Server Market to grow by USD 41.95 Billion (2024-2028), driven by rising adoption of edge computing, with AI driving market transformation - Technavio

Market Segmentation

By Product

• Rack

• Blade

• Micro

• Open Compute Project

• Tower

By End-User

• IT and Telecom

• BFSI

• Government and Defense

• Healthcare

• Others

By Geography

• North America

  • Canada

  • US

• Europe

  • Germany

  • UK

  • France

  • Italy

• APAC

  • China

  • India

  • Japan

  • South Korea

• South America

• Middle East and Africa

Regional Market Trends

North America

North America is projected to contribute 32% to the global server market growth during the forecast period. The region benefits from a mature IT infrastructure and high adoption of cloud computing, big data analytics, and AI-driven applications. Key industries, including IT and telecom, banking, healthcare, and government, continue to drive demand for advanced server solutions. The increasing focus on data security, sustainable IT systems, and energy-efficient servers is further shaping the market. Macroeconomic factors such as inflation, supply chain disruptions, and economic activity influence regional market growth.

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Market Dynamics

Key Drivers

• Edge computing is gaining traction due to its ability to process data closer to the source, reducing latency and enhancing real-time processing for IoT applications.
• Industries such as healthcare, e-commerce, and digital payments are investing heavily in cloud servers, AI, and IoT-driven infrastructure.
• Hyperscalers are playing a crucial role in expanding the server market by building large-scale data centers to support growing enterprise needs.

Key Trends

• AI-powered automation is revolutionizing server workload management, improving efficiency and resource allocation.
• Increasing demand for GPU server infrastructure is fueling market growth as businesses prioritize high-performance computing for AI, big data, and analytics.
• Hyperscalers are investing in energy-efficient IT infrastructure to enhance operational sustainability.

Challenges

• Rising cyber threats pose a major challenge to the server industry, particularly for sectors handling sensitive data, such as BFSI and healthcare.
• Organizations are adopting encryption, firewalls, and deep packet inspection (DPI) solutions to safeguard data integrity.
• Macroeconomic factors, including inflation, geopolitical instability, and supply chain disruptions, add to market complexities.

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Key Players

• Amazon.com Inc.

• ASUSTeK Computer Inc.

• Bloom Energy Corp.

• Cisco Systems Inc.

• Dell Technologies Inc.

• Fujitsu Ltd.

• Hewlett Packard Enterprise Co.

• Huawei Technologies Co. Ltd.

• Inspur Group

• Intel Corp.

• International Business Machines Corp.

• Lenovo Group Ltd.

• NEC Corp.

• NVIDIA Corp.

• Oracle Corp.

• Quanta Computer Inc.

• SAP SE

• SMART Global Holdings Inc.

• Super Micro Computer Inc.

Future Insights

The server market is set for continued growth as businesses prioritize digitalization, cloud adoption, and AI-driven solutions. The increasing reliance on edge computing, AI workload optimization, and cybersecurity advancements will play a critical role in shaping market trends. Hyperscalers and IT infrastructure leaders are expected to drive innovations in sustainable and high-performance server solutions, ensuring long-term market expansion.