Enterprise Server Market size is poised to cross USD 170 billion by the end of 2035, growing at a CAGR of 24% during the forecast period i.e. 2023-2035. In the year 2022, the industry size of enterprise server was over USD 45 billion. 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 server technology. The new hardware requires upgradation in memory, and speed and therefore raises the need for greater investments in hyper-scale data centers, which in turn is anticipated to drive the growth of the global market in the near future. Hyperscale data center operators such as AWS, Google, and Microsoft are making investments worth$1 billion in Indian market by 2027 owing to the increased digitalization of the Indian Economy.
The increasing usage of x86 high-end servers that reduces downtime has an in-built security system, and flexibility, which is anticipated to drive the market growth. For instance, more than 11 Million x86 server units were shipped across the globe in the year 2020.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 24% |
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Base Year Market Size (2022) |
~ USD 45 Billion |
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Forecast Year Market Size (2035) |
~ USD 170 Billion |
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Regional Scope |
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Operating System (UNIX, Linux, Windows, z/OS, i5/OS)
The windows segment is estimated to gain about 60% market share in the coming years owing to the increasing use of windows OS for administration purposes. Windows Server is a widely used operating system designed explicitly to meet business needs and manage administrator server infrastructure. As a result, it rises the demand for enterprise servers since they help in running the Windows server operating system effectively by ensuring smooth integration.
Form Factor (Blade Rack Optimized, Tower/Standalone, Multi-node)
The blade rack optimized segment is set to garner a notable share of around 57% in the near future driven by the growing benefits of blade rack-optimized servers. Blade rack optimization helps to increase the storage capacity of the data center. The blade server is highly scalable, modular, and managed and is utilized to provide computing resources for enterprise applications and deliver superior power and capabilities. Besides this, they come with integrated management features that help in reducing the complexity associated with managing individual servers.
Our in-depth analysis of the global market includes the following segments:
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Operating System |
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Form Factor |
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Server Class |
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Type |
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Component |
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Socket |
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Enterprise Size |
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End-Use |
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North American Market Forecast
The enterprise server market in North America, is predicted to be the largest with a share of about 35% by the end of 2035 attributed majorly to the growing adoption of advanced technologies, such as cloud computing, IoT, big data, and virtualization. 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 presence of several data centers and cloud service providers in the region is forecasted to boost the growth of the market in the North America region. For instance, more than 30 percent of the data centers are located in the United Nations.
APAC Market Statistics
The Asian Pacific enterprise server market is estimated to grow at a notable rate, during the forecast timeframe led by the increased digital transformation of the Indian economy. As a result, there is a rise in demand for digital services such as e-commerce, and online banking in the region which is driving the need for enterprise servers to handle the increasing data processing and storage requirements. India had the highest rapid rate of digitization among most developed countries, and over 75% of households are expected to have access to the Internet by 2026.
Author Credits: Abhishek Verma, Hetal Singh
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