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    Servers Market

    ID: MRFR/ICT/14662-HCR
    128 Pages
    Ankit Gupta
    October 2025

    Servers Market Research Report Information By Product (Blade, Micro, Open Compute Project, Rack, and Tower), By Enterprise Size (Micro, Small, Medium, and Large) By Channel (Direct, Reseller, Systems Integrator, and Others), By End-Use (BFSI, Energy, Government & Defense, Healthcare, IT & Telecom, and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035

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    Servers Market Infographic
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    Servers Market Summary

    As per MRFR analysis, the Servers Market Size was estimated at 122.3 USD Billion in 2024. The Servers industry is projected to grow from 130.86 USD Billion in 2025 to 257.43 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.0 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Servers Market is experiencing robust growth driven by technological advancements and evolving consumer needs.

    • Cloud computing integration continues to reshape server architectures, particularly in North America, the largest market.
    • AI and automation are increasingly utilized in server management, enhancing operational efficiency across various sectors.
    • Energy efficiency remains a critical focus, with companies striving to reduce their carbon footprint in both North America and Asia-Pacific.
    • The rising demand for data centers and the adoption of hybrid cloud solutions are key drivers propelling growth in the blade and small server segments.

    Market Size & Forecast

    2024 Market Size 122.3 (USD Billion)
    2035 Market Size 257.43 (USD Billion)
    CAGR (2025 - 2035) 7.0%

    Major Players

    Hewlett Packard Enterprise (US), Dell Technologies (US), IBM (US), Cisco Systems (US), Lenovo (CN), Oracle (US), Fujitsu (JP), Supermicro (US), Huawei (CN)

    Servers Market Trends

    The Servers Market is currently experiencing a dynamic evolution, driven by advancements in technology and shifting consumer demands. Organizations are increasingly seeking robust and efficient server solutions to support their growing data needs and enhance operational efficiency. This trend is underscored by the rising adoption of cloud computing, which necessitates scalable and flexible server infrastructures. Furthermore, the integration of artificial intelligence and machine learning into server management is transforming how businesses optimize performance and resource allocation. As companies strive for digital transformation, the Servers Market is poised for substantial growth, reflecting the critical role servers play in modern IT ecosystems. In addition to technological advancements, the Servers Market is also influenced by the increasing emphasis on sustainability and energy efficiency. Organizations are becoming more aware of their environmental impact and are seeking server solutions that minimize energy consumption while maximizing performance. This shift towards greener technologies is prompting manufacturers to innovate and develop eco-friendly server options. Overall, the Servers Market appears to be on a trajectory of continuous growth, driven by technological innovation and a commitment to sustainability, which may redefine the landscape of IT infrastructure in the coming years.

    Cloud Computing Integration

    The integration of cloud computing into server solutions is reshaping the Servers Market. Businesses are increasingly migrating to cloud-based infrastructures, which require adaptable and scalable server systems. This trend indicates a shift towards hybrid models, where on-premises servers complement cloud services, enhancing flexibility and resource management.

    AI and Automation in Server Management

    Artificial intelligence and automation are becoming integral to server management practices. These technologies enable organizations to optimize server performance, predict maintenance needs, and streamline operations. The growing reliance on AI suggests a future where server management is more efficient and less labor-intensive.

    Focus on Energy Efficiency

    There is a notable trend towards energy-efficient server solutions within the Servers Market. Companies are prioritizing sustainability, leading to the development of servers that consume less power while delivering high performance. This focus on energy efficiency reflects a broader commitment to reducing environmental impact.

    Servers Market Drivers

    Emergence of Edge Computing

    The rise of edge computing is transforming the Servers Market by decentralizing data processing and storage. This paradigm shift allows data to be processed closer to the source, reducing latency and improving response times. As industries such as IoT and autonomous vehicles gain traction, the demand for edge servers is expected to grow significantly. Market analysts predict that the edge computing market could reach 20 billion dollars by 2025, highlighting the potential for server manufacturers to capitalize on this trend. The integration of edge computing solutions into existing server architectures presents both challenges and opportunities for the Servers Market, as companies strive to meet evolving consumer demands.

