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The micro servers market is estimated to grow by USD 26.52 billion, at a CAGR of 9.82% between 2022 and 2027. The shift toward edge computing, driven by the need for real-time data processing and reduced latency, is driving market growth by creating demand for edge computing infrastructure and services. The growing demand for cloud services for various applications, such as data storage, analytics, and software development, is also boosting market expansion by increasing the adoption of cloud computing solutions. Additionally, the increasing need for high-density servers, capable of handling large volumes of data and processing power, is driving demand for advanced server technologies. Overall, these factors are driving the growth of the cloud and edge computing market and driving innovations in cloud and edge computing technologies
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This report extensively covers market segmentation by end-user (large enterprises, small and medium enterprises), application (data center, cloud computing, media storage, and data analytics), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The market share of the large enterprise segment will be significant during the forecast period. Large enterprises are increasingly opting for micro servers to store, manage, and process information efficiently. Storing information on on-site servers is complex and expensive for organizations that are operational in different industries across various geographical locations due to the high cost of hardware and the need for physical space. Cloud-based solutions make it easy and convenient for organizations to access tools and information remotely and enhance the efficiency of document-sharing between multiple workplaces. The rising demand for cloud services will drive the adoption of microservers during the forecast period.
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The large enterprises segment was valued at USD 19.08 billion in 2017. Cloud services provide on-demand scalability of storage resources for large enterprises to collect, store, and analyze information. Therefore, real-time access to information and files at multiple locations and devices is the primary factor driving large enterprises to adopt micro servers during the forecast period.
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APAC is estimated to contribute 35% 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. The market in this region is primarily driven by the increasing adoption of cloud services by enterprises across different industries in the US and Canada. Enterprises are opting for cloud solutions to reduce the operating expenditure and capital expenditure incurred on on-premises data centers. Enterprises are increasingly adopting cloud solutions from hyper scale providers, such as AWS, Microsoft, and Oracle, to meet the computing capacity requirements with minimum expenditure. The increasing adoption of advanced technologies such as IoT and big data in sectors such as healthcare and BFSI is expected to drive the demand for micro servers in North America.
The market is driven by the demand for distributed infrastructure that offers compact hardware configurations and utilizes low-power processors to achieve high efficiency. These servers require minimal RAM and storage while providing scalability, redundancy, and high performance. They are particularly suitable for handling fluctuating workloads and reducing energy costs and physical space requirements. The microserver architecture enhances system reliability, making it ideal for hyperscale data center architectures. This market is growing due to its cost-effectiveness, especially in emerging nations, where associations are focusing on reducing capital and operational expenses. These servers play a crucial role in supporting information processing needs, facilitating digital transformation, and fostering economic development in developing countries. Innovation suppliers are key players in advancing the microserver market, catering to various component and function requirements based on organization size. Our researchers analyzed the information with 2022 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.
The shift toward edge computing is notably driving market growth. The rise of edge computing has led to the development of edge data centers, increasing the need for micro servers. Industries like telecommunications, manufacturing, and energy are generating more information, driving the demand for advanced edge platforms. To meet this demand, market Companies are creating new edge computing platforms to enhance information management capabilities at the edge of the network, focusing on scalability, redundancy, performance, and efficiency. Edge computing offers the advantage of keeping information close to the client machine, reducing latency, and improving server response times.
Additionally, there is a growing demand for NVMe-enabled SSDs, which offer greater efficiency in edge computing compared to SAS/SATA SSDs, particularly in developing countries and emerging nations. This demand is driving innovation among suppliers to bridge the advanced gap in these regions. As edge computing continues to expand, the demand for storage solutions for edge data centers will increase, driving market growth in the forecast period.
Increased investments in data centers particularly hyper-scale data centers (HDCs) is the key trend in the market. An HDC is an upgraded version of a traditional data center that uses a greater number of physical servers and virtual machines than traditional servers. It offers higher data storage and computing speed. The demand for HDCs is driven by the increased market momentum for analytics. The rapidly growing trend of new social media applications and the digitization of major industries, such as healthcare and retail, have led to the generation of vast volumes of information.
Hyperscalers are making continuous investments to expand and build centers. Over the last few years, hyper scalers have invested approximately USD 200 billion in capacity expansion and opening new data centers. Such investments from hyper scalers are propelling the growth of the market. Therefore, the increase in the number of hyperscalers will have a positive impact on the growth of the market during the forecast period.
Increasing data center consolidation is the major challenge impeding market growth. These service providers are physically consolidating multiple data centers into a single large data center to reduce their physical footprint and achieve a more efficient IT architecture. The consolidation of all resources in one location provides the data center service provider with higher scalability and flexibility and hence allows more control over these operations. It also leads to reduced hardware expenditure.
Further, it helps reduce the operational and maintenance expenditure for data center service providers. Due to the above advantages, more providers are opting for data center consolidation. Thus, growing data center consolidation will reduce the demand for information storage solutions in data centers, which will adversely impact the growth of the market during the forecast period.
The 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 growth strategies
Market Customer Landscape
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.
IRON Global Inc. - The company offers micro servers such as MicroCloud modular server system as its key offerings. The company offers various services such as end-to-end manufacturing services, turnkey integration, global logistics, OEM hardware platforms, supply chain management, turnkey data center infrastructures, industry solutions, and others.
The market report also includes detailed analyses of the competitive landscape of the market and information about 11 market Companies, including:
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.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth due to the increasing demand for compact computing devices that offer energy-efficient and budget-friendly solutions. These servers are particularly popular among small and medium-sized enterprises looking to optimize their power utilization and space use. Additionally, virtualization and containerization technologies are driving the adoption of microservers, allowing for more efficient resource allocation and management. Additionally, the rise of the Internet of Things (IoT) and digitalization is creating new opportunities for micro servers in network services, websites, and databases. Despite these opportunities, the market faces challenges such as competitive intensity and restraints. However, with advancements in computing nodes and monolithic servers, the future of the micro servers market looks promising, especially in emerging nations experiencing financial advancement.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.82% |
Market growth 2023-2027 |
USD 26,527.99 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
9.34 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acer Inc., Dawning Information Industry Co. Ltd., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Inspur Group, Intel Corp., IRON Global Inc., Lenovo Group Ltd., Plat Home Co. Ltd., Quanta Computer Inc., and Super Micro Computer Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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