Servers Technology Market Size was valued at USD 100.8 Billion in 2022. The Servers Technology market industry is projected to grow from USD 106.8 Billion in 2023 to USD 170.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.00% during the forecast period (2023 - 2032).
Increased advances in emerging technologies and surging adoption of innovative solutions are the key market drivers enhancing the market growth.
Figure 1: Servers Technology Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for servers technology is being driven by the rising adoption of innovative solutions due to the continuous pursuit of surging efficiency and performance, helping the landscape of computing infrastructure and meet the growing requirement of businesses and consumers. This phenomenon is determined by different key factors that collectively leads to the dynamic growth and transformation of the server market.
The demand to enhance the operations and deliver more sophisticated services by businesses, they turn to innovative server technologies offering superior processing power, rapid data transfer rates, and enhanced scalability. This drive for efficiency is mainly evident in the shift towards cloud computing, where businesses leverage server virtualization and containerization technologies to optimize resource utilization and streamline operations. Modern servers include cutting-edge security measures, like secure boot processes, hardware-based encryption, and advanced access controls, to safeguard sensitive data and ensure the integrity of critical systems. Security considerations also boosts the adoption of innovative server solutions. Along with the rising frequency and sophistication of cyber threats, organizations prioritize the implementation of advanced security features and protocols in their server infrastructure. Further, the demand for innovative server technologies is closely tied to the growth of emerging trends like machine learning (ML), artificial intelligence (AI), and big data analytics. These data-intensive applications need powerful and specialized server configurations to handle the large computational workloads involved. As businesses throughout the different sectors embrace these technologies to attain competitive advantages, the server market responds with solutions optimized for the unique requirements of these workloads.
The server market is also influenced by the rising focus on energy efficiency and environmental sustainability. Innovative server technologies often incorporate design improvements that minimize power consumption and minimize environmental impact. This is particularly relevant as organizations strive to achieve greener IT practices and comply with regulatory initiatives promoting energy efficiency. Modern server architectures emphasize high-speed interconnects, such as PCIe Gen4 and Gen5, to facilitate rapid data exchange between servers, storage, and other components. Interconnectivity and the demand for seamless communication between servers further drive innovation. This is crucial for data-intensive applications and distributed computing environments. Thus, driving the Servers Technology market revenue.
The Servers Technology Market segmentation, based on product includes Blade, Micro, Open Compute Project, Rack and Tower. The rack segment dominated the market, accounting for the largest market revenue as it supports a comprehensive range of requirements and are individually mounted in a rack. The segment growth can help the growing need for high-density computing, scalable data centers, and advancements in developing technologies. The rack servers' design and construction suit low and high computing demand. Besides, rack servers require less floor space, can be cooled instantly, and scaled up easily. Rack servers offer a facility for storing and computing information at the minimized cost helping enterprises establish a server for their private utilization. Further, the open compute project segment is foreseen to have a significant growth rate in the market throughout the forecast period. The open compute project permits SMEs to replicate the efficient data center designs made public by established cloud service offering.
The Servers Technology Market segmentation, based on enterprise size, includes Micro, Small, Medium and Large. The large category dominates the market as they are turning their aim toward hosted application servers as they can handle workloads from several sites, mainly from the same database. Hosted application server deployment is much accessible than traditional application servers as it needs lesser system integrations and no upfront installations, minimizing the operating and maintenance costs. A hosted application server is completely managed by a hosted service offeror, regulating updated version and provides continuous technical & customer support. Market participants aims on bringing forth the industry-specific solutions for attracting potential business customers and raise their market revenue. Further, the medium segment of the market foreseen to experience a significant growth rate over the forecast years. The requirement of servers among medium-sized enterprises is due to the rising adoption of cloud services, the demand for green data centers, and the utilization of complex business tools.
