Servers - G7

Revenue in the Servers market is projected to reach US$68.21bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 12.82%, resulting in a market volume of US$124.70bn by 2029.
The average Spend per Employee in the Servers market is projected to reach US$169.40 in 2024.
In global comparison, most revenue will be generated in the United States (US$47,260m in 2024).

Key regions: Japan, India, China, United Kingdom, Europe

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Analyst Opinion

The Servers Market in G7 nan is experiencing minimal growth rate, impacted by factors such as slow technological advancement and limited investment in data center infrastructure. This has hindered the overall growth of the market despite increasing demand for digital services and rising health awareness among consumers.

Customer preferences: As digitalization continues to transform the way businesses operate, the demand for cloud-based solutions and virtualization in the Servers Market within the Data Center Market is on the rise. This trend is driven by the need for cost efficiency and scalability in IT infrastructure. Furthermore, the growing adoption of remote work and online collaboration tools in response to the COVID-19 pandemic has accelerated the shift towards cloud-based solutions, as organizations prioritize flexibility and remote accessibility. This has also led to a rise in demand for data center services that provide secure and reliable connectivity for remote workers.

Trends in the market: In the G7 region, the Servers Market within the Data Center Market is experiencing a surge in demand for edge computing solutions. This trend is being driven by the increasing adoption of Internet of Things (IoT) devices and the need for low-latency data processing. Additionally, there is a growing focus on energy efficiency in data centers, leading to the development of more efficient server designs. These trends have significant implications for industry players, as they must adapt to the changing landscape and invest in new technologies to remain competitive. For example, server manufacturers may need to incorporate edge computing capabilities into their products, while data center operators may need to implement energy-efficient infrastructure to meet customer demands.

Local special circumstances: In Japan, the demand for data centers is driven by the country's strict data privacy laws and the increasing adoption of cloud-based technologies. The market is also influenced by the country's unique natural disaster risks, leading to a focus on disaster recovery and business continuity solutions. In Germany, the market is heavily regulated, with strict data protection laws and government incentives for energy-efficient data centers. The country's strong economy and high-tech industries also contribute to the demand for servers and data center services.

Underlying macroeconomic factors: The Servers Market within the Data Center Market is affected by macroeconomic factors such as technological advancements, government policies, and investment in IT infrastructure. Countries with strong economic growth and supportive policies towards the digital transformation of businesses are experiencing higher demand for servers, as companies invest in upgrading their data centers. Additionally, the rise of cloud computing and the increasing importance of data analytics are driving the demand for servers, as businesses strive to stay competitive in the global market.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.