White Box Server Global Market Report 2024

The white box server market size has grown rapidly in recent years. It will grow from $15.98 billion in 2023 to $18.94 billion in 2024 at a compound annual growth rate (CAGR) of 18.5%. The growth observed in the historic period can be attributed to various factors, including the influence of the Open Compute Project (OCP), increased buildouts of data centers, the commoditization of hardware, deployments of hyper-scale data centers, and the pursuit of vendor independence. These factors collectively contributed to the historical expansion of white box servers.

The white box server market size is expected to see rapid growth in the next few years. It will grow to $37.89 billion in 2028 at a compound annual growth rate (CAGR) of 18.9%. The anticipated growth in the forecast period for white box servers can be attributed to several factors, including an increasing focus on energy efficiency, a growing demand for high-performance computing, heightened emphasis on security and compliance, market liberalization and increased competition, and ongoing digital transformation initiatives. Notable trends expected during the forecast period include customization and open architecture, the use of GPU acceleration for AI workloads, the adoption of software-defined infrastructure, the transition to 5G networks, and heightened competition with traditional Original Equipment Manufacturers (OEMs).

The white box server market is poised for growth, driven by the increasing proliferation of data centers. These facilities provide shared access to applications and data through advanced network, computing, and storage infrastructure. White box servers, serving as operating systems and virtualization software, are integral to data center operations. A notable indication of this trend is reported by Savills Korea in August 2021, revealing that the total capacity of data centers reached 430 MW in terms of IT load by the end of 2020. Furthermore, the United States International Trade Commission noted in 2021 that there were over 2,600 data centers in the US and nearly 8,000 new data centers globally in the same year, underscoring the substantial growth in data center numbers fueling the white box server market.

The growth of the white box server market is further propelled by an upsurge in cyberattacks and fraud. As organizations face an increased frequency of cybersecurity threats, there is a growing inclination towards white-box servers to enhance security configurations. The use of white-box servers allows organizations to implement customized security measures tailored to their specific requirements, potentially improving resilience against cyber threats. A report by AAG in October 2023 highlighted a significant 125% increase in global cyberattacks, emphasizing the escalating threat landscape faced by individuals and organizations. Consequently, the surge in cyberattacks and frauds is a key driver fostering the growth of the White Box Server market.

A prominent trend in the white box server market is the emphasis on product innovation by companies seeking to maintain a competitive edge. To sustain their position in the market, companies operating in this sector are actively developing new and innovative products. For example, in February 2021, ADLINK Technology Inc., a Taiwan-based technology company, introduced the MECS-6110 edge server. This high-performance white-box edge server, equipped with an Intel Xeon D CPU, is optimized for virtualized networking and various communication applications.

Major companies in the White Box Server market are strategically focusing on product development and launches, including optical line terminals (OLT), to bolster their market presence. An OLT is a crucial component in passive optical networks (PON), acting as the central hub at the service provider's central office. In July 2021, Radisys Corporation launched the Radisys Combo PON Optical Line Terminal (OLT) as part of the Radisys Connect Open Broadband portfolio. This innovative OLT supports both G-PON and XGS-PON within the same PON port, demonstrating the commitment to product development within the white box server market.

In January 2021, Advantech collaborated with the O-RAN Alliance to support white box development capable of processing sustained communication workloads at the network edge. This collaboration with the O-RAN Alliance, a community reshaping the Radio Access Network (RAN) industry, signifies the strategic efforts of major companies to advance white box server capabilities.

Major companies operating in the white box server market report are Fujitsu Ltd., Foxconn Electronics Inc., Hon Hai Precision Industry Company Ltd., Dell Inc., Huawei Investment and Holding Co. Ltd., Cisco Systems Inc., Pegatron Corporation, Quanta Computer Inc., Compal Inc., Jabil Inc., Wistron Corporation, Hewlett Packard Enterprise Company, Inventec Corporation, Wiwynn Corporation, Celestica Inc., Super Micro Computer Inc., ASpeed Technology Inc., ZT Systems Co, Hyve Solutions Corp., MiTAC Holdings Corp, Silicon Mechanics Inc., Iron Systems Inc., Equus Computer Systems, Penguin Computing Inc., Servers Direct LLC, Stack Velocity Group.

North America was the largest region in the white box server market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the white box server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the white box server market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary form factor types in white box servers include rack and tower servers, blade servers, and density-optimized servers. Rack servers are designed to be mounted on a standard equipment rack, which is a metal frame holding multiple servers in a vertical arrangement. These servers find applications across various business types, including data centers and enterprise customers. The processors used in white box servers can be X86 servers or non-X86 servers, and they may run various operating systems such as Linux and others.

The white box server market research report is one of a series of new reports that provides white box server market statistics, including white box server industry global market size, regional shares, competitors with a white box server market share, detailed white box server market segments, market trends and opportunities, and any further data you may need to thrive in the white box server industry. This white box server market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The white box server market consists of sales of chassis, memory, hard disk drives, network interface cards, and cooling solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.