The Server market is projected to grow from US$ 101.24 billion in 2023 to US$ 211.56 billion by 2031; it is expected to expand at a CAGR of 9.7% from 2023 to 2031. Growing demand from hyperscalers and other large, generally IT, cloud buyers is expected to be a key trend in the market.
Server Market Analysis
The server market has witnessed significant growth in recent years, driven by an increasing number of data centers, massive smartphone proliferation, and rising data volumes. Furthermore, advancements in emerging technologies, such as AI, IoT, big data, cloud computing, and 5G, are providing lucrative opportunities for market growth. Rising streaming services, cloud computing, and other data-intensive functions and the shift towards hyper-scale data centers are emerging as significant trends for server market growth. However, high initial and installation costs restrain the server market growth. Furthermore, many enterprises are reducing the number of physical servers in their data centers as virtualization allows fewer servers to run more workloads. The emergence of cloud computing has also altered the number of servers an organization needs to host on-premises.
Server Market Industry Overview
A server is a computer or system that uses a network to supply resources, information, services, or programs to other computers. Mainframes and minicomputers were among the earliest types of servers. As the name suggests, minicomputers were substantially smaller than mainframe computers. However, as technology developed, they eventually grew to be much larger than desktop computers. The definition of a server has changed along with technology. These days, a server may be nothing more than software running on one or more physical computing devices. Such servers are often referred to as virtual servers.
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Server Market: Strategic Insights
Market Size Value in US$ 101.24 billion in 2023 Market Size Value by US$ 211.56 billion by 2031 Growth rate CAGR of 9.7% from 2023 to 2031 Forecast Period 2024-2031 Historic Period 2021-2022
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Server Market: Strategic Insights
Market Size Value in | US$ 101.24 billion in 2023 |
Market Size Value by | US$ 211.56 billion by 2031 |
Growth rate | CAGR of 9.7% from 2023 to 2031 |
Forecast Period | 2024-2031 |
Historic Period | 2021-2022 |

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Server Market Driver and Opportunities
Increasing Number Of Data Centers to Favor Market Growth
With the exponential increase in internet consumption, the development of high-end software and application systems and the growth in interconnected devices in public and private networks steers an ever-increasing volume of data. The need to store and process this large volume of data has encouraged companies to adopt advanced storage and processing solutions, thus driving the data center. With the rising adoption, the data center has increasingly become a crucial aspect of the modern economy, from the servers that operate in SMEs to the organization data centers that support large business corporations and the plantations that run cloud computing services that the technology giants including Amazon, Facebook, Google, and others host. In the wake of a globally snowballing digital economy and a data center industry that is continually challenged to stay ahead of customers’ IT roadmaps, different end-users have emerged to distinguish themselves with varying data center requirements. Furthermore, the augmentation of social media and rising digitization, remote work adoption, OTT services, IoT and data analytics demand, and digital technologies utilization propel the need for data centers worldwide. The US (2,701), Canada (328), China (443), Germany (487), and the UK (456) are among the topmost countries with the most significant data center number.
Emergence of Artificial Intelligence (AI)
In today's rapidly changing technology landscape, Artificial Intelligence (AI) has emerged as a revolutionary force, changing the business landscape in a variety of businesses and domains. Artificial intelligence can have a huge impact on servers. AI applications frequently require significant processing power and storage space, which drives the demand for servers. Artificial intelligence systems frequently deal with large datasets, such as image or text corpora, that must be stored and accessed effectively. This causes higher storage demands on servers, necessitating larger and quicker storage solutions. This, in turn, is expected to supplement the growth of server market growth during the forecast period.
Server
Market Report Segmentation Analysis
The key segments that contributed to the derivation of the Server market analysis are coverage type, server class, and vertical.
- Based on type, the market is segmented into the blade, rack, tower, and multimode. The rack segment in the server market is expected to dominate with the highest share in 2022. A rack server is a multipurpose server that is kept inside a rack.
- Rack servers are typically made to support a range of applications and meet different needs for computer infrastructure. Rack servers typically have standard dimensions to be installed within a conventional rack enclosure. Several servers can be stacked and screwed into a rack's metal container. An administrator can physically access and adjust server resources using the keyboard, mouse, and monitor often included in these enclosures and connected to each server.
Server Market Share Analysis By Geography
Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.
North America holds one of the most significant global server market shares. The region has the highest number of internet users worldwide, directly contributing to the demand for data centers, leading to the need for servers. Factors such as increased adoption of digital tools and high technological spending by government agencies are expected to drive the North American server market growth. In addition, the US has a large number of server market players who have been increasingly focusing on developing innovative solutions. Some of the key players in the server market are IBM Corporation, Hewlett Packard Enterprise Development LP, and Cisco Systems, Inc., among others. All these factors contribute to the region's growth of the server market.
Server Market Report Scope
Server Market News and Recent Developments
The Server market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Server Market are listed below:
- BrainChip and Unigen partnered to deliver a powerful, energy-efficient edge AI server. The Cupcake Edge AI Server is a small form factor solution that can run complex AI applications at the Edge. (Source: BrainChip, Press Release, December 2023)
Server Market Report Coverage & Deliverables
The Server market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Server Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Server Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Server Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Server Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the Server Market
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global Server market was estimated to grow at a CAGR of 9.7% during 2023 - 2031.
Growing demand from Hyperscalers and other large, generally IT, cloud buyers is the major trend in the market.
IBM Corporation, Hewlett Packard Enterprise Development LP, Dell Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd, Fujitsu, Oracle Corporation, Intel Corporation, NEC Corporation, ASUSTeK Computer Inc., Lenovo, Quanta Computer lnc., SMART Global Holdings, Inc., Super Micro Computer, Inc., Wistron Corporation, ZT Systems, MiTAC Holdings Corp., Atos SE, SK Infotech, and Inspur are the major market players.
Some of the customization options available based on the request are additional 3–5 company profiles and a country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
The increasing number of data centers and the upgradation of the IT infrastructure are the major factors that drive the global Server market.
The report can be delivered in PDF/PPT format; we can also share an Excel dataset based on the request.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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