Enterprise Server Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Operating System (Linux, Windows, UNIX, Others), By Server Type (Multi-node, Tower, Blade, Rack Optimized), By Server Class (High-end Server, Mid-range Server, Volume Server), By Enterprise Size (SMEs, Large Enterprises), By Industry Vertical (BFSI, Retail, Manufacturing, IT & Telecom, Healthcare, Media & Entertainment, Others), By Region, and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 87.51 Billion
CAGR (2026-2031)	10.62%
Fastest Growing Segment	SMEs
Largest Market	Asia Pacific
Market Size (2031)	USD 160.35 Billion

Market Overview

The Global Enterprise Server Market will grow from USD 87.51 Billion in 2025 to USD 160.35 Billion by 2031 at a 10.62% CAGR. Enterprise servers are specialized computing systems engineered to facilitate large-scale data processing, storage, and network management for organizations. The market is primarily supported by the fundamental necessity for scalable infrastructure to accommodate exponential data growth and the continuous expansion of cloud computing environments. These drivers necessitate high-performance hardware capable of ensuring business continuity and operational efficiency. According to the Japan Electronics and Information Technology Industries Association, in 2024, the global production of the electronics and IT industries was forecast to surge by 9 percent to 3.7 trillion dollars, a growth trajectory heavily attributed to the rising demand for data center equipment and high-performance servers.

However, a significant challenge impeding market expansion is the escalating operational cost associated with energy consumption. As enterprises deploy powerful servers to manage intensive workloads, the electricity required for operation and cooling has increased substantially. This creates financial and sustainability hurdles that force organizations to balance performance needs with energy efficiency, potentially delaying infrastructure upgrades and limiting the speed of new deployments.

Key Market Drivers

Surging adoption of artificial intelligence and generative AI workloads acts as a primary catalyst for the enterprise server market. Organizations are aggressively upgrading infrastructure to support large language models, necessitating servers equipped with advanced graphics processing units and high-bandwidth memory. This shift moves demand from traditional general-purpose units toward accelerated computing systems designed for parallel processing. The financial impact of this transition is evident in hardware manufacturer performance. According to Dell Technologies, August 2024, in the 'Second Quarter Fiscal 2025 Financial Results', servers and networking revenue rose 80 percent to 7.7 billion dollars, a spike driven principally by demand for AI-optimized servers. This trend reflects a broader industry pivot where capital allocation is increasingly directed toward high-performance architecture capable of handling training and inference tasks.

Rapid expansion of hyperscale data centers and cloud infrastructure further sustains market momentum as major technology providers scale operations to meet global compute requirements. Hyperscalers are constructing extensive facilities that require massive volumes of rack-scale server deployments to deliver resilient cloud services and storage solutions. These entities prioritize operational density and thermal efficiency to manage the growing footprint of digital services. According to Alphabet, October 2024, in the 'Third Quarter 2024 Results', capital expenditures reached 13 billion dollars, reflecting investment in technical infrastructure with servers and storage as the largest component. This investment cycle underscores the reliance on robust hardware supply chains to fulfill volume demands. Reinforcing this production magnitude, according to Hon Hai Precision Industry Co (Foxconn), in 2024, revenue from AI servers accounted for over 40 percent of its total server business in the third quarter, illustrating the critical role of contract manufacturing in satisfying global infrastructure needs.

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Key Market Challenges

The escalating operational cost associated with energy consumption constitutes a substantial barrier to the expansion of the Global Enterprise Server Market. As organizations deploy high-performance servers to manage intensive workloads, the electricity required for both operation and necessary cooling infrastructure increases significantly. This surge in power usage forces enterprises to divert critical financial resources from capital expenditures, such as purchasing new hardware, to operational expenditures focused solely on utility payments. Consequently, budget constraints compel companies to extend the lifecycles of legacy systems or delay planned infrastructure upgrades, which directly reduces the volume of new server shipments and decelerates overall market revenue growth.

According to AFCOM, in 2024, 62 percent of data center professionals identified increasing energy costs as the primary driver behind rising operational expenditures. This data highlights the direct correlation between power consumption and financial strain, illustrating how energy overheads are consuming budgets that would otherwise fund market expansion. When organizations are forced to prioritize the financial sustainability of current operations over capacity growth, the demand for new enterprise servers stagnates, effectively dampening the market's momentum despite the clear need for advanced computing power.

Key Market Trends

Accelerated adoption of liquid cooling solutions is reshaping data center infrastructure to manage the thermal output of high-density racks. As power densities surpass the capabilities of traditional air-cooling, often exceeding 50 kilowatts per rack, organizations are transitioning to direct-to-chip and immersion cooling technologies to maintain system stability and reduce energy overhead. This shift is moving beyond niche supercomputing applications into mainstream enterprise environments, driving significant revenue growth for hardware providers integrating these thermal management systems. According to Lenovo Group Limited, May 2025, in the 'Q4 and Full Year Financial Results 2024/25', the Infrastructure Solutions Group reported a revenue increase of 63 percent year-on-year to a record 14.5 billion dollars, a performance the company attributed to the hyper-growth of AI servers and the expansion of its Neptune liquid cooling technology into wider vertical industries.

