Global White Box Server Market Trends, Forecast Report 2025-2037
White Box Server Market size was valued at USD 11.9 billion in 2024 and is projected to reach USD 69.7 billion by the end of 2037, expanding at a CAGR of 14.8% during the forecast period, i.e., 2025-2037. In 2025, the white box server industry is estimated to be valued at USD 13.6 billion.
A major factor in the white box server's growth is the surge in demand for cost-effective server solutions that can be customized. In terms of measurable adoption rates, in 2023, there were more than 850 hyperscale data centers across the world, and reportedly more than 60% had integrated white box servers. The trend is supported by the rise in demand for open-architecture systems that white box servers duly provide. Industry analysis highlights that over 46% of the newly deployed white box servers utilize ARM-based chipsets and advanced cooling systems to negate energy consumption by the end of 2023.
In 2023, public cloud services worldwide generated more than 375 million new workloads, which in turn incentivized hyperscale providers to scale their infrastructure. This creates opportunities to deploy white box servers owing to the modularity and cost savings on offer. Major providers such as Super Micro and Quanta reported a more than 25.5% rise in hyperscale orders by the end of 2024.
In terms of trade, the United States leads in data center infrastructure, hosting 5,381 data centers as of March 2024. Additionally, the demand from the U.S. market is poised to double to 35 gigawatts (GW) by 2030, which is up from 17 GW in 2022. This rise in demand has necessitated an increase in imports as well as the rising need to assemble white box servers to keep pace with the surging demand. The surging digitalization across multiple economies has created a favorable ecosystem for the sustained growth of the global white box server industry by the end of 2037.
White Box Server Sector: Growth Drivers and Challenges
Growth Drivers
- Integration of AI-optimized white box servers in 5G network infrastructure: The surge in deployment of 5G globally has bolstered the impact as well as the use of AI in white box servers to successfully manage complex data and ensure lower latency at the network edge. Organizations such as the O-RAN ALLIANCE are at the forefront of advocating the adoption of interoperable white box hardware to facilitate cost-effective 5G deployments. Moreover, the rise in demand for 5G services has created opportunities for telecom operators across regional markets to invest in white box servers to meet customized scalability requirements. The table highlights the 5G expansion statistics via the Ericsson Mobility Report and GSMA.
|
Metric |
Value |
|
Global 5G Subscriptions (End of 2024) |
Approximately 2.3 billion |
|
Global 5G Population Coverage (End of 2024) |
80% (excluding mainland China) |
|
Global 5G Subscriptions Forecast (End of 2029) |
Approximately 5.6 billion |
|
Global 5G Population Coverage Forecast (End of 2029) |
85% |
|
Number of Operators with 5G Services (January 2024) |
261 operators in 101 countries |
|
Number of Operators with 5G Standalone (SA) Networks (January 2024) |
47 operators |
Expansion of energy-efficient white box servers in hyperscale data centers:
The expansion of hyperscale data centers is a major catalyst in the adoption of white box servers which are energy-efficient. There has been an increasing requirement to reduce power consumption, creating opportunities to provide white box servers. Data operators can lower their power usage effectiveness (PUE) ratios through the deployment of white box servers. The shift contributes to sustainability whilst also ensuring a greater ROI. The table below highlights recent regulatory push on data centers to mitigate the use of power, which ties with the growth curve of the white box server industry.