    Rising Demand for Data Centers

    The increasing reliance on digital services and data storage has led to a surge in demand for data centers, which are critical components of the Servers Market. As businesses expand their online presence, the need for robust server infrastructure becomes paramount. According to recent statistics, the data center market is projected to grow at a compound annual growth rate of over 10 percent in the coming years. This growth is driven by the need for enhanced data processing capabilities and the storage of vast amounts of information. Consequently, the Servers Market is witnessing a significant uptick in investments aimed at expanding data center capacities, thereby creating opportunities for server manufacturers and service providers.

    Increased Focus on Cybersecurity

    As cyber threats become more sophisticated, the Servers Market is experiencing heightened demand for secure server solutions. Organizations are prioritizing cybersecurity measures to protect sensitive data and maintain operational integrity. The Servers Market is projected to reach over 300 billion dollars by 2024, indicating a strong correlation with the need for secure server infrastructures. This trend compels server manufacturers to innovate and enhance security features within their products, thereby influencing purchasing decisions. The emphasis on cybersecurity not only drives server sales but also shapes the overall landscape of the Servers Market, as companies seek to mitigate risks associated with data breaches.

    Adoption of Hybrid Cloud Solutions

    The trend towards hybrid cloud solutions is reshaping the Servers Market, as organizations seek to balance the benefits of public and private cloud environments. This approach allows businesses to optimize their IT resources while maintaining control over sensitive data. The hybrid cloud market is expected to witness substantial growth, with estimates suggesting a market size exceeding 100 billion dollars by 2026. This shift necessitates advanced server technologies that can seamlessly integrate with both cloud environments, driving innovation within the Servers Market. As companies increasingly adopt hybrid models, the demand for versatile and scalable server solutions is likely to rise, presenting new avenues for growth.

    Sustainability Initiatives in IT Infrastructure

    The growing emphasis on sustainability is influencing the Servers Market, as organizations seek to reduce their carbon footprint and energy consumption. Many companies are adopting green IT practices, which include the use of energy-efficient servers and environmentally friendly data center designs. Research indicates that energy-efficient servers can reduce operational costs by up to 30 percent, making them an attractive option for businesses. This trend is likely to drive innovation in server technologies, as manufacturers respond to the demand for sustainable solutions. As sustainability becomes a core value for many organizations, the Servers Market is expected to evolve, with a focus on eco-friendly practices and products.

    Market Segment Insights

    Servers Market Product Insights

    The Servers Market segmentation, based on Product includes Blade, Micro, Open Compute Project, Rack, and Tower. The rack segment dominated the market. Rack servers are independently mounted on a rack and are customized to support a wide variety of requirements. The construction and design of the rack servers accommodate both high and low processing demands.

    Servers Market Enterprise Size Insights     

    The Servers Market segmentation, based on Enterprise Size, includes Micro, Small, Medium, and Large. The large category generated the most income. Because hosted application servers can manage workloads from several sites, usually from the same database, large organizations are turning their attention toward them. Because hosted application servers don't need to be installed upfront and require fewer system integrations, they may be deployed more easily than traditional application servers, which lower running and maintenance expenses.

    Figure 2: Servers Market, by Enterprise size, 2022 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Servers Market Channel Insights

    The Servers Market segmentation, based on Channel includes Direct, Reseller, Systems Integrator, and Others. The reseller segment dominated the market. The technology distribution channel between a vast network of IT service providers and sales representatives is made up of resellers. Using a reseller might also make it easier for customers to locate things.

    Servers Market End-Use Insights

    The Servers Market segmentation, based on End-Use, includes BFSI, Energy, Government & Defense, Healthcare, IT & Telecom, and Others. The IT & telecom category generated the most income. The implementation of fixed-to-mobile broadband services has undergone a revolution in the IT and telecom industries during the past several years. Cloud-based services are increasingly being used in the IT industry instead of on-premise ones.

