Data Center Blade Server Market: Key Drivers, Research Insights, and Report 2024-2033

The data center blade server market size has grown strongly in recent years. It will grow from $6.46 billion in 2023 to $18 billion in 2024 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to the digitization of consumer health records in the form of electronic medical records (EMR), lower power consumption, increased productivity of the existing infrastructure, flexibility in configuration, and virtualization adoption.

The data center blade server market size is expected to see strong growth in the next few years. It will grow to $25.87 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to edge computing expansion, 5G network rollout, AI and machine learning integration, evolving security requirements, and increased remote work. Major trends in the forecast period include technological advances, 5G-ready Infrastructure, energy-efficient solutions, flexible and modular designs, and increasing acquisitions.

Market Overview -
Data center blade servers are modular servers designed for data centers, offering high computing density, business optimization, and virtualization capabilities. These thin, hot-swappable servers offer high-density and shared resources within a common chassis, enhancing efficiency and scalability in large-scale data environments.

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IoT Adoption Propelling Growth In Data Center Blade Server Market
The increasing adoption of IoT is expected to propel the data center blade server market going forward. IoT (Internet of Things) refers to the interconnected network of physical devices, vehicles, appliances, and other objects embedded with sensors, software, and network connectivity, enabling them to collect and exchange data. The increasing adoption of IoT is driven by its ability to enhance efficiency, improve customer experiences, leverage advanced technologies In data center blade servers, IoT is utilized to monitor and manage server performance, energy consumption, and security, optimize overall operational efficiency, and contribute to smart and automated data center environments. For instance, in January 2022, data from the GSM Association, a UK-based non-profit industry organization, predicted that the number of IoT connections globally is expected to exceed 23.3 billion by 2025, a significant rise from the 15.1 billion connections that were registered in 2021. Therefore, the increasing adoption of IoT is driving the growth of the data center blade server market.

Rising Data Traffic Boost The Market Growth

The increasing data traffic is expected to boost the growth of the data center blade server market going forward. Data traffic refers to the movement of digital data packets across a computer network or the internet. Data center blade servers play a crucial role in managing increasing data traffic demand by providing efficient, scalable, and highly integrated computing infrastructure. With their high-density design, modular scalability, integrated networking and management features, blade servers are designed to maximize computing density within data center racks. For instance, in 2021, according to the World Bank, a US-based financial institution, the total global internet traffic increased by about 50% 2022 from 2020 levels, reaching 4.8 zettabytes, equal to 150,000 GB per second. Therefore, increasing data traffic is driving the growth of the data center blade server market.

Competitive Landscape -
Major companies operating in the data center blade server market are Dell Inc., Huawei Technologies Co. Ltd., Lenovo, Intel Corporation, Cisco Systems Inc., Oracle Corporation, Quanta Computer, Fujitsu Limited, Hewlett Packard Enterprise Development LP, NVIDIA Corporation, NEC Corporation, AMD (Advanced Micro Devices), Inventec Corporation, ASUS, Bull Atos Technologies, Atos SE, Wiwynn Corporation, Super Micro Computer, Inc., Arm Ltd., Hitachi Vantara Corporation, Inspur Software Co. Ltd., Sugon, MSI (Micro-Star International), TYAN Computer Corporation, ASRock Rack, ZT Systems

Innovation With ARM-Based Solutions In Data Center Blade Server Market
Major companies operating in the data center blade server market are focused on developing innovative server solutions, such as arm-based grace servers, to strengthen their position in the market. The ARM-based Grace servers are a new line of high-performance computing (HPC) servers. For instance, in May 2022, Nvidia, a US-based software company, launched Grace's CPU-powered system. This system includes the NVIDIA Grace CPU Superchip, which is made up of two CPU chips connected cohesively via NVLink-C2C, a high-speed, low-latency chip-to-chip connection. NVIDIA's inaugural data center CPU, the Grace CPU Superchip, integrates 72 high-performance Arm v9 cores within a system-on-chip (SoC) framework. This pioneering architecture amalgamates NVIDIA's Arm processor proficiency and on-chip fabrics to amplify performance and efficiency in data center functionalities.

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Key Segments -

The data center blade server market covered in this report is segmented -
1) By Type: Tier 1, Tier 2, Tier 3, Tier 4
2) By Enterprise Size: Large Enterprises, Smal And Medium Enterprises
3) By End User: Banking, Financial Services And Insurance (BFSI), IT and Telecom, Manufacturing, Healthcare, Energy and Utility, Other End Users

Key highlights covered in the report -
1. Detailed market size forecast and historical data analysis
2. Key drivers influencing market growth
3. Identification of upcoming trends and potential opportunities in the market
4. Analysis of major players strategies, to understand competitive dynamics and market positioning
5. Evaluation of regional dynamics

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