The North America Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server), by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users), and by Geography (United States, Canada, Mexico, and Rest of North America). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The global server market was valued at over 136 billion U.S. dollars in 2023, with servers based on the Intel developed x86 architecture accounting for the majority of spending. The market is forecast to grow to over 175 billion U.S. dollars by 2025, with the dominance of x86 servers expected to persist.

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.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 57.2 Billion
Market Forecast in 2033	USD 82.1 Billion
Market Growth Rate (2025-2033)	4.1%

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.

The United States Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server) and by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The global server market size was estimated at over USD 104.82 billion in 2024 and is anticipated to grow at a CAGR of 8.9%, with projections indicating it will exceed USD 317.55 billion by 2037. North America industry is likely to account for largest revenue share of 43.7% by 2037, due to existence of a sophisticated IT infrastructure.

Global server shipments grew 4.8 percent in 2022 to around 13.6 million. Slower growth of 1.5 percent is expected in 2023, with extended server refresh cycles at large cloud providers among the driving factors.

As of June 2021, Dell was the leader in the global server market with a market share of 21 percent, whilst Hewlett Packard Enterprise (HPE) came in second with a market share of 16.6 percent. The total revenue of the global server market amounted to about 74 billion U.S. dollars in that same period.

The Report Covers Enterprise Server Operating System and the Market is segmented by Operating System (Linux, Windows, and UNIX), Server Class (High-end Server, Mid-range Server, and Volume Server), Server Type (Blade, Multi-node, Tower, and Rack Optimized), End-user Vertical (IT and Telecommunication, BFSI, Retail, Healthcare, and Media and Entertainment), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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 global blade server market leads to an estimated CAGR of 8.9% in the global market during the forecast period and registers a revenue valued at US$ 15,760.7 Million in 2023, and is expected to cross US$ 37,082.9 Million by 2033.

Report Attributes	Details
Blade Server Market Value (2023)	US$ 15,760.7 Million
Blade Server Market Anticipated Value (2033)	US$ 37,082.9 Million

End Users See Blade Server Heavy on their Pockets

Category	Data Center Type
Leading Segment	Tier 4
Market Share	32.3%

Category	Application
Leading Segment	Cloud Service Provider
Market Share	43.3%

Report Scope

Report Attributes	Details
Growth Rate	CAGR of 8.9% from 2023 to 2033
The base year for estimation	2022
Historical data	2018 to 2022
Forecast period	2023 to 2033
Quantitative units	Revenue in USD million and CAGR from 2022 to 2032
Report Coverage	Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis
Segments Covered	Data Center Type Services Application End Users Region
Regional scope	North America; Western Europe, Eastern Europe, Middle East, Africa, ASEAN, South Asia, Rest of Asia, Australia, and New Zealand
Country scope	USA; Canada; Mexico; Germany; United Kingdom; France; Italy; Spain; Russia; Belgium; Poland; Czech Republic; China; India; Japan; Australia; Brazil; Argentina; Colombia; Saudi Arabia; United Arab Emirates; Iran; South Africa
Key companies profiled	Cisco Systems Inc. Dell Inc. Hewlett-Packard Company Lenovo Group Limited Fujitsu Limited Hitachi Limited NEC Corporation Silicon Graphics International Corporation Huawei Technologies Co. Ltd. Lenovo Group Limited
Customization scope	Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.

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Data Center Server Market Size 2024-2028

The data center server market size is forecast to increase by USD 169.3 billion at a CAGR of 18.52% between 2023 and 2028.

The market for data center is experiencing significant growth due to increasing investments in scaling up in-house data centers to support digital transformation initiatives. One trend driving market growth is the adoption of server disaggregation, which allows organizations to separate the server hardware from the software, thereby improving server utilization rates. The hybrid cloud architecture, which combines both private and public cloud environments, offers a practical solution to address concerns related to potential downtimes, data loss, security risks, and legal issues associated with full-scale public cloud adoption. Another trend is server workload optimization, which enables businesses to allocate resources efficiently and effectively to meet the demands of various applications. These trends are contributing to the market's growth and are expected to continue shaping the data center server landscape in the coming years. Organizations in North America are increasingly focusing on these trends to optimize their IT infrastructure and improve operational efficiency.

What will be the Size of the Data Center Server Market During the Forecast Period?

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The market data center is experiencing significant growth and transformation, driven by technology advancements and the increasing adoption of cloud computing and digital services. Businesses are seeking scalable solutions to meet their expanding data storage needs and improve operational efficiency. This trend is evident In the rise of green data centers, which prioritize energy-efficient solutions and sustainability initiatives, such as solar, wind, and hydroelectric power. The proliferation of 5G networks and edge computing is also fueling demand for smaller, more distributed data centers, including micro and portable options. These innovations enable faster data processing and reduced latency, particularly in industries like healthcare, finance, and manufacturing.
Key technologies shaping the market include CPUs, servers, storage devices, GPUs, memory drives, virtual machines, and various server types, such as rack, blade, micro, and tower servers. However, the market is not without challenges, as hardware failure and cybersecurity risks continue to pose significant threats. Moreover, the integration of artificial intelligence, machine learning, big data analytics, and hyperscale data centers is transforming the landscape, creating new opportunities and complexities. As the market evolves, companies will need to navigate these trends while ensuring they remain competitive and responsive to their customers' evolving needs.