Figure 2: Servers Technology Market, by Enterprise Size, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Servers Technology Market segmentation, based on end use, includes BFSI, Energy, Government & Defense, Healthcare, IT & Telecom and Others. The IT & Telecom category dominates the market due to the transformation in executing fixed-to-mobile broadband services. Subscribers can now attain most services via a single service provider. The IT industry has experienced a surging implementation of cloud-based services over on-premise ones. Furthermore, mobile phones' continuously developing multimedia capabilities are fueling growth to new issues associated to after-sales service execution and delivery. Moreover, network operators are changing into software companies and mainly into information technology companies, thus contributing to market growth. Further, the BFSI segment is foreseen to experience a drastic growth rate in the market. Web-based banking systems utilizes secure, dedicated servers across all banking network for ensuring transactions and secure and authentic.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Servers Technology market area dominate this market, due to the availability of industry leaders, along with a favorable business environment and the concentration of major technology companies, a high level of IT infrastructure and broad research and development activities.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: SERVERS TECHNOLOGY MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Servers Technology market accounts for the second-largest market share due to the rising demand for cloud services, advanced data processing capabilities, and heightened focus on cybersecurity measures. Further, the German Servers Technology market held the largest market share, and the UK Servers Technology market was the fastest growing market in the European region
The Asia-Pacific Servers Technology Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the fast digital transformation throughout the industries, increasing data volumes, and the rising adoption of cloud computing and advanced technologies. Moreover, China’s Servers Technology market held the largest market share, and the Indian Servers Technology market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Servers Technology market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Servers Technology industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Servers Technology industry to benefit clients and increase the market sector. In recent years, the Servers Technology industry has offered some of the most significant advantages to several industry. Major players in the Servers Technology market, including ASUSTeK Computer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Inspur, Intel Corporation, SMART Global Holdings, Inc. and others, are attempting to increase market demand by investing in research and development operations.
Dell Technologies, founded in 1984, is a global technology company that has emerged as a prominent player in the information technology industry. Dell has established itself as a leading provider of a comprehensive range of products and services, with a particular focus on personal computers, servers, storage solutions, and networking equipment. The company is popular for its direct-to-customer sales model, allowing customers to customize and order products as per their specific needs. In October 2023, Dell and VMware extended their long-standing partnership, declaring deeper integration between infrastructure solutions of Dell and VMware's virtualization and cloud products. This emphasizes to simplify hybrid cloud deployments and optimize performance for customers.
Intel Corporation, a global technology giant, stands as one of the leaders in the semiconductor industry. Intel has played a pivotal role in shaping the digital landscape with its innovative microprocessors, chipsets, and other computing technologies. The company's x86 architecture has been a cornerstone in powering a wide array of personal computers, servers, and data centers. Over the years, Intel has consistently pushed the boundaries of technology, contributing to the evolution of computing performance and efficiency. In August 2023, Intel and ARM announced a patent cross-licensing agreement, allowing wider adoption of ARM architecture in server product line of Intel. This opens up new possibilities for energy-efficient server designs and broad chip options for customers.
September 2023: Microsoft and AMD collaborated in order to develop optimized cloud solutions for Azure, leveraging AMD's latest EPYC processors. This partnership provides to high-performance computing workloads like machine learning and AI.
May 2023: Intel and Alibaba Cloud collaborated to develop optimized server platforms for cloud workloads. This partnership leverages Intel's latest processors and technologies with Alibaba's cloud expertise for delivering high-performance and cost-effective solutions for the cloud-native applications.
May 2023: Broadcom Inc., a prime chipmaker, acquired VMware in a landmark $61 billion deal. This acquisition makes Broadcom as a key player in the cloud computing market, compiling its infrastructure solutions with VMware's cloud management software.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 100.8 Billion |
| Market Size 2023 | USD 106.8 Billion |
| Market Size 2032 | USD 170.2 Billion |
| Compound Annual Growth Rate (CAGR) | 6.00% (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, End Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, 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, SMART Global Holdings, Inc. |
| Key Market Opportunities | · Surging adoption of innovative solutions. |
| Key Market Dynamics | · Increased advances in emerging technologies. |
Frequently Asked Questions (FAQ) :
The Servers Technology Market size was valued at USD 100.8 Billion in 2022.
The global market is projected to grow at a CAGR of 6.00% during the forecast period, 2023-2032.
North America had the largest share in the global market
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, SMART Global Holdings, Inc.
The rack category dominated the market in 2022.
The large had the largest share in the global market.
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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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