The global data center server market is expected to grow at a CAGR of around 14.4% from 2020 to 2027 and predicted to reach the market value of around US$ 70.7 Bn by 2027.
Data center servers are one of the most energy-intensive building types, consuming 10 to 50 times the energy per floor space of a typical commercial office building. A data center server is a physical facility that organizations utilize for critical applications. A data center's server design is based on a network of computing and storage resources that possess the ability of shared applications and data. Modern data center servers are different from traditional ones. Infrastructure has shifted from traditional on-premises physical servers to virtual networks that support applications and workloads across the pool of physical infrastructure to a multi-cloud environment.
Market Drivers and Trends
Data Center Server Virtualization
Data center operators usually configure at least one physical server per application, accounting for testing/development, staging, and disaster recovery resulting in 3 to 5 servers per application as per the statistics revealed by the US Environmental Protection Agency. According to a 2012 New York Times report, the average server utilization rate was 6 to 12 percent in the past. As a result, rather than running a large number of servers at low utilization, virtualization consolidates computing power into a smaller number of servers that run at higher overall utilization. Virtualization also increases scalability, decreases downtime, and allows for quicker implementation. Apart from that, virtual data servers accelerate recovery by allowing applications to be restarted much more quickly.
Consolidation of lightly utilized data center servers
With an intention to reduce heat and high energy consumption, consolidation allows data center servers to be replaced with new server purchases and installation. An examination of all servers and their utilization rates in most data centers would reveal servers that are performing single, infrequent, or minimal tasks. These servers will be consolidated to remove systems and save money on resources, hardware, and maintenance. In general, consolidation allows you to retire servers and/or postpone the purchase of new servers, reducing energy usage and waste heat. According to the Uptime Institute, decommissioning a single 1 U rack data center server will save $500 in electricity, $500 in operating system licenses, and $1,500 in hardware maintenance costs per year. Therefore, server consolidation by light utilized data center servers is a good idea today.
Remote Management climbs towards all-time high growth
As the new generation of Data Center Infrastructure Management (DCIM) incorporates cloud services, the cloud-based DCIM utilizes artificial intelligence (AI) to provide performance optimization and data modeling. Another fast-growing concept is Remote Infrastructure Management (RIM), in which a company's IT infrastructure can be handled entirely from a remote location. RIM is a valuable commodity that reduces costs, improves service availability, and improves efficiencies in the organization's IT processes. Unmanned data centers are also seen as an emerging trend that is expected to develop rapidly over the forecast period. Currently, centralized data centers handle about 90% of all business data. It is predicted that in 2021 and the following years it will grow at a rapid pace. This is one of the most important factors that will propel the data center server industry in the coming years. Companies will now share their IT workloads between off-site alignment with the providers and cloud hosting services due to the expense and implications of providing in-house servers and private clouds.
Market Segmentation
The data center servers market is segmented based on product, application, and verticals. By product, the market is segmented into rack servers, blade servers, micro servers, and tower servers. Based on application, the market is bifurcated into industrial servers and commercial servers. Furthermore, by verticals, the market is segmented as BFSI, IT and Telecom, Government and Defense, and others.
Regional Landscape
North America holds dominating share for the data center servers market globally
North America holds the largest share and will continue to do so in the coming years. The involvement of a large number of data center rack server vendors, as well as growing technology adoption among North American provinces, are the factors that contribute for the growth of data center servers market globally.
According to the United States Data Center Energy Use Study, data centers in the United States consumed an estimated 70 billion kW in 2014. The significant energy improvements in the design and operation of the data center over the past decade have allowed US data center energy use to remain constant as it was witnessed that there is a drastic increase in demand for data center services. Several measures are implemented by the department to save energy. One such implementation of modernized technology is the implementation of Improved Management (IM). Power Use Effectiveness (PUE) and the elimination of inactive servers are two major components of IM. Improved PUE is an attempt by smaller data centers to reduce their infrastructure energy demand by improving airflow and thermal management. By implementing successful PUE and IM, overall energy savings in 2020 was expected to be 2.5 percent from energy savings due to the elimination of inactive servers and 7.5 percent from infrastructure energy savings due to the decreased server energy coupled with increased PUE.
Europe, on the other hand, would account for a significant share of the global data centre servers industry. The increasing use of cloud computing services in Europe has resulted in an increase in the number of IT infrastructure components. In Europe, Finland, Denmark, and Sweden are the major countries that contribute to cloud adoption technologies that bolster the demand for data center servers in European markets. Additionally, data centre servers market in Asia Pacific is expected to grow at a significant rate in the coming years. The demand for new data centers is driven by the data connectivity platforms and a paradigm shift toward digitization. This is one of the most important factors driving the data centre servers market in the Asia Pacific region to its full potential.