How is the Data Center Server Industry segmented and which is the largest segment?

The industry 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.

Application

  Commercial server
  Industrial server


Type

  Rack server
  Blade server
  Tower server
  Microserver
  Open compute project (OCP) server


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    UK


  South America



  Middle East and Africa

By Application Insights

The commercial server segment is estimated to grow significantly during the forecast period. The market encompasses servers, switches, firewalls, storage systems, and routers, delivering processing power, memory, local storage, and application network connectivity. Infrastructure evolution involves transitioning from on-premises physical servers to virtual networks, enabling multi-cloud environments. Communication and colocation service providers are expanding their data centers, with key companies like Dell, Cisco, and Fujitsu investing in new facilities to accommodate growing demand. For instance, Cisco's October 2022 investment in data center capacity for its WebEx services in India underscores this trend. Technological advancements, such as cloud computing adoption, digital services, data storage needs, business scalability, green data centers, energy-efficient solutions, 5G networks, edge computing, micro data centers, portable data centers, modular data centers, power usage efficiency, and virtual machines, are shaping the market.

Additionally, environmental focus, sustainability initiatives, artificial intelligence, machine learning, big data analytics, blade servers, liquid-cooled rack servers, mega data centers, and hardware failure and cybersecurity risks are critical considerations. Key players are also focusing on power usage efficiency, with innovations in CPU, servers, storage devices, GPUs, memory drives, and vir

According to Cognitive Market Research, the global Data Center Server market size is USD 61542.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 10.60% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 24616.88million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.8%from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 18462.66 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 14154.71million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.6%from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 3077.11million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0%from 2024 to 2031.
Middle East and Africa held the major market ofaround 2% of the global revenue with a market size of USD 1230.84million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.3%from 2024 to 2031.
The Information Technology (IT) and Telecom sector held the highest Data Center Server market revenue share in 2024.

Market Dynamics of Data Center Server Market

Key Drivers of Data Center Server Market

Growing Demand for Cloud Computing Services to Increase the Demand Globally

The increasing adoption of cloud computing services is a key driver fuelling the growth of the data centre server market. As businesses across various industries transition to cloud-based solutions to streamline operations, enhance scalability, and reduce infrastructure costs, the demand for robust data centre servers continues to rise. Cloud service providers require high-performance servers to support the storage, processing, and delivery of vast amounts of data to end-users. This trend is further accelerated by the proliferation of IoT devices, AI applications, and big data analytics, which generate immense volumes of data necessitating efficient server infrastructure to handle workloads effectively.

Emphasis on Edge Computing to Propel Market Growth

The emergence of edge computing is another significant driver shaping the data centre server market. Edge computing involves processing data closer to the source of generation, reducing latency and improving real-time decision-making capabilities. As organizations deploy edge computing solutions to support applications such as autonomous vehicles, remote monitoring, and IoT devices, the demand for edge data centers and specialized server infrastructure increases. Data center servers designed for edge computing applications must deliver high performance, reliability, and scalability while operating in distributed environments with limited space and power constraints, driving innovation and investment in this segment of the market.

Restraint Factors of Data Center Server Market

Limited Stability and Shelf Life to Limit the Sales

One of the key restraints in the data centre server market is the complexity and associated maintenance costs of infrastructure. As data centers expand to accommodate increasing workloads and storage requirements, managing and maintaining the server infrastructure becomes more challenging. This complexity arises from the need for advanced networking equipment, cooling systems, power distribution units, and server hardware. Additionally, as data centers scale up, the costs of maintaining and upgrading the infrastructure also escalate, including expenses related to power consumption, cooling, hardware maintenance, and skilled personnel required for management. These challenges can deter organizations from expanding their data centre operations or adopting new server technologies, thereby limiting market growth.

Impact of Covid-19 on the Data Center Server Market

The Covid-19 pandemic has had a significant impact on the data center server market, leading to both challenges and opportunities. As businesses worldwide shifted to remote work and digital operations, there was an increased demand for data center services to support the surge in online activities. This resulted in a temporary spike in demand for data center servers as companies scrambled to enhance their digital infrastructure to accommodate remote workforce needs, online transactions, and digital communication platforms. However, the pandemic also disrupted the global sup...

The size and share of the market is categorized based on Application (Healthcare, Financial Institutions, IT, Retail, Government Sectors) and Product (Rack Server, Blade Server, Tower Server, Microserver, Open Compute Project Server) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

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.