    Get more detailed insights about Servers Market

    Regional Insights

    North America : Technology Leadership and Innovation

    North America remains the largest market for servers, holding approximately 40% of the global share. The region's growth is driven by rapid advancements in cloud computing, big data analytics, and the increasing demand for high-performance computing. Regulatory support for technology innovation and data security further catalyzes market expansion. The U.S. government’s initiatives to enhance cybersecurity infrastructure also play a crucial role in shaping market dynamics. The competitive landscape is characterized by major players such as Hewlett Packard Enterprise, Dell Technologies, and IBM, which dominate the market. The presence of these key players fosters innovation and drives technological advancements. Additionally, the U.S. is home to numerous startups and tech firms that contribute to the vibrant ecosystem, ensuring a continuous flow of new solutions and services in the server market.

    Europe : Emerging Market with Growth Potential

    Europe is witnessing significant growth in the servers market, accounting for approximately 30% of the global share. The region's demand is fueled by the increasing adoption of cloud services, digital transformation initiatives, and stringent data protection regulations like GDPR. Countries such as Germany and the UK are leading this growth, supported by government policies that encourage technological innovation and infrastructure development. Germany stands out as the largest market in Europe, followed closely by the UK. The competitive landscape features key players like IBM, Cisco Systems, and Fujitsu, which are actively investing in research and development to enhance their offerings. The European market is also seeing a rise in local startups that focus on niche server solutions, contributing to a diverse and competitive environment.

    Asia-Pacific : Rapid Growth and Adoption

    Asia-Pacific is rapidly emerging as a significant player in the servers market, holding around 25% of the global share. The region's growth is driven by increasing internet penetration, the rise of e-commerce, and substantial investments in data centers. Countries like China and India are at the forefront, with government initiatives aimed at boosting digital infrastructure and technology adoption, which are crucial for market expansion. China is the largest market in the region, followed by India, both of which are witnessing a surge in demand for server solutions. Major players like Lenovo and Huawei are capitalizing on this growth, while local companies are also entering the market with innovative solutions. The competitive landscape is becoming increasingly dynamic, with a focus on enhancing performance and energy efficiency in server technologies.

    Middle East and Africa : Untapped Potential and Growth

    The Middle East and Africa region is gradually emerging in the servers market, currently holding about 5% of the global share. The growth is primarily driven by increasing investments in IT infrastructure, digital transformation initiatives, and the rising demand for cloud services. Countries like the UAE and South Africa are leading this growth, supported by government policies aimed at enhancing technological capabilities and attracting foreign investments. The competitive landscape is still developing, with key players like Oracle and Cisco Systems establishing a presence in the region. Local companies are also beginning to emerge, focusing on tailored solutions for specific market needs. The region's potential for growth is significant, as more businesses recognize the importance of robust server solutions to support their operations and digital strategies.

    Servers Market Regional Image

    Key Players and Competitive Insights

    Leading market players are putting a lot of money into R&D to expand their product ranges, which will help the servers market, keep growing. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Servers industry must provide reasonably priced goods.

    Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Servers industry to help customers and expand the market segment. In recent years, the Servers industry has provided some of the biggest benefits to medicine. Major players in the Servers Market, including ASUSTeK Computer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Inspur, Intel Corporation, and others, are engaging in research and development activities in an effort to boost market demand.

    ASUSTeK Computer Inc. is a global Taiwanese corporation specializing in computer hardware and electronics. The corporation manufactures a broad variety of goods, such as servers, laptops, smartphones, tablets, desktop computers, and computer accessories. According to unit sales, ASUSTeK was the fifth-largest PC vendor in the world in 2020. The ZenBook Pro Duo, a laptop with two 4K screens that ASUSTeK released in 2019, was well-received by both consumers and critics.

    Cisco Systems, Inc. is a multinational technological company based in the United States. The company creates, produces, and markets software, networking hardware, and telecom hardware. A major supplier of high-speed coherent optical interconnect devices, Acacia Communications was set to be acquired by Cisco in 2019 for a reported $2.6 billion. After completion in 2021, this acquisition aided Cisco in diversifying its line of optical networking products.

