The global market for AI servers is forecast to be worth 430 billion U.S. dollars by 2033, up from just 31 billion U.S. dollars in 2023. AI servers are designed to meet the demands of intensive AI applications such as machine learning.

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AI Servers Market Size 2024-2028

The AI servers market size is forecast to increase by USD 41.64 billion at a CAGR of 18.5% between 2023 and 2028.

The market for advanced server technology is experiencing significant growth due to the increasing demand for data processing and neural network training. Key drivers include the digital transformation in various industries and the rapid development of AI-specific hardware, such as Tensor Processing Units (TPUs) and Graphics Processing Units (GPUs). However, high initial costs remain a challenge for some organizations. Integration, testing, and customization requirements add to the complexity of implementation. Furthermore, the increasing use of cameras and other data sources necessitates substantial bandwidth use. Deep learning applications, in particular, require massive amounts of data and computational power. Hardware investment is essential to remain competitive in this evolving landscape. The market analysis report provides insights into these trends and challenges, enabling businesses to make informed decisions regarding their hardware investments. 

What will be the Size of the Market During the Forecast Period?

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Artificial Intelligence (AI) has become an essential component of business strategies across various industries. AI servers play a crucial role in facilitating the deployment, scalability, and performance of AI applications. In this context, AI servers refer to specialized hardware and software solutions designed to support AI workloads. AI servers enable businesses to process large volumes of data and execute complex AI algorithms efficiently. The integration of AI servers in business operations leads to enhanced data analysis capabilities, improved decision-making processes, and increased operational efficiency. AI servers offer several advantages, including high performance, scalability, compatibility, and reliability.
Furthermore, these servers are specifically designed to handle the unique requirements of AI workloads, such as high computational power, large memory capacity, and GPU processing capabilities. AI server hardware is optimized to deliver superior performance, with advanced cooling systems to maintain optimal operating temperatures. The software component of AI servers offers features such as virtualization, integration with various AI frameworks, and monitoring tools to ensure optimal performance and maintain AI models. AI server security is another critical aspect, with robust encryption and access control mechanisms to protect sensitive data and prevent unauthorized access.
Additionally, AI server maintenance is essential to ensure continuous operation and minimize downtime. The adoption of AI servers is on the rise, driven by the increasing demand for data-driven decision-making and the need for real-time processing of large data sets. AI servers are being used in various sectors, including finance, retail, healthcare, transportation, and logistics, to name a few. In conclusion, AI servers are a vital component of modern business operations, providing the necessary infrastructure for deploying, scaling, and maintaining AI applications. Their high performance, scalability, compatibility, reliability, and security make them an essential investment for businesses looking to leverage AI to gain a competitive edge.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  GPU-based servers
  Edge AI servers
  AI cloud servers
  TPU-based AI servers
  Others


End-user

  IT and cloud service providers
  Financial services and banking
  Healthcare
  Automotive
  Others


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  South America

    Brazil


  Middle East and Africa

By Type Insights

The GPU-based servers segment is estimated to witness significant growth during the forecast period.

The market encompasses various types, with GPU-based servers being a significant segment due to their energy efficiency and ability to handle computationally intensive tasks. These servers incorporate one or more GPUs, which offer increased power and speed, making them suitable for demanding applications such as video rendering, data analytics, and machine learning. Dedicated GPU servers often include specialized CPUs, substantial RAM, and storage.

Furthermore, the parallel architecture of GPUs, initially engineered for graphics and video processing, allows these servers to process multiple tasks simultaneously at faster rates than traditional CPU-based servers. This technology's susta

The value of the Chinese AI server market was almost 50 billion yuan in 2023. According to the estimate, the market value would reach 56 billion yuan by 2024. Computer systems with a high processing power are a prerequisite to the development of China's artificial intelligence industry. One of the leading AI server manufacturers was Huawei.

The Artificial Intelligence Server Market is projected to grow at 20.8% CAGR, reaching $62.95 Billion by 2029. Where is the industry heading next? Get the sample report now!

The market of cloud-based graphics processing unit (GPU) servers for artificial intelligence (AI) in Japan was projected to reach a size of 74.2 billion Japanese yen in fiscal year 2024. The market, which refers to cloud services that use GPU servers via the internet and does not include local GPU servers, was forecast to more than triple in size by fiscal year 2028.