According to Cognitive Market Research, the global high availability server market size is USD 6215.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 14.20% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 2486.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 1864.56 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1429.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.2% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 310.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.6% 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 124.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2031. 
The BFSI held the highest high-availability server market revenue share in 2024.

Market Dynamics of High Availability Server Market

Market Driver for the High Availability Server Market

Increase in the Use of Devices or Solutions Based on the Internet of Things (IoT) to Increase the Demand Globally

One of the key factors propelling the growth of the high availability server market is the growing global usage of Internet of Things (IoT) based solutions or devices. The market is growing faster than expected due to the growing adoption of various applications across various industries, including load-balanced dedicated servers, scalable private clouds, and ultra-high-performance dedicated servers. Additionally, businesses are becoming more and more in need of big data analytics.

Increased demand for cloud-based services and the rapid uptake of high availability servers due to their benefits—such as decreased system failure risk—compounded the industry. Additionally, with the growth of end-use industries, increased investment, and the digitization of workspaces, the market for high-availability servers is positively impacted. Additionally, during the forecast period of 2021 to 2028, market participants will have profitable opportunities due to technological developments and data center expansion.

Market for High Availability Servers to Fulfill Demand for Critical Business Activities in a Range of Industries to Propel Market Growth

Elevated accessibility IT servers are distinguished by their ability to operate without interruption or maintenance for an extended period. The goal of five 9s, or 99.999 percent availability, is something that IT suppliers are actively working toward. Perfect availability is the ideal state of affairs. It is essential to remove single points of failure and prevent unplanned maintenance at this time. Reducing downtime and averting service interruptions is critical in production settings to ensure the IT system runs optimally and when needed.

These are a few of the main selling points for goods in the market for high-availability servers. The increasing number of enterprises that want to operate and provide services online around the clock is a major factor in the demand for high-availability servers. A key application area is the healthcare sector, where round-the-clock monitoring is becoming more and more desirable. The need for high-availability servers has been driven by the rise in business-critical operations when disruptions are thought to offer a high risk of catastrophic consequences, such as the loss of significant financial resources or income. The stock market is another application for high-availability servers.

Market Restraint of the High Availability Server Market

High Cost of Implementation and Maintenance to Limit the Sales

HA servers can be expensive to purchase, implement, and maintain. This can be a barrier for small and medium-sized businesses and organizations with limited IT budgets. HA solutions often require redundant hardware components, including servers, storage systems, and networking equipment. This can significantly increase the initial investment compared to a standard server setup. Licensing costs for HA software can be high, especially for enterprise-grade ...

In the second quarter of 2021, Dell held a 15.6 percent market share of the global server market, while HPE or New H3C Group held a market share of 15.7 percent.

The Indonesia Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, Tower Server) and by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The size and share of the market is categorized based on Type (Relational Database Server, Time Series Database Server, Object Oriented Database Server, Navigational Database Server) and Application (Education, Financial Services, Healthcare, Government, Life Sciences, Manufacturing, Retail, Utilities, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Outlook:

The global rackmount server market was valued at USD 64.2 Billion in 2022 and is projected to reach USD 115.5 Billion by 2031, expanding at a CAGR of 7.0% during the forecast period.



A rackmount server is a form of server hardware that is designed to be mounted inside a cabinet or rack of similar equipment. It is frequently used in data centers and server rooms where there is a need to maximize space as well as effectively house and manage several machines. The term rackmount refers to the server form factor, which is specifically designed to fit into a rack. Various networking and server equipment are installed vertically in a rack, which is a metal frame with several slots that are typically 19 inches wide. The rack consists of multiple mounting slots that are called bays, which are designed to hold server hardware units secured in a screw. A rack server is a compact and low-profile enclosure, which is built into a standalone cabinet. Rackmount servers are known for their high density and compact design, which enables businesses to maximize their server capacity in limited physical space.

Market Dynamics

Market Driver- Rising Adoption of the Cloud Computing Services

The rising trend of cloud computing is rapidly driving the demand for rackmount servers. Rackmount servers are essential components of cloud infrastructure, as they offer the computational performance and storage space required to enable cloud-based services and applications. The rapid expansion of cloud-based services such as software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) is a significant factor driving the need for rackmount servers. These services require a stable and scalable server infrastructure to keep up with the growing workload and consumer demands. Rackmount servers offer high-density configuration, which enables data centers to maximize their computing capacity in a small form factor.

Market Driver- Rising Advancement in the Processor Technology

The processor in the rackmount server plays a major role while performing several applications such as web hosting, data storage, data transfer, and data management. A rackmount server comes with in-built processors offered by different manufacturers. Leading players in the market are developing advanced processors in order to meet the growing dem

The Japan Data Center Server Market Report is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server) and by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.