USD 364.50 Billion
Data Center Server Market Size, Share, and Growth Analysis
Data Center Server Market By Component, By Type, By Design, By Enterprise Size, By, Tier Level, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45B2165 |
Region:
Global |
Published Date: April, 2025
Pages:
183
|Tables:
265
|Figures:
77
Format -
Data Center Server Market Insights
Global Data Center Server Market size was valued at USD 364.50 Billion in 2023 and is poised to grow from USD 388.41 Billion in 2024 to USD 605.97 Billion by 2031, growing at a CAGR of 6.56% in the forecast period (2024-2031).
The data center server market has been experiencing remarkable growth in the past few years impacted by the rising demand for cloud computing, IoT applications, and big data analysis. Growing adoption of cloud by businesses ultimately increases the demand for more resilient and strong servers. Furthermore, the rise of edge computing demands localized, and small data centers is raising the need for dedicated servers. The market is also fueled by increased focus on performance, sustainability, and scalability. Nonetheless, the global market is anticipated to be hindered by significant investment costs and maintenance costs that may impede adoption by small businesses. Yet, the market is anticipated to grow progressively due to opportunities like expansion of cloud services, growth of edge computing, and growing sustainability initiatives.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
6.56% CAGR
Global Data Center Server Market ($ Bn)
Country Share for North America Region (%)
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Data Center Server Market Segments Analysis
The global data center server market is segmented based on Component, Type, Server Rack Density, Data Center Redundancy, PUE, Design, Tier, Enterprise Size, End User, and Region. Based on Component, the market is divided into Hardware, Software, Services. Based on Type, the market is divided into On-Premises, Hyperscale, HPC, Colocation, Edge. Based on Server Rack Density, the market is divided into <10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, >50kW. Based on Data Center Redundancy, the market is divided into N+1, 2N, N+2, N. Based on PUE, the market is divided into 1.2, 1.2 - 1.5, 1.5 - 2.0, Greater Than 2.0. Based on Design, the market is divided into Traditional, Containerized, Modular. Based on Tier, the market is divided into Tier 1, Tier 2, Tier 3, Tier 4. Based on Enterprise Size, the market is divided into Large Enterprise, Small & Medium Enterprises. Based on End User, the market is divided into Cloud Service Provider, Technology Provider, Telecom, Healthcare, BFSI, Retail & E-Commerce, Entertainment & Media, Energy, Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Analysis by Component
Based on components, the data center server market is categorized into hardware, software, and services. The hardware segment held a notable share of the market in the previous years and is expected to lead over the forecast period as well owing to the rising demand for processing power, rise of infrastructure upgrades, and diverse configurations. The demand for high-performing servers to efficiently manage augmented workflows is increasing the sales of hardware. This comprises big data analytics, artificial intelligence, and cloud computing. Businesses are actively upgrading their existing infrastructures to aid advanced applications. This leads to increased investments in storage, servers and networking equipment. Also, hardware solutions like rack servers, blade servers, and storage systems simplify customized configurations, thus increasing its prominence.
On the other hand, the software segment is projected to grow considerably over the forecast period owing to better management and automation, advantages of virtualization techniques, and the rise of containerization and cloud. Improved software solutions for orchestration, automation, and management are vital for enhancing data center functions, resulting in higher demand. Software-based virtualization enables numerous workloads to execute on a sole hardware solution, thus optimizing resource efficacy and utilization. Moreover, the growth of container technologies and cloud computing needs advanced software for installation, management, and scaling, thus fueling the segment's growth. The segmental growth is also propelled by the growing cybersecurity threats that demand software that improves compliance and security.
Analysis by End User
Based on end user, the market is segmented into cloud service provider, technology provider, telecom, healthcare, BFSI, retail & e-commerce, entertainment & media, energy, and others. The BFSI segment held a notable market share in the previous years and is expected to continue dominance over the forecast period as well owing to rising need for high data processing, strict regulatory compliance, and availability 24/7. The BFSI enterprises and companies produce huge quantities of data that need strong servers to manage and handle numerous tasks, risk assessments, and consumer details. Stringent policies in the financial sector demand strong data management and storage solutions. This guarantees better compliance and security, fueling the need for improved data center infrastructure. Financial services also need high reliability and availability for operations, forcing institutions to invest in resilient data center technologies.
On the other hand, the cloud service provider segment will hold a remarkable market share in the coming years owing to speedy adoption of cloud, better flexibility and scalability, and increased utilization rates. Mounting demand for cloud services like SaaS, PaaS, and IaaS is notably fueling investments in the infrastructure of data structure to aid scalable solutions. CSPs also need flexible and strong servers to scale resources swiftly, depending on consumer requirements. This encourages constant expansion and upgrades. Also, cloud service providers enhance server utilization via containerization and virtualization, increasing the efficiency of their resources of data centers, thus impacting the growth of the segment.
Global Data Center Server Market Size By Component
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Data Center Server Market Regional Insights
Geographically, North America dominated the market in the previous years and is expected to lead over the forecast period owing to increased cloud adoption, strong IT infrastructure, and amplified funding and investments. North America is a key center for a large number of new entrants and key technology companies that drive innovations and developments in data center solutions and server technology. The region holds increased adoption of cloud services with leading providers like Microsoft Azure, AWS, and Google Cloud heavily investing in data center infrastructure. A developed IT infrastructure backs the growth of data centers, comprising cooling solutions, reliable power, and hi-speed internet. The key players profiled in the region include Hewlett Packard Enterprise (HPE), Cisco System, Inc., IBM Corporation, Dell Technologies, Equinix Inc., Oracle, and more.