The global AI server market is expected to expand from USD 45.4 billion in 2024 to USD 440.46 billion by 2037, witnessing a CAGR of over 19.1% throughout the forecast period, between 2025 and 2037. Key industry players include Dell Technologies, Open AI, Amazon, Google, among others.

The global liquid-cooled AI server market size was valued at USD 13.79 billion in 2025 and is projected to reach USD 34.88 billion by 2033, exhibiting a CAGR of 12.9% during the forecast period. The growing demand for high-performance computing applications in various industries, such as healthcare, manufacturing, and finance, is driving the market growth. Additionally, advancements in liquid cooling technology, such as the adoption of multi-phase cooling and direct-to-chip cooling, are enabling AI servers to operate at higher power densities, further fueling market expansion. Key factors driving the market include the exponential growth of data, the increasing adoption of AI and ML algorithms, and the need for energy-efficient data centers. However, the high cost of liquid-cooled servers and the lack of skilled professionals to manage and maintain them may restrain market growth to some extent. Major players in the liquid-cooled AI server market include Inspur, Dell, HPE, Lenovo, Huawei, IBM, Nvidia, H3C, Cisco, and Oracle. The North American region dominates the market, followed by Europe and Asia-Pacific. The Asia-Pacific region is expected to witness significant growth during the forecast period due to the rapidly growing AI and ML adoption in countries like China, India, and Japan.

In 2024, around 57 percent of the AI server market in China consisted of hardware for AI model training. The remainder was designated for doing the regular computations. Currently, the industry still needs a lot of computing power to train the AI models, but with the application development of generative AI applications, it is expected that inference-based servers will gradually become the mainstream of the market in the future.

The global computer server market, valued at $81.74 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 10.05% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of cloud computing and big data analytics necessitates high-performance computing infrastructure, driving demand for advanced server solutions. Furthermore, the digital transformation initiatives undertaken by large enterprises and small and medium-sized enterprises (SMEs) across diverse sectors, including finance, healthcare, and retail, are significantly contributing to market growth. The rising need for enhanced data processing capabilities and improved IT infrastructure to support remote work and evolving business models further propels market expansion. Technological advancements, such as the introduction of artificial intelligence (AI) and machine learning (ML) applications, are also stimulating demand for specialized servers equipped to handle complex computational tasks. Competitive dynamics are shaped by established players like Dell Technologies, Hewlett Packard Enterprise, and Huawei, along with emerging players offering innovative solutions. Geographic growth is expected to be widespread, with North America and APAC regions anticipated to be major contributors due to high technological adoption and expanding digital economies. The market segmentation by end-user (large enterprises and SMEs) reflects the broad applicability of computer servers across various organizational scales. While large enterprises often invest in extensive server infrastructures for their complex data processing needs, SMEs are increasingly adopting server solutions to enhance operational efficiency and competitiveness. Regional variations in market growth will be influenced by factors such as economic development, digital infrastructure investment, and government policies promoting technological advancements. While the market faces challenges like supply chain disruptions and economic uncertainties, the overall outlook remains positive due to the continuing trend towards digitalization and the ever-increasing demand for robust computing power. The competitive landscape will likely witness further consolidation and innovation as companies strive to capture market share and meet evolving customer needs. The forecast period of 2025-2033 suggests substantial potential for further expansion in the computer server market.

The global market for Artificial Intelligence (AI) Servers is anticipated to grow exponentially in the coming years, driven by the increasing demand for AI-powered applications in various industries. The market is estimated to be worth USD XX million in 2025 and is projected to reach USD XX million by 2033, exhibiting a CAGR of XX% during the forecast period. The rapid growth of the AI market is attributed to the increasing adoption of AI technologies in sectors such as healthcare, finance, and manufacturing, where AI can optimize processes and improve efficiency. Key factors driving the growth of the AI Server market include the increasing adoption of cloud and edge computing, the growing demand for data analytics and processing capabilities, and the proliferation of AI-powered devices. The market is segmented by applications (Internet, Telecommunications, Healthcare, Government, Other), types (AI Training Servers, AI Inference Servers), and companies (Inspur, Dell, HPE, Huawei, Lenovo, IBM, Fujitsu, Cisco, Nvidia, H3C, Enginetech, Nettrix, Kunqian, PowerLeader, GIGABYTE, Digital China, ADLINK, Fii). North America is expected to remain the dominant region in the AI Server market, followed by Asia Pacific and Europe. The increasing investments in AI research and development, coupled with government initiatives to promote AI adoption, are expected to fuel growth in these regions.

