Server Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global server market size reached around USD 160.46 Billion in 2024. The market is projected to grow at a CAGR of 15.70% between 2025 and 2034 to reach nearly USD 689.76 Billion by 2034.

Global Server Market Growth

The increasing use of email for workplace communication is expected to emerge as one of the key drivers of the market growth. An average person receives and sends around 121 business emails each day. An average American spends around 209 minutes daily checking work-related emails. Around 80% of American adults reportedly open their work-related emails frequently, while 57% of them open personal emails multiple times. By 2025, the global volume of emails sent and received is expected to increase to 376.4 billion, thereby driving the server market development.

The world has over 1 billion websites today, which is a growth of around 2,290% from 2000 during the period of dotcom mania. Around 46 websites are created each second, 2,772 websites are created each minute, and 3,992,222 websites are created every day. This is expected to increase the rate of server market expansion. As per industry analysis, the number of e-commerce websites globally is around 26.5 million, and .com TLD has become the most popular domain extension. The increasing number of social media users on platforms like Twitter, Facebook, and YouTube is also driving the demand for servers.

Key Trends and Developments

Increasing popularity of online gaming, rising adoption of AI and ML, growing adoption of cloud-storage technology, and growth of the e-commerce industry are the major factors favouring the server market growth

October 2024

Dell Inc. launched the double-socket PowerEdge R6725 and R7725, 4U PowerEdge XE7745, and single-socket PowerEdge R6715 and R7715 in addition to its existing server lineup. These are designed for handling enterprise AI workloads smoothly while ensuring minimal power consumption.

October 2024

Cisco launched the UCS C885A M8 Server designed to tackle challenging AI training tasks. It has a high-density configuration of NVIDIA H100 and H200 Tensor Core GPUs and provides raw computational power that can easily handle complex algorithms and massive data sets. This is creating a favourable server market outlook.

May 2024

IBM launched a new server, “IBM Power S1012” to enable small and medium-sized organisations to gain the benefits of edge computing technologies. It is a cost-effective option that enables clients to run AI inferencing workloads in the back office and remote locations away from mainstream data centre facilities.

April 2024

Lenovo launched next-generation ThinkSystem servers that offer a unique balance of security, efficiency, and performance. They are built with 3rd Gen Intel Xeon Scalable processors and are designed to tackle a wide range of business-critical challenges.

Growth of online gaming

Around 81% of Gen Z play video games for an average of 6 hours and 50 minutes. The increasing popularity of the action genre in the video gaming industry is expected to increase the server market size.

Growth of AI and ML

The growing need for AI and ML-based applications has increased the demand for powerful servers possessing substantial computational power.

Adoption of cloud-storage technology

An increasing number of corporate organisations are switching towards cloud-based storage services to reduce costs and enhance business flexibility and security. This is expected to favourably shape the server market dynamics in the coming years.

Growth of the e-commerce industry

The e-commerce sector has become increasingly reliant on powerful servers to handle customer transactions attributed to digital shopping.

Global Server Market Trends

Americans perceive video games to be one of the best ways of spending leisure time and socialising with others. Around 76% of individuals aged below 18 years play video games in the United States. As per industry reports, around 77% of the millennial population plays video games for 7 hours and 20 minutes weekly. This is expected to increase the growth of the online gaming industry, thereby increasing the server market value in the upcoming years.

Global Server Industry Segmentation

The EMR’s report titled “Global Server Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Product

• Rack
• Blade
• Tower
• Micro
• Open Compute Project

Breakup by Enterprise Size

• Micro
• Small
• Medium
• Large

Breakup by End Use

• IT and Telecom
• BFSI
• Government and Defence
• Healthcare
• Energy
• Others

Breakup by Distribution Channel

• Direct
• Reseller
• Systems integrator
• Others

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Server Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2025-2034, the demand for servers in the Asia Pacific is estimated to grow at a CAGR of 18.1%, thereby creating a favourable server market outlook. This can be attributed to the growing adoption of cloud storage technology and the proliferation of online gaming platforms. The increasing shift towards AI and ML tools is also expected to favour the market growth in the upcoming years.

Leading Companies in the Global Server Market

Major players are expected to design powerful servers, which can handle high computational workload. This is expected to increase the server market revenue in the upcoming years.

Huawei Technologies Co. Ltd.

Huawei Technologies Co. Ltd. was founded in 1987 and is headquartered in Shenzhen, China. It is a leading global provider of smart devices and ICT infrastructure. It has a market presence in over 170 countries and serves around 3 billion consumers worldwide.

Fujitsu Limited

Fujitsu Limited was founded in 1935 and is headquartered in Japan. It is organised into four business segments: service solutions, hardware solutions, ubiquitous solutions, and device solutions. It’s Japan’s #1 IT services company by revenue.

Cisco Systems, Inc.

Cisco Systems, Inc. was founded in 1984 and is headquartered in California, United States. It offers a wide range of networking, security, and data management services.

Dell Inc.

Dell Inc. was founded in 1984 and is headquartered in Texas, United States. It is primarily engaged in developing and selling computers and other hardware products.

Other players included in the server market report are ASUSTeK Computer Inc., Lenovo Group Ltd., Hewlett Packard Enterprise Development LP, IBM Corporation, Intel Corporation, and Oracle Corporation, among others.
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