Growth Driven by Rising Prices of Servers

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Update time : 2019-07-18 12:00:00
“As data centers seek to achieve greater densities and efficiencies, we expect servers to continue to become more feature-rich and sophisticated with successive refreshes, driving revenue growth through higher average selling prices,” said Baron Fung, Director at Dell’Oro Group.  “Meanwhile, server unit growth is projected to moderate due to disruptive technology trends such as the consolidation of workloads in the cloud, and an increasing usage of server virtualization,” added Fung.

Followings are additional highlights from the Server 5-Year Forecast Report:

Server market revenue is projected to increase at a 7 percent compounded annual growth rate (CAGR) over the forecast period of 2019 to 2023, while server unit shipments grow at a low single-digit CAGR.
Emerging trends such as the growth of artificial intelligence, edge computing, and network function virtualization are expected to drive new demand for the Server market.
The cloud and enterprise server market are expected to undergo unique cycles of growth and decline during the forecast period.