In 2022, artificial intelligence server shipments from Taiwan accounted for over 85 percent of global shipments. According to the forecasts, Taiwan's share in global AI server shipments was going to increase to 90 percent by 2027.

The size and share of the market is categorized based on Type (GPU, FPGA, ASIC, Brain-like Chip) and Application (Natural Language Processing, Computer Vision, Speech Recognition, Autopilot, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Liquid Cooled AI Server Market Outlook

As of 2023, the global market size for liquid-cooled AI servers stood at approximately USD 1.5 billion and is projected to reach around USD 10.8 billion by 2032, growing at a robust CAGR of 23.8% during the forecast period. The primary growth factors driving this market include the increasing demand for energy-efficient cooling solutions, escalating needs for high-performance computing, and the growing adoption of AI across various industries.

One of the main growth factors for the liquid-cooled AI server market is the demand for energy efficiency. Traditional air-cooling methods are no longer sufficient to manage the heat generated by modern AI servers, leading to higher energy consumption and operational costs. Liquid cooling solutions offer a more energy-efficient alternative, reducing the overall carbon footprint and operational expenses. This technological shift is becoming increasingly crucial as data centers strive to meet sustainability goals while managing ever-growing data loads.

Another critical growth driver is the burgeoning need for high-performance computing (HPC) across multiple industries such as healthcare, finance, and manufacturing. HPC is essential for processing complex tasks and massive data volumes in real-time. Liquid-cooled AI servers provide the necessary thermal management to ensure optimal performance, making them indispensable for advanced computational needs. With the rapid advancements in AI technology, the market for liquid-cooled servers is poised to expand significantly.

Furthermore, the growing adoption of AI and machine learning (ML) technologies is accelerating the need for advanced cooling solutions. AI applications require high computational power, which generates substantial heat. Liquid-cooled servers are more effective at dissipating this heat, ensuring the servers run efficiently and reliably. The increasing focus on AI and ML across various sectors, such as automotive, healthcare, and retail, is driving the demand for these innovative cooling solutions.

Regionally, North America is expected to dominate the market due to the presence of numerous data centers and tech giants. However, significant growth is also anticipated in the Asia Pacific region, driven by rapid technological advancements and increasing investments in AI infrastructure. Europe follows closely, with an increasing number of data centers adopting liquid cooling solutions to meet stringent energy regulations. The Middle East & Africa and Latin America are also witnessing gradual adoption, driven by emerging technological ecosystems and increasing data processing needs.

Component Analysis

The liquid-cooled AI server market is segmented by component into hardware, software, and services. The hardware segment holds the lion's share, driven by the need for specialized cooling equipment and infrastructure. Liquid cooling hardware comprises critical components such as cooling plates, pumps, and heat exchangers. These components are designed to manage the high thermal loads generated by AI servers, ensuring efficient heat dissipation and maintaining optimal operating temperatures.

Software plays a crucial role in managing and optimizing liquid cooling systems. Advanced software solutions offer capabilities like real-time monitoring of server temperatures, predictive maintenance, and energy consumption analytics. These features are essential for ensuring that the cooling systems operate efficiently and can adapt to the dynamic requirements of AI workloads. The software segment is expected to grow significantly, driven by innovations in AI and machine learning algorithms that enhance the performance of liquid cooling systems.

Services are another vital component of the liquid-cooled AI server market. These include installation, maintenance, and consulting services. As liquid cooling technology is relatively complex and still gaining traction, many organizations rely on expert service providers for seamless integration and operation. The demand for specialized services is expected to rise as more data centers and enterprises adopt liquid cooling solutions to meet their high-performance computing needs.

The interdependency between hardware, software, and services creates a robust ecosystem that drives the market. Hardware advancements n

The global data center server market size reached USD 57.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 82.1 Billion by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. The escalating data growth, digital transformation initiatives, scalability demands, edge computing adoption, AI applications, and cybersecurity concerns are some of the major factors propelling the market.

IMARC Group provides an analysis of the key trends in each segment of the global data center server market report, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on product and application.

