Rugged Servers Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

The rugged servers market is estimated to grow at a CAGR of 5.51% between 2022 and 2027. The size of the market is forecast to increase by USD 751.25 million. The growth of the market depends on several factors, including the increased adoption of cloud applications, the growth in oil and gas industry spending, and the global increase in military expenditure. 

This report extensively covers end-user (MDA and enterprise), type (dedicated and standard), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

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

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Parent Market Analysis

Technavio categorizes the global rugged servers market as a part of the Technology Hardware, Storage & Peripherals & within the global Information Technology industry. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. It also includes data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Rugged Servers Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increased adoption of cloud applications is notably driving the rugged servers market growth, although factors such as the high cost of procurement may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.   

Key Rugged Servers Market Driver

The increased adoption of cloud applications is a key factor driving the global rugged servers market growth. Enterprises are seeking to adopt data storage centers located in cold climatic zones to reduce the power consumption of cooling units, which are required to maintain a stable temperature within the data center. In addition, the global data center market has been disrupted by the rising popularity of cloud storage. Cloud storage services are offered by several networking service companies such as Facebook, Google, and Amazon. Cloud computing provides centralized computation that occurs through a data center. The development of the cloud computing platform has been one of the major reasons that have led to an increase in the number of data centers worldwide. Investments in data centers in cold regions will positively impact the market for rugged servers. Apart from the enterprise segment, the increased focus on data centers from the military segment will also impact the market positively.

Key Rugged Servers Market Trend

The emergence of containerized data centers will fuel the global rugged servers market growth. Containerized data centers are portable data centers that can be used to increase the data center capacity as and when required. These data centers can be placed in any location, as per the capacity requirements. These data centers are integrated with several modules, which can be shipped, retrofitted, and added to an existing data center. It is necessary to note that these modular data centers are constructed using standard components. This has been done to allow easy integration with existing data center networks. As the name suggests, containerized data centers consist of servers, storage, and networking equipment, which are fitted into a standard shipping container. These are then transported to the location. Several top firms, such as IBM and CISCO, have developed containerized data centers. Containerized data centers are required to be equipped with servers that can function at any given point in time, irrespective of the location. This creates an opportunity for vendors in the global rugged servers market to manufacture servers that are compatible with containerized data centers.

Key Rugged Servers Market Challenge

High costs of procurement are major challenges to the global rugged servers market growth. Rugged equipment, including servers, is nearly twice as expensive as commercial equipment in terms of procurement. However, for rugged equipment, the total cost of ownership will remain low over the long run. Consumer-grade products may seem to be more attractive for enterprises and businesses for their computing needs, owing to the initial low cost of acquisition. However, one can do a simple analysis of the total cost of ownership (TCO) to realize that consumer-grade products can end up costing the enterprise and business much more than rugged equipment. The procurement cost of rugged equipment is high, although the annualized TCO is less than that for non-rugged equipment. This initial cost of procurement of rugged equipment hinders its adoption across applications, thus negatively impacting the market for rugged servers.

Key Rugged Servers Market Customer Landscape

Our analysis of the Life Cycle of the Global rugged servers market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Canada, China, Japan, India, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.

Global Rugged Servers Market Customer Landscape

Who are the Major Rugged Servers Market Vendors?                                     

Vendors 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 

• core-systems.com - The company offers rugged servers, such as M114 that is made for applications with a max of 14 in-depth requirements and is tested for military use. Also, the company is involved in developing semiconductor ion implant outsourcing technology for designing and manufacturing industrial and military computing designs based on customers' specifications.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :

• Advantech Co. Ltd.
• Corvalent Corp.
• CP Technologies LLC
• CRI
• Crystal Group Inc.
• Dell Technologies Inc.
• E & M Computing Ltd.
• Extreme Engineering Solutions Inc.
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• Mercury Systems Inc.
• Sparton Corp.
• Systel Inc.
• Technology Advancement Group
• TP Group plc
• Trenton Systems Inc.
• ZMicro

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak. 

What is the Fastest-Growing Segment in the Rugged Servers Market?

The market share growth by the MDA segment will be significant during the forecast period. The market for rugged servers by the military and defense segment is solely dependent on the military expenditure of countries. Global military expenditure has been increasing over the years owing to global geopolitical conflicts. Every country allocates a certain budget for its defense and military sectors for the acquisition of equipment that helps to keep the combat forces connected. For example, the US spends more than half of its annual budget on the defense and military sector.

