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The server market size is forecast to increase by USD 47.02 billion at a CAGR of 8.31% between 2024 and 2028. The market is experiencing significant growth, driven by the increasing demand for edge computing and the integration of artificial intelligence (AI) for server workload optimization. Edge computing enables data processing at the source, reducing latency and enhancing responsiveness. AI, on the other hand, optimizes server workloads by predicting and managing resource requirements, improving efficiency and reducing costs. However, the market also faces challenges, particularly in the area of cybersecurity. With the increasing volume and sophistication of cyber threats, there is a growing need for advanced security solutions to protect servers from unauthorized access and data breaches. These trends and challenges are shaping the future of the market, making it an exciting and dynamic space to watch.
The market is experiencing significant growth worldwide, driven by the increasing demand for data centers from various industries such as IT and telecom, healthcare, cloud service providers, and e-commerce. The shift towards work-from-home models and the surge in online services have accelerated this trend. The market size is expected to witness substantial unit demand and spending growth in the coming years. Cloud servers are a key driver of this growth, with hyperscalers leading the way in server sales. The pandemic has further fueled the adoption of cloud servers, as businesses have had to quickly adapt to remote work and digital transformation.
Macro-economic factors such as inflation and economic activity also impact the market. Supply chain disruptions have led to a shortage of processors and storage solutions, which has increased the prices of servers. Edge computing is another emerging trend in the market, as businesses look to reduce latency and improve the performance of their applications. The healthcare industry is expected to witness significant growth in server sales, driven by the increasing adoption of digital payments and online services. E-commerce websites are also major consumers of servers, as they require large amounts of computing power to handle the high traffic volumes.
Overall, the market is poised for robust growth in the coming years, driven by the increasing demand for digital transformation, cloud services, and e-commerce.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Rack segment is estimated to witness significant growth during the forecast period.In the rapidly evolving landscape of IT and telecommunications, rack servers have become indispensable components of IT infrastructure. These servers, designed to be housed in server racks, are widely used in data centers by cloud service providers, healthcare organizations, e-commerce websites, and digital payments platforms. Rack servers facilitate the execution of various workloads, including managing databases, hosting websites, handling virtualization, and processing big data. The exponential trend towards cloud computing, digital transformation, and the adoption of emerging technologies such as AI, IoT, 5G, and edge computing, have fueled the demand for advanced server designs and solutions. IT hardware manufacturers are continually innovating to meet the evolving needs of the market, introducing new processors and storage solutions to enhance server performance and efficiency.
Market sizes for server sales continue to grow worldwide, with key market indicators such as level of digitization, national statistical offices, and country-specific associations providing valuable insights into the industry's forecasting techniques. Exponential trend smoothing and the S-curve function are commonly used forecasting methods to estimate future market sizes. The market encompasses various server types, including web servers, file servers, and network servers, each catering to specific use cases. Overall, rack servers play a pivotal role in the digital transformation journey of businesses across industries, enabling them to provide online services, manage complex workloads, and stay competitive in the macro-economic landscape.
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The Rack segment accounted for USD 19.89 billion in 2018 and showed a gradual increase during the forecast period.
North America 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.
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The market in North America is characterized by significant unit demand and spending growth, driven by the increasing adoption of Database Servers and Dedicated Servers. The region's mature IT infrastructure, with a high reliance on advanced storage technologies, fuels this demand. Digital transformation initiatives, big data analytics, cloud computing, and mission-critical applications are primary factors driving the market. Hyperscalers and other industries, including IT and telecommunications, banking and finance, healthcare, and government, are major consumers of server solutions due to their high storage requirements. The pandemic, inflation, economic activity disruptions, supply chain disruptions, geopolitical conflicts, and other macroenvironmental factors have influenced the market.
GPU server shipments have gained traction due to the increasing need for energy-efficient and sustainable systems. Energy prices and transportation costs have become critical considerations for IT industry investments. Modernization, cloud deployments, and edge deployments are key trends shaping the market. CPU platforms and GPU server infrastructure are key areas of investment, with excess inventory posing a challenge. The market is influenced by various factors, including economic conditions, energy prices, transportation costs, and geopolitical conflicts. Investment decisions are influenced by workload choices, energy efficiency, and sustainability. The IT industry is focusing on modernizing its infrastructure to meet the demands of digital transformation and the growing importance of data.
Our server market 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.
The growing need for edge computing is the key driver of the market. The global the market is experiencing significant growth due to the increasing adoption of edge computing, a model that processes data closer to its source at the edge of the network. This architectural approach is particularly relevant for industries such as IT and telecom, healthcare, e-commerce, and digital payments, which generate vast amounts of data and require real-time processing. The rise of edge computing is driven by the proliferation of IoT devices, which generate and transmit data continuously. Key market indicators, such as IT infrastructure initiatives, server sales, and the level of digitization, suggest that the market sizes for cloud servers, virtualization, and storage solutions will continue to expand worldwide.
