What are the Historical Developments and Current Growth Metrics of the Data Center Blade Server Market?
The data center blade server market has seen considerable growth due to a variety of factors.
• The size of the data center blade server market has seen robust growth in the recent past. It's projected to expand from $18 billion in 2024 to $19.75 billion in 2025, showcasing a compound annual growth rate (CAGR) of 9.8%.
The growth experienced in the historic phase is linked to the digital transformation of consumer health data into electronic medical records (EMR), reduced power usage, enhanced efficiency of the current infrastructure, configuration flexibility, and the uptake of virtualization.
What Is The Projected Growth Of The Data Center Blade Server Template Market?
The data center blade server market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the market size of the data center blade server is anticipated to experience robust expansion. Its growth is projected to reach $28.27 billion by 2029, with a compound annual growth rate (CAGR) of 9.4%.
The increased growth in the forecasted period can be linked to the growth of edge computing, the deployment of 5G networks, the integration of AI and machine learning, changing security needs, and the rise of remote working. Key market trends within this period encompass technological innovations, 5G-ready Infrastructure, energy-saving solutions, adaptable and modular designs, and a rise in corporate acquisitions.
What Are The Key Drivers Fueling Growth In The Data Center Blade Server Market?
The projected growth of the data center blade server market can primarily be attributed to the escalating integration of IoT technologies. IoT, or the Internet of Things, is predominantly characterized by a connected infrastructure of physical assets, vehicles, appliances, and various other entities fitted with sensors, software, and network interfacing, facilitating data gathering and exchange. The incorporation of IoT has been shown to foster efficiency, enrich customer engagement, and harness innovative technology in blade servers installed at data centers. In this context, IoT is designed to oversee and regulate server performance, energy expenditure, and security, thereby enhancing overall operational productivity and facilitating the creation of smart, automated data center environments. As per January 2022 data from the GSM Association, an industry organization based in the U.K., the global IoT connections are estimated to surpass 23.3 billion by 2025. This figure is significantly larger than the 15.1 billion connections recorded in 2021. Thus, the expanding implementation of IoT is fueling the growth of the data center blade server market. In addition to the IoT adoption, the mounting data traffic is also forecasted to contribute substantially to the expansion of the data center blade server market. Data traffic typically denotes the transfer of digital information packets over computer networks or the internet. Blade servers in data centers are instrumental in handling the surge in data traffic by offering effective, scalable, and deeply integrated computing infrastructure. Owing to their high-density configuration, modular scalability, and embedded networking and management capabilities, blade servers are tailored to optimize computing density within data center racks. For instance, forecasts from the Ericsson Group, a Sweden-based telecommunications firm, predict 5.6 billion 5G subscriptions by the end of 2029. Furthermore, the data traffic for every smartphone user in Southeast Asia is projected to rise from 17 GB/month in 2023 to 42 GB/month in 2029. Hence, the escalating data traffic is another key driver propelling the growth of the data center blade server market.
What Are The Principal Market Segments In The Global Data Center Blade Server Industry?
The data center blade server market covered in this report is segmented –
1) By Type: Tier 1, Tier 2, Tier 3, Tier 4
2) By Enterprise Size: Large Enterprises, Smal And Medium Enterprises
3) By End User: Banking, Financial Services And Insurance (BFSI), IT and Telecom, Manufacturing, Healthcare, Energy and Utility, Other End Users
Subsegments:
1) By Tier 1: Entry-Level Blade Servers, Basic Configuration Blade Servers, Small to Medium Business (Smb) Blade Servers, Low-Cost Blade Servers, Single Processor Blade Servers
2) By Tier 2: Mid-Level Blade Servers, Balanced Performance Blade Servers, Dual Processor Blade Servers, Blade Servers for Business Applications, Mid-Range Storage and Processing Blade Servers
3) By Tier 3: High-Performance Blade Servers, Advanced Configuration Blade Servers, Blade Servers for Virtualization and Cloud Computing, High-Capacity Memory Blade Servers, Blade Servers with Enhanced Security Features
4) By Tier 4: Enterprise-Class Blade Servers, Ultra-High-Performance Blade Servers, Mission-Critical Blade Servers, High Availability and Redundancy Blade Servers, Blade Servers for Data Centers with Demanding Applications, Top-Tier Blade Servers with Advanced Cooling and Power Management
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What New Trends Are Influencing The Data Center Blade Server Market?
Prominent businesses in the data center blade server industry are concentrating on creating innovative server technologies, such as the arm-based grace servers, to solidify their market dominance. The ARM-based Grace servers represent a novel sector of high-performance computing (HPC) servers. For example, Nvidia, a U.S.-based software company, unveiled the system powered by Grace's CPU in May 2022. The system houses the NVIDIA Grace CPU Superchip, constructed with two CPU chips that are interconnected seamlessly through NVLink-C2C, a chip-to-chip connection characterized by its speed and low latency. Grace CPU Superchip, NVIDIA's debut data center CPU, integrates 72 high-performing Arm v9 cores within a system-on-chip (SoC) setting. This groundbreaking framework combines NVIDIA's knowledge in Arm processor with on-chip fabrics to boost data center operations in terms of performance and efficiency.
Who Are the Key Players In The Data Center Blade Server Market?
Major companies operating in the data center blade server market are:
• Dell Inc.
• Huawei Technologies Co. Ltd.
• Lenovo
• Intel Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Quanta Computer
• Fujitsu Limited
• Hewlett Packard Enterprise Development LP
• NVIDIA Corporation
• NEC Corporation
• AMD (Advanced Micro Devices)
• Inventec Corporation
• ASUS
• Bull Atos Technologies
• Atos SE
• Wiwynn Corporation
• Super Micro ComputerInc.
• Arm Ltd.
• Hitachi Vantara Corporation
• Inspur Software Co. Ltd.
• Sugon
• MSI (Micro-Star International)
• TYAN Computer Corporation
• ASRock Rack
• ZT Systems
What Are The Regional Insights Into The Data Center Blade Server Market?
North America was the largest region in the data center blade server market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center blade server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