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The MDA segment showed a gradual increase in market share, from USD 1,077.36 million in 2017 and continued to grow by 2021. In this segment, technological advances will contribute to market growth. The increase in the military budget year-over-year helps countries modernize their military rugged computer systems and provide protection against security threats. As a part of the attempt to modernize its military and defense operations, in February 2017, the US Army announced that, as a part of the Army Desktop and Mobile Computing-3 (ADMC-3) program, it had chosen nine US information technology (IT) companies to provide it with IT equipment over the next decade for a contract amount of above $2 billion. IT equipment includes servers, desktop computers, computer displays, notebooks, tablets, slate computers, thin and ultra-thin-client computers, printers, and multi-function devices. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.

The growth of this segment is primarily attributed to the increasing adoption of Rugged Servers by residential consumers, which is driven by an increase in the global demand for the rugged servers industry.

Which are the Key Regions for the Rugged Servers Market?

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North America is projected to contribute 32% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is expected to dominate the market in 2022, as there is an increased demand for data centers in countries such as the US and Canada The major reason for this dominance is the increasing number of data centers in the region, resulting in a demand for rugged products, including servers. Rising demand for cloud-based solutions to reduce operating and capital expenditure incurred by companies that operate on-premises data centers is another major factor that is expected to drive the growth of the market in the region. Technavio expects the region to dominate the global data center market during the forecast period, owing to several projects for data center construction in the planning or execution stage. 

This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The COVID-19 pandemic led to a decline in demand for North America. In 2020, the rugged servers market in North America witnessed a slowdown in growth owing to the outbreak of COVID-19. In April 2020, around 37 state governments in the US imposed state-wide lockdowns to contain the spread of the disease. Several end-user sectors, such as small and medium-sized enterprises (SMEs) and large enterprises, partially halted their operations due to the pandemic. This led to an economic downturn and hindered trade in North America. It also resulted in the suspension of operational processes in IT industries, which reduced the use of rugged servers in 2020. However, various IT companies offered the work-from-home facility to their employees and gradually opted for cloud-based enterprise application software to manage their remote workforce in H1 2020. The increased adoption of rugged servers for developing enterprise applications is expected to drive the growth of the regional market in focus during the forecast period. Various businesses are looking for digital solutions for managing their businesses. Moreover, with the resumption of business activities following the lifting of lockdowns due to the initiation of vaccination drives in late 2020 and early 2021, the demand for rugged servers increased. This, in turn, is expected to drive the growth of the rugged servers market in North America during the forecast period.

Segment Overview

Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by end-user, type, and region.

• End-User Outlook (USD Million, 2017 - 2027)
  • MDA
  • Enterprise 

• Type Outlook (USD Million, 2017 - 2027)
  • Dedicated
  • Standard

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Colombia

  Rugged Servers Market Scope
  Report Coverage	Details
  Page number	120
  Base year	2022
  Historical year	2017-2021
  Forecast period	2023-2027
  Growth momentum & CAGR	Accelerate at a CAGR of 5.51%
  Market growth 2023-2027	$751.25 million
  Market structure	Fragmented
  YoY growth (%)	3.89
  Regional analysis	North America, APAC, Europe, the Middle East and Africa, and South America
  Performing market contribution	North America at 32%
  Key consumer countries	US, Canada, China, Japan, India, and Germany
  Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
  Key companies profiled	Advantech Co. Ltd., Core Systems, Corvalent Corp., CP Technologies LLC, CRI, Crystal Group Inc., Dell Technologies Inc., E & M Computing Ltd., Extreme Engineering Solutions Inc., Hewlett Packard Enterprise Co., International Business Machines Corp., Mercury Systems Inc., Sparton Corp., Systel Inc., Technology Advancement Group, TP Group plc, Trenton Systems Inc., and ZMicro.
  Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and 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.

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  What are the Key Data Covered in this Rugged Servers Market Report?

  • • CAGR of the market during the forecast period 2023-2027
    • Detailed information on factors that will drive the growth of the global rugged servers market between 2023 and 2027
    • Precise estimation of the size of the rugged servers market size and its contribution to the market in focus on the parent market.
    • Accurate predictions about  upcoming trends and changes in consumer behavior
    • Growth of the rugged servers market industry across North America, APAC, Europe, the Middle East and Africa, and South America
    • A thorough analysis of the market’s competitive landscape and detailed information about vendors
    • Comprehensive details of factors that will challenge the growth of rugged servers market vendors

   

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