Data Center Server Market worth over $100bn by 2027
Published Date: February 9, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Server Market size is set to surpass USD 100 billion by 2027, according to a new research report by Global Market Insights, Inc.
The growing popularity of social media platforms globally has resulted in the high market demand for advanced data center server infrastructure for increased storage & networking requirements. There is a sharp rise in the number of consumers using platforms such as Facebook and Instagram in Asia Pacific and North America. Social media users are anticipated to exceed 255 million in the U.S. by 2023. South Korea had the third highest rate of active social media users globally as of January 2019. This rising data is driving the need for sophisticated IT infrastructures, augmenting the market growth. The industry will gain traction over the forecast timeframe, as server providers focus on upgrading their offerings to suit the changing end-user requirements.
The coronavirus pandemic negatively impacted the data center server market expansion in 2020 due to the temporary closure of industrial facilities following the stringent lockdown measures imposed in several countries. As new data center establishment projects were temporarily halted, the market witnessed a slight dip in 2020. Owing to restrictions imposed on travel, there were delays in the procurement of raw materials and components. However, the reopening of industrial facilities and international travel in the latter half of 2020, will gradually streamline the supply chains. This will positively impact the market in 2021. Also, the increasing use of services such as online retailing & banking and digital learning during the pandemic will propel the demand for high-quality data center server infrastructures for data traffic management.
High demand for blade servers that feature high processing power in compact space will boost the market value
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Blade servers accounted for 19% of the market share in 2020. A blade system comprises a chassis with slots for multiple blade servers, usually positioned vertically. Blades offer enhanced processing power in the same rack space, simplifying cable management and reducing power consuming. The growing popularity of modular data centers that feature compact size will spur the demand for blade servers. As blade systems feature high computing power in a compact space, the market will showcase growth over the forecast timeframe. IT infrastructure owners can benefit from these data center server modules, as they can easily expand the hardware as per end-user requirements. Blade servers also simplify the process of building a new capacity or optimizing the existing infrastructure with their smaller footprint and ease of management.
Browse key industry insights spread across 350 pages with 272 market data tables and 27 figures & charts from the report, “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” in detail along with the table of contents:
Growing penetration of digitalization across the BFSI sector will offer growth opportunities to the market
The BFSI sector is observing a revolution with the advent of online banking and digital payments. Increasing number of people are using smart cards and mobile wallets for payments. This has stressed the banking & financial sector to adopt advanced data center infrastructure solutions to manage the rising data traffic. Efficient data center server infrastructure optimizes data center operations with effective storage and networking of data. As increasing number of people use digital banking, data center downtime can result in high inconvenience to users and loss of vital information. This will influence the demand for sophisticated data center server solutions that ensure operational continuity. Banks are adopting cloud solutions for enhanced scalability and flexibility. This will foster the industry growth.
Large scale IT infrastructure development projects in APAC will fuel the demand for advanced data center server infrastructures
Asia Pacific data center server market growth can be attributed to the developing industrial sector. The increasing adoption of technologies, such as cloud computing and AI, across several industrial sectors has resulted in the rising industry demand for high-quality data center server infrastructures for storage and networking. To cater to the growing data traffic requirements, several data center operators have established large IT infrastructures in APAC market.
Introducing innovative data center server solutions forms a key trend amongst market players
Key companies operating in the market include Hitachi Ltd., Huawei Investment & Holding Co. Ltd., Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Lenovo Group Ltd., Oracle Corporation, Hewlett Packard Enterprise Co., International Business Machines Corp., NEC Corporation, and ATOS SE. The leaders in the industry are focusing on offering innovative solutions for several end-use verticals.