White Box Servers have disrupted the traditional server market by offering cost-effective, customizable solutions. Unlike their proprietary counterparts, white box servers provide flexibility, allowing organizations to tailor hardware configurations based on their specific needs. The White Box Server Market has gained traction as businesses seek to optimize performance, reduce costs, and adapt to rapidly changing technological requirements.
Competitive Landscape of White Box Server Market:
The competitive landscape of the White Box Server market is characterized by dynamic shifts and strategic maneuvers, as key players vie for dominance in this rapidly evolving sector. Several factors contribute to the complex ecosystem, ranging from technological advancements to market trends and emerging players. Understanding the competitive dynamics is crucial for businesses seeking to navigate this space effectively.
Key Players:
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Factors for Market Share Analysis:
New and Emerging Companies:
Current Company Investment Trends:
Latest Company Updates:
October 2023:Â Dell Technologies announces a new line of white box servers aimed at challenging traditional market leaders like Hewlett Packard Enterprise (HPE).
November 2023:Â Open Compute Project (OCP) releases new specifications for liquid cooling technology in servers, potentially improving performance and efficiency of white box systems.
December 2023:Â Chinese tech giant Huawei unveils its own line of white box servers, targeting the growing domestic cloud computing market.
January 10, 2024:Â Intel releases its next-generation Xeon Scalable processors, which are expected to be widely adopted in white box servers due to their performance and price competitiveness.
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White Box Server Market Size was valued at USD 8.5 Billion in 2022. The White Box Server market industry is projected to grow from USD 10.0 Billion in 2023 to USD 35.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.20% during the forecast period (2023 - 2032). White box servers are low-cost and highly customizable, and they are being adopted by end customers and used in an increasing number of data centres, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Increased demand for data centres has been spurred by the proliferation of digital data and the expansion of businesses on a scale. The market is expected to expand because of the rising need for inexpensive servers with greater uptime and a high level of customization and flexibility in hardware design. In recent years, OEM companies in the networking business have been known to hire ODMs to manufacture networking equipment and pre-load their software solutions onto these devices. The industry has innovated new hardware designs to handle the increase in data and networking capacity as a result of the commoditization of networking equipment and the advent of the Open Compute Project (OCP) by Facebook. As the industry as a whole transitions towards open networking approaches, original equipment manufacturers and original design manufacturers will benefit from an influx of new business.
White box servers can provide better capability at a lower cost, while also being easier to develop for unique business requirements. As with the white box paradigm, major data centre operators like Google, Facebook, and Amazon have created a common Ethernet Switch architecture for networking switches. White box servers running Linux or another OS are becoming the norm for businesses of all kinds. An organisation can save money on servers by using white box solutions, which allow for the separation of hardware and software procurement.
White-box servers are growing in popularity due to their low prices and high degree of customization. The growing interest in and usage of digital technologies, such as the cloud and big data analytics, is also a major factor driving product interest and sales. Customers are increasingly turning to ODM services to design and develop their networking hardware and software solutions in response to rising demands for low-cost servers, increased uptime, and design flexibility. The expansion of server applications for processing workloads via cross-platform compatibility and the rise of data analytics are also contributing factors. The ODMs are also putting a lot of effort into creating a low-cost, low-energy product with better storage to suit the needs of the consumers. The development of new technologies, such as green data centres that reduce carbon emissions and electricity use, is also contributing to the market's optimism. Other reasons contributing to expansion include the growing popularity of open platforms and the worldwide demand for micro-servers. Thus, driving the White Box Server market revenue.
The White Box Server market segmentation, based on component, includes Memory, Power Supply, Network Adapter, MotherBoard, Processor, Non-X86 servers, and X-86 servers. X-86 servers segment dominated the market in 2022. It will probably continue to hold that rank until 2025. TCP/IP networking protocols and x86 architectures have become the de facto standard over the last few decades, providing end users with more affordable server options. The market for non-x86 servers is anticipated to have a higher CAGR throughout the projected period as IT infrastructures become more adaptable and deploy customised software to meet varied organisational needs. The segment will expand as a result of rising demand for virtualization, containerization, and increased power efficiency.
The White Box Server market segmentation, based on server type, includes blade servers, tower, and rack servers. The tower segment dominated the market in 2022. The use of rack and tower servers in conventional IT setups is responsible for the segment's expansion. Additionally, these servers are substantially less expensive than other server types while still providing the essential degree of performance for IT processes, which is anticipated to aid the segment in maintaining its leadership during the projection period.
