Global White Box Server Market 2022-2028 .docm

Global White Box Server Market 2022-2028 .docm

The global white box server market is growing at a CAGR of 19.3% during the forecast period (2022-2028). The market was valued at around $7.5 billion in 2021. The market is driven by a significant rise in big data and the increasing adoption of cloud-based services owing to its flexibility and cost-effectiveness. Increasing investments in data center IT infrastructure, including spending on storage, virtualization, servers, networking, and security have assisted in the rise of out-sourcing data centers across the globe, which in turn, is offering growth to the global white box server market.

A white box server is referred to as a customized server computer system that is usually not manufactured by a well-known brand or a vendor. All hardware components of white box servers are purchased separately and then assembled by the white box suppliers. This, in turn, cuts the cost of the server and offers a more viable way for customization. This ease of customization also has operational advantages such as assisting an end-user during the time of failure of equipment, as at that time, the customer can replace an individual part rather than replacing the entire server. This would indeed help enhance operational efficiency with higher turnarounds and reduced slack time. White box servers are readily used by the data centers; however, the enterprises are realizing the need for data centers and will follow the lead of hyper-scale data centers (company supported data centers) in the near future.

The market players along with the data centers developers are swiftly expanding their footprints in the data centers market. To expand their services, the companies are adopting several strategies, such as mergers and acquisitions and geographical expansion. Several mergers and acquisitions for buying data center facilities are reported in the recent years. For instance, in September 2021, New York Internet (NYI) acquired a new data center in Chicago from RDX to increase its footprint in the US. Some of the other data center establishments are listed below-

● In September 2021, Scala Data Centers signed a definitive agreement to acquire Algar Tech's Data Center and Colocation operations in Campinas.

● In May 2021, H5 Data Centers announced its expansion to 325 Hudson, a 225,000 square-foot data center and carrier hotel in New York City. In partnership with DivcoWest, a multidisciplinary investment firm headquartered in San Francisco, H5 Data Centers will provide data center space and services in one of the world’s largest data center markets.

● In September 2021, New York Internet (NYI) acquired a new data center in Chicago from RDX to increase its footprint in the US.

● In July 2021, Equinix has opened its 11th data center in Tokyo.

Such increasing adoption of data centers at a rapid pace is substantially driving the growth of the global white box server market. Besides such driving factors, there are certain factors that impede the market growth, such as brand recognition, as, it leads to unreliable server life span and limited-service offerings from original design manufacturers (ODMs). However, there are factors that are expected to escalate the market growth in the near future. This includes a continuous rise in demand for micro-servers from data centers. Along with this, the data center companies are expanding their services by introducing new data centers and forming alliances with cloud companies.

The report analyzes the global white box server market on the basis of server type, processor type, end-user, and geography. Based on the server type, the market is segmented into rack & tower server, blade server, and density-optimized server. Based on the processor type, the market is segmented into the x86 server and non-x86 servers. Based on the application, the market is segmented into data centers and enterprises. Among these, the prime end-user of the white box server are data centers.

The global white box server market is segmented into North America (the US and Canada), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), and the Rest of the World. Among these, North America dominated the market

growing at a CAGR of 19.0% during the forecast period. The region is highly saturated with the highest number of data center facilities hosting some of the biggest data centers of the globe. Owing to this, the region, especially, the US is the major costumer for all the white box vendors.

KEY PLAYERS ANALYSIS

The global white box server market is characterized by the presence of several players that are operating and providing their products across the globe. Some of the key players of the market include Quanta Computer Inc., Wiwynn Corp., MiTAC Holdings Corp., ASRock Rack Inc., and Foxconn Technology Group. Further, to capitalize on the market opportunities, these market players are adopting various strategies such as mergers and acquisitions, product launch, geographical expansion, partnerships, and collaborations.