Data Center Server Market Size By Type (Rack, Tower, Blade, Micro), By Data Center Size (Small, Medium, Large), By Application (BFSI, IT & Telecom, Government, Healthcare, Energy, Manufacturing), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Data Center Server Market size exceeded USD 55 billion in 2020 and is poised to grow at over 9.5% CAGR between 2021 and 2027. The market growth is attributed to the high demand for efficient data center storage solutions across both developed and developing economies.
 

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The growing use of internet services globally has resulted in the sharp rise in the amount of digital data accumulated. This has boosted the data center industry, in turn, propelling the demand for data center servers. According to Cisco Systems, it is estimated that the global data center IP traffic will reach 20.6 ZB by 2021, increasing from 6.8 ZB in 2016. In January and February 2020, around 76% of adults in the UK utilized internet banking services. Rise in the demand for the storage and transfer of large volumes of data will provide several growth opportunities to the data center server market. With increasing number of users/consumers leveraging the benefits of internet, the market will gain traction.
 

The coronavirus (COVID-19) pandemic had a negative impact on the industry in 2020, due to stringent lockdowns imposed in several countries resulting in the temporary closure of industries and construction of new data centers. However, with the relaxations in lockdowns, followed by the resumption of industrial activities the market will regain traction in Q3 & Q4 2020 and 2021. The data center server market will witness high demand with the growing use of technologies such as mobile learning and video conferencing. Educational & corporate institutions are using these techniques to ensure social distancing.
 

High demand for compact servers will propel the demand for micro data center server

The U.S. data center server market size was over USD 10 billion in 2020 and is projected to expand at 6% CAGR during the forecast timespan. The market growth can be credited to the growing penetration of edge and micro data centers in the region over the recent years.
 

The companies operating in the region are launching high-performance and innovative data center server configurations. For instance, in February 2020, Dell Technologies Inc. introduced a new micro data center server that features a new small-footprint server, compact size, and a streaming analytics engine for analyzing and storing data at the edge. With this launch, the company aims to enhance its product offerings. The micro modular data center features a miniature rack inside a temperature-resistant enclosure. High demand for micro & edge data centers for enhanced operations in the U.S. will boost the market expansion.
 

The expanding colocation industry in Europe will fuel the demand for data center server modules from large data centers

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Poland data center server market is estimated to register growth of 5% through 2027 impelled by the expanding colocation sector, as players focus on expanding their footprint in the region. For instance, in March 2020, Equinix Inc. established its third data center in the country. The facility offers 475 cabinets and around 1,400 square meters of colocation space. Upon completion, the facility will include around 3,500 square meters of colocation space with capacity for around 1,200 cabinets.
 

The colocation sector has gained traction in Europe over the recent years as several businesses turn to colocation providers for their technical expertise. This will drive the market demand for high-quality servers from large-scale IT infrastructures.
 

The expanding IT & telecom sector globally will offer strong growth opportunities to the data center server market

Robust data center server infrastructures are crucial for the telecommunication sector, as IT & telecom providers focus on offering uninterrupted services to customers. Data center servers cater to the high-quality networking requirements of IT & telecom service providers. With the advent of 5G, there will be a sharp rise in data traffic, boosting the demand for robust IT infrastructures. IT & telecom providers upgrading their data center server to cater to the changing consumer demand will fuel the data center server market revenue.
 

Technology providers are entering into strategic partnerships with telecom providers to expand their market presence. For instance, in February 2020, Microsoft Corporation opened Azure cloud data center in Spain. Microsoft Corporation will leverage Telefonica S.A.’s infrastructure as a part of an expanded partnership with the telecom company.
 

Growing penetration of digitalization in South America will spur the demand for high-quality data center server solutions for data management

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The South America data center server market accounted for around 10% revenue share in 2020. Growing penetration of technologies such as digital learning and online banking is being witnessed in the region. Around 70% of the population used internet services in Brazil as of November 2019. In 2019, Brazilians had the highest average mobile application usage per day in the world, about 200 minutes in connected apps, 20 minutes more than the global average.
 

Increasing data traffic fuels, the market demand for robust IT infrastructures, such as data center servers, power & cooling, and networking equipment, that ensure efficient data storage and routing.
 

Offering solutions for varying end-user demands is the key strategy amongst market players

Key companies operating in the data center server market include Cisco Systems Inc., IBM Corporation, Dell Technologies Inc., Fujitsu Ltd., Hitachi Ltd., Huawei Technologies Co. Ltd., Lenovo Group Ltd., Hewlett Packard Enterprise Co., Oracle Corporation, NEC Corporation, and ATOS SE.
 

Industry players focus on introducing innovative data center server infrastructures to strengthen their offerings and boost their industry position. For instance, Hewlett Packard Enterprise Company offers servers & systems, software, data storage, networking, routers, edge IoT systems, servers for HPC, edge computing, supercomputing, and converged systems. In January 2020, Super Micro Computer Inc., a key market player unveiled NVIDIA GPU server test drive program with leading channel partners. The company’s partnership with NVIDIA in the program delivers an exclusive chance to test workloads on remote Supermicro servers using NVIDIA’s HGX A100 platforms.
 

The data center server market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
 

Market, By Type

• Rack
• Blade
• Tower
• Micro

Market, By Data Center Size

• Small
• Medium
• Large

Market, By Application

• BFSI
• Energy
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Benelux
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
• South America
  • Brazil
  • Argentina
  • Chile
  • Colombia
• MEA
  • Saudi Arabia
  • UAE
  • South Africa