Server Market Size

Server Market size is estimated at USD 104.3 billion in 2024 and is expected to surpass USD 315.9 billion by the end of 2037, rising at a CAGR of 8.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of server is evaluated at USD 113.5 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.