Data center server market size to increase by USD 115 billion from 2022 to 2027, Technavio

NEW YORK, March 28, 2024 /PRNewswire/ -- The data center server market size is on a trajectory of substantial expansion, with forecasts predicting a remarkable surge of USD 115 billion at a CAGR of 15.27% from 2022 to 2027. This surge is attributed to the accelerating adoption of AI-powered servers and the ever-expanding cloud ecosystems across various industries.

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AI-Powered Servers Revolutionize Enterprise Cloud Applications

The adoption of AI-powered servers is revolutionizing enterprise cloud applications by offering high-performance computing capabilities while concurrently reducing power consumption. These servers, exemplified by industry leaders like Egenera, Fujitsu, and Hewlett Packard Enterprise, cater to the diverse needs of today's data-driven world.

Commercial Server Segment to Witness Exponential Growth

The commercial server segment is poised for significant growth, driven by investments from communication service providers and colocation service providers in expanding their data center capacities. Major players such as Dell, Cisco, and Fujitsu are investing in new centers, amplifying the market's focus during the forecast period.

Market Dynamics and Customer Landscape

While investments in scaling up in-house data centers propel market growth, challenges such as server workload optimization persist. However, the market remains buoyant with the surge in demand for server disaggregation to enhance utilization rates and address power consumption concerns.

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Key Companies and Regional Analysis

Leading players in the market including IBM, Lenovo, and Oracle are strategically positioning themselves through alliances, partnerships, and product launches. North America, particularly the US, is anticipated to drive substantial growth, fueled by investments in edge computing and the rising adoption of edge data centers.

Market Analyst Overview

The data center server market is experiencing rapid growth, propelled by the demand for machine learning capabilities and the expansion of cloud computing. Key players are offering advanced solutions to meet evolving industry needs, supporting operations across various sectors including finance, healthcare, and retail.

Micro Data Centers Witnessing Growth

Micro data centers equipped with high-performance compact servers are catering to diverse needs efficiently. These solutions enable operations optimization, machine learning, and processing power, benefiting sectors such as manufacturing while addressing environmental concerns through energy-efficient technologies.

In conclusion, the data center server market is poised for substantial growth driven by AI innovation, cloud expansion, and the evolving needs of industries worldwide. As key players continue to innovate and expand their offerings, the market landscape is set to undergo significant transformations, ushering in a new era of data-driven capabilities and infrastructure efficiency.

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Analyst Review

The Data Center Server Market is experiencing robust growth, driven by industry demand for advanced and high-performance compact servers with reduced power consumption. Prominent players in this market are investing heavily in AI infrastructure to cater to the needs of small- and medium-scale businesses and organizations across various industrial verticals.

These servers boast powerful processors, ample memory, and extensive storage capacity, making them ideal for hosting websites, running applications, and storing vast amounts of data. They are typically housed in temperature-controlled facilities with redundant power sources and stringent security measures to ensure uninterrupted operations.

In today's digital landscape, characterized by the proliferation of IoT devices, smartphones, social media, e-commerce, and online platforms, the demand for data center servers has surged. Organizations are increasingly relying on these servers to handle their digital services and support their digital transformation initiatives.

The market is witnessing significant growth not only in North American and European regions but also in Asian countries like Japan, China, India, and Southeast Asian nations. Additionally, Central American and South American regions, including countries like Brazil and Mexico, are emerging as key markets for data center server infrastructure.

Key players such as IBM Cloud, American Airlines, and VMware HCX are leading the charge in providing scalable server solutions that meet the scalability, energy efficiency, and operational needs of businesses worldwide.

With the rise of AI, machine learning, and high-performance computing, the demand for high-performance data center servers is on the rise. These servers play a crucial role in processing vast datasets and driving insights for industries such as finance, healthcare, retail, and manufacturing.

Moreover, there is a growing emphasis on environmental concerns and sustainability goals in data center operations. Companies are increasingly adopting energy-efficient technologies to reduce power consumption and minimize their environmental impact. This shift towards sustainability is driving infrastructure overhauls in traditional data centers and promoting the adoption of micro data centers and cloud ecosystems.

As the world transitions to 5G networks and embraces the data-driven world, the Data Center Server Market is poised for significant growth during the forecast period. It will continue to be a cornerstone of enterprise cloud applications, cloud computing, and operations optimization across various industries globally.

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Related Reports:

The Data Center market is projected to be valued at USD 731.77 billion in 2027 with a CAGR of 12.73%, between 2022 and 2027. 

The data center power market is projected to reach a value of USD 50.28 billion in 2027 between 2023 and 2027, accelerating at a CAGR of 11.1%.

ToC:

1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio