The global enterprise server market is thriving on the back of the growing government initiatives to promote digitalization, which is also raising the need for the adoption of equipment necessary for the IT infrastructure, coupled with the increasing investments in advanced networks and IT infrastructure by organizations worldwide, increasing adoption of enterprise servers by several end user industries on the back of increasing digitalization, and the emerging server technologies on the back of increasing technological advancements and research. The global enterprise server market was valued at USD 76,480 million in the year 2019 and is expected to grow up to USD 139,996 million by the end of 2025 at a CAGR of 10.8% across the globe during the forecast period 2020-2025. The market is also anticipated to grow on account of the increasing vital trends for customized client-centric solutions and the growing use of advanced technologies, such as virtualization and cloud computing technology among others. Additionally, increasing need for enterprise servers with lower refresh cycles amongst organizations is also anticipated to drive the market during the forecast period. The global enterprise server market is further anticipated to gain an incremental $ opportunity of USD 7344.0 million in the year 2020 as compared to the previous year. Moreover, the market is also expected to gain an absolute $ opportunity of USD 56,172.0 million by growing at 1.67x during the forecast period.
Growth Highlights Based on Region During 2019-2025
The global enterprise server market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in North America registered the largest market share of 34.0% in the year 2019 and is expected to grow at a CAGR of 10.5% during the forecast period. Growing adoption of advanced technologies, such as cloud computing, IoT, big data and virtualization among others is anticipated to drive the growth of the market in the region. The market in the region also registered a value of USD 26,003.2 million in the year 2019 and is anticipated to gain an incremental $ opportunity of USD 2413.1 million in the year 2020 as compared to the previous year. Moreover, the North America enterprise server market is also anticipated to gain an absolute $ opportunity of USD 18,342.4 million by growing at 1.64x during the forecast period. The market in the region is primarily driven by nations such as the U.S. and Canada, out of which, the market in the U.S. is expected to exhibit substantial growth during the forecast period on the back of the growing adoption of big data and cloud computing.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Operating System
The global enterprise server market is segmented based on operating system into Unix, Linux, Windows, z/OS, i5/OS and others. The Windows segment registered the largest market share of 70.0% in the year 2019 and is anticipated to grow with the highest CAGR of 11.1% during the forecast period. Windows OS is known for providing greater security for administration purposes. It supplies a credential guide to safeguard the admin credentials from being attacked by hackers. Moreover, the OS can also detect any kind of malicious behaviour and also offers event management system to the administrator. The Windows OS segment is further expected to gain an incremental $ opportunity of USD 5,325.2 million in the year 2020 as compared to the previous year. Moreover, the segment is also anticipated to gain an absolute $ opportunity of USD 40,983.9 million by growing at 1.69x during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Market Drivers and Challenges
Emerging Technologies in Enterprise Servers
Several advancements associated with the enterprise servers, such as virtualization, flash storage and others are raising the adoption of enterprise servers amongst the end users. Also, with the advancements, there is an increase in the manufacturing of efficient devices for enterprise servers. In the recent years, the developments observed in the storage architecture has also resulted in the fall in the prices of flash storage devices, which forms an important part in the enterprise servers, therefore lowering the price of the equipment. On the other hand, increasing use of server virtualization and server consolidation, which helps the enterprises to build their disaster recovery solution by consolidating servers and improving hardware abstraction capabilities, coupled with the increasing adoption of cloud technology are some of the factors anticipated to drive the growth of the global enterprise server market. Increasing adoption of cloud technology in enterprises and rapid server virtualization has resulted in enterprises shifting their data storage to private cloud, therefore raising the need for the deployment of enterprise servers. Server virtualization allows organizations to save space and reduce operational and maintenance costs of their IT infrastructure. Such factors are anticipated to drive the growth of the global enterprise server market.
Growing Investments for Hyper-Scale Data Centers
The enterprise server market is primarily driven by the growing investments in the hyper-scale data centers capacity. Moreover, the average server refresh cycle, which is around five years, has led to businesses shifting towards a shorter cycle in order to keep pace with the technological advancements in the server technology. On the other hand, with innovations in technology, every refresh cycle presents an opportunity to add new functionality and features. The new hardware requires upgradation in memory, speed and processing power, therefore raising the need for greater investments, which in turn is anticipated to drive the growth of the global enterprise server market during the forecast period.
High Installation Cost and Shift Towards Cloud Services
Installation of enterprise server costs significantly high to the organizations. Moreover, enterprise servers demand for frequent upgrade and maintenance, therefore adding to more costs to the organizations. Apparently, there is also a fear of failure of server equipment among the organizations, the repairing of which costs significantly high. On the other hand, substantial inclination of end users towards cloud-based services from on-premises is also anticipated to pose significant challenges towards the growth of the global enterprise server market.
Some of the affluent industry leaders in the global enterprise server market are Toshiba Corporation, Oracle, Cisco Systems Inc., Lenovo, Dell Technologies Inc., Inspur International Co., Ltd, Super Micro Computer Inc., Inventec Corporation, Hewlett Packard Enterprise Development LP, and NEC Corporation.
Increasing advancements in enterprise server technology, is one of the major factors that is driving the growth of the market.
The market is anticipated to attain a CAGR of 10.8% over the forecast period, i.e. 2020-2025.
North America is anticipated to hold the dominating share in the market.
The market in Europe is anticipated to display significant business opportunities in the future.
The major players in the market are Toshiba Corporation, Oracle, Cisco Systems Inc., Lenovo, Dell Technologies Inc., Inspur International Co., Ltd, Super Micro Computer Inc., Inventec Corporation, Hewlett Packard Enterprise Development LP, and NEC Corpora
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by operating system, form factor, server class, type, component, socket, enterprise size, end user and by region.
The Windows segment, which is a sub-segment of the operating system segment, held the largest market share of 70.0% in the year 2019 and is anticipated to display significant growth opportunity.
High installation cost of enterprise servers is one of the major factors anticipated to act as a barrier towards the growth of the global enterprise server market.
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