The global server market size is estimated to reach $175,29-billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9,8% from 2024 to 2030, according to the recent reports of Grand View Research.

Continued advances in emerging technologies, such as AI, IoT, big data, cloud computing, and 5G, and the growing adoption of innovative solutions based on these technologies across various industries and industry verticals are driving the demand for edge data centers in emerging economies.

As businesses move to private and public clouds, edge cloud, co-location facilities, and data centers have started utilizing software-defined networks (SDNs) and virtualization to facilitate the implementation of new data analytics models. However, having realized that the incumbent servers cannot handle the complex workloads, market players in the region are introducing new server designs with higher computational power.

The cloud computing sector attracts small enterprises by offering scalable infrastructure and services. Cloud computing also offers benefits such as on-demand self-service, broad network access, resource pooling, flexibility in terms of cost and time, transparency in the form of usage reports and timely updates regarding consumption rates, and cost updates to customers. It not only helps deploy business quickly but also considerably reduces operational costs. Since data security and recovery are critical concerns for small organizations, they prefer to deploy data on private clouds.

Furthermore, companies are utilizing big data analytics to provide the best services to their customers. Cloud services assist in optimizing business processes for small enterprises. These factors would further supplement the demand for servers in small enterprises during the forecast period.

Server platforms have evolved to incorporate features and capabilities once considered add-ons and were integrated only for advanced deployments. The architecture, product capability, and management and development tools account for a substantial share of the total ownership costs of owning the servers.

The total ownership costs include the initial design, deployment, and recurring costs.

The initial design and deployment costs cover the costs incurred on hardware, software, installation & setup, integration & testing, and initial deployment.

On the other hand, the recurring costs include the costs incurred for technical support & consultancy, implementation, management & administration, monitoring & diagnostics, server downtime, and upgrades.

Additionally, the rise of advanced applications requiring particular settings and substantial computational power from users and providers is fueling the shift toward cloud servers for optimized performance. Businesses increasingly turn to virtual or cloud servers to improve their worldwide networking potential and reduce the expenses associated with operating and maintaining their IT systems.

Furthermore, cloud service providers must allocate considerable resources to maintain cooling systems due to physical servers’ higher heat output. Consequently, strategies like server leasing and virtualisation have become more popular lately.

Other findings from the server market report include:

* The rack segment is expected to register a CAGR of 11,3% from 2024 to 2030 in the server market. The segment growth can be attributed to the growing need for scalable data centers, high-density computing, and advancements in emerging technologies, such as IoT, cloud computing, and edge computing, creating vast growth opportunities for market players.

* The large enterprise segment is expected to register a CAGR of 10,4% from 2024 to 2030 in the server market. Large enterprises are shifting their focus toward hosted application servers because they can handle workloads from multiple sites, typically from the same database.

* The direct segment is expected to register a CAGR of 11% from 2024 to 2030 in the server market. Direct distribution can shorten lead times by sending goods directly to customers when they are ready for deployment. These benefits are expected to further supplement the growth of the direct channel during the forecast period.

* The IT & telecom segment expected to register a significant CAGR from 2024 to 2030 in the server market. The IT industry has seen a growing implementation of cloud-based services over on-premises ones. Subscribers now get most services through a single service provider. Furthermore, mobile phones’ constantly evolving multimedia capabilities are giving rise to new issues related to after-sales service delivery and execution.

* Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period at a CAGR of 10,7% in the server market. The growth of the Asia Pacific market can be attributed to significant players in the region, including Baidu, Huawei Technologies, Tencent Cloud, and Moreover, the region has been witnessing high growth in digitalisation, especially in countries such as India.