White Box Server Market Analysis Report By Server, By Business Type, By Processor And Segment Forecasts From 2018 To 2025

Industry Insights

The global white box server market size was accounted for USD 5.61 billion in 2017. It is projected to witness a CAGR of 22.0% over the forecasted years, 2018 to 2025. Rapid digitalization and data generation are projected to propel the demand for white box servers across the globe. Further, the rising demand for customized and flexible hardware design is anticipated to fuel up the market demand.

There has been a significant rise in the number of OEM vendors approaching ODMs (original design manufacturers) for developing networking equipment. Rapid commoditization and emergence of OCP (Open Compute Project) by Facebook have driven the need for the development of the latest hardware designs for enhancing network and data capacity.

These servers can be easily designed to meet customized business needs and can provide enhanced functionality at lower costs. Several key players operating data centers like Amazon, Facebook, and Google are replicating the white box paradigm along with networking switches. This is anticipated to propel the market growth for white box servers across the globe.

Server Type Insights

In 2017, the rack & tower segment accounted for the highest share of approximately 65.0% across the global white-box server market. This can be associated with the rising deployment of several rack & tower servers across conventional IT environments. Further, the feature of offering enhanced operational performance required for carrying out several IT processes in a cost-effective manner is anticipated to propel up the market growth.

The density-optimized server type segment is expected to witness the fastest growth with 26.8% CAGR from 2018 to 2025. This growth can be attributed to the rising usage of high-density and customized servers in huge data centers to achieve enhanced handling capacity, higher performance, and more efficiency.

Processor Type Insights

The processor type segment of x86 Servers accounted for the largest share across the global market in 2017. It is also anticipated to continue its dominance over the forecasted years, 2018 to 2025. Moreover, features like the availability of more options and cheaper servers to cater to end-user demand are anticipated to drive market growth.

The Non-x86 Server segment is projected to register the highest CAGR over the forecasted years, 2018 to 2025. This can be attributed to the increased agility of IT infrastructure and the deployment of customized software as per the organizational needs. Further, rising demand for containerization and virtualization prevailing across the IT & Telecom sector are projected to trigger market growth for this segment.

Business Type Insights

The datacenters business type segment dominated the global market with a share of around 65.0% across the global market in 2017. This can be associated with the rising adoption of data centers by several organizations for handling higher volumes of data. Further, rapid digitalization in several industrial processes is driving the demand for data centers across the globe.

The operators of datacenters deploy a large number of software and hardware solutions to cater to shifting consumer requirements. Thus, they prefer the usage of white box servers owing to its features like customized offerings and cost-effective deployment budgets. Thus, the market for such servers is expected to propel in the upcoming years.

Regional Insights

In 2017, North America held the largest share of more than 30.0% across the global market. This can be attributed to the shifting trend of digitalization prevailing among several enterprises and the rising usage of ICT technologies by key organizations located in this region. Further, the surging number of data centers across countries like the U.S. and Canada is also anticipated to fuel up the market growth.

The Asia Pacific is anticipated to register the fastest growth over the forecasted period, 2018 to 2025. The rising adoption of digital services and mobile devices by the millennial population has boosted the need for the generation of data centers. Thus, the demand for white box servers is projected to increase in these data centers thereby driving the market growth across this region.

COVID-19 Impact Insights

The global white-box server market is impacted positively on account of the ongoing COVID-19 crisis. The imposition of work from home policies by several organizations and the implementation of the online education system are driving the need for strong servers across the globe. Also, travel restrictions by several governments, the rising influence of the e-commerce industry, and the surging usage of the internet are propelling the need for efficient and flexible servers, thereby facilitating the market growth. Such factors are also projected to propel market growth over the post-pandemic period.

White Box Server Market Share Insights

The global market includes key players such as Celestica Inc.; MiTac Holdings Corp.; Penguin Computing; Compal Electronics; Hyve Solutions; Inventec Corporation; ZT Sytems; and Hyve Solutions. They are constantly engaged in product development and innovation to gain a competitive advantage over players.

They are focusing majorly on R&D activities for the development of power and cost-efficient server solutions. Also, they are increasing their focus towards the deployment of enhanced storage solutions which can boost performance by 30-50% as that of conventional servers. They are also developing innovative go-to-market strategies and innovative server designs to widen their geographical reach.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2015 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global white-box server market on the basis of server type, business type, processor, and region:

• Server Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Rack & Tower
    • Blade
    • Density-Optimized

• Business Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Datacenters
    • Enterprise

• Processor Type Outlook (Revenue, USD Million, 2015 - 2025)
    • x86 Server
    • Non-x86 Server

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • The U.K.
        • Germany
        • France
        • Spain
        • Italy
    • The Asia Pacific
        • China
        • India
        • Japan
        • South Korea
    • South America
        • Brazil
        • Argentina
    • Middle East & Africa (MEA)