How big is the servers technology market today, and what are its future growth expectations?
The servers technology market size has grown strongly in recent years. It will grow from $118.67 billion in 2024 to $128.98 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to the growing implementation of virtualization technologies, the increasing adoption of cloud computing solutions, the expanding need for big data and analytics capabilities, growing deployment of internet of things (IoT) devices in various sectors.
The servers technology market size is expected to see strong growth in the next few years. It will grow to $178.14 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to an increasing focus on edge computing, the growing integration of AI and machine learning, the rapid expansion of 5G rollout, the growing adoption of hybrid cloud solutions, and an increasing emphasis on cybersecurity measures. Major trends in the forecast period include the rise of arm-based servers, containerization and Kubernetes, sustainability, increasing serverless computing, and data center modernization.
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What have been the primary factors driving the servers technology market’s growth?
The rising shift towards cloud computing is expected to propel the growth of the server technology market going forward. Cloud computing is a technology that enables the delivery of various computing services such as servers, storage, databases, networking, software, and analytics over the internet, often referred to as cloud. The cloud’s ability to handle big data, support analytics, and integrate with IoT devices has opened new avenues for business insights and smart applications. Server technology in cloud computing hosts and manages the virtual infrastructure and applications, ensuring reliable and secure access to cloud services. For instance, in December 2023, according to the Eurostat statistics, a Luxembourg-based provider of statistical information and analysis 2023, 45.2% of European Union enterprises used cloud computing, up 4.2 percentage points from 2021. Therefore, the rising shift towards cloud computing will drive the growth of the server technology market.
What are the key segments within the servers technology market?
The servers technology market 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 key players are shaping 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
How will emerging trends drive the servers technology market throughout the forecast period?
Major companies operating in the server technology market are adopting AI and machine learning solutions, such as Edge AI servers, to enable faster decision-making and enhanced data security. Edge AI enhances server technology by providing real-time data processing and improved data security through localized edge computing. For instance, in September 2023, Lenovo Group Limited, a China-based multinational technology company, introduced new Edge AI services and solutions for businesses. These services offer unique features, such as real-time data processing capabilities and enhanced security for sensitive data through localized processing. The solutions include automated machine learning tools that simplify the deployment of AI models in various business environments. This advancement supports industries in leveraging AI for operational efficiency and innovation. Moreover, Lenovo is expanding its extensive product lineup by introducing the ThinkEdge SE455 V3, marking its entry into the market with a decisive edge server designed to enhance efficiency significantly.
How do regional factors impact the servers technology market, and which region is the largest contributor?
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.
What Does The Servers Technology Market Report 2025 Offer?
The servers technology market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Server technology involves the hardware and software that provide computing resources, data management, and network services to other devices, ensuring efficient operation and support for various applications and services. It is used to manage network resources, host websites and applications, store and retrieve data, provide email services, support database operations, and facilitate remote access and collaboration.
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