Computer Servers Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, UK, China, Canada - Size and Forecast 2024-2028

Computer Servers Market Size 2024-2028 

The computer servers market size is forecast to increase by USD 50.2 billion and is estimated to grow at a CAGR of 10.05% between 2023 and 2028.  The market is experiencing significant growth due to several key trends. First, there is a surge in investments for the construction of hyperscale data centers, driven by the increasing demand for cloud services. Second, small and medium enterprises (SMEs) are increasingly adopting cloud solutions, leading to a rise in data center traffic. Lastly, organizations are allocating larger budgets toward advanced data center technologies to support their digital transformation initiatives and enhance operational efficiency. This trio of factors is fueling the growth of the data center industry and creating new opportunities for technology innovations and investments.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The Market is a dynamic and growing industry that caters to the needs of various sectors, including sole traders, Hyperscalers, OTT platforms, e-commerce websites, payment wallets, and more. Servers are essential components of computers and networks, enabling the execution of software programs, managing tasks, and storing files and websites. Servers come in different types, including web servers, virtual servers, application servers, and database servers, which use protocols like Hypertext Transfer Protocol (HTTP) and the World Wide Web (WWW) to facilitate data transfer. Operating systems like Microsoft Windows servers, LINUX, UNIX, and Netware power these servers. Networks, whether Local Area Network (LAN) or Wide Area Network (WAN), are crucial for server connectivity. The market for computer servers is segmented into public and private cloud services, with cloud service providers offering flexible and cost-effective solutions. The market's growth is driven by the increasing demand for reliable and efficient servers to handle network traffic and manage complex tasks for various industries. E-commerce websites and OTT platforms, in particular, require robust servers to handle high volumes of traffic and ensure seamless user experience. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Growing investments in construction of hyperscale data centers is notably driving market growth. Hyperscale data centers, owned and operated by organizations, offer a scalable computer architecture to enterprises. These facilities house numerous small servers, or nodes, which can be integrated with an enterprise's existing infrastructure.

Moreover, tech giants and large enterprises in various industry verticals, including IT telecom, defense, healthcare, energy, automation, and manufacturing, leverage hyperscale data centers to process and manage increasing data volumes. Edge computing, IoT, autonomous vehicles, augmented reality, and 5G technologies necessitate distributed networks and high-performance servers. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Technological advancements in market is the key trend in the market. The market is witnessing significant growth as tech giants and industry players invest in advanced solutions for data processing and network infrastructure. With the increasing adoption of edge computing, IoT, autonomous vehicles, augmented reality, and 5G, the demand for high-performance servers is on the rise.

Moreover, these servers are being used in various industry verticals such as IT telecom, defense, healthcare, energy, automation, and military operations. Tech companies are focusing on developing rack servers, blade servers, tower servers, micro servers, and large enterprise servers with customized configurations to cater to the unique requirements of these industries. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Security challenges is the major challenge that affects the growth of the market. Computer servers play a crucial role in data processing for various industry verticals, including IT telecom, defense, healthcare, energy, automation, and others. Tech giants and large enterprises rely on data center capacities to support their operations, with rack servers, blade servers, towers, micro, and large servers being commonly used.

However, security concerns have emerged as a significant challenge in the market. Data breaches and cyber-attacks pose a threat to enterprises, particularly SMEs, leading to a reluctance to invest in physical servers. Edge computing, IoT, autonomous vehicles, augmented reality, 5G, and networking technologies, including quantum computing systems and management software, are driving the demand for advanced operating systems and industry-specific solutions. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ASUSTeK Computer Inc: The company offers servers such as rack server, GPU server and server motherboards.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Broadberry Data Systems LLC
• Chenbro Micom Co. Ltd
• Cisco Systems Inc.
• Dell Technologies Inc.
• Fujitsu Ltd.
• Hewlett Packard Enterprise Co.
• Huawei Technologies Co. Ltd.
• Hyper Scalers Pty Ltd.
• Inspur Group.
• International Business Machines Corp.
• iXsystems Inc.
• Lenovo Group Ltd.
• Newegg Commerce Inc.
• Super Micro Computer Inc.
• THINKMATE
• THOMAS KRENN AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The large enterprises segment is estimated to witness significant growth during the forecast period. The market witnessed substantial growth in 2023, with large enterprises leading the charge. Enterprises in sectors such as IT, telecom, healthcare, banking, financial services, and insurance (BFSI), and defense are major contributors to this market's revenue. These entities invest heavily in upgrading and maintaining their IT infrastructure to manage escalating enterprise data volumes.

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The large enterprises segment was the largest segment and valued at USD 42.60 billion in 2018. Customized configurations of web servers, virtual servers, application servers, and database servers cater to their specific needs. Hyperscalers, OTT platforms, e-commerce websites, payment wallets, mobile devices, and digital wallets rely on these servers for handling network traffic and delivering seamless user experiences. Cloud technology, including public and private cloud services from cloud service providers, has significantly influenced the market's growth during the forecast period.

Regional Analysis

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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Computer servers play a crucial role in powering various digital services and applications for businesses and individuals. Sole traders and small businesses often utilize Oxide Computer's customized configurations for their local area networks (LANs) and wide area networks (WANs), while hyperscalers such as Google, Amazon, and Microsoft cater to the needs of OTT platforms, e-commerce websites, payment wallets, and mobile devices through their vast data centers. Hence, such factors are driving the market in North America during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook
  • Large enterprises
  • Small and medium enterprises
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The Market is a dynamic and growing industry that caters to various sectors, including sole traders, Hyperscalers, OTT platforms, e-commerce websites, payment wallets, and more. Servers are essential for managing tasks, files, websites, and network traffic for computers and digital devices. There are different types of servers, such as web servers, virtual servers, application servers, database servers, and Hypertext Transfer Protocol (HTTP) servers, which power the World Wide Web and enable the functioning of the Internet. The market landscape depends on the Oxide Computer, Web server, Virtual server, Application server, Database server, UNIX servers, Public cloud services. Servers come in various configurations, including Local Area Network (LAN) and Wide Area Network (WAN), and run on software programmes like Microsoft Windows servers, LINUX, UNIX, Netware, and Cloud servers. With the increasing adoption of 5G networks, Internet of Things (IoT), Smart Cities, and Artificial Intelligence, the demand for servers is expected to surge. Fungible servers, such as cloud servers, offer public and private services through Cloud Service Providers, enabling seamless access to applications and data from anywhere, anytime, using Mobile devices and Digital wallets.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies