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
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.
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).
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.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing advancements in enterprise server technology, is one of the major factors that is driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of 10.8% over the forecast period, i.e. 2020-2025.
Ans: The market in Europe is anticipated to display significant business opportunities in the future.
Ans: 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
Ans: 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.
Ans: The market is majorly segmented by operating system, form factor, server class, type, component, socket, enterprise size, end user and by region.
Ans: 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.
Ans: 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.