White Box Server Industry - Regional Synopsis
North America Market Forecast
The North America white box server market is predicted to maintain its dominant revenue share of 41.7% throughout the forecast timeline. Key facets of the regional market contributing to its leading share are the rising deployment of hyperscale data centers, along with government support for extensive digital transformation. The U.S. DoE reports a favorable increase in the percentage of modular white box systems deployment in the U.S., while the region’s leadership in cloud computing has ensured that it remains the top regional contributor to market revenue and opportunities.
The U.S. white box server market is expected to maintain its leading share in North America. The regional market has matured into a mission-critical infrastructure layer for hyperscale cloud operations, propelled by the scaling requirement of major firms, such as AWS, Meta, Microsoft Azure, and others. As per a report by the U.S. National Renewable Energy Laboratory (NREL), the white box server configurations account for more than 55% of the total server procurement in large-scale hyperscale data centers due to their ability to mitigate energy use. In an additional favorable market development, the U.S. Department of Defense has also increased the procurement of modular systems under the aegis of the DevSecOps and Zero Trust Architecture mandates. The convergence of these trends creates a favorable environment for the continued expansion of the global market.
APAC Market Forecast
The APAC white box server market is poised to exhibit the fastest expansion with a CAGR of 12.4% during the forecast period. APAC’s growth is supported by the explosion of cloud-native applications and 5G infrastructure in the region. Comparing data from the Ministry of Internal Affairs and Communications of Japan and the Ministry of Electronics and Information Technology of India, the former’s Beyond 5G Strategy and the latter’s Digital India program have boosted the regional server demands by over 60% between 2022 to the first quarter of 2025. Additionally, the supply chain of the market remains robust, with China leading in semiconductor supply.
The China is impacted by a favorable ecosystem created due to the self-sufficiency mandates. Domestic providers such as Tencent Cloud, Alibaba Cloud, and Huawei Cloud are at the forefront of cloud expansion, bolstering the scope of deployment of white box servers. Moreover, China's push to expand the digital economy is slated to create burgeoning opportunities for white box server deployment. In terms of the market impact by geopolitical decisions, in 2022, the U.S. imposed export restriction driving the development of indigenous server hardware. This has created ample opportunities for white box server deployment.
