7.00% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Enterprise Size, Channel, End-Use, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled | ASUSTeK Computer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Inspur, Intel Corporation |
| Key Market Opportunities | · The growing use of OTT platforms and e-commerce websites |
| Key Market Dynamics | · The trend toward digital payments has also increased demand for servers. |
Frequently Asked Questions (FAQ) :
In 2022, the size of the worldwide servers market was estimated to be USD 106.8 billion.
From 2023 to 2032, the global market is expected to expand at a compound annual growth rate (CAGR) of 7.00%.
North America held the most market share worldwide.
The key players in the market are ASUSTeK Computer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Inspur, Intel Corporation.
In 2022, the Rack category dominated the market.
The Big enterprises held the biggest market share worldwide.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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