The global data center server market is projected to generate USD 307.0 billion revenue in 2030, advancing at a CAGR of 11.6% during 2024–2030. This can be ascribed to the rising rate of digitalization, growing expenditure by the IT & telecom industry, surging rate of technological advancements in the manufacturing industry, increasing internet penetration rate, especially in emerging markets, and growing number of data centers across the globe.
Based on type, the rack category held the largest revenue share, of 60%, in 2023, and it is expected to maintain its position during the forecast period. This is due to the rising adoption of hybrid and multi-cloud strategies and technologies including IoT, AI, and ML, by several organizations. This creates a requirement for compatible rack-based servers, which are, additionally, suitable for small facilities.
Moreover, the blade category will witness significant growth in the coming years. This is due to the fact that these variants are flexible, allowing multiple servers to be fitted in a compact space. They also offer remote management functionality, which allows administrators to monitor, manage, and troubleshoot servers remotely. In addition, such servers are employed for high computing requirements in enterprises, including storage area networks and network-attached storage.
The industrial category, based on application, held a significant revenue share in 2023, and it is expected to maintain its position in the coming years. This will be due to the implementation of advanced technologies in every industry, such as IoT, automation, edge computing, and data-driven manufacturing; with the increasing focus on smart factories.
In addition, the growing demand for real-time information analytics for predictive maintenance, operational efficacy, and quality control in the energy, manufacturing, and transportation industries further propel the category’s growth.
Geographically, APAC will register the fastest growth during the forecast period. This can be attributed to the increasing count of mid- and large-scale enterprises, growing number of IT companies, and rising need for highly efficient servers owing to the increasing volume of data. Additionally, nations such as China, Japan, and India are significantly contributing to the regional market growth. The prime reason for their large contributions is the increasing usage of smartphones, high penetration of the internet, and growing per capita income.
North America accounted for the highest revenue contribution in 2023, and it is expected to maintain its dominance during the forecast period. This can be ascribed to the high number of data centers, highly developed IT infrastructure, rising implementation of advanced technologies, such as big data analytics, AI, and cloud services in organizations, and presence of leading industry players.
Major players operating in the data center server market are Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Company, IBM Corporation, Oracle Corporation, Lenovo Group Ltd., Atos SE, and Super Micro Computer Inc.