|
Region / Regulation |
Key Requirements & Measures |
Reporting Obligations |
Renewable Energy Mandates |
Energy Efficiency Targets |
Impact on Data Centers |
|
European Union (EU) – Energy Efficiency Directive (EED) 2023/1791 |
- Annual energy savings target: 0.8% (2021-23) → 1.9% (2028-30) |
Annual public reporting on energy use, PUE, temperature, waste heat, water, renewable use |
Encouraged to prioritize renewables |
Data centers >500 kW IT power demand must report energy performance |
Requires heat reuse, transparency, drives efficiency adoption |
|
Germany – Energy Efficiency Act |
- New data centers must achieve PUE ≤1.2 |
Annual publication of energy consumption data |
100% renewable energy by 2026 |
Strict PUE targets for new builds |
Promotes green power usage, energy recovery infrastructure |
|
United States – New York State Sustainable Data Centers Act (2024) |
- Annual reporting on energy and water use |
Annual sustainability reports |
Must power with renewable energy |
Imposes limits on new site constructions |
- |
Technological Trends in the Global White Box Server Market
The global white box server sector is influenced by technological advancements, especially the advent of modular designs. Significant trends include the integration of AI and hyper-converged infrastructure (HCI). The innovations in modular designs have enabled industries to effectively deploy white box servers. Moreover, a growing shift to AI-optimized white box servers has bolstered by the advent of NVLink architecture and next-generation GPUs. The table below highlights major technological advancements and uses cases of the white box server market:
|
Trend |
Industry Sector |
Statistic / Example |
|
AI-Optimized Servers |
Telecom |
Foxconn's AI server sales tripled YoY in Q1 2024, now comprising nearly 41% of total server revenue |
|
Blockchain Integration |
Finance |
JPMorgan's Onyx processes $1B daily transactions via JPM Coin |
|
Edge Computing Expansion |
Telecom |
Over 68% of telecom operators plan to invest in edge infrastructure as of 2023 |
|
Open Networking Adoption |
Telecom |
Facebook's Open Compute Project reduced data center power consumption by 36% and OPEX by 23% |
|
Hyperconverged Infrastructure |
Finance |
VMware's AI-integrated HCI stack improved workload balancing by 40% |
Challenges
- Supply chain vulnerabilities in semiconductor and raw material sourcing: The global white box server market has faced considerable impediments due to disruptions in the supply of semiconductors. Additionally, constraints in the supply chain of critical raw materials such as specialty metals and high-grade silicon impact the market. As per the U.S. Department of Commerce, semiconductor shortages have caused production delays of over 12 to 16 weeks. This constraint adds to the lead times and production costs, causing impediments to white box server providers in meeting the rising necessitates for cloud applications.
White Box Server Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
14.8% |
|
Base Year Market Size (2024) |
USD 11.9 billion |
|
Forecast Year Market Size (2037) |
USD 69.7 billion |
|
Regional Scope |
|
White Box Server Segmentation
Form Factor (Rack & Tower Servers, Blade Servers, Multi-node Servers)
The rack and tower servers’ segment is estimated to hold a leading revenue share of 58.3% during the forecast timeline. The expansion of the segment is associated with the rising adoption across heterogenous data center environments. The increasing adoption is due to the ease of scaling and modularity by these servers. As per the NIST, the growing adoption of modular rack servers facilitated a 29% increase in compute efficiency in federal data centers in the U.S. between 2022 and 2024. The increase is due to the operational advantage that modular rack servers provide. Additionally, the large-scale investments in a bid to improve energy efficiency aligns with the sustainability mandates across various regional markets. This trend creates opportunities for deployment. In terms of recent market movement, in May 2024, Five Point Infrastructure announced investments up to USD 1 billion to develop hyperscale-ready data center sites in the Permian Basin. Such large-scale investments are positioned to offer greater opportunities for server deployment.
Business Type (Cloud Service Providers, Enterprises, Telecom Operators)
The cloud service providers (CSPs) segment is estimated to hold a leading revenue share of 63.5% throughout the forecast period. The segment is propelled by the relentless expansion of cloud infrastructure across the world. As per a report by the U.S. DoE’s Office of Scientific and Technical Information (OSTI), CSPs have increased white box server deployments by over 40.5% annually since 2022. The increasing deployments are due to flexibility in configurations offered by white box servers in comparison to OEM solutions, while the rising deployment also converges with the rise of multi-cloud strategies across multiple regional markets.
Our in-depth analysis of the global white box server market includes the following segments:
|
Form Factor |
|
|
Business Type |
|
|
End use |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportWhite Box Server Industry - Regional Synopsis
North America Market Forecast
The North America white box server market is predicted to maintain its dominant revenue share of 41.7% throughout the forecast timeline. Key facets of the regional market contributing to its leading share are the rising deployment of hyperscale data centers, along with government support for extensive digital transformation. The U.S. DoE reports a favorable increase in the percentage of modular white box systems deployment in the U.S., while the region’s leadership in cloud computing has ensured that it remains the top regional contributor to market revenue and opportunities.
