Server Market Outlook:
Server Market size was valued at USD 109.31 billion in 2025 and is likely to cross USD 251.74 billion by 2035, expanding at more than 8.7% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of server is assessed at USD 117.87 billion.
The server market is expanding due to the growing number of smartphone users, the growing number of data centers worldwide, and the rising investment in the construction of new data centers. For instance, spending on IT data centers is projected to reach USD 222 billion globally in 2023.
As companies digitize their operations, explore ways to maximize profits, and seek the longstanding resiliency of their business models, server infrastructure has reformed from cost to asset and generates tangible returns on its investments. With the depreciation of old servers and added cumulative maintenance costs, IT leaders have impelled procurement of public cloud alternatives. Historically, the exorbitant total cost of ownership (TCO) of on-premise servers has influenced IT decision-makers to decommission and rationalize server replacements. In 2023, direct digital transformation continued over 50% of overall ICT investments and this shift in the market dynamics is expected to proliferate the adoption of modern server infrastructure leading to revenue growth and operating profits for businesses, in turn, proliferation.