Competitive Landscape
The prominent players of the data center servers industry involve Cisco Systems, Inc., The Hewlett Packard Enterprise Company, IBM Corporation, Fujitsu Limited, Lenovo, Oracle Corporation, Dell, and others.
Market Segmentation
Market By Product
Rack Servers
Blade Servers
Micro Servers
Tower Servers
Market By Application
Industrial Servers
Commercial Servers
Market By Verticals
BFSI
IT and Telecom
Government
Defense
Others
Market By Geography
North America
• U.S.
• Canada
Europe
• U.K.
• Germany
• France
• Spain
• Rest of Europe
Asia-Pacific
• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Rest of Latin America
Middle East & Africa
• GCC
• South Africa
• Rest of Middle East & Africa
CHAPTER 1. Industry Overview of Data Centers Servers
1.1. Definition and Scope
1.1.1. Definition of Data Centers Servers
1.1.2. Market Segmentation
1.1.3. Years Considered for the Study
1.1.4. Assumptions and Acronyms Used
1.1.4.1. Market Assumptions and Market Forecast
1.1.4.2. Acronyms Used in Global Data Centers Servers Market
1.2. Summary
1.2.1. Executive Summary
1.2.2. Data Centers Servers Market By Product
1.2.3. Data Centers Servers Market By Application
1.2.4. Data Centers Servers Market By Verticals
1.2.5. Data Centers Servers Market by Regions
CHAPTER 2. Research Approach
2.1. Methodology
2.1.1. Research Programs
2.1.2. Market Size Estimation
2.1.3. Market Breakdown and Data Triangulation
2.2. Data Source
2.2.1. Secondary Sources
2.2.2. Primary Sources
CHAPTER 3. Market Dynamics And Competition Analysis
3.1. Market Drivers
3.1.1. Driver 1
3.1.2. Driver 2
3.2. Restraints and Challenges
3.2.1. Restrain 1
3.2.2. Restrain 2
3.3. Growth Opportunities
3.3.1. Opportunity 1
3.3.2. Opportunity 2
3.4. Porter’s Five Forces Analysis
3.4.1. Bargaining Power of Suppliers
3.4.2. Bargaining Power of Buyers
3.4.3. Threat of Substitute
3.4.4. Threat of New Entrants
3.4.5. Degree of Competition
3.5. Market Concentration Ratio and Market Maturity Analysis of Data Centers Servers Market
3.5.1. Go To Market Strategy
3.5.1.1. Introduction
3.5.1.2. Growth
3.5.1.3. Maturity
3.5.1.4. Saturation
3.5.1.5. Possible Development
3.6. Technological Roadmap for Data Centers Servers Market
3.7. Value Chain Analysis
3.7.1. List of Key Manufacturers
3.7.2. List of Customers
3.7.3. Level of Integration
3.8. Cost Structure Analysis
3.8.1. Price Trend of Key Raw Materials
3.8.2. Raw Material Suppliers
3.8.3. Proportion of Manufacturing Cost Structure
3.8.3.1. Raw Material
3.8.3.2. Labor Cost
3.8.3.3. Manufacturing Expense
3.9. Regulatory Compliance
3.10. Competitive Landscape, 2019
3.10.1. Player Positioning Analysis
3.10.2. Key Strategies Adopted By Leading Players
CHAPTER 4. Manufacturing Plant Analysis
4.1. Manufacturing Plant Location and Establish Date of Major Manufacturers in 2019
4.2. R&D Status and Application Source of Data Centers Servers Major Manufacturers in 2019
CHAPTER 5. Data Centers Servers Market By Product
5.1. Introduction
5.2. Data Centers Servers Revenue By Product
5.2.1. Data Centers Servers Revenue (US$ Mn) and Forecast, By Product, 2016-2027
5.2.2. Rack Servers
5.2.2.1. Rack Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.3. Blade Servers
5.2.3.1. Blade Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.4. Micro Servers
5.2.4.1. Micro Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.5. Tower Servers
5.2.5.1. Tower Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
CHAPTER 6. Data Centers Servers Market Revenue By Application
6.1. Introduction
6.2. Data Centers Servers Revenue (US$ Mn) By Application
6.2.1. Data Centers Servers Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
6.2.2. Industrial Servers
6.2.2.1. Industrial Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
6.2.3. Commercial Servers
6.2.3.1. Commercial Servers Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
CHAPTER 7. Data Centers Servers Market By Verticals
7.1. Introduction
7.2. Data Centers Servers Revenue (US$ Mn) By Verticals
7.2.1. Data Centers Servers Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
7.2.2. BFSI
7.2.2.1. BFSI Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
7.2.3. IT and Telecom
7.2.3.1. IT and Telecom Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
7.2.4. Government
7.2.4.1. Government Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
7.2.5. Defense
7.2.5.1. Defense Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
7.2.6. Others
7.2.6.1. Others Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
CHAPTER 8. North America Data Centers Servers Market By Country
8.1. North America Data Centers Servers Overview
8.2. U.S.
8.2.1. U.S. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
8.2.2. U.S. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
8.2.3. U.S. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
8.3. Canada
8.3.1. Canada Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
8.3.2. Canada Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
8.3.3. Canada Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
8.4. North America PEST Analysis
CHAPTER 9. Europe Data Centers Servers Market By Country
9.1. Europe Data Centers Servers Market Overview
9.2. U.K.
9.2.1. U.K. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
9.2.2. U.K. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
