The global server market's revenue will grow by 17% YoY in 2022 to reach $111.7 billion, according to Counterpoint Research.
The global server market’s revenue will grow by 17% year-on-year (YoY) in 2022 to reach $111.7 billion, according to Counterpoint Technology Market Research’s Global Server Sales Tracker. From an enterprise perspective, transformation to hybrid cloud and upgrades of existing infrastructure to handle increased workloads will provide growth impetus after a pause during the COVID-19 pandemic. 5G, automotive, cloud gaming and high-performance computing will remain the key drivers for cloud service providers in data center expansion.
The market is evolving with the introduction of “As-a-Service” and “pay per use” models by server companies, like Pointnext from HPE, APEX from Dell and TruScale from Lenovo. The business model pivot has been enjoying great success due to more flexibility given to the customer at minimum capital expenses due to the emergence of workload-based infrastructure.
“In an inflationary but extremely dynamic environment, companies are looking to strengthen their infrastructure as they prepare for Web 3.0 demands from the infrastructure end. Companies are diversifying their IT infrastructure to meet the needs of data evolution and making customers cloud-ready,” Research Analyst Akshara Bassi said.
Global Server Market Observations, 2018-2021
“Dell and HPE are the server market icons but are seeing companies like Lenovo, Inspur and Supermicro giving strong competition as demand for flexible customized configurations in bare metal option continues to rise,” Bassi said.
ODM Direct grew at a higher pace by 3 percentage points than the overall market for 2021 indicating shift towards ODM direct as choice of hardware for large scale Data Center deployments. Foxconn and Quanta have been gaining significant market share over the years as hyperscalers continue to expand and favor ODM Direct for their data center orders.
Key Market Drivers, 2022
Note: ODM Direct constitutes sale to hyperscalers and whitelabel device sales to Enterprises directly.