Data center server market size is estimated to grow by USD 115 billion from 2022 to 2027, Use of server disaggregation to improve utilization rate to be a leading trend - Technavio

NEW YORK, Feb. 23, 2023 /PRNewswire/ -- According to Technavio, the global data center server market size is estimated to grow by USD 115 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 15.27% during the forecast period. Moreover, the growth momentum will accelerate. North America will account for 35% of the market's growth. The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on the historic (2017 to 2021) and forecast market size (2022 to 2027) - Request a sample report

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Data center server market - Segmentation Assessment
Segment Overview
Technavio has segmented the market based on application (Commercial server and Industrial server), and type (Rack server, Blade server, Tower server, Microserver, and Open compute project (OCP) server).

• The commercial server segment will grow at a significant rate during the forecast period. Digital transformation initiatives such as digital transactions, cybersecurity, and accounting require flexible and agile data centers to support the changing needs of your business. Organizations may need to scale resources such as computing and storage to support changing business needs. Commercial servers can provision resources as needed and their flexible pricing model makes them an ideal choice for businesses. Hence, the ongoing digital transformation will increase the demand for data centers and make use of commercial servers. These will drive the growth of the focused market during the forecast period. 

Geography Overview
By geography, the global data center server market is segmented into North America, APAC, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global data center server market.

• North America is estimated to account for 35% of the growth of the global market during the forecast period. Factors such as the higher investments by hyper-scale cloud providers, colocation service providers, and enterprises that are upgrading their IT infrastructure to support edge computing, 5G, multi-cloud services, big data analytics, and IoT. The US is the data center hub in North America, with Atlanta, Northern Virginia, Chicago, Dallas/Ft. Worth and Silicon Valley dominate the data center market in the region. Several data center service providers and enterprises have announced their expansion plans, which would drive the server market in the region.

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Data center server market – Market Dynamics
Key factor driving market growth

• The investments in scaling up in-house data centers are notably driving the market growth. 
• Despite the rapid adoption of cloud services, enterprises are investing more and more in expanding their internal data centers.
• This is due to the growing preference of enterprises to adopt a hybrid cloud approach rather than offloading their entire computing needs to the public cloud.
• Nowdays enterprises are choosing a more viable hybrid cloud alternative because the public cloud offers several advantages.
• In a hybrid cloud model, business-critical applications are hosted in a private cloud environment (either in your own data center or an off-premises private cloud) and other applications are moved to the public cloud.
• As such, the market is seeing a surge in demand from companies that are increasing the number of servers in their in-house data centers. 

Leading trends influencing the market 

• The use of server disaggregation to improve utilization rates is the key trend in the market. 
• Server disaggregation refers to logically breaking up the server's components into subsystems - memory and compute. Data centers are looking at alternatives that can enhance their server utilization rates and subsequently reduce their power consumption.
• Server disaggregation helps prevent the replacement of the entire server to substitute just one part or component. Depending on the requirements, resources can be procured to add to the respective system independently.
• Disaggregated servers can be reused for different applications with different resource requirements. These benefits will help the market in focus grow during the forecast period.

Major challenges hindering market growth

• Server workload optimization is the major challenge the market growth. 
• Advanced technologies such as big data analytics and artificial intelligence enable companies to analyze vast and detailed data sets to provide relevant and timely insights on various aspects of their business can be obtained.
• Enterprises and data center service providers, therefore, require sophisticated and powerful servers to handle these workloads.
• As these workloads impact server computing power, enterprises, and data center service providers face the challenge of optimally utilizing server computing power when upgrading existing infrastructure.
• Other concerns include power and physical space limitations in data centers, and an unexpected surge in enterprise server capacity requirements, further complicating matters. 

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What are the key data covered in this data center server market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the data center server market between 2023 and 2027
• Precise estimation of the size of the data center server market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the data center server market across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of data center server market vendors

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Table of contents

1 Executive Summary

• 1.1 Market overview
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Application
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Type
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global data center server market 2017 - 2021 
• Exhibit 18: Historic Market Size – Data Table on Global data center server market 2017 - 2021 ($ billion)

• 4.2 Application Segment Analysis 2017 - 2021 
• Exhibit 19: Historic Market Size – Application Segment 2017 - 2021 ($ billion)

• 4.3 Type Segment Analysis 2017 - 2021 
• Exhibit 20: Historic Market Size – Type Segment 2017 - 2021 ($ billion)

• 4.4 Geography Segment Analysis 2017 - 2021 
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ billion)

• 4.5 Country Segment Analysis 2017 - 2021 
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

• 5.1 Five forces summary
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Application

• 6.1 Market segments
• Exhibit 30: Chart on Application - Market share 2022-2027 (%)
• Exhibit 31: Data Table on Application - Market share 2022-2027 (%)

• 6.2 Comparison by Application 
• Exhibit 32: Chart on Comparison by Application
• Exhibit 33: Data Table on Comparison by Application

• 6.3 Commercial server - Market size and forecast 2022-2027 
• Exhibit 34: Chart on Commercial server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 35: Data Table on Commercial server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 36: Chart on Commercial server - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Commercial server - Year-over-year growth 2022-2027 (%)