The White Box Server market segmentation, based on business type, includes enterprise customers and data centres. The data centers segment dominated the White Box Server market in 2022. The demand for data centres to manage large volumes of data and serve a variety of applications and devices is increasing as a result of the expanding digital revolution. To adapt to shifting consumer needs, datacenter operators use a variety of hardware and software solutions. White box servers can be a more affordable option that also provide a high level of customization, making them the ideal fit for changing business needs and preserving IT funds.
Figure 1: White Box Server Market, by Business Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America White Box Server Market dominated this market in 2022 (45.80%). The transformation of the traditional IT environment brought about by the increased usage of ICT technologies and the digitization of businesses is helping the regional market to expand. Some of the largest data centres in the world are housed in the region, which has the highest density of data centre facilities. Further, the U.S. White Box Server market held the largest market share, and the Canada White Box Server market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: WHITE BOX SERVER MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe White Box Server market accounted for the healthy market share in 2022. This region is anticipated to drive the growth of the white box server market during the forecast period as a result of an increase in the number of data centres for cloud computing services and data analytics. Further, the German White Box Server market held the largest market share, and the U.K White Box Server market was the fastest growing market in the European region.
The Asia Pacific White Box Server market is expected to register significant growth from 2023 to 2032. The demand for data centres to suit various consumer and business needs is being driven by the growing adoption of mobile devices and digital services in the region. In the upcoming years, the presence of major industry players like Wistron Corporation, Quanta Computer Inc., Inventec Corporation, and Hon Hai Precision Industry Company Ltd. will support market expansion. Moreover, China’s White Box Server market held the largest market share and the Indian White Box Server market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the White Box Server market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, White Box Server industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the White Box Server industry to benefit clients and increase the market sector. In recent years, the White Box Server industry has offered some of the most significant advantages to medicine. Major players in the White Box Server market, including Silicon Mechanics, Quanta Computer Inc., ZT Systems, Penguin Computing, Inventec Corporation, Celestica Inc., Servers Direct, MiTAC Holdings Corp., Wistron Corporation, Stack Velocity Group, Compal Electronics, Hon Hai Precision Industry Company Ltd., Hyve Solutions, and Super Micro Computer Inc., are attempting to increase market demand by investing in research and development Components.
A subsidiary of Alphabet Inc., Google LLC (Google) offers internet search and advertising services. The corporation works on a number of industries, including enterprise and hardware products, advertising, search, platforms and operating systems, and. Google Inc. and Rackspace Inc. created a server based on the forthcoming Power9 CPU from IBM Corp. in April 2016.
A provider of consumer, business, and corporate technologies is Lenovo Group Ltd. The business creates, produces, and sells items connected to IT, such as servers, mainframes, handheld devices, personal computers, and devices and peripherals. Gaming PCs, smartphones, servers, laptops and ultrabooks, tablets, desktops, storage units, and accessories are among its offerings. The ThinkPad, ThinkBook, IdeaPad, Yoga, and Legion brands are used by Lenovo to sell its products. A variety of software and services are also provided. Lenovo serves SMBs, major corporations, the healthcare industry, the government, K–12 schools, higher education, and business partners. It runs research facilities in the US, China, and Japan. Across the Americas, Europe, the Middle East, Africa, and Asia-Pacific, the company conducts business. Hong Kong's Quarry Bay serves as the home base for Lenovo. A joint venture agreement was made between Lenovo Group Ltd. (U.S.) and LCFC (Hefei) Electronics Technology in July 2016.
Silicon Mechanics
Quanta Computer Inc.
ZT Systems
Penguin Computing
Inventec Corporation
Celestica Inc.
Servers Direct
MiTAC Holdings Corp.
Wistron Corporation
Stack Velocity Group
Compal Electronics
Hon Hai Precision Industry Company Ltd.
Hyve Solutions
Super Micro Computer Inc.
March 2016: In an effort to share designs for data-entry equipment that has altered the balance of power in the computer hardware business, Google Inc. (U.S.) donated the blueprints for its high-voltage server racks to the non-profit Open Compute Project Foundation.
Memory
Power Supply
Network Adapter
MotherBoard
Processor
Non-X86 servers
X-86 servers
Blade Servers
Tower
Rack Servers
Enterprise Customers
Data Centres
North America
U.S.
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
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