Server Market Size, Share, Trends, Growth, Production, Consumption, Revenue, Company Analysis and Forecast 2021-2030

Published Date : Apr 2021 | No. of Pages : 250 Pages | Category : ICT

The global Server market size is expected to be worth around US$ 245.31 billion by 2030, according to a new report by Vision Research Reports.

The global Server market size was valued at US$ 93.66 billion in 2020 and is anticipated to grow at a CAGR of 8.8% during forecast period 2021 to 2030.

Growth Factors

The demand for servers is anticipated to grow considerably over the forecast period owing to the growing focus on the timely update of IT infrastructure worldwide. The rising adoption of data analytics among enterprises to understand consumer trends has resulted in the growing adoption of IT networking equipment. Furthermore, the rollout of 5G networks and technologies such as the, and virtualization is expected to fuel the demand for high-performance computing servers.

The rising preference for contactless payments and remote working amid the COVID-19 pandemic is expected to drive the need for high-speed data processing and storage capacity across various industry verticals. Advanced technologies have paved the way for connected appliances and autonomous vehicles, which has prompted IT infrastructure companies to opt for the latest, advanced storage solutions, including flash memory and solid-state drives (SSD), for storing crucial business data. Meanwhile, the demanding and changing configurations required by cloud service providers are driving the demand for servers. For instance, in May 2020, Facebook released its third generation Yosemite scalable server, which is equipped with Cooper Lake CPU and six memory modules. Such developments are expected to cause an increase in the average selling prices of servers, which is expected to subsequently benefit the market growth.

Several enterprises are shifting to managed data center services from colocation data centers owing to the cost advantages offered by managed data center services. Managed data centers allow enterprises to adopt virtual servers by renting the networking equipment, connecting devices and peripherals, and cloud space. The cloud server space can be private or shared, which again allows the enterprises to reduce the total cost of ownership.

The market is witnessing increasing competition between OEMs and Original Design manufacturers (ODMs). OEMs are the companies that manufacture servers as well as sell them through resellers and distributors, while ODMs design and manufacture similar servers and directly sell them to the customer. Besides, ODMs cater to the demand for servers customized according to the user configuration. The increasing demand for customized requirements is expected to drive server sales through ODMs.

Report Highlights

The rack segment dominated the market and accounted for more than 35.0% share of the overall revenue in 2020. This can be attributed to the high rate of adoption of rack servers across diverse verticals. Rack servers are individually mounted in a rack and are configured to support a wide range of requirements. The design and construction of these servers make them suitable for low as well as high computing requirements. Besides, these servers can be easily scaled up, occupy less floor space, and be cooled instantly due to their rack design.

The Open Compute Project (OCP) segment accounted for the second-largest revenue share in 2020. Several small- and medium-sized enterprises are interested in replicating the efficient data center designs of giant cloud service providers. OCP servers are manufactured by Original Design Manufacturers (ODMs), owing to which the cost of these servers is low compared to OEM servers. Benefits such as low-cost installations and open-source ecosystems are expected to work well for the segment over the forecast period. Blade servers are expected to witness healthy growth over the forecast period owing to their compact size and high computing power. These servers are usually installed in large data centers to cater to HPC applications.

Large enterprises accounted for the largest revenue share of over 65.0% in 2020 and are likely to maintain their lead over the forecast period. This can be attributed to the fact that large enterprises have the funds to spend significantly on their IT infrastructure. Meanwhile, large enterprises have several long-standing tie-ups with service providers, ensuring timely delivery and customization options among standard products. These factors are anticipated to influence the segment growth.

While it is easier to upgrade on-premise servers, micro and small enterprises may end up hosting a server on a cloud owing to cost benefits. Owning a physical server involves high initial investment and incurs high operational expenses over time. The cost involved in operating cooling systems, hardware replacement costs, security systems, high-speed network connections, and more supportive infrastructure for an in-house server may also discourage small enterprises from investing in one.

To cater to the increasing demand from small and mid-sized organizations, companies such as Hewlett Packard Enterprises, IBM, and Lenovo are introducing small enterprise servers, which are specially designed for the needs of small- and mid-sized businesses. For instance, Hewlett Packard Enterprises provides an HPE ProLiant MicroServer Gen10 Plus server for SMBs, which is compact and equipped with a 3.4-3.8 GHz processor to offer optimum performance. An increased number of product offerings by OEMs and lower-priced products by ODMs have prompted several SMBs to purchase servers, contributing to the promising growth prospects of the micro and small enterprise segments.

