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Enterprise Server Market Segmentation By Operating System (Unix, Linux, Windows, z/OS, i5/OS and Others); By Form Factor (Blade, Rack Optimized, Tower/Standalone and Multi-node); By Server Class (Mid Range, High Range and Volume); By Type (Managed, Micro and Unmanaged Servers); By Component (Hardware and Software); By Socket (One, Two, Four, Eight and Sixteen); By Enterprise Size (SMEs and Large Enterprises); By End Use – Global Industry Demand Analysis and Opportunity Assessment 2019-2025

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  • March 2020: Toshiba Corporation announced that the compatibility testing by Microchip of its 16TB 3.5inch HDDs of the MG08 series was successful on the HBA and RAID adaptors. This successful test is anticipated to help the essential functionality for enterprise and cloud storage systems.

  • May 2020: Oracle announced that it has collaborated with NVIDIA to accelerate data science, high-performance computing, computing, and machine learning to enterprises with the help of NVIDIA A100 Tensor Core GPUs.

Enterprise Server Market verview

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.

Enterprise server market Graph

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

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. The market is further segmented by form factor into blade, rack optimized, tower/standalone and multi-node. Out of these, the blade segment registered the highest market share in the year 2019 and is further anticipated to grow with a CAGR of 10.8% during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT

Enterprise server image

The global enterprise server market is also segmented based on server class into mid-range, high-range and volume. The high-range segment registered the largest market share in the year 2019. High range servers are centralized computing servers for large enterprises, data centers, and IT operations. High range servers are equipped with integrated software and hardware to provide team effectiveness and data privacy and security.

Additionally, the global enterprise server market is segmented by type into managed servers, micro servers and unmanaged servers. Among these segments, the managed servers segment, which registered a value of USD 39004.8 million in the year 2019, also held the largest market share in the same year. Based on component, the global enterprise server market is segmented into hardware and software. The hardware segment is anticipated to grow with a CAGR of 10.5% during the forecast period. Based on CPU type, the market is segmented into RISC ARM, CISC, EPIC and x86, out of which, the RISC segment registered the largest share in the year 2019. Further, the market is segmented by socket into one, two, four, eight and sixteen, out of which, the eight-socket segment registered the largest share of 38.99% in the year 2019.

Moreover, the global enterprise market is also segmented by enterprise size into SMEs and large, out of which, the large enterprise segment registered the largest share along with a value of USD 42064 million in the year 2019. Based on end-user, the market is segmented into healthcare, BFSI, education, media & entertainment, manufacturing, IT & telecom, transportation, retail and others, out of which, the IT & telecom segment registered the largest market share of 25% in the year 2019.

Market Drivers and Challenges

Growth Indicators

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.

Barriers

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.

Competitive Landscape

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.

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