High Availability Server Market: Overview
The size of the global high availability server market was estimated at USD 6,029.3 million in 2021, and it is anticipated to increase at a CAGR of 12.8%. The anticipated investments in data center construction projects by Google, AWS, Alibaba Cloud, and Microsoft impact the high-availability server industry. Vendors of servers are lowering the cost of their goods to target small and medium-sized businesses, in particular (SMEs). As of 2021, there are approximately 7.2 million data centers worldwide. Therefore, vendors are concentrating on developing and producing energy-efficient processors to meet the rising need for energy-efficient servers. The need for high-availability servers will be impacted by the expanding need for cloud service solutions across various end-user industries, including BFSI, IT, and telecom. The demand for big data analytics and cloud-enabled applications will affect the potential for growth of cloud service providers, which will, in turn, fuel the expansion of high-availability servers throughout emerging economies.
Applications enabling big data analytics, software-defined solutions, and hyper-converged infrastructure have increased the demand for high-performance computing servers. The continuous deployment of 5G network technology and strong investments by public cloud providers in developing hyperscale data centers further contributed to the market's expansion. As of June 2022, over 70 nations have 5G networks, up from only 38 at the beginning of 2020. Therefore the market's expansion is accelerated by the rising use of various applications across multiple industries, such as load-balanced dedicated servers, scalable private clouds, and ultra-high performance dedicated servers, as well as the rise in demand for big data analytics among businesses.
Cloud servers are growing due to newer applications requiring complex settings and high computational demands from consumers and service providers. Businesses are implementing virtual or cloud servers to improve their ability to connect to the world's networks while lowering the cost of operating and maintaining their IT infrastructure. Dell's Infrastructure Solutions Group increased revenue by 28%, owing primarily to the sale of PowerEdge servers. According to the company, revenue rise was caused by higher prices for high-end servers with more memory and robust computational capacity.
High Availability Server Market: COVID-19 Impact
IT tactics have changed due to the COVID-19 epidemic and its effects over the previous few months. Companies in the ecosystem have adopted new IT frameworks to match the significant changes in consumer expectations from IT-enabled and IT-based businesses across industries. New game-changing techniques in the high availability server industry have been made possible by the evolving nature of digital services and their extreme variability. To mitigate the macroeconomic and microeconomic disruptions caused by the epidemic, businesses are realigning their technological priorities and refocusing their R&D spending. Players in the high availability server market will be motivated by the fallout to quickly adopt new norms to remain relevant.
High Availability Server Market: Drivers
To Meet Demand for Business-Critical Activities in Various Sectors, High Availability Server Market is Blooming
The capacity of IT servers to operate continuously for an ideally long time without any downtime or maintenance is one of its defining characteristics. The optimal level of availability is 99.999 percent, and IT service providers are actively working toward the benchmark of five 9s, as they are known in IT jargon. Eliminating single points of failure and avoiding unplanned maintenance is essential during this time. For the IT system to operate as needed and at the appropriate rate in production situations, it is vital to reduce downtimes and prevent service interruptions. These are some of the main consumer preferences for items in the market for high-availability servers.
A major factor in the need for high-availability servers is the growing number of enterprises that want their operations and services to be available online twenty-four hours a day. A significant application area is the healthcare sector, where 24-hour surveillance is becoming more and more desirable. The need for high-availability servers has been fueled by an increase in the number of business-critical operations where disruptions are thought to offer a significant risk of casualties, either in the form of massive financial loss or revenue loss. The stock market is another application for high-availability servers.
Growing Demand Modular Data Center to Drive Market’s Growth
Prefabricated modules constructed at a factory and sent to the client site are integrated to create modular data centers, which are assembled, deployed, and commissioned. These data centers may be quickly deployed to fulfill the client's immediate and future needs because they are extremely scalable and energy efficient. The demand for modular data centers is expanding with the increasing number of environmental protection and energy consumption rules established by various governments worldwide. The modular data center's constrained size is easier to cool than a single huge room, and built-in aisle containment reduces hot and cold air mixing. Modular data centers are 40% more energy efficient than open data centers, according to research from Building Industry Consulting Service International (BICSI). As a result, modular data centers are more power-efficient than traditional data centers and help address businesses' intrinsic requirements for lower energy use.
High Availability Server Market: Restraints
Lack of Awareness to Hamper Market’s Growth
Even though data centers provide many benefits, most customers still rely on on-premises services. The market's expansion is anticipated to be hampered by the high installation costs and lack of awareness of modular data centers, particularly in rural areas or other places without network connectivity or IT services. Other elements like high initial investment and maintenance costs are anticipated to hinder market expansion.
