PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1891511
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1891511
The global servers market reached a market value of USD 136.69 billion in 2024, reflecting the growing importance of servers as the backbone of modern digital infrastructure. Servers play a critical role in enterprise IT environments by delivering computing power, storage, and networking capabilities for cloud platforms, artificial intelligence (AI), big data analytics, enterprise applications, email systems, and web services. In 2024, strong demand from cloud service providers, hyperscale data centers, and enterprises undergoing digital transformation supported robust market performance. North America dominated the servers market in 2024, accounting for a 43.54% share, driven by advanced cloud adoption and the presence of major technology companies.
In 2025, the servers market is projected to grow to USD 145.15 billion, supported by rising investments in cloud computing, virtualization, and high-performance computing infrastructure. Enterprises across industries are increasingly shifting workloads from traditional on-premises environments to private and public clouds, driving demand for scalable, energy-efficient, and software-defined server solutions. The growing use of digital services, e-commerce platforms, and online streaming services is further increasing server installations globally, as organizations seek reliable infrastructure to handle growing data volumes and user traffic.
By 2032, the global servers market is forecast to reach USD 237.00 billion, indicating strong long-term growth. This expansion is driven by the accelerating adoption of AI-driven applications, edge computing, and next-generation data centers. The increasing reliance on digital platforms, automation, and real-time data processing is making advanced server infrastructure essential for maintaining operational efficiency, security, and performance across enterprises.
Impact of COVID-19 on the Servers Market
The COVID-19 pandemic had a significant impact on the servers market by accelerating digital adoption across industries. Lockdowns and remote working models increased reliance on cloud platforms, online collaboration tools, digital payments, e-commerce websites, and OTT platforms. This surge in digital activity led to higher server installations to support increased workloads and traffic. Service providers and enterprises rapidly expanded cloud server deployments to ensure business continuity, scalability, and reliability. The pandemic reinforced the importance of resilient and flexible server infrastructure in supporting global digital ecosystems.
Role of Generative AI in Driving Server Demand
The rapid advancement of generative AI is transforming server requirements and driving demand for high-performance computing systems. Generative AI models, including large language models and image generation systems, require extensive computational power for both training and inference. This has increased demand for servers equipped with high-end GPUs and specialized accelerators such as TPUs. AI servers are also essential for real-time data analysis in applications such as fraud detection, recommendation engines, and predictive analytics. Additionally, the growing deployment of AI at the network edge is driving demand for compact yet powerful servers capable of running AI models locally, reducing latency and bandwidth usage.
Market Trends and Growth Drivers
One of the key trends shaping the servers market is the advancement of emerging technologies, including AI, big data, IoT, and 5G. Increased adoption of these technologies across industries is driving demand for modern server architectures capable of handling complex and data-intensive workloads. Enterprises are increasingly adopting virtualization and software-defined networking to support flexible and scalable data processing environments. As traditional servers struggle to manage advanced workloads, vendors are introducing new server designs with higher computing density and improved energy efficiency.
Another major growth driver is the rising demand for hyperscale data centers and cloud computing. Hyperscale operators rely on thousands of servers to deliver high-performance digital services. Growing investments in hyperscale infrastructure worldwide are significantly boosting server demand, as cloud providers expand capacity to support next-generation applications and global connectivity.
By server type, rack servers dominated the market in 2024, driven by their scalability, space efficiency, and suitability for high-density data centers. Rack servers are widely adopted by enterprises and cloud providers due to their flexibility and ease of expansion.
By processor, the x86 segment held the largest market share in 2024, supported by widespread adoption across industries undergoing digital transformation. x86 servers are extensively used for analytics, AI workloads, and enterprise applications.
By environment type, cloud servers accounted for the largest share in 2024, reflecting the growing need for scalability, virtualization, and cost efficiency. The AI servers segment is expected to witness the fastest growth through 2032 as AI adoption expands across industries.
By vertical, the IT & telecom sector dominated the market in 2024, driven by widespread cloud adoption and network modernization initiatives. The healthcare sector is expected to record strong growth due to increasing data security requirements and digital healthcare adoption.
Regional Analysis
North America led the servers market in 2024, generating USD 59.51 billion, supported by strong cloud adoption and the presence of major technology providers. Asia Pacific is expected to experience rapid growth through 2032, driven by digitalization, expanding data center investments, and the growth of the digital economy. Europe holds the second-largest share, supported by large-scale data center construction and colocation trends, while South America, the Middle East, and Africa are emerging markets with growing adoption of cloud and hyperscale infrastructure.
Overall, the servers market shows strong and sustained growth from 2024 to 2032, driven by cloud computing, AI adoption, hyperscale data centers, and ongoing digital transformation across industries.
Segmentation By Server Type
By Processor
By Environment Type
By Vertical
By Region