Server market revenue to touch $112 bn: Counterpoint

The global server market revenue is expected to grow 17 percent to $111.7 billion in 2022, according to Counterpoint Research report.
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5G, automotive, cloud gaming and high-performance computing will be the key drivers for cloud service providers in data center expansion.

“In an inflationary but extremely dynamic environment, companies are looking to strengthen their infrastructure as they prepare for Web3.0 demands from the infrastructure end,” said research analyst Akshara Bassi.

The market is evolving with the introduction of As-a-Service and pay per use models by server companies, like Pointnext from HPE, APEX from Dell and TruScale from Lenovo.

The server market revenues were flat in 2020 and early 2021 due to the pandemic and less spending by enterprises on IT infrastructure upgrades and expansion.

In H2 2021, there was a backlog due to supply chain disruptions across the whole value chain from accelerator chips to power ICs, which has trickled into H1 2022.

Edge server configurations will be a key driver of growth in server shipments as companies start enabling chip-to-cloud features within the devices and 5G deployments make IoT use cases penetrate across all verticals.

The infrastructure spends to enable the Metaverse will give an impetus to servers as they are the building blocks of the Metaverse.

Major internet corporations and hyperscalers have already detailed their plans for spends on Metaverse infrastructure.

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