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Growing need for efficient server solutions for high-density facilities to drive the data center rack server market
The global data center rack server market size is expected to grow from USD 52.1 billion in 2019 to USD 102.5 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 14.5% during the forecast period. The major factors driving the growth of the data center rack server market include an increasing need for high-density servers due to more complex computation needs and advancement in emerging technologies, such as edge computing, IoT, and big data analytics.
Support and maintenance segment to grow at the highest CAGR during the forecast period
Maintenance refers to all the actions that are performed to prevent a piece of equipment from failing or to repair a failed or damaged piece of equipment. The maintenance of rack servers includes maintenance related to disk integrity and recovery. It also includes maintenance of supporting infrastructure, such as air cooling, electrical wiring, and physical suppression system.
The benefits of support and maintenance include an increase in the life span of the equipment, which results in an increase in the operational uptime and reduction in hardware failure, which saves operational costs in maintaining the network and increase the productivity of the operational resources.
BFSI vertical segment to account for the highest market share during the forecast period
Banking and finance institutions are evolving with the implementation of emerging digital technologies in an attempt to find innovative ways to better serve their customers. They are redesigning their processes to help create an improved and personalized user experience by placing storage and processing near the perimeter with edge computing. This sector is rapidly moving toward digitalization, and any further transformation will be reliant on the hosting services powering it, i.e., taking into account the scale, speed, and security of the data that is required.
Mid-sized data centers segment to record the fastest growth rate during the forecast period
The adoption of data center rack servers among mid-sized data centers is estimated to grow at the highest CAGR during the forecast period. Rack servers used in mid-sized data centers provide a facility for storing and computing information at a lower cost, which helps organizations in their personal or private usage. Organizations are rapidly adopting these solutions as they provide increased scalability, and provide for easy migration from traditional technologies. Vendors can develop specific solutions targeted toward mid-sized data centers to improve their position in the data center rack server market. Furthermore, rising technological proficiency among the mid-sized data centers further compels mid-sized data centers to adopt data center rack servers.
North America to account for the highest market share during the forecast period
North America is estimated to dominate the global data center rack server market due to the presence of a large number of data centers in the region and the rise in popularity of technology.. Furthermore, more advanced technology ecosystem and greater user expertise have fueled the growth of North American data center rack server market. Moreover, the presence of technology giants, such as Google, Microsoft, Facebook, and Apple, add to the growth of the North American data center rack server market.
The developed economies in North America have been witnessing massive investments from private sector firms to set up large data centers. Moreover, it is home to many technological innovators. Most of the major players, such as HPE, Dell, and Cisco, offering data rack servers have their headquarters in this region. In addition, the region constitutes various developed economies, such as the US and Canada that have fairly adopted data center rack servers, thus enabling organizations in these economies excel in the market space.
- By Company Type: Tier 1 – 25%, Tier 2 – 30%, and Tier 3 – 45%
- By Designation: C-level Executives – 40%, Directors Level – 35%, Manager Level -25%
- By Region: North America – 45%, Europe – 25%, APAC – 20%, and RoW – 10%.
Some prominent players across all service types profiled in the data center rack server market study include Hewlett Packard Enterprise (US), Lenovo (China), Dell (US), Cisco Systems (US), Huawei (China), Oracle (US), Fujitsu (Japan), NEC (Japan), Rittal (Germany), Vertiv (US), Schneider Electric (France), Asus (China), Inspur Systems (China), Iron Systems (US), Black Box Corporation (US), and Quanta Computer (China).
The market study covers the data center rack server market across different segments. It aims at estimating the market size and the growth potential of this market across different segments, such as form factors (1U, 2U, 4U and others), services (design and consulting, installation and deployment, and support and maintenance), tier types (tier 1, tier 2, tier 3, and tier 4), data center types (mid-sized data centers, enterprise data centers and large data centers), verticals (BFSI, IT and telecom, government and defense, healthcare and life sciences, research and academia, retail and eCommerce, media and entertainment, energy and utilities, and others) and regions (North America, Europe, APAC, RoW). The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying the report
- The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall data center rack server market and its segments.
- This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and to plan suitable go-to-market strategies.
- The report also aims at helping stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.