Servers Market Insights

Updated: 27 March 2024

Worldwide Server Market Spending with a 10.5% growth in 2023 while expected to Continue with a CAGR of 11.4% in a Five-Year Period, according to IDC.

Despite a huge decline in unit demand (-17.0% year over year), the server market grew 22.7% in spending in the fourth quarter of 2023, driven by high ASPs due to an increase in GPU server shipments to hyperscalers and other large, mostly cloud, IT buyers. The market faces continued challenges heading into early 2024, including remnants of impact from the pandemic, historically high inflation, slowdown in economic activity, supply chain disruption and geopolitical conflict. However, the server market has proven resilient in recent years, as IT infrastructure has become increasingly mission critical for many organizations.

An aging installed base is primed for refresh, and the launch of new generation processors late in 2023 will contribute to this cycle spreading into 2024, as the tech transition to new CPU platforms gradually moves forward. Large cloud service providers will continue their refresh and expansion plans steadily through 2028, although their server life has been elongated to up to 6 years. An expected digestion phase of excess inventory may be masked by additional investments in new deployment themes such as GPU server infrastructure for AI, although there may have been steps taken towards reduction in excess capacity by some hyperscalers already.

Worldwide Server Market Forecast 2023 - 2025 Value (US$M)

Worldwide Server Market Forecast 2023 - 2025 Value (US$M) chart

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