According to Cognitive Market Research, the global Server Market size is USD 90258.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 9.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 36103.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 27077.46 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 20759.39 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 4512.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1805.16 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
Blade servers are among the largest segments in the server market.

Market Dynamics of Server Market

Key Drivers for Server Market

Advancements in Data Center Technologies to Increase the Demand Globally

One key driver in the Server Market is the Continued advancements in data center technologies are a key driver for the server market. Innovations like hyper-converged infrastructure (HCI), software-defined networking (SDN), and edge computing are shaping the demand for servers. These technologies improve scalability, flexibility, and efficiency in data management, encouraging businesses to invest in new server infrastructure to support their evolving IT needs. Additionally, the emergence of technologies such as NVMe (Non-Volatile Memory Express) drives and PCIe (Peripheral Component Interconnect Express) interfaces is driving the need for servers with faster storage and data access capabilities, further boosting market demand.

Growing Demand for Cloud Services to Propel Market Growth

Another key driver in the Server Market is the increasing demand for cloud services is another significant driver for the server market. As businesses migrate more of their operations to the cloud, there is a surge in demand for servers to support cloud infrastructure, including public, private, and hybrid clouds. Factors such as scalability, cost-effectiveness, and the need for remote access to data and applications are fueling this trend, leading to a higher demand for servers. Moreover, the proliferation of emerging technologies like artificial intelligence (AI), machine learning (ML), and big data analytics necessitates robust server infrastructure to handle the computational workloads associated with these applications, further driving market growth.

Restraint Factor for the Server Market

Supply Chain Disruptions

One key restraint in the Server Market is the supply chain disruptions pose a significant restraint on the server market. Events like natural disasters, geopolitical tensions, or global pandemics can disrupt the manufacturing, distribution, and delivery of server components and equipment. These disruptions can lead to delays in production, shortages of critical components, and increased costs for manufacturers. As a result, companies may face challenges in fulfilling orders and meeting customer demand, impacting the overall growth of the server market.

Impact of Covid-19 on the Server Market

The Covid-19 pandemic had a mixed impact on the server market. Initially, it caused disruptions in the global supply chain, leading to delays in manufacturing and distribution. However, as businesses rapidly shifted to remote work and digital transformation, there was a surge in demand for cloud services and data center infrastructure, driving increased server sales. Additionally, the growth of e-commerce, online entertainment, and telemedicine further boosted server demand. Overall, while the pandemic initially posed challenges, it accelerated the adoption of digital technologies, resulting in long-term growth opportunities for the server market. Introduction of the Server Market

The server market refers to the industry segment involved in the production, distribution, and sales of server hardware and related services. The server market serves as the backbone of modern computing infrastructure, providing the essential ha...

The enterprise server market, valued at $87.96 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.03% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud computing and virtualization technologies necessitates powerful and scalable server infrastructure. Furthermore, the burgeoning demand for big data analytics and artificial intelligence (AI) applications requires high-performance computing capabilities offered by advanced enterprise servers. The growth is also spurred by the digital transformation initiatives undertaken by businesses across various sectors, leading to the modernization of their IT infrastructure. While the market faces some restraints, such as fluctuating prices of raw materials and potential supply chain disruptions, the overall positive outlook is maintained by the continuous innovation in server technologies, including advancements in processing power, memory capacity, and energy efficiency. Segmentation analysis reveals significant opportunities within high-end servers, driven by the requirements of demanding applications, and within the IT and telecommunication sector, which consistently invests in upgrading its infrastructure. Geographic distribution suggests a strong presence across North America and Europe, with the Asia-Pacific region showing significant growth potential, mirroring the rapid expansion of digital economies in the region. Leading vendors like IBM, Hewlett Packard Enterprise, Dell Technologies, and Lenovo are key players, constantly innovating and competing to meet the evolving needs of enterprise customers. The market's future trajectory is influenced by several trends. The growing adoption of edge computing will lead to increased demand for smaller, more efficient servers deployed at the network edge. The expanding utilization of serverless computing architectures will also shape the market dynamics, requiring flexible and scalable server solutions. Sustainability concerns are leading to a focus on energy-efficient server designs, influencing purchasing decisions. Furthermore, the integration of advanced security features within servers is paramount, given the heightened concerns regarding data protection and cybersecurity threats. The competitive landscape will remain dynamic, with continuous innovation, mergers, and acquisitions shaping the market structure and driving further growth. The sustained investment in research and development across the industry suggests that the enterprise server market will remain a robust sector, with consistent growth and evolving technological capabilities. Recent developments include: August 2022: Inspur Information, an IT infrastructure solutions provider, is combining AIStation, its unified management and scheduling AI computing resource platform, with NVIDIA AI Enterprise, a cloud-native suite of AI and data analytics software, to provide enterprise users with an efficient platform for utilizing AI computing resources., June 2022: Hewlett Packard Enterprise announced that it is the first major server provider to deliver a new line of cloud-native compute solutions using processors from Ampere. The new HPE ProLiant RL Gen 11 servers provide a single socket that delivers up to 128 cores per socket for scale-out computing. These servers are ideally suited for customers that offer digital services, media streaming, social platforms, e-commerce, financial, or online services, and cloud-based services such as IaaS, PaaS, and SaaS.. Key drivers for this market are: Increasing Adoption of Migration to the Cloud, Growth of Big Data. Potential restraints include: Adoption of Server Virtualization. Notable trends are: Rack Optimized Server Type to Witness High Growth.