High Availability Server Market: Segment Overview
With Growing Trend of Digital Banking, BFSI to Acquire Largest Market Share
BFSI contributed significantly to the global revenue earned by the high availability server market. The end-use industry's BFSI segment is the most fruitful among the others. This growth is mostly attributable to the banking sector's rising demand for availability server solutions and services to keep banking operations running smoothly. A high availability server also has numerous uses in financial, banking, insurance, telecommunications, and other industries. High availability servers work with vital data to protect mission-essential activities from serious failures that could result in significant business losses. As a result, demand for high-availability servers is increasing across all industry sectors and is projected to increase at an impressive CAGR throughout the forecast period.
With Increased Infrastructure in IT Sector, Large Enterprises to Dominate Market
Large Enterprise to lead the market share in the forecast period. This is explained by the fact that major businesses have the resources to invest a lot of money in their IT infrastructure. Large businesses, meanwhile, have several long-standing agreements with service providers that provide prompt delivery and customization possibilities for products that are already standard. These elements are projected to have an impact on the segment's expansion.
Large enterprise servers, specifically created to meet the needs of large firms, are being introduced by companies like Hewlett Packard Enterprises, IBM, and Lenovo to meet the growing demand from large organizations. For instance, Hewlett Packard Enterprises offers a compact, high-performance HPE ProLiant MicroServer Gen10 Plus server with a 3.4-3.8 GHz processor. Many organizations have purchased servers due to increased OEM product offers and lower-priced ODM goods, contributing to the segments' optimistic growth prospects.
High Availability Server Market: Regional Landscape
North America to Acquire Major Market Share due to Growing Penetration of Internet Services in Various Sectors
In the forecast period, North America became the region that generated the most revenue, and it is anticipated that it will continue to dominate the market going forward. Growth in North America has been aided by the region's large installed base and high penetration rate of high availability servers in critical end-use sectors of industrialized nations, including BFSI, IT and communications, and retail. Major cloud service providers like Facebook, Amazon.com, and Google, Inc. are also based in North America. These companies are investing a lot of money in constructing enormous data centers to enhance processing capacity and data storage, opening up possibilities that might accelerate the market's growth. During the forecast period, advancements in industries like 5G, the Internet of Things (IoT), and edge computing are predicted to impact the regional market significantly. In the United States, the market share of 5G cellphones increased from 3.3 percent in January 2020 to 13.5 percent by August 2020. It was predicted that 17% of all smartphones sold in North America by the end of 2021 would be 5G smartphones. Thus with the growing use of 5g smartphones, the demand for high-speed servers will increase in the region in the coming years.
Over the projection period, the Asia Pacific market is anticipated to develop at the fastest rate in revenue, with China and India continuing to be the major contributors. Government agencies in these nations have launched smart city programs, which have sparked the growth of new data centers and the corresponding market. Nearly 795 MW of new data center capacity is anticipated to be added to the Asia Pacific area between 2019 and 2021, according to an analysis by CBRE, Inc. The need for HPC servers in the area is anticipated to increase along with the rate of high-frequency trading. Additionally, it is projected that the widespread usage of digital wallets, social media platforms, and internet-based services would increase demand for data storage, supporting market growth.
Global High Availability Server Market: Competitive Landscape
In July 2022, Fujitsu Limited and Fujitsu Australia announced plans to acquire Enable Professional Services, Asia-largest Pacific's independent ServiceNow specialist. Fujitsu will receive market-leading and award-winning expertise and experience by acquiring Enable Professional Services, allowing it to provide ServiceNow advising, consulting, and delivery services to customers throughout the area. In April 2021, IBM announced a definitive agreement to purchase Turbonomic, a Boston-based provider of Application Resource Management (ARM) and Network Performance Management (NPM) products. The purchase will give enterprises complete stack application observability and management to ensure performance and decrease costs by leveraging artificial intelligence to optimize resources such as containers, virtual machines, servers, storage, networks, and databases.
Some players in the High Availability Server Market include Cisco Systems, Centerserv, Dell Inc., Fujitsu, HP Development Company L.P., IBM Corporation, NEC Corporation, Oracle Corporation, Stratus Technologies, and Unisys Global Technologies.
Global High Availability Server Market is Segmented as Below:
By Deployment Mode
By Operating System
By Organization Size
By Industry Vertical
Key Elements Included In The Study: Global High Availability Server Market
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