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Server Market Size
- Report ID: GMI10678
- Published Date: Aug 2024
- Report Format: PDF
Server Market Size
Server Market size was valued at USD 119.8 billion in 2023 and is estimated to register a CAGR of over 10% between 2024 and 2032. The expansion of data centers worldwide is significantly driving the demand for servers. As businesses and cloud providers build larger & more advanced data centers to handle increasing workloads and data volumes, the need for additional server infrastructure grows.
This expansion supports greater storage capacity, enhanced processing power, and improved network efficiency, thereby fueling the ongoing server market growth. The market is also seeing significant investments in AI-centric infrastructure to meet the growing demand. For instance, in April 2024, Microsoft and OpenAI launched an ambitious project to construct a USD 100 billion AI-centric data center in the U.S., to address the growing demand for servers, driven by advancements in AI.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Server Market Size in 2023: | USD 119.8 Billion |
| Forecast Period: | 2024-2032 |
| Forecast Period 2024-2032 CAGR: | 10% |
| 2032 Value Projection: | USD 296.8 Billion |
| Historical Data for: | 2021-2023 |
| No. of Pages: | 290 |
| Tables, Charts & Figures: | 310 |
| Segments covered: | Product, Organization Size, Distribution Channel, End User |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Additionally, the introduction of 5G technology is anticipated to significantly increase server demand. 5G networks provide higher bandwidth, lower latency, and faster data transfer rates, which will boost data traffic volumes and enable new services and applications, such as enhanced IoT solutions, Virtual Reality (VR), and Augmented Reality (AR). To support these advancements, servers must possess the necessary processing power and capability to manage the increased data load. The growing need for reliable and powerful servers is essential for handling expanded network capabilities and ensuring the seamless delivery of cutting-edge services and applications.
The server market faces numerous challenges including supply chain disruption and sustainability challenges. Supply chain disruptions and component shortages have notably impacted server production and shipment schedules. Semiconductor shortages and logistical challenges have caused delays and increased costs, affecting the availability of critical server components. While manufacturers have gradually improved their production capacity and adapted to these supply issues, the ongoing need for efficient & timely sourcing of components continues to influence the global server shipment dynamics and production timelines, thus hindering market growth.
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Server Market Scope