The U.S. white box server market is expected to maintain its leading share in North America. The regional market has matured into a mission-critical infrastructure layer for hyperscale cloud operations, propelled by the scaling requirement of major firms, such as AWS, Meta, Microsoft Azure, and others. As per a report by the U.S. National Renewable Energy Laboratory (NREL), the white box server configurations account for more than 55% of the total server procurement in large-scale hyperscale data centers due to their ability to mitigate energy use. In an additional favorable market development, the U.S. Department of Defense has also increased the procurement of modular systems under the aegis of the DevSecOps and Zero Trust Architecture mandates. The convergence of these trends creates a favorable environment for the continued expansion of the global market.
APAC Market Forecast
The APAC white box server market is poised to exhibit the fastest expansion with a CAGR of 12.4% during the forecast period. APAC’s growth is supported by the explosion of cloud-native applications and 5G infrastructure in the region. Comparing data from the Ministry of Internal Affairs and Communications of Japan and the Ministry of Electronics and Information Technology of India, the former’s Beyond 5G Strategy and the latter’s Digital India program have boosted the regional server demands by over 60% between 2022 to the first quarter of 2025. Additionally, the supply chain of the market remains robust, with China leading in semiconductor supply.
The China is impacted by a favorable ecosystem created due to the self-sufficiency mandates. Domestic providers such as Tencent Cloud, Alibaba Cloud, and Huawei Cloud are at the forefront of cloud expansion, bolstering the scope of deployment of white box servers. Moreover, China's push to expand the digital economy is slated to create burgeoning opportunities for white box server deployment. In terms of the market impact by geopolitical decisions, in 2022, the U.S. imposed export restriction driving the development of indigenous server hardware. This has created ample opportunities for white box server deployment.
Companies Dominating the White Box Server Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global white box server market is led by manufacturers from Taiwan, such as Quanta Computer Inc., Inventec Corporation, and Winstron Corporation, holding leading shares in the market. These companies have established strong partnerships with major hyperscale data center operators to offer customizable server solutions. Regionally, Super Micro Computer Inc. is expected to make major strides during the forecast period. With multiple countries seeking technological self-reliance, the opportunities within the market are set to maintain its robust growth throughout the forecast period. The table below highlights the major players in the global white box server market:
|
Company Name |
Country of Origin |
Estimated Revenue Share (2024) |
|
Quanta Computer Inc. |
Taiwan |
33.9% |
|
Inventec Corporation |
Taiwan |
27.6% |
|
Wistron Corporation |
Taiwan |
22.3% |
|
Hon Hai Precision Industry Co., Ltd. (Foxconn) |
Taiwan |
5.7% |
|
Super Micro Computer, Inc. |
USA |
4.8% |
|
MiTAC Holdings Corp. |
Taiwan |
xx% |
|
Compal Electronics |
Taiwan |
xx% |
|
ZT Systems |
USA |
xx% |
|
Hyve Solutions |
USA |
xx% |
|
Celestica Inc. |
Canada |
xx% |
|
Penguin Computing |
USA |
xx% |
|
Inspur Electronic Information Industry Co., Ltd. |
China |
xx% |
|
Lenovo Group Limited |
China |
xx% |
|
Sugon Information Industry Co., Ltd. |
China |
xx% |
|
Wiwynn Corporation |
Taiwan |
xx% |
Below are the areas covered for each company that is a key player in the white box server market:
In the News
- In June 2024, MiTAC Computing Technology participated in COMPUTEX 2024. The company showcased its AI-optimized server platforms in the event. The new solution integrates Intel’s Xeon 6 processors, in a bid to improve AI performance.
- In June 2024, Supermicro introduced its X14 server series. The new series is compatible with the Intel Xeon 6 processors. The servers are slated to improve performance per watt, catering to cloud service and enterprise providers. The new lineup from X14 includes advanced cooling solutions against the backdrop of the rising demand for energy-efficient data center operations.
Author Credits: Abhishek Verma
- Report ID: 2941
- Published Date: Jun 02, 2025
- Report Format: PDF, PPT
