Servers Market Share

Updated: 25 March 2022

Worldwide Server Market Spending Expected to Recover Strongly in 2022 and Continue with a CAGR of 9% in a Five-Year Period, According to IDC

The global server market weathered the pandemic market shock in 2020, and subsequently the economic turmoil and supply chain disruptions during 2021, growing at over 6% year over year in each of those two years.

The market faces continued challenges in 2022, including an unresolved pandemic, historically high inflation, supply chain disruption and geopolitical conflict. However, the server market has proven very resilient in recent years, as IT infrastructure has evolved from a nice-to-have or add value to becoming a mission critical investment for most organizations. While the nature of investment and workload choices may be impacted by economic and other pressures, overall, the market is expected to continue on a growth trajectory.

An aging installed base is primed for refresh in 2022, although it may spill into 2023. Large cloud service providers will continue their refreshes and expansions steadily through 2025.

Recovery from the COVID-19 pandemic is uneven across geographies as the impact of the virus and the reactions of governments have been varied. However, the overall impact of the pandemic seems to be diminishing.

Supply chain concerns came to a head between Q3 and Q4 of 2021, when inventories were depleted, and delivery depended on components coming in on time. However, the market still experienced high single-digit year over year growth in both quarters. Reports from the market were however that backlogs were increasing during this time, leading to the conclusion that demand has been growing even faster than the market is demonstrating. If the supply chain can turn a corner around mid-year as previously expected, this pent-up demand should be a driving force of additional growth in 2022 and into 2023.



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