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Data Center Server Market Size (2024 - 2029)

The data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and rising investments by domestic players. This expansion is reflected in the market's capacity and infrastructure developments, such as the anticipated increase in IT load capacity and the construction of additional raised floor areas and racks. North America is expected to lead in rack installations, supported by a robust network of submarine cable systems enhancing global connectivity.

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Market Size of Data Center Server Industry

Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
CAGR (2024 - 2030) 15.50 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center Server Market Analysis

The Data Center Server Market is expected to register a CAGR of 15.5% during the forecast period.

The Global data center server market reached the value of USD 88.9 billion in the previous year, and it is further projected to register a CAGR of 15.5% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers globally.

  • The upcoming IT load capacity of the Global data center server market is expected to reach 71K MW by 2029.
  • The region's construction of raised floor area is expected to increase 273.9 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 14.2 million units by 2029. North America is expected to house the maximum number of racks by 2029.
  • There are close to 500 submarine cable systems connecting the regions globally, and many are under construction. One such submarine cable that is estimated to start service in 2025 is CAP-1, which stretches over 12,000 Kilometers with a landing point in Grover Beach, United States.

Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The global data center server market is segmented by form factor (blade server, rack server, and tower server), by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), by geography (North America, South America, Europe, Asia-Pacific, Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
Geography
North America
South America
Europe
Middle East
Africa
Asia-Pacific
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Data Center Server Market Size Summary

The global data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for enhanced data security regulations. The market is characterized by a robust expansion in IT load capacity and infrastructure, with substantial increases in raised floor area and rack installations anticipated in the coming years. North America is poised to lead in rack installations, supported by the proliferation of cloud services and telecom investments. The demand for cloud-based solutions is particularly strong in regions such as North America, Europe, and Asia, with countries like Australia witnessing a shift towards centralized data processing. This trend is further bolstered by the expansion of 5G networks and the rising adoption of online payment systems, which are expected to drive substantial growth in the data center server market.

In the Asia-Pacific region, rapid urbanization and a burgeoning internet user base are key factors propelling the demand for data center services. China and Australia are at the forefront, with China enhancing its computing capabilities and Australia optimizing data center resources through government initiatives. The increasing penetration of mobile internet in emerging markets like India and Indonesia is also contributing to market growth. Major players in the industry, such as Dell Inc., Hewlett Packard Enterprise, and Lenovo Group Limited, are focusing on expanding their regional presence and innovating their product offerings to meet the evolving demands of the market. The introduction of next-generation servers and advancements in artificial intelligence solutions are indicative of the industry's response to the growing need for high-performance computing capabilities.

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Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Adoption of cloud computing services

      2. 1.2.2 Large-scale commercialization of 5G networks

    3. 1.3 Market Restraints

      1. 1.3.1 Rising CapEx for data center construction

      2. 1.3.2 Cybersecurity Threats and Ransomware attacks

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 South America

      3. 2.3.3 Europe

      4. 2.3.4 Middle East

      5. 2.3.5 Africa

      6. 2.3.6 Asia-Pacific

Data Center Server Market Size FAQs

The Data Center Server Market is projected to register a CAGR of 15.5% during the forecast period (2024-2030)

Dell Inc., Hewlett Packard Enterprise, Lenovo Group Limited, Cisco Systems Inc. and IBM Corporation are the major companies operating in the Data Center Server Market.

Data Center Server Market Report Snapshots

Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)