Surge In Data Traffic Drives The Data Center Server Market: Core Growth Enabler in the Data Center Server Market, 2025

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What Will the Data Center Server Industry Market Size Be by 2025?

There has been consistent expansion in the size of the data center server market in the past few years. The market, which is forecasted to increase from $56.9 billion in 2024 to $59.65 billion in 2025, is set to experience a compound annual growth rate (CAGR) of 4.8%. The surge in growth over the historical period can be traced back to the explosion of data, the adoption of cloud computing, an increase in virtualization and consolidation, the rising need for high-performance computing (HPC), and the advent of big data analytics.

What's the Long-Term Growth Forecast for the Data Center Server Market Size Through 2029?

The size of the data center server market is predicted to experience robust expansion in the coming years, with an estimated value of $82.34 billion in 2029 and a compound annual growth rate (CAGR) of 8.4%. The forthcoming growth can be credited to the spread of IoT, commitment to sustainability and green computing, improvements in cybersecurity, the embrace of hybrid and multi-cloud systems, and the escalation of AI and machine learning. Key trends for the forecasted period encompass the adoption of open compute project (OCP) standards, a focus on security-driven designs, optimization of data centers, advances in high-performance computing (HPC), the emergence of software-defined infrastructure, and the rise of modular and scalable designs.

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What Are the Key Growth Drivers Fueling the Data Center Server Market Expansion?

The data center server market is predicted to see expansion due to a rise in data traffic. This pertains to the considerable bandwidth used for persistent and heavily active network traffic paths. It is utilized by data center servers to coordinate various remote computer systems, and boost network device transparency. As a result, the data center server market will likely be stimulated by an escalation in data traffic. For instance, Ericsson, a multinational networking and telecommunications corporation based in Sweden, predicted in November 2022 that the proportion of mobile data traffic that 5G will account for is set to augment to 69% by 2028. Additionally, the worldwide average data usage per smartphone monthly is expected to reach 19 GB in 2023 and is predicted to increase to 46 GB by 2028's conclusion. Moreover, the total global data traffic, excluding the traffic produced by Fixed Wireless Access (FWA), is projected to expand to around 90 EB per month by the end of 2022. This is predicted to escalate by almost fourfold, hitting 325 EB each month in 2028. Consequently, the growth in company data traffic is paving the way for the growth of the data center server market.

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What Are the Key Trends Driving Data Center Server Market Growth?

The burgeoning trend of tech advancements is ascending in prominence in the realm of the data center server market. Key corporate players in this market space are directing their efforts towards the creation of novel enclosure management solutions, aiming to enhance their market dominance. For example, Huawei Technologies Co., Ltd., a multinational technology corporation with roots in China, introduced an inventive product referred to as FusionModule2000 6.0 in November 2022. This is a smart modular data center solution presenting unique characteristics like a small footprint, low height, and decreased weight. This advanced smart modular data center solution was engineered to boost energy efficiency on the edge. The product is uniquely tailored to equip channel partners with a market edge, all while advocating for green digitalization in businesses in a financially responsible way.

How Is the Data Center Server Market Segmented?

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 Companies Are Leading the Charge in Data Center Server Market Innovation?

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

Which Regions Are Leading the Global Data Center Server Market in Revenue?

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

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