Server Hardware Market - Global Forecast 2025-2032

The server hardware market is undergoing significant transformation, driven by the demands of cloud, edge computing, and the acceleration of AI-driven workloads. Senior technology and procurement leaders face rising complexity, demanding greater agility and efficiency in infrastructure decisions.

Market Snapshot: Growth and Outlook in the Server Hardware Market

The global server hardware market grew from USD 109.43 billion in 2024 to USD 119.36 billion in 2025 and is projected to expand at a CAGR of 9.23%, reaching USD 221.76 billion by 2032. This surge reflects a shift towards high-density data centers, sustainable practices, and decentralized processing needs. As businesses across industries modernize IT infrastructure, server hardware emerges as a critical pillar for robust operations and future-ready capabilities.

Scope & Segmentation of the Server Hardware Market

This comprehensive research analyzes market trends and projections across multiple dimensions. Major segmentation areas include:

• Server Types: Blade servers for modular expansion; micro servers optimized for high-density tasks; rack servers offering versatility for data centers; and tower servers aligning with smaller environments.
• Deployment Models: Cloud solutions, colocation facilities, hybrid models combining on-premise and cloud, and exclusive on-premises clusters.
• End Users: Banking, finance, and insurance organizations; cloud service providers; government and defense agencies; healthcare entities; and telecom operators.
• Components: CPUs (AMD EPYC, Intel Xeon); memory (DRAM, High Bandwidth Memory); networking (Ethernet, InfiniBand); storage (HDD, SSD including NVMe and SATA SSD).
• Architectures: X86, Arm-based, and RISC-V architectures, catering to varying workload and energy efficiency profiles.
• Regions Covered: Americas (including North and Latin America), Europe, Middle East & Africa (with granular country coverage), and Asia-Pacific (with comprehensive country breakdown).
• Leading Manufacturers: Market analysis includes Dell Technologies Inc., Hewlett Packard Enterprise Company, Lenovo Group Limited, Inspur Group Co., Ltd., Huawei Technologies Co., Ltd., Cisco Systems, Inc., International Business Machines Corporation, Fujitsu Limited, Super Micro Computer, Inc., and Oracle Corporation.

Key Takeaways for Senior Decision-Makers

• Edge computing and 5G connectivity are catalyzing demand for ruggedized, distributed server platforms with ultra-low-latency capabilities.
• Composable infrastructure and open standards simplify IT management and support evolving workload diversity, reducing vendor lock-in risks.
• Artificial intelligence and machine learning workloads require specialized server hardware, prompting advances in GPU integration and thermal management.
• Sustainability is now central to server hardware design, driving innovations like advanced cooling and dynamic power management for lower energy consumption.
• Industry-specific needs are shaping procurement, with financial services prioritizing compliance and high availability while telecom sectors seek micro data center solutions for low-latency services.
• Asia-Pacific’s strong supply chain ecosystem accelerates assembly, cutting time to market and enabling localized product strategies.

Tariff Impact on Server Hardware Supply Chains

New US tariffs on imported server hardware components in 2025 have prompted global supply chain reevaluation among manufacturers. Enterprises have diversified sourcing to minimize tariff exposure and increasingly invest in local assembly. The pricing of server hardware has adjusted throughout distribution channels, affecting cost of ownership for end users. These dynamics have also strengthened cooperation between hardware vendors and hyperscale service providers, as joint strategies emerge to offset tariff-related costs and preserve availability.

Methodology & Data Sources

This report’s findings are based on primary interviews with executives, product managers, and IT leaders, supported by extensive secondary research of industry publications, company filings, and regulatory announcements. All insights were validated through cross-referencing and a panel of subject-matter experts, ensuring a reliable, actionable view of the server hardware landscape.

Why This Report Matters

• Provides strategic insights for resilient procurement and IT investment planning in a rapidly evolving competitive landscape.
• Enables benchmarking across technologies, architectures, and regional strategies to identify growth and efficiency opportunities.
• Informs on emerging trends, such as sustainability mandates and regulatory challenges, crucial for long-term infrastructure optimization.

Conclusion

Organizations that leverage these insights to adapt procurement, embrace modular infrastructure, and foster partnerships will be best positioned for ongoing growth in the dynamic server hardware market.