Growth Driven by Rising Prices of Servers

REDWOOD CITY, Calif. – July 24 2019 – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, the Server market is on track to surpass $100 billion by 2023. This growth will mainly be driven by rising average selling prices of servers.

“As data centers seek to achieve greater densities and efficiencies, we expect servers to continue to become more feature-rich and sophisticated with successive refreshes, driving revenue growth through higher average selling prices,” said Baron Fung, Director at Dell’Oro Group.  “Meanwhile, server unit growth is projected to moderate due to disruptive technology trends such as the consolidation of workloads in the cloud, and an increasing usage of server virtualization,” added Fung.

Followings are additional highlights from the Server 5-Year Forecast Report:

  • Server market revenue is projected to increase at a 7 percent compounded annual growth rate (CAGR) over the forecast period of 2019 to 2023, while server unit shipments grow at a low single-digit CAGR.
  • Emerging trends such as the growth of artificial intelligence, edge computing, and network function virtualization are expected to drive new demand for the Server market.
  • The cloud and enterprise server market are expected to undergo unique cycles of growth and decline during the forecast period.

About the Report

The Dell’Oro Group Server 5-Year Forecast Report offers complete in-depth coverage of the Server market with tables covering manufacturers’ revenue, average selling prices, and unit shipments for Blade, High-Density and Stand-Alone servers. We also include shipments to Cloud vs. Enterprise/Premises by server form factors and provide Ethernet network attach rates (1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps and 100 Gbps) for each server category. To purchase this report, please contact us at dgsales@delloro.com.

About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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