9.2.3. U.K. Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
9.3. Germany
9.3.1. Germany Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
9.3.2. Germany Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
9.3.3. Germany Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
9.4. France
9.4.1. France Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
9.4.2. France Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
9.4.3. France Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
9.5. Spain
9.5.1. Spain Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
9.5.2. Spain Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
9.5.3. Spain Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
9.6. Rest of Europe
9.6.1. Rest of Europe Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016-2027
9.6.2. Rest of Europe Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016-2027
9.6.3. Rest of Europe Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016-2027
9.7. Europe PEST Analysis
CHAPTER 10. Asia Pacific Data Centers Servers Market By Country
10.1. Asia Pacific Data Centers Servers Market Overview
10.2. China
10.2.1. China Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.2.2. China Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.2.3. China Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.3. Japan
10.3.1. Japan Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.3.2. Japan Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.3.3. Japan Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.4. India
10.4.1. India Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.4.2. India Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.4.3. India Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.5. Australia
10.5.1. Australia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.5.2. Australia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.5.3. Australia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.6. South Korea
10.6.1. South Korea Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.6.2. South Korea Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.6.3. South Korea Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.7. Rest of Asia-Pacific
10.7.1. Rest of Asia-Pacific Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
10.7.2. Rest of Asia-Pacific Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
10.7.3. Rest of Asia-Pacific Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
10.8. Asia Pacific PEST Analysis
CHAPTER 11. Latin America Data Centers Servers Market By Country
11.1. Latin America Data Centers Servers Market Overview
11.2. Brazil
11.2.1. Brazil Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
11.2.2. Brazil Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
11.2.3. Brazil Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
11.3. Mexico
11.3.1. Mexico Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
11.3.2. Mexico Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
11.3.3. Mexico Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
11.4. Rest of Latin America
11.4.1. Rest of Latin America Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
11.4.2. Rest of Latin America Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 – 2027
11.4.3. Rest of Latin America Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
CHAPTER 12. Middle East & Africa Data Centers Servers Market By Country
12.1. Middle East & Africa Data Centers Servers Market Overview
12.2. Saudi Arabia
12.2.1. Saudi Arabia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
12.2.2. Saudi Arabia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
12.2.3. Saudi Arabia Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
12.3. UAE
12.3.1. UAE Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
12.3.2. UAE Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
12.3.3. UAE Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
12.4. Rest of Middle East & Africa
12.4.1. Rest of Middle East & Africa Data Centers Servers Market Revenue (US$ Mn) and Forecast By Product, 2016 - 2027
12.4.2. Rest of Middle East & Africa Data Centers Servers Market Revenue (US$ Mn) and Forecast By Application, 2016 - 2027
12.4.3. Rest of Middle East & Africa Data Centers Servers Market Revenue (US$ Mn) and Forecast By Verticals, 2016 - 2027
CHAPTER 13. Player Analysis Of Data Centers Servers
13.1. Data Centers Servers Market Company Share Analysis
13.2. Competition Matrix
13.2.1. Competitive Benchmarking of key players by price, presence, market share, and R&D investment
13.2.2. New Product Launches and Product Enhancements
13.2.3. Mergers And Acquisition In Global Data Centers Servers Market
13.2.4. Partnership, Joint Ventures and Strategic Alliances/ Sales Agreements
CHAPTER 14. COMPANY PROFILE
14.1. Cisco Systems, Inc.
14.1.1. Company Snapshot
14.1.2. Business Overview
14.1.3. Financial Overview
14.1.3.1. Revenue (US$ Mn), 2019
14.1.3.2. Cisco Systems, Inc. 2019 Data Centers Servers Business Regional Distribution
14.1.4. Product/ Service and Specification
14.1.5. Recent Developments & Business Strategy
14.1.6. Manufacturing Plant Footprint Analysis
14.2. The Hewlett Packard Enterprise Company
14.3. IBM Corporation
14.4. Fujitsu Limited
14.5. Lenovo
14.6. Oracle Corporation
14.7. Dell
14.8. Others
