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North America Data Center Server Market Forecast 2027 By Data Center Size (Small, Medium, Large), By Type (Rack, Tower, Blade, Micro), By Application (BFSI, IT & Telecom, Government, Healthcare, Energy, Manufacturing), Research Report, Country Outlook, (U.S., Canada, Mexico), COVID-19 Impact Statistics, Price Trends, Historic Data, Growth Prospects, Competitive Industry Share
Published Date: July 2021 | Publisher: Graphical Research Report ID: GR1890 | Delivery : PDF  Request Free Sample

North America Data Center Server Market size surpassed USD 20 billion in 2020 and is expected to expand at a CAGR of 8% from 2021 to 2027.

The rising demand for security, integrity, and scalability of data storage will drive the market growth. The growing adoption of AI & IoT technologies is increasing the data traffic generated in an organization. According to the Cisco Annual Internet Report, there will be 5.0 billion networked devices/connections in North America by 2023, up from 3.0 billion in 2018. This has driven the demand for scalable infrastructure to add more servers in a network for handling the increased workload.

North America Data Center Server Market

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The increasing establishment of hyperscale data centers across North America will create growth opportunities for the data center server market. Cloud service providers are increasingly establishing large data centers due to the increasing demand for their services across the region. For instance, in May 2021, Google LLC announced its plans to buy a property in Québec, Canada at USD 600 million to establish a data center in the country. As hyperscale data centers require processing massive workloads, the need to implement next-generation servers will increase.

North America Market, By Type

The micro type segment will witness significant growth through 2027 due to the increased demand for Over-The-Top (OTT) streaming video and high-quality content across the region. As of February 2021, Netflix Inc. has 73.9 million paid subscribers in the U.S & Canada. The increasing shift toward OTT is encouraging companies to establish data center facilities at the edge locations for enabling high-speed content. Edge data centers require advanced servers to handle large amounts of incoming data for allowing fast streaming at the edge.

The growing deployment & commercialization of 5G network is positively influencing the North America data center server market revenue. The U.S. is set to be a leader in 5G technology with increasing deployments by the four major telecoms players including Verizon Wireless, T-Mobile, AT&T Mobility, and DISH Wireless. The roll out of 5G technology is encouraging market players to develop high-capacity networks and advanced servers, enabling operators to manage the massive amounts of data traffic. For instance, in March 2021, Dell Technologies Inc. announced to extend its PowerEdge server portfolio by adding 17 next-generation servers.

North America Market, By Application

The rise in digital transformation in the BFSI sector and adoption of online payments among customers will propel the North America data center server market size. In the U.S., there are several banks that support Fitbit Pay, allowing customers to make payments through Fitbit device. The adoption of advanced technologies in the BFSI sector has resulted in significant increase in data generation. To process and store data, banks and financial institutions are investing in data center facilities. This will fuel the demand for secure, flexible, and resilient data center server solutions to ensure operational continuity and support digital applications.

Competitive Industry Landscape

The key players operating in the North America data center server market include Cisco Systems, Inc., Dell Technologies Inc., Huawei Technologies Co. Ltd., Oracle Corporation, IBM Corporation, Fujitsu Ltd., Hitachi Ltd., Hewlett Packard Enterprise Co., Lenovo Group Ltd., NEC Corporation, and ATOS SE.
 

Frequently Asked Question(FAQ) :

The market for data center server in North America exceeded USD 20 billion in 2020 and will garner an impressive CAGR of 8% from 2021 to 2027.
The industry share from the micro type segment will observe an appreciable gain through 2027 owing to soaring demand for OTT streaming video and high-quality content.
The BFSI application segment will expand at a strong growth rate due to the adoption of advanced technologies and increased investments in data center facilities.
The market volume for data center server in U.S. will grow at a considerable pace with increasing demand for 5G technology and development of high-capacity networks.

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