Server Market Size, Share & Trends Analysis Report By Product (Rack, Open Compute Project), By Enterprise Size (Large, Medium), By Channel (Reseller, Direct), By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Server Market Growth & Trends

The global server market size is anticipated to reach USD 175.29 billion by 2030, growing at a CAGR of 9.3% from 2023 to 2030, according to the latest study by Grand View Research, Inc. As businesses are moving to private and public clouds, the edge cloud, co-location facilities, and data centers have started utilizing software-defined networks (SDNs) and virtualization to facilitate the implementation of new data analytics models. However, having realized that the incumbent servers cannot handle the complex workloads, server industry players in the region are introducing new server designs with higher computational power.

Newer applications that demand specific configurations and high computing requirements from users and service providers are increasing the adoption of cloud servers for efficient functioning. Enterprises are adopting virtual or cloud servers to enhance their global networking capabilities and cut operational and maintenance costs on their IT infrastructure. Additionally, cloud service providers have to invest significantly in the maintenance of cooling equipment as physical servers dissipate more heat. Due to this, provisions such as renting servers and virtualization have been gaining traction in recent years.

Tower servers are often used for multiple applications, such as communication, network, and file servers. Tower servers are designed to be positioned on or underneath desks. These servers are flexible and easy to upgrade according to customer requirements. Furthermore, their simplicity and robustness favor their adoption across various applications. Moreover, the demand for low-heat and quick-cooling servers is increasing due to the volume of information stored on these servers. These factors are collectively expected to drive the segment during the forecast period.

The cloud computing sector attracts small enterprises by offering scalable infrastructure and services. Cloud computing also offers benefits such as on-demand self-service, broad network access, resource pooling, flexibility in terms of cost and time, transparency in the form of usage reports and timely updates regarding consumption rates, and cost updates to customers. It not only helps deploy business quickly but also considerably reduces operational costs. Since data security and recovery are critical concerns for small organizations, they prefer to deploy data on private clouds. Furthermore, companies are utilizing big data analytics to provide the best services to their customers. Cloud services assist in optimizing business processes for small enterprises. These factors would further supplement the demand for servers in small enterprises during the forecast period.

Server Market Report Highlights

• By product, the rack segment is projected to occupy the largest share in 2030 of the market. The segment growth can be attributed to the growing need for scalable data centers and high-density computing and advancements in emerging technologies, such as IoT, cloud computing, and edge computing, creating vast growth opportunities for market players
• By enterprise size, the large segment is expected to witness the highest growth rate over 2023-2030 in the market. Large enterprises are shifting their focus toward hosted application servers because they can handle workloads from multiple sites, typically from the same database
• By channels, the direct segment is projected to witness the highest growth rate from 2023 to 2030 in the market. Direct distribution can shorten lead times by sending goods directly to customers when they are ready for deployment. These benefits are expected to further supplement the growth of the direct channel during the forecast period
• By end use, the IT & Telecom segment will dominate the market throughout 2023-2030 in the market. The IT industry has seen a growing implementation of cloud-based services over on-premises ones. Subscribers now get most services through a single service provider. Furthermore, mobile phones' constantly evolving multimedia capabilities are giving rise to new issues related to after-sales service delivery and execution
• The Asia Pacific region is projected to have the highest growth rate from 2023-2030 in the market. The growth of the Asia Pacific server industry can be attributed to significant players in the region, including Tencent Cloud, Huawei Technologies Co., Ltd., Baidu, and Alibaba.com. Moreover, the region has been witnessing high growth in digitalization, especially in countries such as India

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