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Research Review | Growing development of global digital infrastructure will propel Data Center Server Market to $150 billion by 2030

Jeffrey Bausch's picture

Submitted by Jeffrey Bausch on
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Per a new research report by Global Market Insight, Inc., entitled “Data Center Server Market Size By Type (Rack, Tower, Blade, Micro), By Data Center Size (Small, Medium, Large), By Application (BFSI, IT & Telecom, Government, Healthcare, Energy, Manufacturing), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2030”, the data center server market will cross a valuation of $150 billion (USD) by 2030. 

This is especially noteworthy as the data center server market size just crossed $60 billion in 2021. The increase to $150 billion is expected to be a more than 10% compound annual growth rate from 2022-2030.

What is driving this growth?

The market’s growth is largely being driven by growing development of global digital infrastructure, which is expected to advance data center server technologies. 

Along with the expected technological advancements in this space, governments all over the globe are beginning to support initiatives that leverage IoT and 5G. Such broad support is expected to further boost the penetration of high-end IT infrastructures. Advanced servers will play a critical role here, as these technologies will be expected to support the implementation of compute-heavy solution like the IoT and 5G, as well as newer solutions like deep learning.

As a result, solution providers will be expected to implement robust server technologies that can capably manage large data volumes; this, in turn, will further propel the demand for server solutions. 

Which industry will see the greatest penetration of new server technologies?

Per the report, the data center server market size from the IT & Telecom segment is projected to surpass $25 billion by 2030. This is largely being driven by the increased penetration of the internet and smartphones worldwide. 

Additionally, the rising usage of social media platforms and optimized video content is increasing data traffic which, in turn, is encouraging companies to integrate committed and dependable data center systems to reduce data loss and ensure security and business continuity.

Who are the companies supporting this growth?

Major players that are expected to lead the data center server market for the next few years include, but are not limited to:

·       Dell Technologies

·       Cisco Systems

·       IBM Corporation

·       Hewlett Packard Enterprise Company 

·       Huawei Technologies

These prominent players are expected to provide advanced AI-powered servers to allow intelligent and efficient data processing and storage.

Is there anything standing in the way of the server market fully realizing these numbers?

Security risks are expected to be the biggest hurdle for this market to overcome. Specifically, increased concerns regarding data security breaches could impede the data center server market growth. 

As data centers serving the government, healthcare, and banking, financial services, and insurance (BFSI) verticals handle personal customer data, security breaches run the risk of losing critical personal information. Data center server manufacturers will be expected to comply with the strict regulations that will be laid down to protect the industry.

Worth noting: Pay attention to small data centers, too

According to the report, the small data center server market size will see a 13% growth between 2022 and 2030. This can mostly be accredited to the growing adoption of technologies such as cloud computing and AI by small- and medium-scale businesses, all of which are being propelled by the deployment of servers across data center facilities. 

Additionally, there is a rise in the number of implementations of micro data centers that serve the requirements of small-scale businesses. The continuation of this trend is expected to encourage the launch of advanced and high-performance compact servers by key industry players.

Read the report in full.

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