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Data Center Server Market Set to Reach $82.34 Billion by 2029 with 8% Yearly Growth

02-27-2025 06:37 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Data Center Server Market Size

Data Center Server Market Size

What industry-specific factors are fueling the growth of the data center server market?
The projected surge in data traffic is poised to fuel the expansion of the data center server market. The term "data traffic" is used to describe the high bandwidth consumption involved in incessant, intensive network traffic paths. This data traffic aids data center servers in managing virtual or distal computer systems more efficiently and in enhancing the visibility of network devices, and therefore, a rise in data traffic would boost the data center server market. To illustrate, as per Ericsson, a multinational networking and telecom firm based in Sweden, the percentage of mobile data traffic accounted for by 5G was predicted to reach 69% by 2028, as of November 2022. Moreover, the global monthly data usage per smartphone is expected to average 19 GB in 2023 and is projected to escalate to 46 GB by 2028. Besides, overall worldwide data traffic, excluding traffic generated by Fixed Remote Access (FWA), is anticipated to hit around 90 EB per month by the end of 2022 and is estimated to increase approximately fourfold to 325 EB monthly in 2028. Consequently, growth in enterprise data traffic is stimulating the expansion of the data center server market.

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What Is the projected market size and growth rate for the data center server market?
The size of the data center server market has been constantly increasing in the past few years. The market, which is expected to rise from $56.9 billion in 2024 to $59.65 billion in 2025, foresees a compound annual growth rate (CAGR) of 4.8%. The significant growth during the historic period can be credited to the surge in data creation, the adoption of cloud computing, the expansion of virtualization and consolidation, the need for high-performance computing (HPC), and the advent of big data analytics.

The size of the data center server market is predicted to experience a significant surge in the upcoming years, expanding to $82.34 billion in 2029 with a compound annual growth rate (CAGR) of 8.4%. This considerable increase during the forecast period can be credited to the widespread use of IoT, the focus on sustainability and green computing, improvements in cybersecurity, utilization of hybrid and multi-clouds, and the expansion of AI and machine learning. The upcoming trends expected in the forecast period involve the acceptance of open compute project (OCP) standards, designs focusing on security, optimization of data centers, advancements in high-performance computing (HPC), emergence of software-defined infrastructures and the adaptation of modular and scalable designs.

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What new trends are reshaping the data center server market and its opportunities?
The advancement of technology is a prominent trend emerging in the data center server industry. Major players in this sector are concentrating on the creation of innovative enclosure management solutions to solidify their market standing. An example of this is the China-based multinational tech corporation, Huawei Technologies Co., Ltd., which introduced a groundbreaking product called FusionModule2000 6.0, a smart modular data center solution, in November 2022. Unique characteristics like compact size, minimal height, and reduced weight make this product stand out. This is an enhanced smart modular data center solution developed to optimize energy efficiency on the periphery. It is specifically engineered to provide competitive advantages to channel partners, encouraging the progression of green digitalization for businesses in a financially sensible manner.

What major market segments define the scope and growth of the data center server market?
The data center server market covered in this report is segmented -

1) By Product: Rack Servers, Blade Servers, Microservers, Tower Servers
2) By Application: Industrial Servers, Commercial Servers
3) By Verticals: BFSI (Banking, Financial Services And Insurance), IT And Telecom, Government, Defense, Other Verticals

Subsegments:
1) By Rack Servers: 1U Rack Servers, 2U Rack Servers, 3U And Above Rack Servers
2) By Blade Servers: Single Blade Servers, Multi-Blade Server Chassis
3) By Microservers: ARM-Based Microservers, Intel-Based Microservers
4) By Tower Servers: Entry-Level Tower Servers, Mid-Range Tower Servers, High-Performance Tower Servers

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Which region dominates the data center server market?
North America was the largest region in the data center server market in 2024. Asia-Pacific is expected to be the fastest-growing region in the data center server market report during the forecast period. The regions covered in the data center server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

Which key market leaders are driving the data center server industry growth?
Major companies operating in the data center server market include Hewlett Packard Enterprise Company LP, Dell Inc., International Business Machines Corporation, Fujitsu Ltd., Cisco Systems Inc., Lenovo Group Ltd., Oracle Corporation, Huawei Technologies Co. Ltd., Inspur Group, Bull Atos Technologies, NEC Corporation, Hitachi Systems Pvt. Ltd., Super Micro Computer Inc., Silicon Graphics International Corp., Intel Corporation., Iron Systems Inc., Rittal GmbH & Co. KG, Vertiv Co., Schneider Electric SE, AsusTek Computer Inc., Black Box Corporation, Quanta Computer Inc., Penguin Computing Inc., Advanced Micro Devices Inc., NVIDIA Corporation, Infortrend Technology Inc., DataDirect Networks Inc., Seagate Technology plc

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What Is Covered In The Data Center Server Global Market Report?

• Market Size Forecast: Examine the data center server market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the data center server market for a structured understanding.
• Key Players Overview: Analyze major players in the data center server market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the data center server market.
• Segment Contributions: Evaluate how different segments drive overall growth in the data center server market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the data center server market.
• Industry Challenges: Identify potential risks and obstacles affecting the data center server market.
• Competitive Landscape: Review strategic developments in the data center server market, including expansions, agreements, and new product launches.

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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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