Server market size to reach $ 145.31 billion by 2028

The global server market size is expected to reach $ 145.31 billion by 2028, according to ResearchAndMarkets. It is expected to increase at a CAGR of 7.8% from 2021 to 2028.

The demand for servers is expected to increase significantly during the forecast period due to the increasing attention to rapidly updating IT infrastructure around the world. The growing adoption of data analytics by businesses to understand consumer trends has led to the increasing adoption of computer network equipment.

5G and IoT are fueling demand for high-performance compute servers

In addition, the deployment of 5G networks and technologies such as the Internet of Things (IoT), cloud computing and virtualization is expected to fuel the demand for high performance computing servers.

The growing preference for contactless payments and remote working amid the COVID-19 pandemic is expected to drive the need for high-speed data processing and storage capacity across various verticals.

Advanced technologies have paved the way for connected devices and autonomous vehicles, prompting IT infrastructure companies to switch to the latest advanced storage solutions, including flash memory and SSDs, to store critical business data. .

Meanwhile, the demanding and changing configurations required by cloud service providers are driving demand for servers. For example, in May 2020, Facebook launched its third-generation Yosemite Scalable Server, which features the Cooper Lake processor and six memory modules. Such developments are expected to lead to an increase in the average selling prices of servers, which in turn should benefit the growth of the market.

Businesses shift to managed data center services

Many companies are turning to managed data center services from colocation data centers because of the financial benefits offered by managed data center services.

Managed data centers allow businesses to adopt virtual servers by leasing networking equipment, connecting devices and peripherals, and cloud space. Cloud server space can be private or shared, again helping businesses lower the total cost of ownership.

The market is experiencing increasing competition between OEMs and Original Design Manufacturers (ODMs). OEMs are the companies that make servers and sell them through resellers and distributors, while ODMs design and manufacture similar servers and sell them directly to the customer.

Additionally, ODMs meet the demand for custom servers based on user configuration. The growing demand for custom requirements is expected to drive server sales through ODMs.

The market is characterized by intense competition among established market players. The main players in the market are focusing on product innovation and the introduction of new technologies in their server portfolios. For example, in September 2019, Dell EMC introduced new products to its PowerEdge server portfolio.

These new servers are equipped with 2nd generation AMD EPYC processors, which help to easily manage the platform and provide superior performance to the user. The new servers are specially designed for modern data centers for multi-cloud approaches.

The state of the server market

  • By product, the rack segment held the dominant revenue share in 2020 and is expected to maintain its lead during the forecast period. Rack servers can be configured to support specific applications and a wide range of requirements. In addition, these servers are compact and can be installed in small closets. These factors should lead to the consistent adoption of rack servers.
  • Based on the size of the company, the large segment dominated the market in 2020. This can be attributed to the large volumes of data processed by large companies and the high investment capital available with these companies to deploy infrastructure. sophisticated computing.
  • On a channel basis, the direct segment is expected to register the highest revenue-based CAGR of 9.0% during the forecast period. Growth in this segment can be attributed to customer specific server designs and low cost of servers offered through this channel.
  • In terms of vertical, the information technology and telecom segment dominated the market in 2020 and is expected to register the highest revenue-based CAGR during the forecast period. This can be attributed to the growing adoption of high-end IT infrastructure in the industry to handle large volumes of data, which requires high processing speeds.
  • Asia Pacific is expected to experience the fastest growth in terms of revenue during the forecast period, in line with the rapid development of IT and communications infrastructure and the continued deployment of 5G networks. The region’s market is also expected to benefit from increased digitization across several industries and sectors in China, Japan and India.


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