• 6.4 Industrial server - Market size and forecast 2022-2027 
• Exhibit 38: Chart on Industrial server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 39: Data Table on Industrial server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 40: Chart on Industrial server - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Industrial server - Year-over-year growth 2022-2027 (%)

• 6.5 Market opportunity by Application 
• Exhibit 42: Market opportunity by Application ($ billion)

7 Market Segmentation by Type

• 7.1 Market segments
• Exhibit 43: Chart on Type - Market share 2022-2027 (%)
• Exhibit 44: Data Table on Type - Market share 2022-2027 (%)

• 7.2 Comparison by Type
• Exhibit 45: Chart on Comparison by Type
• Exhibit 46: Data Table on Comparison by Type

• 7.3 Rack server - Market size and forecast 2022-2027 
• Exhibit 47: Chart on Rack server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 48: Data Table on Rack server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 49: Chart on Rack server - Year-over-year growth 2022-2027 (%)
• Exhibit 50: Data Table on Rack server - Year-over-year growth 2022-2027 (%)

• 7.4 Blade server - Market size and forecast 2022-2027 
• Exhibit 51: Chart on Blade server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 52: Data Table on Blade server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 53: Chart on Blade server - Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Blade server - Year-over-year growth 2022-2027 (%)

• 7.5 Tower server - Market size and forecast 2022-2027 
• Exhibit 55: Chart on Tower server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 56: Data Table on Tower server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 57: Chart on Tower server - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Tower server - Year-over-year growth 2022-2027 (%)

• 7.6 Microserver - Market size and forecast 2022-2027 
• Exhibit 59: Chart on Microserver - Market size and forecast 2022-2027 ($ billion)
• Exhibit 60: Data Table on Microserver - Market size and forecast 2022-2027 ($ billion)
• Exhibit 61: Chart on Microserver - Year-over-year growth 2022-2027 (%)
• Exhibit 62: Data Table on Microserver - Year-over-year growth 2022-2027 (%)

• 7.7 Open compute project (OCP) server - Market size and forecast 2022-2027 
• Exhibit 63: Chart on Open compute project (OCP) server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 64: Data Table on Open compute project (OCP) server - Market size and forecast 2022-2027 ($ billion)
• Exhibit 65: Chart on Open compute project (OCP) server - Year-over-year growth 2022-2027 (%)
• Exhibit 66: Data Table on Open compute project (OCP) server - Year-over-year growth 2022-2027 (%)

• 7.8 Market opportunity by Type 
• Exhibit 67: Market opportunity by Type ($ billion)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 68: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 69: Chart on Market share by geography 2022-2027 (%)
• Exhibit 70: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 71: Chart on Geographic comparison
• Exhibit 72: Data Table on Geographic comparison

• 9.3 North America - Market size and forecast 2022-2027 
• Exhibit 73: Chart on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 74: Data Table on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 75: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 76: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.4 APAC - Market size and forecast 2022-2027 
• Exhibit 77: Chart on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 78: Data Table on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 79: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 80: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.5 Europe - Market size and forecast 2022-2027 
• Exhibit 81: Chart on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 82: Data Table on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 83: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 84: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.6 South America - Market size and forecast 2022-2027 
• Exhibit 85: Chart on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 86: Data Table on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 87: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 88: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.7 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 89: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 90: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 91: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 92: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.8 US - Market size and forecast 2022-2027 
• Exhibit 93: Chart on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 94: Data Table on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 95: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 96: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.9 China - Market size and forecast 2022-2027 
• Exhibit 97: Chart on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 98: Data Table on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 99: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 100: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.10 UK - Market size and forecast 2022-2027 
• Exhibit 101: Chart on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 102: Data Table on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 103: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 104: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.11 Australia - Market size and forecast 2022-2027 
• Exhibit 105: Chart on Australia - Market size and forecast 2022-2027 ($ billion)
• Exhibit 106: Data Table on Australia - Market size and forecast 2022-2027 ($ billion)
• Exhibit 107: Chart on Australia - Year-over-year growth 2022-2027 (%)
• Exhibit 108: Data Table on Australia - Year-over-year growth 2022-2027 (%)

• 9.12 Japan - Market size and forecast 2022-2027 
• Exhibit 109: Chart on Japan - Market size and forecast 2022-2027 ($ billion)
• Exhibit 110: Data Table on Japan - Market size and forecast 2022-2027 ($ billion)
• Exhibit 111: Chart on Japan - Year-over-year growth 2022-2027 (%)
• Exhibit 112: Data Table on Japan - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 113: Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges 
• Exhibit 114: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape
• Exhibit 115: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption
• Exhibit 116: Overview on factors of disruption

• 11.4 Industry risks
• Exhibit 117: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered
• Exhibit 118: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 119: Matrix on vendor position and classification

• 12.3 Atos SE
• Exhibit 120: Atos SE - Overview
• Exhibit 121: Atos SE - Business segments
• Exhibit 122: Atos SE - Key news
• Exhibit 123: Atos SE - Key offerings
• Exhibit 124: Atos SE - Segment focus