Macro-economic factors, including the shift to work-from-home models and the implementation of 5G networks, are also contributing to the market's growth. Forecasting techniques, such as exponential trend smoothing and the S-curve function, predict an exponential increase in demand for servers to support emerging technologies like AI, cloud computing, and edge data centers. Server designs from IT hardware manufacturers are evolving to meet the demands of these applications, with rack servers and web servers being popular choices for data centers and cloud service providers. Country-specific associations and national statistical offices provide valuable insights into the market's size and growth trends.
The using AI for server workload optimization is the upcoming trend in the market. In the rapidly evolving digital landscape, the market trends are shaped by various factors including the increasing adoption of cloud services by IT and telecom industries, healthcare, e-commerce websites, and digital payments. Cloud servers, virtualization, and emerging technologies such as big data, cloud computing, 5G, edge data centers, AI, and IoT are driving the demand for advanced server designs. IT infrastructure initiatives by national statistical offices and country-specific associations indicate a high level of digitization and forecasted growth in key market indicators. Server sales are expected to increase exponentially due to the work-from-home model and the surge in online services.
Processor and storage solutions are crucial components of server designs, and market sizes are forecasted using forecasting techniques such as exponential trend smoothing and the S-curve function. Web servers, file servers, and network servers continue to be essential components of IT hardware manufacturers' offerings. The focus on automation in computing resource allocation and improving power usage efficiency in data centers is a significant trend in the market. AI is being used to optimize workloads, enhance performance, and allocate resources efficiently while addressing infrastructure problems related to energy consumption and security.
The cyber security challenges is key challenge affecting the market growth. In the contemporary business landscape, the adoption of server solutions has been on an exponential trend, driven by the increasing demand for digital transformation across various sectors, including IT and telecom, healthcare, e-commerce, and digital payments. Cloud service providers have been at the forefront of this shift, offering cloud servers, virtualization, and edge computing as part of their IT infrastructure initiatives. Emerging technologies such as big data, cloud computing, 5G, AI, IoT, and edge data centers are fueling this growth. IT hardware manufacturers are responding by introducing advanced server designs, including rack servers, processors, and storage solutions. Macro-economic factors, such as the work-from-home model and the rise of online services, have further accelerated this trend.
National statistical offices and country-specific associations report significant increases in key market indicators, such as server sales, web servers, file servers, and network servers. However, this growth comes with its challenges, particularly in terms of security. The threat of cyberattacks has become a major concern, with sensitive information, such as financial transactions and personal data, at risk. Enterprises must take effective measures to mitigate these risks, including data encryption, firewalls, web application firewalls, intrusion detection systems (IDS), deep packet inspection (DPI) solutions, and other security technologies. Forecasting techniques, such as exponential trend smoothing and the S-curve function, are being used to predict future market sizes and trends in server solutions.
The server 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
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.
AMAX Engineering Corp.As a leading provider in the market, our company caters to various business requirements with a range of servers. These include the RS300 E12, RS4, RS300 E12 PS4, and RS720Q E11 IM models. Each server is meticulously designed to deliver optimal performance and reliability. The RS300 E12 and RS4 models are ideal for small to medium-sized businesses, offering robust processing power and ample storage capacity. The RS300 E12 PS4 model is specifically engineered for power-intensive applications, ensuring uninterrupted performance. Lastly, the RS720Q E11 IM server is a high-end solution, catering to large enterprises with its scalable architecture and advanced features. Our commitment to innovation and quality ensures that we offer servers that meet the evolving needs of businesses in today's dynamic market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is witnessing significant growth due to the increasing adoption of IT and telecom, data centers, cloud service providers, and digital transformation in various sectors such as healthcare, e-commerce websites, digital payments, and IT infrastructure initiatives. The shift towards work-from-home models and the proliferation of emerging technologies like cloud computing, virtualization, big data, AI, IoT, and 5G are driving the demand for server sales. The market sizes for server designs, including rack servers, are expanding worldwide, with key market indicators like country-specific associations and national statistical offices providing valuable insights. Macro-economic factors, such as the level of digitization and forecasting techniques like exponential trend smoothing and the S-curve function, also influence the market's growth.
The market encompasses various types of servers, including web servers, file servers, network servers, and cloud servers, catering to the diverse needs of industries and applications. IT hardware manufacturers continue to innovate, offering advanced processors and storage solutions to meet the evolving demands of the market. Edge computing and edge data centers are emerging trends, with growing importance in the context of IoT and AI applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.31% |
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Market growth 2024-2028 |
USD 47.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.81 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AMAX Engineering Corp., Amazon.com Inc., ASUSTeK Computer Inc., Bloom Energy Corp., Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Inspur Group, Intel Corp., International Business Machines Corp., Lenovo Group Ltd., NEC Corp., NVIDIA Corp., Oracle Corp., Quanta Computer Inc., SAP SE, SMART Global Holdings Inc., and Super Micro Computer Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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