PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1479931
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1479931
The rugged server market is expected to grow at a CAGR of 5.83% reaching a market size of US$895.221 million in 2029 from US$602.155 million in 2022.
A rugged server is purpose-built to operate effectively in challenging conditions, such as extreme temperatures, high vibrations, and harsh environments like those found in public safety, field service, healthcare, and the military. These servers aim to create a controlled environment for their internal components. The rugged server market growth is primarily fueled by increasing demand for industrial IoT, stringent industry regulations, and a growing need for rugged servers in military, industrial, and power applications, where durability and reliability are paramount.
Rising investment in data server projects
A wide range of developing sectors, including manufacturing, shipping, oil and gas, energy, and power, are embracing digitalization and depending on data-driven digital services. Depending on the type of business, computer systems are becoming vital for either full or partial business operations. Rack mount servers, which combine advanced FIPS security with Graphical Processing Units (GPU) and additional operating compliances to function in harsh environments, are another way that rugged servers are used in data centers to improve capabilities.
Scalability, virtualization, and the use of several Rugged Enterprise Server (RES) form-factors and Ethernet switches are made possible by these factors. Cloud computing services, which use data centers to operate over the internet, are being adopted by many industrial sectors, including the marine industry. This is the outcome of higher investments made in local data centers. For example, Hyundai E&C invested USD 47.7 million and built a marine data center to support computer technologies, training centers, and data storage in South Korea.
Multiple device integrations and strict regulations
Because of growing consumer trends and advancements in industry technology, businesses that provide electronics and computing devices are quickly evolving and adapting to the newest technologies, such as edge computing and the Internet of Things. Manufacturers are adopting cutting-edge technologies into their sectors in response to shifts in the market. Product functionality and regulatory compliances are consequently increasing dramatically. Providers can incorporate multifunctional devices into their business models with the help of device integrations. This process converts standalone devices into incredibly useful multipurpose devices, enhancing device capabilities and driving sales growth.
Further, commercial off-the-shelf (COTS) products are part of defence standard equipment and offer assurance and compliance to operate in harsh environments. These servers satisfy customer demands and promote growth and expansion by offering military-grade standards to verify operating temperature and humidity, among other factors.
Increasing digitalization
The industry for rugged servers is expected to grow significantly, mainly due to the trend of manufacturing being more digital and the rising need for smart energy solutions. The continuous digital revolution in manufacturing calls for dependable computing solutions, such as rugged servers that can handle real-time data processing and perform well in challenging conditions. Demand is predicted to continue on this trajectory. Rugged servers are also essential because of the growing demand for smart energy solutions and effective energy management in remote and demanding environments. Their ability to gather and analyze data improves energy dependability and efficiency, supporting international sustainability initiatives.
High demand in defence & military industry
The defence and military industries use rugged servers primarily to withstand extreme weather, vibrations, and other harsh conditions. These servers are equipped with features and capacity to withstand shocks, vibrations, and high temperatures, and prevent malfunctions and loss of functionality. These characteristics facilitate both sales expansion and deployment within the burgeoning armed forces of developing provinces. Collaboration and information sharing amongst multiple troupes and teams are enhanced by integrating performance and reliability. Additionally, these servers offer the possibility of adding more non-consumer software and accessories.
According to research conducted by the Stockholm International Peace Research Institute (sipri.org), global military spending increased by 0.7% to USD 2,113 billion in 2020-2021. The United States, China, India, the United Kingdom, and Russia were the main contributors to the spending, making up 62% of the total amount spent.
North America is witnessing exponential growth during the forecast period
North America commands a significant rugged servers market share due to well-established industries like military, aerospace, telecommunications, and power generation that rely on rugged servers for their reliability and durability in challenging environments, supported by extensive research and development efforts. These servers also help reduce maintenance and operation costs across various industries. Their versatility extends to applications in manufacturing, energy, transportation, and more, emphasizing their role in enhancing productivity. North America's leadership in the rugged server market is sustained by its industrial prowess and technological innovation.
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