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:
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