The global server market is projected to reach USD 83.06 billion by 2025 and expected to register 5.4% CAGR over the forecast period, from 2019 to 2025 according to a new report by Million Insights. The demand for servers is expected to grow in the next few years due to the increasing need for IT infrastructure coupled with advancements in digital technologies. The enterprises are extensively adopting data analytics to understand consumers’ needs and demand which are expected to increase the adoption of IT networking equipment.
The market is expected to witness a shift from colocation data centers to manage data center services. Managed data canter services offer cost-effective solutions, enterprises are installing virtual servers to extend server adoption by connecting devices & peripherals, renting the networking equipment, and cloud space. The adoption of cloud space servers can be shared or private that leads to reduction of overall cost-of-ownership.
The intense competition among Original Design Manufacturers (ODMs) and Original Equipment Manufacturers (OEMs) is a keyfactor in the server market. ODMs assemble and manufacture the products with OEM components as well as produce customized products.
Therefore, increasing demand for customized products for specific configurations is fueling the demand for ODM servers.
Growing usage of data-intensive functions like streaming services, cloud computing, and others is anticipated to propel the demand for server adoption. In addition, the increasing number of smartphones, laptops, and tablet users has increased the usage of data; thereby the rising number of such devices will boost the demand for cloud servers over the forecast period.
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Further key findings from the report suggest:
• Among products, blade segment is expected to have robust growth from 2019 to 2025 due to having several benefits like low carbon footprints and energy efficient.
• Various government initiatives like IT infrastructure development will fuel the growth of digital platform worldwide; thereby expected to drive server market growth.
• The Linux OS offered several benefits such as high security setting, easy availability and open source free version OS platform, thereby this segment is projected to register highest growth rate over the forecast period.
• Asia Pacific is expected to witness strong growth during the forecast period due to development of new data centres.
• Improvement in VMware server for virtualization through cloud computing is driving the growth of data centres supporting to cloud server. Thus,scalability offered by virtualization is also projected to boost the market growth in the next few years.
Million Insights has segmented the global server market based on product, OS, and region:
Server Product Outlook (Revenue, USD Billion, 2014 - 2025)
• Blade Server
• Rack Server
• Tower Server
• Micro Server
Server OS Outlook (Revenue, USD Billion, 2014 - 2025)
Server Regional Outlook (Revenue, USD Billion, 2014 - 2025)
• North America
• The U.S.
• The U.K.
• Asia Pacific
• Latin America
• Middle East & Africa