Increasing market penetration of ARM-based server architectures represents a fundamental diversification in compute strategy, challenging the long-standing dominance of x86 processors. Cloud service providers and enterprises are increasingly deploying custom silicon based on ARM designs to achieve higher energy efficiency and optimized performance for specific cloud-native workloads. This architectural transition allows data centers to maximize core counts and processing throughput per watt, a critical metric for sustainable scaling in power-constrained environments. According to Arm Holdings plc, March 2025, in the 'Annual Report and Consolidated Financial Statements For the year ended 31 March 2025', total group revenues reached 4,007 million dollars, a growth trajectory driven principally by the increased deployment of the latest Armv9 technology in cloud data center servers and the rising demand for energy-efficient compute capabilities.

Segmental Insights

Based on current industry analysis, the Small and Medium-sized Enterprises (SMEs) segment is identified as the fastest-growing category within the Global Enterprise Server Market. This rapid expansion is primarily driven by accelerated digital transformation initiatives, as smaller organizations increasingly modernize their IT infrastructure to enhance operational efficiency and data security. Furthermore, the rising adoption of hybrid cloud strategies has necessitated reliable on-premise hardware to ensure seamless integration with cloud services. Manufacturers are responding by introducing cost-effective, scalable entry-level servers specifically designed for limited budgets, thereby lowering adoption barriers and fueling significant investment from this sector.

Regional Insights

Asia Pacific stands as the leading region in the Global Enterprise Server Market, driven by an unmatched rate of digital infrastructure expansion. This dominance is primarily fueled by extensive government-led digitization programs and record-breaking investments in hyperscale data centers across key economies. The region's accelerating adoption of cloud computing, artificial intelligence, and 5G technology necessitates robust server deployments to manage surging data workloads. Furthermore, Asia Pacific benefits from being the global epicenter for server manufacturing, providing a strategic supply chain advantage that sustains its commanding market position.

Recent Developments

• In August 2025, Nvidia announced a major collaboration with leading global system manufacturers, including Cisco, Dell Technologies, Hewlett Packard Enterprise, Lenovo, and Supermicro, to launch new enterprise servers featuring the Blackwell architecture. The initiative involved the integration of the Nvidia RTX PRO 6000 Blackwell Server Edition GPU into standard 2U rack-mounted systems. This development aimed to accelerate a wide range of corporate workloads, from data analytics to physical AI, by upgrading traditional CPU-based infrastructure. The company noted that these new servers deliver significantly higher energy efficiency and performance compared to conventional non-accelerated systems, addressing the growing demand for on-premises AI capabilities.
• In February 2025, Hewlett Packard Enterprise announced the global launch of eight new HPE ProLiant Compute Gen12 servers powered by Intel Xeon 6 processors. These next-generation systems were engineered to deliver advanced security features and AI-driven automation capabilities for modern hybrid environments. The company introduced the new HPE Integrated Lights Out (iLO) 7 management technology to enhance operational efficiency and protect against emerging firmware threats. HPE highlighted that the Gen12 portfolio optimizes performance for complex data center workloads while significantly improving energy efficiency. These servers were made available as standalone units or through the HPE GreenLake platform, targeting critical industries such as finance and healthcare.
• In October 2024, Dell Technologies expanded its Dell AI Factory portfolio with the introduction of five new Dell PowerEdge servers featuring AMD EPYC 9005 Series processors. The new models, including the PowerEdge XE7745 and R6715, were designed to accelerate enterprise AI adoption by delivering enhanced performance for large-scale workloads. The company stated that these servers provide customizable solutions that simplify management and security for modern data centers. Additionally, the launch included updates to Dell Generative AI Solutions, aiming to improve time-to-value for businesses deploying AI inferencing and retrieval-augmented generation.
• In June 2024, Lenovo unveiled its new ThinkSystem V4 portfolio powered by Intel Xeon 6 processors, aiming to make artificial intelligence more accessible to businesses of all sizes. The updated server range features advanced performance capabilities and integrates Neptune liquid cooling technology to reduce power consumption while handling compute-intensive tasks. The company emphasized that these systems are purpose-built to support hybrid AI infrastructure, from edge locations to the cloud. The portfolio also introduced AI-powered systems management solutions designed to automate deployment and configuration processes across distributed networks, ensuring that enterprises can seamlessly integrate AI into their workflows.

Key Market Players

• Dell Technologies
• Hewlett Packard Enterprise
• IBM Corporation
• Super Micro Computer
• Quanta Cloud Technologies
• Lenovo Group
• Huawei Technologies
• Cisco Systems
• Oracle Corporation
• Fujitsu Limited

By Operating System	By Server Type	By Server Class	By Enterprise Size	By Industry Vertical	By Region
Linux Windows UNIX Others	Multi-node Tower Blade Rack Optimized	High-end Server Mid-range Server Volume Server	SMEs Large Enterprises	BFSI Retail Manufacturing IT & Telecom Healthcare Media & Entertainment Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Enterprise Server Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Enterprise Server Market, By Operating System:

• Linux
• Windows
• UNIX
• Others

• Enterprise Server Market, By Server Type:

• Multi-node
• Tower
• Blade
• Rack Optimized

• Enterprise Server Market, By Server Class:

• High-end Server
• Mid-range Server
• Volume Server

• Enterprise Server Market, By Enterprise Size:

• SMEs
• Large Enterprises

• Enterprise Server Market, By Industry Vertical:

• BFSI
• Retail
• Manufacturing
• IT & Telecom
• Healthcare
• Media & Entertainment
• Others

• Enterprise Server Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE