Fueled by artificial intelligence and a relentless cloud-first movement, the global server market has exploded into a $152.6 billion powerhouse, setting the stage for a decade of unprecedented growth and technological transformation.
Key Takeaways
- The global server market revenue reached $152.6 billion in 2023, up 15.2% year-over-year, fueled by demand for AI and cloud infrastructure.
- Server market is projected to grow at a CAGR of 11.8% from 2024 to 2028, reaching $250 billion by 2028 due to hyperscale expansions.
- Enterprise server revenue hit $25.4 billion in Q4 2023, a 78.4% increase YoY from AI server demand.
- Worldwide server shipments totaled 11.8 million units in 2023, up 6.2% YoY.
- Hyperscale server shipments reached 2.5 million units in 2023.
- Rack server shipments 7.2 million units in 2023, 61% of total.
- 80% of new servers in 2023 featured NVMe storage.
- 45% of servers shipped in 2023 had AMD EPYC processors, up from 25% in 2022.
- Liquid cooling adopted in 10% of new servers in 2023, expected to 30% by 2026.
- Dell held 17.3% server market share in 2023 by revenue.
- HPE captured 15.8% of worldwide server revenue in 2023.
- Lenovo's server share reached 13.2% in 2023.
- US data centers: 40% of global capacity in 2023.
- China server market 30% of global revenue $45 billion in 2023.
- APAC ex-China server growth 12% YoY in 2023.
The server market is booming due to high demand for AI and cloud infrastructure.
Market Size & Growth
- The global server market revenue reached $152.6 billion in 2023, up 15.2% year-over-year, fueled by demand for AI and cloud infrastructure.
- Server market is projected to grow at a CAGR of 11.8% from 2024 to 2028, reaching $250 billion by 2028 due to hyperscale expansions.
- Enterprise server revenue hit $25.4 billion in Q4 2023, a 78.4% increase YoY from AI server demand.
- Hyperscale server spending grew 42% YoY to $45 billion in 2023.
- Data center server market valued at $110 billion in 2023, expected to reach $200 billion by 2030 at 8.9% CAGR.
- Rack server segment dominated with 55% market share in 2023, generating $84 billion in revenue.
- Global server revenue forecast for 2024 at $176 billion, driven by GPU-accelerated servers.
- AI server market grew to $35 billion in 2023, representing 23% of total server spend.
- Volume server market revenue up 10% to $120 billion in 2023.
- Server market in APAC region valued at $65 billion in 2023, 43% of global total.
- Worldwide server factory revenue increased 8.6% YoY to $38.2 billion in Q3 2023.
- Projected server market size of $300 billion by 2032 at 10.5% CAGR from 2024.
- Cloud server market revenue at $90 billion in 2023, growing 20% YoY.
- Edge server market expected to grow from $5.2 billion in 2023 to $15 billion by 2030.
- High-performance computing server market at $28 billion in 2023.
- Server storage market revenue $45 billion in 2023, up 12%.
- Modular server market projected CAGR 14% to $12 billion by 2028.
- Open compute server market at $8.5 billion in 2023.
- Blade server revenue $18 billion in 2023, 12% of total market.
- Tower server market $22 billion in 2023, declining 2% YoY.
- Server market in North America $50 billion in 2023, 33% global share.
- EMEA server revenue $35 billion in 2023, up 9%.
- Latin America server market $6 billion in 2023.
- Middle East server market grew 15% to $7 billion in 2023.
- Server OEM revenue worldwide $140 billion in 2023.
- Hyperscaler server capex $120 billion in 2023.
- Enterprise rack server market $60 billion in 2023.
- GPU server market exploded to $20 billion in 2023.
- ARM-based server market $4 billion in 2023, growing 25%.
- RISC-V server market nascent at $0.5 billion in 2023.
Market Size & Growth Interpretation
It seems we’ve all agreed that our collective future will be determined by who can stack the most powerful, expensive boxes in a room, as the global server market—now a $152.6 billion behemoth—is sprinting toward $300 billion, utterly turbocharged by our insatiable and expensive appetite for artificial intelligence and cloud everything.
Regional Markets
- US data centers: 40% of global capacity in 2023.
- China server market 30% of global revenue $45 billion in 2023.
- APAC ex-China server growth 12% YoY in 2023.
- EMEA server shipments up 7% to 2.4 million units 2023.
- Japan server market $12 billion, 8% global share 2023.
- India server market grew 25% to $4.5 billion in 2023.
- Latin America server revenue $6.2 billion, up 10% 2023.
- Middle East & Africa $7.8 billion server spend 2023.
- Germany data center capacity 1.2 GW in 2023.
- UK server market £5 billion equivalent in 2023.
- Brazil server shipments 450,000 units 2023.
- Australia hyperscale investments $10 billion 2023.
- Singapore colocation market 25% of APAC 2023.
- Canada server market CAD 8 billion 2023.
- Mexico data center growth 15% YoY 2023.
- Saudi Arabia server investments $3 billion 2023.
- South Korea server market $9 billion 2023.
- France colocation revenue €2.5 billion 2023.
- Ireland data centers 60% hyperscale 2023.
- Netherlands server density highest in EMEA 2023.
- 45% of global hyperscale capex in US 2023.
- China domestic server share 75% mandated 2023.
- ASEAN server market $15 billion growing 18% 2023.
- Russia server market impacted sanctions down 20% 2023.
- Africa server growth 22% led by South Africa 2023.
Regional Markets Interpretation
America may still be the heavyweight champion of data centers, but the global server arena is a frantic, multi-front tug-of-war where China cashes in, the APAC region (minus China) sprints ahead, and Europe's growth hums along, while everyone from India to Saudi Arabia is furiously building their own digital fiefdoms.
Server Shipments
- Worldwide server shipments totaled 11.8 million units in 2023, up 6.2% YoY.
- Hyperscale server shipments reached 2.5 million units in 2023.
- Rack server shipments 7.2 million units in 2023, 61% of total.
- Enterprise server unit shipments 4.1 million in 2023, down 1% YoY.
- x86 server shipments 11.2 million units in 2023.
- GPU server shipments surged to 500,000 units in 2023.
- Blade server shipments 1.8 million units in 2023.
- Tower server shipments declined to 2.5 million units in 2023.
- ARM server shipments 300,000 units in 2023.
- Q4 2023 server shipments 3.2 million units worldwide.
- APAC server shipments 5.1 million units in 2023, 43% global.
- US server shipments 3.8 million units in 2023.
- EMEA shipments 2.4 million units in 2023.
- China server shipments 3.2 million units in 2023.
- Dell shipped 1.7 million servers in 2023.
- HPE server shipments 1.5 million units in 2023.
- Lenovo server shipments 1.2 million units in 2023.
- Supermicro shipments grew 50% to 800,000 units in 2023.
- Inspur shipments 900,000 units in China market 2023.
- Edge server shipments 1.1 million units in 2023.
- AI server shipments 400,000 units in 2023.
- Open rack server shipments 600,000 units in 2023.
- High-density server shipments up 20% to 2 million units in 2023.
- 2U server shipments 3.5 million units, dominant form factor.
- 1U server shipments 4.2 million units in 2023.
- 4U+ server shipments 1.1 million units in 2023.
- Liquid-cooled server shipments 200,000 units in 2023.
- NVIDIA GPU-equipped servers shipped 350,000 units in 2023.
- Intel Xeon server shipments 8.5 million units in 2023.
- AMD EPYC server shipments 2.3 million units, up 80% YoY.
- Global server market saw x86 shipments decline 2% to 10.9 million units in Q1 2024.
- 68% of servers shipped in 2023 were rack-mounted.
- Hyperscalers accounted for 40% of server shipments in 2023 at 4.7 million units.
- GPU-accelerated servers now 15% of total shipments in Q4 2023.
- ARM server shipments projected to reach 1 million units by 2025 from 300k in 2023.
- RISC-V server shipments under 50,000 units in 2023.
Server Shipments Interpretation
While the reliable old rack server continues to plod along like a sturdy pack mule, the true party—led by frantic AI and surging hyperscalers—is happening over at the GPU bar, where everyone’s suddenly ordering for the table.
Technology Trends
- 80% of new servers in 2023 featured NVMe storage.
- 45% of servers shipped in 2023 had AMD EPYC processors, up from 25% in 2022.
- Liquid cooling adopted in 10% of new servers in 2023, expected to 30% by 2026.
- NVIDIA H100 GPUs deployed in 70% of AI servers in 2023.
- DDR5 memory penetration reached 25% in servers by end of 2023.
- PCIe 5.0 adoption in 15% of 2023 server shipments.
- CXL technology in 5% of high-end servers in 2023.
- ARM Neoverse cores powered 20% of cloud-native servers in 2023.
- 60% of hyperscale servers used OCP designs in 2023.
- Energy efficiency improved 20% in 2023 server models per SPEC benchmarks.
- 35% of servers featured DPUs in 2023 for offloading networking.
- Quantum-safe cryptography implemented in 8% of enterprise servers 2023.
- Disaggregated server architectures in 12% of new data centers 2023.
- 50% increase in photonic interconnects tested in labs 2023.
- RISC-V accelerators in 2% of edge servers 2023.
- 90W TDP CPUs dominant in 40% of low-power servers 2023.
- Hyperscale servers averaged 2.5 GPUs per unit in 2023.
- NVMe-oF used in 25% of storage-attached servers 2023.
- 4nm process nodes in 30% of server SoCs shipped 2023.
- Software-defined storage in 70% of new servers 2023.
- Confidential computing features in 40% of cloud servers 2023.
- 100GbE+ networking in 55% of rack servers 2023.
- Immersion cooling pilots in 5% of large data centers 2023.
- AI accelerators beyond GPUs in 10% of servers (e.g., TPUs) 2023.
- 128-core CPUs in 20% of HPC servers 2023.
- 48GB DIMM modules adopted in 15% high-memory servers 2023.
- Optical computing prototypes in 1% R&D servers 2023.
- Zero-trust architecture hardware in 30% enterprise servers 2023.
Technology Trends Interpretation
The server industry is engaged in a furious, holistic arms race where everything from the processor to the plumbing is being reinvented at once, not just to go faster but to survive the heat and power demands of its own ambitions.
Vendor Market Shares
- Dell held 17.3% server market share in 2023 by revenue.
- HPE captured 15.8% of worldwide server revenue in 2023.
- Lenovo's server share reached 13.2% in 2023.
- Supermicro's revenue share in GPU servers 25% in 2023.
- Inspur held 8.5% global share, dominant in China at 27%.
- Cisco UCS servers 6.1% market share in 2023.
- IBM Power servers 4.2% share in enterprise segment 2023.
- Huawei server share 7.9% worldwide in 2023.
- Fujitsu 3.5% share in EMEA servers 2023.
- Asus server share 2.8% in 2023.
- Gigabyte Technology 2.1% share growing in edge 2023.
- Quanta Computer ODM share 18% of hyperscale servers 2023.
- Foxconn (Inventec) 15% ODM share for cloud servers 2023.
- Wiwynn 12% share in OCP servers 2023.
- Tyan (MiTAC) 4% share in high-density servers 2023.
- Dell #1 in US server market with 22% share 2023.
- HPE led enterprise blade servers at 28% share 2023.
- Supermicro #1 in liquid-cooled servers 35% share 2023.
- Lenovo top in APAC x86 servers 16% share 2023.
- Inspur 27% share in China server market 2023.
- AWS hyperscale servers sourced 40% from ODMs 2023.
- Microsoft Azure servers Dell 20% share 2023.
- Google Cloud OCP servers Wiwynn 25% 2023.
- Meta custom servers 100% OCP with ODMs 2023.
- AMD-powered servers Supermicro 30% share 2023.
- Intel Xeon dominance at 55% CPU share in servers 2023.
- NVIDIA 90% share in AI GPU servers 2023.
- Dell #1 rack server vendor 19% share 2023.
- HPE ProLiant 18% share in volume servers 2023.
- North America server market Dell 24%, HPE 20% in 2023.
- APAC OEM shares: Lenovo 15%, Huawei 12%, Inspur 25% 2023.
- Europe: HPE 18%, Fujitsu 8%, Lenovo 14% 2023.
Vendor Market Shares Interpretation
The server market in 2023 was a high-stakes chess match where Dell and HPE jostled for the global throne, while specialized players like Supermicro became GPU royalty and ODMs quietly powered the cloud kings, proving there is a throne for every niche when the board is the entire world.
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