    Key Companies in the Servers Market market include

    Industry Developments

    • Q2 2025: Converge Technology Solutions Corp. (Canada) was acquired by H.I.G. Capital, LLC (United States) for USD 0.91 billion. H.I.G. Capital, a U.S.-based private equity firm, agreed to acquire Converge Technology Solutions Corp., a Canadian IT and cloud solutions provider, for USD 910 million. The deal, expected to close in Q2 2025 pending regulatory and court approvals, will see Converge integrated with Mainline Information Systems to enhance data center infrastructure and server offerings.
    • Q2 2025: Sanmina, ZT Systems' server-manufacturing business, $3 billion. In May 2025, Sanmina acquired ZT Systems' server-manufacturing business for $3 billion, marking a significant consolidation in the server manufacturing sector.
    • Q4 2024: World Wide Technology (WWT) acquisition of Canada based Softchoice for C$1.8B. World Wide Technology (WWT) announced the acquisition of Canadian IT solutions provider Softchoice for C$1.8 billion in Q4 2024, expanding WWT's reach in the North American server and IT infrastructure market.
    • Q4 2024: CDW’s acquisition of AWS Premier Partner, Mission Cloud Services. CDW acquired Mission Cloud Services, an AWS Premier Partner, in Q4 2024, strengthening its cloud and server solutions portfolio.
    • Q4 2024: Xerox acquisition of ITsavvy for $400M. Xerox acquired ITsavvy, an IT solutions and server infrastructure provider, for $400 million in Q4 2024, aiming to expand its presence in managed IT and server services.
    • Q4 2024: Presidio acquires Contender Solutions. Presidio announced the acquisition of Contender Solutions in Q4 2024, enhancing its capabilities in IT infrastructure and server solutions.
    • Q4 2024: Presidio acquires Kinney Group. Presidio completed the acquisition of Kinney Group in Q4 2024, further expanding its offerings in server infrastructure and managed IT services.

    Future Outlook

    Servers Market Future Outlook

    The Servers Market is projected to grow at a 7.0% CAGR from 2024 to 2035, driven by cloud computing, AI integration, and increasing data center demands.

    New opportunities lie in:

    • Expansion of edge computing solutions for real-time data processing.
    • Development of energy-efficient server technologies to reduce operational costs.
    • Integration of AI-driven management tools for enhanced server performance.

    By 2035, the Servers Market is expected to be robust, driven by technological advancements and increasing demand.

    Market Segmentation

    Servers Market Channel Outlook

    • Direct
    • Reseller
    • Systems Integrator
    • Others

    Servers Market End-Use Outlook

    • BFSI
    • Energy
    • Government & Defense
    • Healthcare
    • IT & Telecom
    • Others

    Servers Market Product Outlook

    • Blade
    • Micro
    • Open Compute Project
    • Rack
    • Tower

    Servers Market Enterprise Size Outlook

    • Micro
    • Small
    • Medium
    • Large

    Report Scope

    MARKET SIZE 2024122.3(USD Billion)
    MARKET SIZE 2025130.86(USD Billion)
    MARKET SIZE 2035257.43(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)7.0% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of artificial intelligence in server management enhances efficiency and reduces operational costs.
    Key Market DynamicsRising demand for cloud computing drives innovation and competition in the servers market, influencing supply chain dynamics.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Ankit Gupta
    Senior Research Analyst

    Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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    FAQs

    What is the projected market valuation of the Servers Market by 2035?

    The Servers Market is projected to reach a valuation of 257.43 USD Billion by 2035.

    What was the overall market valuation of the Servers Market in 2024?

    In 2024, the overall market valuation of the Servers Market was 122.3 USD Billion.

    What is the expected CAGR for the Servers Market during the forecast period 2025 - 2035?

    The expected CAGR for the Servers Market during the forecast period 2025 - 2035 is 7.0%.

    Which companies are considered key players in the Servers Market?

    Key players in the Servers Market include Hewlett Packard Enterprise, Dell Technologies, IBM, Cisco Systems, Lenovo, Oracle, Fujitsu, Supermicro, and Huawei.

    What are the projected revenues for the Rack segment of the Servers Market by 2035?

    The Rack segment of the Servers Market is projected to generate revenues between 40.0 and 85.0 USD Billion by 2035.

    How does the performance of the Large enterprise size segment compare to others?

    The Large enterprise size segment is expected to generate revenues between 72.3 and 157.43 USD Billion, indicating strong performance compared to other segments.

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