Server Market Analysis

Server Market Analysis

Based on product, the market is divided into rack, blade, tower and micro. In 2023, the rack segment was valued at over USD 70 billion and is anticipated to experience substantial growth over the forecast period. Rack servers are independently mounted in a rack and configured to accommodate a wide range of needs. Their structure and design cater to both high and low computing requirements. Additionally, rack servers can be quickly cooled, readily scaled up, and require less floor space.
 

The increasing demand for high-density computing, scalable data centers, and developments in cutting-edge technologies like edge computing, cloud computing, and the Internet of Things are all contributing factors to the segment's growth and offering market participants enormous opportunities. Rack servers enable businesses to set up servers for their own use by providing a more affordable means of processing and storing data. Many major players are also addressing the growing demand for IoT and edge computing solutions. For instance, in June 2023, HPE launched new IoT-focused solutions that include rack servers equipped with advanced connectivity and processing capabilities. These solutions are aimed at supporting IoT deployments and integrating with HPE’s edge computing offerings.
 

Based on organization size, the server market is categorized large enterprises and SME. The large enterprises segment is anticipated to register a CAGR of over 9% from 2024 to 2032 and is poised for significant growth over the forecast period. Large enterprises are focusing on hosted application servers because they can handle workloads from multiple sites, typically using the same database. Hosted application servers are easier to install than traditional application servers, which helps reduce operational and maintenance costs. They do not require upfront installation and need fewer system integrations, further lowering the overall expense.
 

North America dominated the server market with a major share of over 40% in 2023. The region is expanding due to the presence of advanced IT infrastructure, which is driving the demand for servers. This demand is further fueled by the increased presence of major technology players, their growing adoption of cloud-based services over on-premises solutions, and the integration of artificial intelligence, the Internet of Things, and sensors. As a result, the region is expected to continue its strong growth trajectory, solidifying its position as a key market for server technologies.
 

In Europe the market for industrial electric vehicles is growing because of the industries' adoption of eco-friendly production methods and growing demand for sustainability in manufacturing facilities. The market provides development, distribution, and other services for a variety of vehicle types that are useful for industrial regions' manufacturing, storage, and lifting needs. The market for industrial electric cars is expanding because of growing consumer preferences for electric vehicles and increased involvement from the key companies in the automotive industry in the development of these vehicles. This indicates a significant shift towards greener industrial practices and positions European countries as a leader in the transition to sustainable industrial transportation.
 

In Asia Pacific, the increasing industrial infrastructure development, including the expansion of the IT sector, banking, and financial services, as well as the rise of the start-up culture in the corporate sector is propelling the growth of the server market. The region is anticipated to see the fastest growth in the demand for servers, driven by increasing competition between the producers and retailers of server and related technologies. Consequently, Pacific nations are poised to become a major hub for server technology innovation and deployment, driven by robust industrial and technological advancements.