Data Center Blade Server Market - Forecasts from 2024 to 2029

Data Center Blade Server Market - Forecasts from 2024 to 2029

The data centre blade server market is expected to grow at a CAGR of 9.90%, reaching a market size of US$31.707 billion in 2029 from US$19.622 billion in 2024.

The demand for data centre blade servers is increasing due to the growing focus on low power consumption and high productivity in the existing infrastructure. Its market growth is driven because of less physical space and energy usage, providing more processing power in less space, which further deducts the primary expenses for the enterprise. Installing the data centre blade server even reduces secondary costs like hardware cabling costs, facility charges, and the personnel hours required to configure and manage systems. The rise in demand for data centre blade servers is also attributed to the fact that they are a great substitute for traditional racks and tower servers that occupy a large surface area and consume a huge amount of power.

The increasing computer density, business optimization needs, and virtualization are also reasons for the growing demand for data centre blade servers. Companies are increasingly demanding data centre blade servers to streamline their IT operations and speed up their service delivery. The increasing adoption of virtualization applications, increasing load on data centres, and effective utilization of data centre space are also key drivers for the data centre blade server market.

Data Centre Blade Server Market Drivers
Increasing Use of Cluster Computing and Web Hosting

The increasing requirement for storage space and connectivity worldwide with its branches, clients, and vendors through the network will provide businesses with better accessibility and wider reach to their customers. The virtualization segment will witness a substantial CAGR during the forecast period owing to rising investments in artificial intelligence (AI) and its applications like augmented reality (AR). Virtualization is providing more space for enterprises and colocation centres, making more space for cloud computing and providing a bigger platform to share with their clients. The increase in usage of web hosting, virtualization, and cluster computing is due to reduced cost, efficient delivery service, wider reach, flexibility, scalability, and management of multiple infrastructures at once.
Increased Adoption by Colocation Service providers

Growing adoption of colocation solutions and services owing to the rising volume of big data is leading to a rise in the demand for colocation, which, along with a growing focus on low power consumption, is boosting the adoption of data centres blade servers for reducing overall cost, while increasing their virtual space for providing their clients with more storage space and better networking solutions. The enterprise segment will also grow during the forecast period owing to the increasing demand for storage space, networking, and security. This makes enterprises use data centre blade servers for higher efficiency and cost-effectiveness.
High demand from the healthcare industry

Data accumulation is aided by the digitization of consumer health records into electronic medical records (EMR). Data centres are becoming increasingly necessary due to the latest advancements in medical equipment and the modernization of legacy operating systems. Examples of these advancements include personnel management and the improvement of patient response systems. Data centre cooling is thus required as a result of this need for data centres. The evolution of healthcare shortly will centre on reengineering clinical care and operations around digital health, with widespread and immediate use of advanced analytics and data to accomplish these objectives. Such accomplishments would necessitate the storage of vast amounts of data, which would fuel the demand for data centre blade servers during the projection period.

Due to several benefits, including the ability for patients from any location to access the necessary physician, telemedicine is becoming more and more popular. Because the regularly scheduled visits are changed, it is an efficient method that saves money and time while generating a lot of data and highlighting the need for data centres.

Beside this many governmental organizations in different areas are stimulating developments of data centers in the field of healthcare. For instance, on November 2022, an announcement was made about launching a national repository of life science data by India’s government. Regional Center for Biotechnology situated in Faridabad houses Indian Biological Data Center (IBDC).

Data Centre Blade Server Market Restraint:

High initial investment

The high initial cost associated with purchasing a blade server unit impedes market expansion. Installing sophisticated devices in small quantities can also be expensive. As a result, the cost factor is very important for market expansion.

Data Centre Blade Server Market Geographical Outlook
North America is expected to hold a significant share during the forecast period

The region is transitioning from storage on individual devices and systems to core clouds and network edges. A recent survey conducted by Intel Security indicates that the number of businesses utilizing hybrid cloud services alone has increased thrice. It can be very advantageous that cloud providers are boosting security and enabling stronger, more reliable systems in businesses. Moreover, the area's businesses are making huge funds towards building AI frameworks, calling for immediate processing of enormous data volumes collected in real-time.

Data Centre Blade Server Market Developments:

In January 2023, ManageEngine, Zoho Corporation's enterprise IT management branch, launched two new data centers in Canada. These data centers will be situated in Toronto and Montreal to provide improved regional data security and privacy. Due to this, certain large Canadian companies, particularly those in the finance, government, or insurance sectors, prefer to store their personal data locally. They want strict control over how their data is used to avoid penalties imposed by stringent laws. Others are mainly interested in improving service delivery by optimizing network performance based on data locality.
In January 2023, Cisco announced the availability of the UCS C-Series and X-Series servers, which run on 4th-generation Intel Xeon Scalable processors. Cisco has championed two blades that bolster the most recent Intel processors for the X-Series: the Cisco UCS X210c M7 Compute Node and the Cisco UCS X410c M7 Compute Node. However, with its 7th generation UCS C-series and X-series now powered by 4th Gen Intel Xeon Scalable Processor which are used as fans, it is going to fly again this time around. Now Cisco and Intel’s offering comprises two aspects; first they provide better performance as well as flexibility to meet today’s working demands with new C - Series and X - Series servers second they enable customers to meet a wider range of fast changing computing demands through application acceleration without compromising on the quality by also supporting Intel Data Center GPU Flex Series using our UCS X - Series Fabric technology.

Data Centre Blade Server Key Market Segmentation:

Data centre blade server Market is segmented and analyzed as below:

By Function

Web Hosting
Virtualization
Cluster Computing

By End-User

Colocation Providers
Cloud Providers
Enterprises

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Japan
South Korea
India
Taiwan
Thailand
Indonesia
Others