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Surge In Data Traffic Drives The Data Center Server Market: Key Factor Driving The Growth In The Data Center Server Market
Data Center Server Market Share
What Is the Expected Data Center Server Market Size During the Forecast Period?
The size of the data center server market has consistently expanded over the recent years. The market is projected to increase from $56.9 billion in 2024 to $59.65 billion in 2025, experiencing a compound annual growth rate (CAGR) of 4.8%. Factors such as the surge in data creation, the uptake of cloud computing, virtualization and consolidation, the need for high-performance computing (HPC), and the rise of big data analytics have contributed to the historic growth period.
In the upcoming years, the data center server market size is poised for robust expansion. It is projected to increase to $82.34 billion in 2029, with a compound annual growth rate (CAGR) of 8.4%. This growth during the forecast period can be linked to factors such as the spread of the Internet of Things (IoT), efforts towards sustainability and green computing, improvements in cybersecurity, hybrid and multi-cloud adoption, and the expansion of AI and machine learning. Key trends for the forecast period include the adoption of open compute project (OCP) standards, emphasis on security in design, optimization of data centers, advances in high-performance computing (HPC), the emergence of software-defined infrastructure, and modular and scalable designs.
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What Are the High-Growth Segments in 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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What Key Drivers Are Expected to Influence Future Data Center Server Market Growth?
The expected rise in data traffic is set to fuel the expansion of the data center server market. Essentially, data traffic involves the heavy bandwidth usage necessary for consistently active network traffic routes. It serves the vital function in data center servers of arranging several, more or less distant, computer systems and enhancing visibility into network devices. As such, a surge in data traffic inevitably results in the growth of the data center server market. For example, in November 2022, 5G's share of mobile data traffic is predicted by Ericsson, a multinational networking and telecommunications company based in Sweden, to increase up to 69% by 2028. Besides, it's expected that the global average monthly data usage per smartphone will reach 19 GB in 2023, then escalate to 46 GB by the finish of 2028. Additionally, apart from traffic generated by Fixed Remote Access (FWA), global data traffic is expected to expand to around 90 EB monthly by the end of 2022 and rise nearly fourfold to 325 EB a month in 2028. Hence, the upsurge in organizational data traffic is pushing forward the data center server market growth.
Which Companies Hold the Largest Share Across Different Data Center Server Market Segments?
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
What Trends Are Driving Growth in The Data Center Server Market?
The progress in technology is becoming a prevalent trend within the data center server market. Top companies in this field are concentrating on crafting innovative enclosure management solutions to solidify their standing. For instance, Huawei Technologies Co., Ltd., a multinational tech firm based in China, unveiled a new product known as FusionModule2000 6.0, an intelligent modular data center solution, in November 2022. This product distinguishes itself with its small footprint, lower height, and reduced weight. This advanced smart modular data center solution aims to optimize energy efficiency at the edge. These solutions are tailored to provide channel partners with a competitive advantage while also promoting cost-effective green digitalization in businesses.
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What Are the Emerging Geographies for The Data Center Server Market Growth?
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
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Server Market?
2. What is the CAGR expected in the Data Center Server Market?
3. What Are the Key Innovations Transforming the Data Center Server Industry?
4. Which Region Is Leading the Data Center Server Market?
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