Emerging Trends to Drive Data Center Server Market Growth at 8% CAGR Through 2029

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Data Center Server Market Size Growth Forecast: What to Expect by 2025?
Over the past few years, the data center server market has seen consistent growth. It is projected to expand from $56.9 billion in 2024 to $59.31 billion in 2025, with a compound annual growth rate (CAGR) of 4.2%. This growth during the historical period is linked to the surge in data generation, the uptake of cloud computing, virtualization and consolidation, the need for high-performance computing (HPC), and the rise of big data analytics.

How Will the Data Center Server Market Size Evolve and Grow by 2029?
The size of the data center server market is projected to witness substantial expansion in the upcoming years, with expectations of reaching $80.67 billion by 2029, growing at an 8.0% compound annual growth rate (CAGR). This projected growth during the forecast period can be linked to the widespread use of IoT, the drive for sustainability and green computing, enhancements in cybersecurity, and the acceptance of hybrid and multi-cloud solutions, as well as the development of AI and machine learning. Noteworthy trends predicted during this forecast period comprise the adoption of open compute project (OCP) standards, designs that revolve around security, optimization of data centers, advancements in high-performance computing (HPC), the emergence of software-defined infrastructure, and the adoption of modular and scalable designs.

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What Drivers Are Propelling the Growth of Data Center Server Market Forward?
The surge in data traffic is predicted to fuel the growth of the data center server market. Data traffic, characterized by heavy bandwidth use on highly active and consistent network traffic routes, is employed within data center servers to manage varying remote computer systems and enhance the clarity of network devices. Thus, an upsurge in data traffic could act as a catalyst for the data center server market. For example, Ericsson, a multinational networking and telecommunications firm based in Sweden, predicted in November 2022 that 5G will constitute 69% of mobile data traffic by 2028. Moreover, the average monthly global data usage per smartphone is expected to reach 19 GB in 2023 and is projected to escalate to 46 GB by 2028. Alongside, the total global data traffic excluding Fixed Remote Access (FWA) traffic is deemed to approximatively expand to around 90 EB monthly by the end of 2022 and is anticipated to grow by nearly four times, reaching 325 EB monthly by 2028. Hence, the escalation in data traffic at the organizational level is spurring the growth of the data center server market.

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Which Emerging Trends Are Transforming the Data Center Server Market in 2025?
The emergence of new technology is a significant trend that is becoming increasingly popular in the data center server market. Major firms in the industry are concentrating on the development of innovative enclosure management solutions to bolster their market position. An excellent example is from November 2022, where Huawei Technologies Co., Ltd, a multi-national technological corporation based in China, introduced an inventive product named FusionModule2000 6.0 - a smart modular data center solution. This product has unique attributes like a compact footprint, reduced height, and lightweight. It's an enhanced version of the smart modular data center solution designed to optimize energy efficiency at the edge. These products are strategically developed to provide channel partners with a competitive advantage in the market, while promoting green digitalization for businesses in an affordable way.

What Are the Key Segments in the Data Center Server Market?
The data center servermarket 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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Who Are the Key Players Shaping the Data Center Server Market's Competitive Landscape?
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 Geographic Markets Are Powering Growth in 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

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