The server market is beyond stagnation

The server market is beyond stagnation

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The server market has shrunk in recent quarters, but it is ready to return to growth. Three factors will contribute to this, according to an analysis by Taiwanese company Digitimes Research.

The volume of the global server market declined 1.4% in 2019, but in 2020 it will return to growth due to high demand for data center owners equipment.
The forecast shows that server manufacturers worldwide will launch a total of 16.01 million machines in 2020, up 6.6% from last year.

Initially, the Digitimes survey made the 2019 more pessimistic forecast for the server market in 2019, expecting a drop of 4-5%. But sales in the fourth quarter exceeded forecasts, and the market ended the year with a slight setback.

Analysts expect the market to grow again in 2020, but the dynamics will not be measured by double-digit rates, as some established manufacturers will decline.
The four largest data center operators in the United States are becoming the primary driver of growth in server shipments worldwide.

Digitimes Research identifies three major factors that should contribute to the growth of the server market over the next five years. First is the digital transformation of enterprises, second is the increasing introduction of artificial intelligence systems and third, the desire of data center operators to promote hybrid cloud systems.

In addition, server sales will increase the amount of data transmitted on fifth-generation (5G) networks, analysts at Digitimes Research say.

The server market is beyond stagnation

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