Asia-Pacific is the fastest-growing region in the global data center server market due to speedy digital transformation, rising cloud adoption, and progressing developing markets. Several nations in the region are witnessing rapid digitalization in the leading industries, which notably impacts the need for data center services. The rising adoption of cloud-based services by companies in the region is demanding strong data center infrastructure. Also, the increased proliferation of IoT devices, smartphones, and 5G internet is augmenting data consumption and generation, demanding a greater number of data centers. Nations like Southeast Asian countries, China, and India are speedily expanding digital footprints, demonstrating major opportunities for the growth of data centers.
Global Data Center Server Market Size By Geography
- Largest
- Fastest
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Data Center Server Market Dynamics
Drivers
Amplified Use of Analytics and Big Data
- The explosive growth of data produced by different sources, including social media, IoT devices, and enterprise applications need data centers to adopt reliable and high-performing servers capable of studying and processing huge datasets. Businesses are also utilizing data for decision-making in real-time, which raises the need for data servers to manage data processing at high speeds.
Growing Digital Transformation
- Businesses are actively digitalizing their services and operations, which is notably impacting the demand for highly reliable and efficient server infrastructure to aid diverse applications. These applications comprise customer relation management enterprise resource planning, and more. Businesses are also allocating huge funds and capital to IT infrastructure to aid several digital initiatives, which increases the need for novel server deployments.
Restraints
Increased Competition from Cloud Providers
- The rising adoption of cloud services may result in decreased demand for conventional data center technologies since companies are largely preferring flexibility and scalability provided by the leading cloud providers. Competition among providers may result in decreased prices that may affect the profitability of traditional center operators. This may considerably hamper the growth of the market.
Lack of Skilled Workforce
- The need for a professional workforce in data center management, cloud technologies, and cybersecurity usually surpasses supply. This is challenging for businesses to seek professional labor for better operation and management of these solutions. Also, constant education and training is important for workers to stay updated on novel technologies, which may be time-consuming and costly.
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Data Center Server Market Competitive Landscape
The competitive landscape of the data centre server market is differentiated by several leading, new entrants, and emerging businesses. The leading companies like Hewlett Packard Enterprise (HPE), Dell Technologies, Cisco, Lenovo, IBM, and Supermicro are dominating the market with strong brand recognition and a broad range of server solutions. In terms of innovation, the competition is intense with brand emphasizing on developing high-performing, scalable, and energy-efficient techniques to cater to the growing demands of big data, AI, and cloud computing. The market is also characterized by the leading players acquiring smaller players for better technical competencies. Overall, the market is dynamic with emphasis on customer-centric solutions and sustainability.
Top Players in Data Center Server Market
- Hewlett Packard Enterprise (HPE) (United States)
- Cisco System, Inc. (United States)
- Hitachi Ltd (Japan)
- IBM Corporation (United States)
- NTT Communications (Japan)
- ABB (Switzerland)
- Dell Technologies (United States)
- Schneider Electric (France)
- Comarch SA (Poland)
- Huawei Technologies Co., Ltd. (China)
- SAP SE (Germany)
- Equinix Inc. (United States)
- Oracle (United States)
- Amazon.com Inc. (United States)
- Alphabet Inc. (United States)
Recent Developments
- In August 2024, Hewlett Packard Enterprise in alliance with Khazna Data Centers, announced a novel managed data center hosting facility in the United Arab Emirates. The novel service aids the region’s national AI strategy that comprises a collection of artificial intelligence projects with prominent institutes in the UAE.
- In August 2024, Hitachi Vantara and Broadcom Inc. announced the launch of a novel hybrid and private cloud solution. This co-designed and manufactured solution amalgamates integrated systems technologies of (UCP) of Hitachi Vantara along with VMware Cloud Foundation to help businesses in dealing with complexities by significant data explosion and the mounting needs of the AI.
- In June 2024, Cisco and NVIDIA NVDA launched a novel end-to-end architecture intended to efficiently scale generative AI capabilities, named ‘Cisco Nexus HyperFabric AI cluster solution’. The said solution incorporates AI-native networking capabilities of Cisco with accelerated computing and AI software of NVIDIA accompanied by strong data storage platform by VAST.
Data Center Server Key Market Trends
- Expansion of Edge Computing: As the need for low-latency processing rises and IoT devices are witnessing proliferation, edge computing is becoming a crucial trend. This comprises the installation of servers near to data sources to reduce the bandwidth and latency use. Edge computing aids real-time use in industries like smart cities, autonomous vehicles, and industrial automation. This enables businesses for local data processing, reducing dependency on centralized data servers and enhancing response times.
- High Focus on Cyber Security: With the growth of cyberattacks, the data center managers are emphasizing strong cybersecurity approaches. This comprises the adoption of better encryption techniques, advanced security rules, and enhanced threat detection systems. It is also important to ensure protection against breaches and data integrity, mainly when regulations are strengthening on the global scale. Hence, cybersecurity architecture is needed for building confidence with stakeholders and clients.
Data Center Server Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the data center server market is considerably progressing due to the growing integration of machine learning and artificial intelligence, the rise of 5G deployment and telecommunications, and focus on energy efficiency and sustainability. However, the market is restrained by compliance and regulatory issues, growing environmental concerns like sustainability pressure, and increased market saturation. North America is anticipated to lead the market owing to the focus on compliance and security, increased funding and investments, and the presence of strong IT infrastructure. Nonetheless, a few opportunities positively impacting the market growth include the rising demand for security solutions, modular data centers for better scalability, and the growth of emerging technologies like blockchain technologies and quantum computing.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 364.50 Billion |
| Market size value in 2031 | USD 605.97 Billion |
| Growth Rate | 6.56% |
| Base year | 2024 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Data Center Server Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Data Center Server Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Data Center Server Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Server Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Server Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Server Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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