Market Size of Enterprise Server Industry
Study Period | 2021 - 2029 |
Market Size (2024) | USD 87.96 Billion |
Market Size (2029) | USD 129.42 Billion |
CAGR (2024 - 2029) | 8.03 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Enterprise Server Market Analysis
The Enterprise Server Market size is estimated at USD 87.96 billion in 2024, and is expected to reach USD 129.42 billion by 2029, growing at a CAGR of 8.03% during the forecast period (2024-2029).
The market landscape is expected to witness strong innovations to enhance performance, speed, and memory to support the surge of Big Data, high-performance computing, and business intelligence applications.
- An enterprise server is a computer server that includes programs required to collectively serve the requirements of an enterprise instead of an individual unit, user, or specific application. An enterprise server provides consolidated connections, a choice of broadcast, TCP/IP, or multicast, as well as user-defined tools for conflation and hibernation, resulting in improved network and desktop performance.
- The market for enterprise servers is majorly driven by the increased investments in the capacity of hyperscale data centers to reshape the core server market. The server market is also expected to witness a server-refresh cycle, which may favorably impact market growth over the next few years.
- Furthermore, emerging technologies, such as flash storage, virtualization, and advanced management, may offer new avenues for market growth. New applications (developed to meet specific computing requirements of the enterprises and end users) are also expected to contribute significantly to the growth of the enterprise server market.
- With the current number of servers, managing data traffic, workload, and computing have been unable to keep up with the snowballing growth in data center traffic. With the increasing server computing capacity and virtualization, multiple workloads, and compute instances per physical server, there is a demand for more data centers to handle this load. This has been a significant factor driving investments in data center infrastructure across the world, significantly contributing to the growth of the enterprise server market.
- However, the high initial and installation costs related to using enterprise servers are one of the main concerns preventing their wider adoption. High-end corporate servers demand a significant level of technical skill to install and maintain, which is a barrier for the studied market.
Enterprise Server Industry Segmentation
An enterprise server is a computer server that includes programs needed to collectively serve the requirements of an enterprise instead of an individual user, department, or specialized application.
The enterprise server market is segmented by operating system (Linux, Windows, and UNIX), server-class (high-end server, mid-range server, and volume server), server type (blade, multi-node, tower, and rack-optimized), end-user vertical (IT and telecommunication, BFSI, retail, healthcare, and media and entertainment), and geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Operating System | |
Linux | |
Windows | |
UNIX | |
Other Operating Systems (i5/OS, z/OS, etc.) |
By Server Class | |
High-end Server | |
Mid-range Server | |
Volume Server |
By Server Type | |
Blade | |
Multi-node | |
Tower | |
Rack Optimized |
By End-user Vertical | |
IT and Telecommunication | |
BFSI | |
Manufacturing | |
Retail | |
Healthcare | |
Media and Entertainment | |
Other End-user Verticals |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East and Africa |
Enterprise Server Market Size Summary
The enterprise server market is poised for significant growth, driven by the increasing demand for enhanced performance and capacity to support Big Data, high-performance computing, and business intelligence applications. Enterprise servers, which serve the collective needs of organizations rather than individual users, are becoming essential as businesses seek to improve network and desktop performance through consolidated connections and user-defined tools. The market is experiencing a transformation due to substantial investments in hyperscale data centers and a server-refresh cycle, which are reshaping the core server market. Emerging technologies such as flash storage, virtualization, and advanced management are opening new avenues for growth, while the demand for more data centers to handle increasing data traffic is further propelling market expansion. However, high initial costs and the technical expertise required for installation and maintenance remain barriers to wider adoption.
The Asia-Pacific region is expected to witness the highest growth rate in the enterprise server market, fueled by the adoption of technologies like artificial intelligence, the Internet of Things, and Big Data across various industries. The region's growing data center services, driven by multinational and domestic enterprises shifting towards cloud service providers, are also contributing to market growth. Government policies, such as India's cloud computing policy, are expected to boost the number and size of data storage centers, further enhancing market prospects. The competitive landscape of the enterprise server market is characterized by the presence of numerous domestic and international players, with major companies like Hewlett Packard Enterprise, Dell Technologies, IBM, and Cisco Systems leading the market through product innovation and strategic mergers and acquisitions. Recent advancements, such as Lenovo's launch of ThinkSystem servers and IBM's ESS 3500, highlight the ongoing innovation and investment in the sector, underscoring the market's dynamic nature and potential for continued expansion.
Enterprise Server Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Adoption of Migration to the Cloud
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1.1.2 Growth of Big Data
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1.2 Market Restraints
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1.2.1 Adoption of Server Virtualization
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2. MARKET SEGMENTATION
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2.1 By Operating System
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2.1.1 Linux
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2.1.2 Windows
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2.1.3 UNIX
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2.1.4 Other Operating Systems (i5/OS, z/OS, etc.)
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2.2 By Server Class
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2.2.1 High-end Server
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2.2.2 Mid-range Server
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2.2.3 Volume Server
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2.3 By Server Type
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2.3.1 Blade
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2.3.2 Multi-node
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2.3.3 Tower
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2.3.4 Rack Optimized
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2.4 By End-user Vertical
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2.4.1 IT and Telecommunication
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2.4.2 BFSI
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2.4.3 Manufacturing
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2.4.4 Retail
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2.4.5 Healthcare
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2.4.6 Media and Entertainment
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2.4.7 Other End-user Verticals
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2.5 By Geography
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2.5.1 North America
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2.5.2 Europe
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2.5.3 Asia-Pacific
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2.5.4 Latin America
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2.5.5 Middle East and Africa
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Enterprise Server Market Size FAQs
How big is the Enterprise Server Market?
The Enterprise Server Market size is expected to reach USD 87.96 billion in 2024 and grow at a CAGR of 8.03% to reach USD 129.42 billion by 2029.
What is the current Enterprise Server Market size?
In 2024, the Enterprise Server Market size is expected to reach USD 87.96 billion.