The reseller segment held the largest revenue share of over 40.0% in 2020. The direct channel is expected to expand at the fastest revenue-based CAGR of 9.0% over the forecast period. The segment growth is attributed to the customized designs and competitive prices offered by server ODMs. Servers offered by ODMs are cheaper as ODMs do not have large sales forces and marketing campaigns. They sell the servers directly to the customer, which cuts down the promotional and intermediary costs.

Servers manufactured by OEMs are often sold to the customer through distributors and resellers, which adds to the final cost of these servers. Hence, small- and medium-sized enterprises prefer ODMs for their IT operations, thereby shifting the momentum from OEMs to ODMs. Major cloud service providers like Amazon Web Services also have tie-ups with several ODMs to fulfill their server demand, thus increasing the market share of the ODMs.

OEMs also supply their products to system integrators and value-added resellers. While system integrators offer severs as a part of turnkey projects, resellers sell the servers directly to the end-use industries. Resellers are connected to all types of industries, from small and medium enterprises to large enterprises, ensuring a strong hold on the market.

The IT and telecom segment accounted for the largest revenue share of over 38.0% in 2020. This can be attributed to the rise in network connections and the high penetration of smartphones globally. The anticipated rollout of 5G networks is also expected to help the segment maintain its lead over the forecast period. The demand for servers is expected to grow significantly in the BFSI sector owing to the increased need for making transactional processes fast and reliable. The demand for HPC servers in the BFSI sector has also increased over the last few years due to the rising usage of high-performance applications to handle large data volumes. The increase in the number of digitized transactions during the COVID-19 pandemic is also expected to drive the BFSI segment over the forecast period.

The government and defense sector is likely to expand at a promising pace over the forecast period. This can be attributed to an increase in government initiatives promoting the digitization of government services. The digitalization of government services is anticipated to create demand for data storage and analysis capabilities. These factors are expected to drive the demand for servers in the government sector over the forecast period.

The North American market accounted for the largest revenue share of over 40.0% in 2020, followed by Asia Pacific. The presence of several data center and cloud service providers in the region has made North America the largest hosting market with numerous dedicated servers all over the region. North America is also home to major cloud service providers, such as Facebook, Amazon.com, and Google, Inc. These companies are investing significantly in the construction of mega data centers for high processing capabilities and additional data storage, thereby opening opportunities that may fuel the market growth. Furthermore, advancements in areas such as 5G, the Internet of Things (IoT), and edge computing are expected to drive the regional market over the forecast period.

The Asia Pacific market is expected to register the fastest growth rate in terms of revenue over the forecast period, with China and India remaining the leading contributors. Smart city initiatives undertaken by government bodies in these countries have led to the development of new data centers, thereby contributing to market growth. According to research conducted by CBRE, Inc., nearly 795 MW of new data center capacity is expected to be added to the Asia Pacific region between 2019 and 2021. The growing rate of high-frequency trading is also expected to drive the demand for HPC servers in the region. Besides, the significant use of digital wallets, social media platforms, and internet-based services is anticipated to generate demand for data storage, thereby contributing to market growth.

Key Players

  • IBM

  • Hewlett Packard Enterprise

  • Dell

  • Lenovo

  • Fujitsu

  • Inspur Technologies Co. Ltd.

  • Huawei Technologies Co. Ltd.

Market Segmentation

  • Product Outlook

    • Blade

    • Rack

    • Tower

    • Micro

    • Open Compute Project (OCP)

  • Enterprise Size Outlook

    • Micro

    • Small

    • Medium

    • Large

  • Channel Outlook

    • Reseller

    • Direct

    • Systems Integrator

    • Others

  • Vertical Outlook 

    • IT & Telecom

    • BFSI

    • Government & Defense

    • Healthcare

    • Energy

    • Others

  • Regional Outlook 

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

The Server market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Server market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Server market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Server market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Server market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Server capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Server by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Server market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Server market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Server market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Server industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Server market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Server market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Server market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Server market. These factors have benefited the growth of the global market for Server. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Server. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Server are as follows:

  • Historic Year: 2017-2020
  • Base Year: 2021
  • Forecast Year 2021 to 2030

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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