White Box Server Market Forecasts to 2028 - Global Analysis By Business Type (Enterprise Customers, Data Centers), Processors (Non-X86 Servers, X86 Servers) and By Geography
According to Stratistics MRC, the Global White Box Server Market is accounted for $13.20 billion in 2021 and is expected to reach $49.00 billion by 2028 growing at a CAGR of 20.6% during the forecast period. A computer structure in large data centers is referred to as a white box server. White Box Servers are an assembly of randomly picked hardware from the market and are not publicized w.r.t any brand. The white box servers are mainly data centers that are commonly found in large enterprises. ODMs are responsible to manufacture/supply such servers. Major operating systems like Windows Server and Red Hat Enterprise Linux along with visualization software can be run on a white box server. White Box Servers are beneficial for large enterprises as it helps in cost-saving and is easy to maintain and provide technical support. There are various benefits of using white box servers such as customizations, ease of maintenance, and support as they provide high availability and lower the risk of unexpected downtime. The white box servers have various form factors such as rack & tower servers, blade servers, and density-optimized servers. These servers are predominantly used in data centers and OEMs.
Upsurge in Data Centers and Cloud Computing
The rapid rise in demand for public cloud services has prompted cloud providers to engage in fierce competition for the best pricing terms to win over end-users. With a larger priority on reducing both capital and operational expenditures, it doesn't make sense for many companies, especially hyperscalers (cloud giants like Google or Amazon), to continue paying a premium for OEM servers in the face of viable, inexpensive alternatives. Increase in internet usage and networking globally has increased the demand for more cloud space, which further propels the demand for more data centers and subsequently, fuel the demand for market growth.
Original Design Manufacturers Limited Service
The major restraints of the global market business are the restricted or low scope from the ODMs. The full form of ODM is "Original Design Manufacturers," and it can pose a huge restriction to replace it with the OEMs. Hence, these factors can hinder market growth in the upcoming years. Moreover, factors such as Odms' limited service and support capabilities and lack of channel partner skills that affect enterprise business are anticipated to further hamper the growth of the market.
Expansion of IT infrastructures
White box server is incisive IT infrastructures to gather the needs of the next-generation datacentre. As corporations change their business and move operations to the cloud, they are accepting it for superior nimbleness, abridged costs, and greater operational effectiveness. These servers are beneficial for large enterprises as it helps in cost-saving and is easy to maintain and give technical support. Moreover, various technological advancements, such as the construction of energy-efficient green data centers for controlling carbon emissions and electricity consumption, are also creating a positive outlook for the market. The increasing number of data centers, the growing use of diagnostic applications to normalize physical and virtual servers, and the expansion of IT infrastructure within dissimilar developing countries are fueling the growth of the market across the globe.
The major threat for the market is that its several components have very low redundancy. Also, they are currently less reliable than the present OEM servers. If the manufacturers develop a cost-effective and reliable solution, then the market will flourish.
Rack and tower server segment is expected to be the largest during the forecast period
The growth of the segment can be attributed to the deployment of rack and tower servers in traditional IT environments. Moreover, these servers offer the necessary level of performance adequate for IT processes and are significantly cheaper than other server types, which are estimated to help the segment maintain dominance throughout the forecast period.
The Density-Optimized Servers segment is expected to have the highest CAGR during the forecast period
Due to increased usage of density-optimized servers by hyperscale data centers. Density-optimized servers are addressing an increasing number of web and HPC workloads for customers that require a balance of OPEX (power, space) with overall system throughput. Density-optimized servers are designed for large-scale data center environments with streamlined systems designs that focus on performance, energy efficiency, and density. These systems are typically deployed in fully assembled rack configurations. Its examples include e-commerce, cloud computing, online game hosting, social networking sites, dedicated hosting, Hadoop, and high-performance computing (HPC).
Region with highest share:
The Asia Pacific is projected to hold the highest market share, owing to the increasing presence of cloud service providers in APAC, increasing adoption of mobile devices and digital services boosting the demand for data centers to support varying consumer and enterprise needs. There are several reasons behind the growth of the Asia-Pacific data center industry such as the increasing number of internet users, the increasing need for an infrastructure refresh in older data centers, the growing role of data sovereignty as data privacy laws mature in Southeast Asia. Large enterprises in APAC also expected to adopt market in the coming years.
Region with highest CAGR:
North America is projected to have the highest CAGR because the growing utilization of ICT technologies and digitalization of enterprises are transforming the traditional IT environment. Furthermore, the emerging economies are highly adequate in the highest number of data center facilities hosting some of the biggest data centers around the globe are the factors that will further boost the growth of the market in the region.
Key players in the market:
Some of the key players profiled in the White Box Server Market include Celestica Inc, Cisco Systems, Inc, Compal Electronics, Dell Inc, Delta Products Corp, Foxconn Electronics Inc, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd, IBM Corp., Inspur Technologies Co., Ltd, Inventec Corporation, Lenovo Group Ltd, Lite-On Technology Corp, MiTAC Holdings Corp, Penguin Computing Inc, Quanta Computer Inc., Super Micro Computer Inc, Wistron Corporation, Google Corp. Microsoft Corporation
In March 2016: Google Inc. (U.S.) contributed designs for its high-voltage server racks to the non-profit Open Compute Project Foundation, an effort to share designs for data-enter equipment that has changed the balance of power in the computer hardware industry.
In April 2021: Microsoft Corporation (Azure) (U.S.) planned to build two data centers in the U.K. in 2016. Amazon Web Services, Inc. (U.S.) also planned to build data center in London
In In July 2016: Lenovo Group Ltd. (U.S.) established a joint venture agreement with LCFC (Hefei) Electronics Technology, Compal Electronics (Taiwan) is expected to start production for servers
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Table17 Global White Box Server Market Outlook, By Motherboard (2020-2028) (US $MN)
Note- Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.