According to a recently published study by ReportLinker, the global market for Data Center Blade Servers, which was estimated at $15.2 Billion (USD) in 2020, is projected to reach $24.1 Billion by 2026. That’s a CAGR of 7.9% over the study’s period.
What is a blade server and why is it projected to grow so fast?
For those unfamiliar, a blade server is a modular server that allows multiple servers to be housed within a compact space. Within data centers, they are used to optimize physical space as well as power.
The increased need for connectivity and storage space, as enterprises and businesses expand operations around the world, is necessitating greater accessibility to networks as a means for providing efficient services to their clients.
Enterprises are becoming increasingly focused on data center infrastructure
As the number of businesses and enterprises offering cloud services continues to grow around the world, investments into data center infrastructure are quickly gaining prominence.
There’s been particular focus on hyperscale data centers, which rely heavily on blade servers for the purpose of improving operational efficiency and reducing overall costs. Owing to the growing size of big data, the adoption rate of collocation solutions is on the rise, too.
Understanding the different tiers within this market
Tier 1, one of the segments analyzed in the ReportLinker report, is projected to record a 7.1% CAGR and reach $4.6 Billion by 2026. After a thorough analysis of the business implications of the Covid-19 pandemic and its induced economic crisis, growth in the Tier 2 segment has been readjusted to a revised 8.9% CAGR for the next 7-year period.
Pay special attention to Tier 3, which is expected to record 7.7% CAGR
In the global Tier 3 segment, USA, Canada, Japan, China, and Europe will drive the 7.7% CAGR estimated for this segment. These regional markets accounted for a combined market size of $3.9 Billion in the year 2020; they are now expected to achieve a projected size of $6.5 Billion by 2026.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecasted to reach $1.7 Billion by the close of the analysis period; Latin America is projected to expand at 8.3% CAGR during this time.
A closer look at the geographical breakdown of this study
The Data Center Blade Server market in the U.S. is estimated at $5.5 Billion in the year 2021.
China, the world`s second largest economy, is forecasted to reach a projected market size of $2.4 Billion by the year 2026; a CAGR of 9.3% over the analysis period.
Among the other noteworthy geographic markets are Japan and Canada. In these regions, both are forecasted to grow at 6.8% and 7.3%, respectively, by 2026.
Within Europe, Germany will lead the way as it is forecasted to grow at approximately 7.4% CAGR.
So, why is North America expected to account for such a significant share? This is due largely to the presence of many data centers in the region. The need to comply with stringent power consumption regulations also projects well for market growth.
The rapid expansion of data centers in the European region is a significant opportunity for market growth. Asia-Pacific region is expected to witness rapid growth, with continuous increase in investments into new data centers and the strict data regulations.