PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1497721
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1497721
Market Overview
The global Data Center Server Market revenue was USD 139.1 billion in 2023, and it is expected to reach USD 307.0 billion by 2030, advancing with a CAGR of 11.6% during the forecast period.
The main reasons for the market demands include enhanced IT & telecom sector, increasing integration of AI & ML with data center servers, increasing cloud service adoption, accelerated digital transformation, and the uptick in the 5G technology adoption that requires powerful and scalable servers to support the increased traffic. In addition, the steadily rising number of AI-powered server vendors and the growing demand for data storage in organizations will have a positive impact on the market.
Large databases are also aiding organisational expansion and improved decision making, through the use of this data to make future decisions given past trends displayed by this data. Businesses collect, secure, manipulate, and interpret tremendous amounts of data daily to enhance their products and services, engage consumers, and boost profits. For this, companies need to well prepare for dealing with the perpetual increase in the amounts of data.
Also, there are now over 4 billion internet users from across the world. Everything they do on the Internet creates new information; organizations utilize to monitor employees, circulation of stock, and to even recommend products and services. Around 2. According to recent data, the world produces 5 quintillion bytes of data every day.
Further, there are currently over 44 Zettabytes of data in the entire digital universe, with users generating 70% of it. By 2025, 175 Zettabytes of data would be in the world's servers, including healthcare data
Key Insights
The rack category held the largest revenue share, 60%, in 2023, and is expected to maintain its dominance, mainly due to their suitability for high-end applications, ease of integration, efficient cooling, increased airflow, and cost-effectiveness.
Rack servers are ideal for SMEs requiring around 10 servers, offering general-purpose capabilities, space efficiency, and lower upfront costs.
The tower category will grow rapidly due to affordability, minimal overheating issues, easy upgrades, and high computational power.
The commercial category will witness significant growth driven by the integration of AI, big data analytics, IoT, and cloud technologies, along with increasing investment to meet data handling regulations.
The BFSI category held a substantial revenue share in 2023, driven by cloud-based solutions, increasing need for efficient and scalable server infrastructure, and demand for personalized customer services.
The healthcare category will see significant growth due to improving infrastructure, technological advancements, capital investments, and rising importance of data storage, especially for telemedicine.
The IT & telecom category will register substantial growth fueled by advanced software deployment, startup initiatives, surge in mobile internet users, and technologies like 5G and IoT.
The government sector is growing, leading to increased demand for data centers due to data localization policies, cloud adoption, and storage needs.
North America dominated the market in 2023 and is expected to maintain its dominance, driven by industry giants, advanced IT infrastructure, and adoption of AI and ML technologies.
The U.S. contributed the most revenue in 2023 and is likely to continue due to its established IT sector and data center presence.
APAC will witness the fastest growth, with a CAGR of 15%, driven by increasing internet users, digitalization, IT & telecom industry growth, adoption of cloud services, government initiatives, and investments in AI and IoT technologies.
China, Japan, South Korea, and India significantly contribute to APAC's revenue due to rapid industry growth and public-private sector investments.