Rising Cloud Adoption Boosts Servers Technology Market Emerges as a Core Driver of the Servers Technology Market in 2025

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What Is the Expected CAGR for the Servers Technology Market Through 2025?
The market size of server technology has been experiencing robust growth over the recent past. The market forecast shows a shift from $118.67 billion in 2024 to $128.41 billion in 2025, marking a compound annual growth rate (CAGR) of 8.2%. The growth recorded in the historic period is primarily due to the increasing use of virtualization technologies, widespread acceptance of cloud computing solutions, the rising demand for big data and analytics capabilities, and the enhanced deployment of internet of things (IoT) devices across diverse industries.

What's the Projected Size of the Global Servers Technology Market by 2029?
Expectations are high for robust expansion in the servers technology market over the coming years, with projections it will escalate to $174.55 billion by 2029, a compound annual growth rate (CAGR) of 8.0%. This predicted growth during the forecast period is due to factors such as the burgeoning focus on edge computing, the integrated application of AI and machine learning, the swift proliferation of 5G network infrastructure, the escalating use of hybrid cloud solutions, and a heightening emphasis on cybersecurity protocols. Notable trends during the forecast period include the emergence of arm-based servers, the adoption of containerization and Kubernetes, a focus on sustainability, a rise in serverless computing, and the modernization of data centers.

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Top Growth Drivers in the Servers Technology Industry: What's Accelerating the Market?
The growth of the server technology market is expected to be fueled by the increasing transition to cloud computing. The technique of cloud computing allows for the distribution of different computing services, including servers, storage, databases, networking, software, and analytics through the internet, commonly referred to as the cloud. The cloud's capability to manage big data, facilitate analytics, and integrate with IoT devices has created new opportunities for business insights and intelligent applications. Server technology in cloud computing provides and manages the virtual infrastructure and applications, securing reliable and safe access to cloud services. For example, the Eurostat statistics in December 2023 showed that a Luxembourg-based provider of statistical data and analysis in 2023 had 45.2% of European Union businesses using cloud computing, which is a 4.2 percentage point increase from 2021. Hence, the growing shift towards cloud computing will boost the server technology market's growth.

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What Trends Will Shape the Servers Technology Market Through 2029 and Beyond?
Leading organizations in the server technology sector are embracing AI and machine learning technologies, like Edge AI servers, to facilitate swift decision-making and bolster data protection. Edge AI bolsters server technology with instantaneous data processing and superior data security due to local edge computing. For example, Lenovo Group Limited, a global technology firm based in China, unveiled new Edge AI services and solutions for corporations in September 2023. These services come with distinctive attributes such as instant data processing abilities and reinforced security for confidential data through on-site processing. The solutions comprise automated machine learning instruments that streamline the application of AI models across different business environments. This development assists industries in harnessing AI to boost operational efficiency and innovation. Additionally, Lenovo is augmenting its comprehensive product range with the rollout of the ThinkEdge SE455 V3, signifying its inaugural step into the market with a definitive edge server created to notably improve efficiency.

What Are the Main Segments in the Servers Technology Market?
The servers technologymarket covered in this report is segmented -

1) By Product: Blade, Micro, Open Compute Project, Rack, Tower
2) By Enterprise Size: Micro, Small, Medium, Large
3) By End User: Banking, Financial Services And Insurance (BFSI), Energy, Government And Defense, Healthcare, Information And Technology (IT) And Telecom, Other End Users

Subsegments:
1) By Blade: High-Density Blade Servers, Modular Blade Servers, Enterprise Blade Servers
2) By Micro: Low-Power Micro Servers, Compact Micro Servers, ARM-Based Micro Servers
3) By Open Compute Project (OCP): OCP Rack Servers, OCP Storage Servers, OCP Networking Servers
4) By Rack: Standard Rack Servers, High-Density Rack Servers, GPU-Optimized Rack Servers
5) By Tower: Entry-Level Tower Servers, Mid-Range Tower Servers, Enterprise Tower Servers

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Which Top Companies are Driving Growth in the Servers Technology Market?
Major companies operating in the servers technology market are Microsoft Corporation, Dell Technologies Inc, Huawei Technologies Co. Ltd., Amazon Web Services (AWS), Tencent Holdings Ltd., Lenovo Group Limited, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc, Oracle Corporation, Quanta Computer Inc, Wistron Corporation, Micron Technology Inc, Hewlett Packard Enterprise (HPE), Fujitsu Limited, NVIDIA Corporation, NEC Corporation, ZTE Corporation, ASUSTeK Computer Inc, Alibaba Cloud, Acer Incorporated, Super Micro Computer Inc., Juniper Networks Inc, Rackspace Technology, Inspur Group Co Ltd, Cray Inc, Penguin Computing Inc

Which Regions Will Dominate the Servers Technology Market Through 2029?
North America was the largest region in the servers technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the servers technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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