PUBLISHER: The Business Research Company | PRODUCT CODE: 1843749
PUBLISHER: The Business Research Company | PRODUCT CODE: 1843749
Computer servers are powerful systems designed to manage network resources, store data, and provide services to client computers within a network. Their primary role is to handle, process, and store data, applications, and services, ensuring the seamless functioning of networks, websites, and applications. Moreover, they facilitate resource sharing and collaboration among users.
Primary types of computer servers include web servers, virtual servers, application servers, and database servers. A web server, a combination of hardware and software, utilizes protocols such as HTTP to respond to requests on the World Wide Web (www). It operates on server operating systems such as Microsoft Windows Servers, LINUX/UNIX servers, NetWare, and cloud servers, and finds applications across mainframes, desktops, laptops, and various other computing environments.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The computer servers market research report is one of a series of new reports from The Business Research Company that provides computer servers market statistics, including computer servers industry global market size, regional shares, competitors with a computer servers market share, detailed computer servers market segments, market trends and opportunities, and any further data you may need to thrive in the computer servers industry. This computer servers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The computer servers market size has grown strongly in recent years. It will grow from $73.87 billion in 2024 to $77.87 billion in 2025 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to the rising penetration of e-commerce, increased availability of mobile devices, increased internet penetration, and increased usage of digital wallets.
The computer servers market size is expected to see strong growth in the next few years. It will grow to $98.33 billion in 2029 at a compound annual growth rate (CAGR) of 6.0%. The growth in the forecast period can be attributed to the increasing adoption of 5g networks, the Internet of Things (IoT), an increase in internet penetration, and increasing smart cities. Major trends in the forecast period include the development of new product offerings related to small- and medium- businesses, expansion of existing product portfolio, development of new servers for customized environments, strategic acquisitions, and strategic partnerships.
The forecast of 6.0% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff hikes could notably impact enterprise infrastructure as US firms rely on high-performance servers manufactured in Taiwan and assembled in Mexico, with component delays leading to slower data center rollouts. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The surge in demand for computer servers remains a pivotal driver propelling the growth of the computer server market. These servers act as the backbone, supplying data to various computers and devices over networks such as LAN or WAN. The global server industry's robust double-digit growth, as evidenced in a November 2022 survey by Netcraft Ltd., reveals an upward trajectory with substantial numbers across surveyed sites, domains, and web-facing computers. With an increase of 4.7 million sites and 6,685 web-facing computers, the industry demonstrates sustained expansion, highlighting the persistent demand driving the computer servers market forward.
The rising adoption of IoT devices is anticipated to propel the growth of the computer server market in the future. The Internet of Things (IoT) refers to a network of physical objects equipped with sensors, software, and connectivity features that enable data collection and exchange over the Internet. The integration of IoT devices in computer servers is vital for enhancing performance, minimizing downtime, boosting security, and optimizing resource use in data center settings. For example, in December 2023, a report from Ericsson, a telecommunications company based in Sweden, indicated that global IoT connections reached 3.4 billion in 2023 and are projected to rise to 6.7 billion by 2029. Therefore, the increasing adoption of IoT devices is driving the growth of the computer server market.
Major players in the computer server industry are actively innovating by introducing groundbreaking server models such as the PowerEdge XR5610, XR7620, and XR8000. These servers, driven by 4th Gen Intel Xeon Scalable processors, cater to diverse industries and edge computing scenarios. Dell, a prominent US-based technology company, unveiled these servers in February 2023. Noteworthy features include their ruggedized design, heightened energy efficiency, infrastructure consolidation, and support for a range of accelerators and NICs, allowing for distinctive edge computing solutions.
Leading companies in the computer server domain are focusing on pioneering server developments centered on artificial intelligence (AI). NVIDIA, a renowned US-based software corporation, has collaborated with global system manufacturers to introduce AI-ready servers. These servers, unveiled in August 2023, boast NVIDIA L40S GPUs, NVIDIA BlueField-3 DPUs, and NVIDIA AI Enterprise software. These cutting-edge servers are engineered to accelerate enterprise AI applications, enabling the optimization of foundational AI models and deployment of advanced AI applications such as intelligent chatbots and search tools.
In January 2023, Microsoft, a US-based technology company, completed the acquisition of Fungible for an undisclosed sum. This strategic move is geared towards improving Microsoft's data center infrastructure, with a specific focus on enhancing networking and storage performance. Fungible, also based in the US, specializes in developing hardware and software solutions for data processing units (DPU) in high-performance, scalable, and disaggregated data center infrastructure.
Major companies operating in the computer servers market include Dell Technologies Inc, Hewlett Packard Enterprise Development Lp, IBM Corporation, Lenovo Group Limited, Huawei Technologies Co., Ltd, CISCO, Fujitsu Corporation, ASUSTek Computer Inc., Oracle Inc., Hitachi Limited, Atos Se, Denese (Dongguan) Computer Co, Shenzhen Hyllsi Technology Co, Comutronic Technology Guangzhou Ltd, Beijing Rongcheng Hutong Technology Co, Alibaba Group Holding Limited, China Mobile Limited, China United Network Communications Group Co. Ltd, China Telecommunications Corporation, Centrin Data Systems Co. Ltd, Cheops Technology, Claranet, Neoxia, Aqua Ray Eralabs, Sap And Software Ag, Polish Software, Inspur Systems, Nec Corporation, Inap, Amazon Web Services (Aws), Microsoft, Tanium, Illumio, Jumpcloud, Strongdm, Headspin, Exotanium, Inc, Dittolive Incorporated, Coder, Scalyr, Google Inc, Netapp, Arista Networks, Mis Software, Digital Direct Limited, Systematics, Bliss Computers, Hybrid Global Systems, Rectron Holdings
Asia-Pacific was the largest region in the computer servers market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the global computer servers market report during the forecast period. The regions covered in the computer servers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the computer servers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The computer servers market consists of sales of computer servers, which are hardware devices that are capable to store, access, secure, and manage digital data, files and services. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Computer Servers Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on computer servers market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for computer servers ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The computer servers market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.