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Enterprise Server Market Size 2024-2028

The enterprise server market size is forecast to increase by USD 31,852.7 billion at a CAGR of 7.2% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for computing capacity and workload management in data center infrastructure. Rack optimized servers and rack servers are becoming increasingly popular as businesses seek to maximize space utilization in their data centers. The rise of cloud service providers and the adoption of cloud computing policies have led to an increased need for data centers storage and data center services. Moreover, the emergence of artificial intelligence (AI) and machine learning (ML) applications, as well as the deployment of 5G edge infrastructure, are driving the need for high-performance servers. Supermicro and other leading server manufacturers are responding to these trends by developing servers that offer superior processing power and energy efficiency. In addition, the growing popularity of flash-based storage devices and the increasing consolidation activity in the data center industry are also contributing to market growth. In summary, the market is experiencing strong growth due to the increasing demand for computing capacity, the emergence of new technologies like AI and ML, and the consolidation of data center infrastructure.

What will be the Size of the Market During the Forecast Period?

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The market is a significant segment of the computer hardware industry, focusing on providing high-performance computing solutions for businesses. These servers cater to the demands of big data, business intelligence applications, and high-performance computing needs. Enterprise servers play a crucial role in enhancing network performance and desktop performance for businesses. They offer substantial memory capacity, ensuring the swift processing of large data sets. In today's digital transformation era, these servers are indispensable for handling complex workloads and supporting advanced technologies like cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). Network services, such as Transmission Control Protocol (TCP) and Internet Protocol (IP), are essential components of enterprise servers.



Furthermore, network services, such as Transmission Control Protocol (TCP) and Internet Protocol (IP), are essential components of enterprise servers. They enable consolidated connections and multicast capabilities, ensuring seamless communication between various systems and applications. Hyperscale data centers are the backbone of modern IT infrastructure, and enterprise servers are a vital component of these facilities. These data centers house cloud service providers and support the growing demands for cloud servers and storage capacity. Security is a top priority for businesses, and enterprise servers offer advanced security features. They provide strong operating systems and server classes, including mid-range and volume servers, to cater to various business requirements.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Class Type

  Mid-range
  High-end
  Volume


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  Middle East and Africa



  South America

By Class Type Insights

The mid-range segment is estimated to witness significant growth during the forecast period.

The mid-range segment of the market caters to businesses seeking a balance between cost-effectiveness and computing capacity. These servers are suitable for moderate-sized organizations and specific departments within larger enterprises that require more processing power than volume servers. Mid-range servers offer versatility with support for multiple operating systems, including Linux, Windows, and UNIX, ensuring flexibility in deployment. Rack-optimized servers, a popular configuration, are designed to maximize data center infrastructure efficiency by minimizing rack space and power consumption.

Furthermore, cloud service providers and data center services also leverage mid-range servers for their 5G Edge, Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT) applications. Mid-range servers come in various configurations, enabling organizations to select solutions tailored to their unique needs.

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The mid-range segment was valued at USD 28.416 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to

Inspur ranked first in the global artificial intelligence (AI) server market with a share of 16.4 percent in the first half of 2020. Dell ranked second, occupying just under 15 percent, while HPE came in third with a share of close to 11 percent.