• 12.4 Cisco Systems Inc.
• Exhibit 125: Cisco Systems Inc. - Overview
• Exhibit 126: Cisco Systems Inc. - Business segments
• Exhibit 127: Cisco Systems Inc. - Key news
• Exhibit 128: Cisco Systems Inc. - Key offerings
• Exhibit 129: Cisco Systems Inc. - Segment focus

• 12.5 Dell Technologies Inc. 
• Exhibit 130: Dell Technologies Inc. - Overview
• Exhibit 131: Dell Technologies Inc. - Business segments
• Exhibit 132: Dell Technologies Inc. - Key news
• Exhibit 133: Dell Technologies Inc. - Key offerings
• Exhibit 134: Dell Technologies Inc. - Segment focus

• 12.6 Egenera Inc.
• Exhibit 135: Egenera Inc. - Overview
• Exhibit 136: Egenera Inc. - Product / Service
• Exhibit 137: Egenera Inc. - Key offerings

• 12.7 Fujitsu Ltd.
• Exhibit 138: Fujitsu Ltd. - Overview
• Exhibit 139: Fujitsu Ltd. - Business segments
• Exhibit 140: Fujitsu Ltd. - Key news
• Exhibit 141: Fujitsu Ltd. - Key offerings
• Exhibit 142: Fujitsu Ltd. - Segment focus

• 12.8 Hewlett Packard Enterprise Co. 
• Exhibit 143: Hewlett Packard Enterprise Co. - Overview
• Exhibit 144: Hewlett Packard Enterprise Co. - Business segments
• Exhibit 145: Hewlett Packard Enterprise Co. - Key news
• Exhibit 146: Hewlett Packard Enterprise Co. - Key offerings
• Exhibit 147: Hewlett Packard Enterprise Co. - Segment focus

• 12.9 Hitachi Ltd.
• Exhibit 148: Hitachi Ltd. - Overview
• Exhibit 149: Hitachi Ltd. - Business segments
• Exhibit 150: Hitachi Ltd. - Key news
• Exhibit 151: Hitachi Ltd. - Key offerings
• Exhibit 152: Hitachi Ltd. - Segment focus

• 12.10 Huawei Investment and Holding Co. Ltd. 
• Exhibit 153: Huawei Investment and Holding Co. Ltd. - Overview
• Exhibit 154: Huawei Investment and Holding Co. Ltd. - Business segments
• Exhibit 155: Huawei Investment and Holding Co. Ltd. - Key news
• Exhibit 156: Huawei Investment and Holding Co. Ltd. - Key offerings
• Exhibit 157: Huawei Investment and Holding Co. Ltd. - Segment focus

• 12.11 Inspur Systems Inc.
• Exhibit 158: Inspur Systems Inc. - Overview
• Exhibit 159: Inspur Systems Inc. - Product / Service
• Exhibit 160: Inspur Systems Inc. - Key offerings

• 12.12 International Business Machines Corp. 
• Exhibit 161: International Business Machines Corp. - Overview
• Exhibit 162: International Business Machines Corp. - Business segments
• Exhibit 163: International Business Machines Corp. - Key news
• Exhibit 164: International Business Machines Corp. - Key offerings
• Exhibit 165: International Business Machines Corp. - Segment focus

• 12.13 Iron Systems Inc.
• Exhibit 166: Iron Systems Inc. - Overview
• Exhibit 167: Iron Systems Inc. - Product / Service
• Exhibit 168: Iron Systems Inc. - Key offerings

• 12.14 Lenovo Group Ltd.
• Exhibit 169: Lenovo Group Ltd. - Overview
• Exhibit 170: Lenovo Group Ltd. - Business segments
• Exhibit 171: Lenovo Group Ltd. - Key offerings
• Exhibit 172: Lenovo Group Ltd. - Segment focus

• 12.15 NEC Corp.
• Exhibit 173: NEC Corp. - Overview
• Exhibit 174: NEC Corp. - Business segments
• Exhibit 175: NEC Corp. - Key news
• Exhibit 176: NEC Corp. - Key offerings
• Exhibit 177: NEC Corp. - Segment focus

• 12.16 Oracle Corp.
• Exhibit 178: Oracle Corp. - Overview
• Exhibit 179: Oracle Corp. - Business segments
• Exhibit 180: Oracle Corp. - Key news
• Exhibit 181: Oracle Corp. - Key offerings
• Exhibit 182: Oracle Corp. - Segment focus

• 12.17 Quanta Computer Inc.
• Exhibit 183: Quanta Computer Inc. - Overview
• Exhibit 184: Quanta Computer Inc. - Business segments
• Exhibit 185: Quanta Computer Inc. - Key offerings
• Exhibit 186: Quanta Computer Inc. - Segment focus

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist 
• Exhibit 187: Inclusions checklist
• Exhibit 188: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 189: Currency conversion rates for US$

• 13.4 Research methodology
• Exhibit 190: Research methodology
• Exhibit 191: Validation techniques employed for market sizing
• Exhibit 192: Information sources

• 13.5 List of abbreviations 
• Exhibit 193: List of abbreviations

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

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