White Box Server Market
White Box Server Market Size, Share & Industry Analysis, By Form Factor (Rack-mount Server, Blade Server, Tower Server), By Business Type (Data Centers, Enterprise Customers), By Processor Type (X86 Server, Non-X86 Server), By Operating System (Linux Operating System, Windows Server Operating System, Unix Operating System), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) -- Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The White Box Server Market is projected to grow at a CAGR of 19.8% from 2024 to 2031, with the market value expected to rise from USD XX in 2024 to USD YY by 2031. Asia-Pacific currently dominates the market, accounting for approximately 45% of the global share. Key metrics include increasing adoption of cloud computing, rising demand for cost-effective data center solutions, and growing preference for customizable server infrastructure.
The white box server market is rapidly expanding, driven by rising demand for efficient and scalable data centre solutions. The move towards hyperscale computing, combined with the development of cloud services, is driving market growth. Furthermore, enterprises' growing emphasis on lowering IT infrastructure costs is driving the adoption of white box servers as a less expensive alternative to branded servers.
Market Dynamics:
Market Trend: Adoption of open-source hardware and software designs for enhanced customization and flexibility
The use of open-source hardware and software designs is transforming the white box server business. This trend is being driven by an increasing desire for highly adaptable and flexible server systems that can be adapted to specific workload needs. Open-source initiatives such as the Open Compute Project (OCP) are gaining traction, enabling enterprises to use standardised yet flexible server designs. For example, Facebook claimed in 2023 that their OCP-based architecture would reduce server power consumption by 38% while increasing processing efficiency by 24%. This technique not only saves money, but also encourages creativity and collaboration inside the business. As a result, an increasing number of companies, particularly significant cloud service providers, are adopting open-source server designs to improve data centre operations and eliminate vendor lock-in.
Market Driver: Rapid growth of hyperscale data centers and cloud service providers fueling demand for cost-effective, high-performance servers
The fast expansion of hyperscale data centres and cloud service providers is a key driver of the white box server market. According to Synergy Research Group, the global number of hyperscale data centres reached 597 at the end of 2022, with more than 800 expected by 2025. These large-scale facilities require a huge number of servers, therefore cost-effectiveness and performance are critical considerations. White box servers are gaining popularity among hyperscalers and cloud providers due to their low upfront costs and customisable configuration options. For example, Amazon Web Services (AWS) reported in its 2023 infrastructure update that using white box servers in their data centres decreased server deployment costs by 27 percent. This trend is projected to persist as the demand for cloud services grows. Gartner predicts that global end-user spending on public cloud services will total $591.8 billion in 2023, up 20.7% from 2022.
Market Restraint: Concerns over reliability, support, and compatibility with existing IT infrastructure
Despite the growing popularity of white box servers, worries about dependability, support, and integration with current IT infrastructure remain important barriers to business growth. Many businesses, particularly those in industries with stringent regulatory requirements or mission-critical operations, are hesitant to completely use white box solutions due to perceived dangers. According to an IDC survey performed in 2023, 38% of IT decision-makers see long-term stability and maintenance as important hurdles to using white box servers. Some firms may be put off by the lack of a well-established brand reputation and complete support services when compared to traditional server vendors. Furthermore, integrating white box servers into existing IT ecosystems may raise compatibility issues, necessitating significant time and money for configuration and optimisation. These considerations may cause caution in some businesses, particularly those with substantial legacy systems or minimal in-house IT knowledge.
Segment Overview:
The rack-mount server segment dominates the white box server market, accounting for over 55% of the market share in 2023.
Rack-mount servers have emerged as white box server industry leaders due to their flexibility, scalability, and space efficiency in data centre applications. These servers feature a high CPU density, making them suitable for large-scale deployments in cloud data centres and enterprise IT environments. Technological developments, such as enhanced power efficiency and cooling designs, are driving the industry ahead by improving the overall performance and cost-effectiveness of rack-mounted servers.
Recent advancements in the rack-mount industry involve the creation of modular and composable infrastructure solutions. For example, in 2023, a leading white box server manufacturer launched a new line of disaggregated rack-mount servers that allow for independent scaling of compute, storage, and networking resources, resulting in a 30% increase in resource utilisation and a 25% reduction in total cost of ownership for their customers.
The data centre category has the biggest market share, because to the rapid expansion of cloud services and the growing popularity of edge computing. According to a survey published in the Journal of Cloud Computing, white box servers currently account for more than 40% of new server deployments in large-scale data centres, representing a 15% rise from 2021. This trend is anticipated to continue, with industry analysts predicting a 22% CAGR in the worldwide white box server market for data centres through 2031.
Regional Outlook:
Asia-Pacific dominates the white box server market, accounting for approximately 45% of the global market share.
Asia-Pacific's dominance in the white box server market is mostly due to the region's rapid digital transformation, the presence of significant contract manufacturers, and the aggressive growth of cloud service providers. The region has experienced a significant increase in data centre investments, fuelling demand for low-cost server solutions.
China, the region's largest market, continues to lead in white box server usage. The country's 14th Five-Year Plan (2021-2025) focusses on the development of new digital infrastructure, such as 5G networks, artificial intelligence, and gigantic data centres, all of which demand enormous server capacity. According to IDC, China's server sector would grow by 15.5% annually until 2023, with white box servers accounting for more than half of total units delivered.
Taiwan is an important manufacturing base for the white box server ecosystem. Taiwanese ODMs (Original Design Manufacturers) like as Quanta Computer and Wistron have reported strong growth in their server industries, with Quanta forecasting a 22% year-over-year increase in server-related revenues in 2023.
India is emerging as a significant growth driver in the region. The country's ambitious Digital India strategy, paired with significant expansion in its IT and telecom sectors, is fuelling massive demand for data centre infrastructure. According to the India Data Centre Business Report, the country's data centre industry is estimated to reach $8 billion by 2026, increasing at a 12% CAGR between 2021 and 2026, creating considerable potential for white box server vendors.
Competitive Intelligence:
The white box server business is characterised by fierce competition among ODMs, contract manufacturers, and an expanding number of enterprise-focused white box server providers. To preserve their market positions, leading firms are focussing on server design innovation, strategic relationships with component suppliers, and service offering expansions.
Quanta Computer has maintained its industry-leading position by consistently innovating in high-density, energy-efficient server designs. By 2023, the business anticipates a 25% growth in server shipments to hyperscale data centres. Wiwynn, a Wistron subsidiary, expanded its market share by focussing on AI and edge computing solutions, resulting in a 30% year-over-year gain in its AI server business.
Emerging startups, such as Inspur and Sugon, are fast challenging traditional manufacturers by offering cost-effective solutions for certain market sectors. Inspur predicts a 35% growth in foreign server sales by 2023, indicating that Chinese white box servers are becoming increasingly popular in worldwide markets.
In terms of market share, the top five ODMs have more than 70% of the worldwide white box server market. However, the landscape is changing as new entrants introduce innovative technologies to the market and existing server providers adjust their strategy to compete in the white box space.
Analyst Opinion:
The white box server business is expected to grow and evolve in response to rising demand for flexible, cost-effective data centre solutions. We predict a transition towards more specialised and workload-optimized server architectures, particularly in developing fields like AI, machine learning, and edge computing. The confluence of 5G, IoT, and edge computing is projected to open up new opportunities for white box server suppliers, particularly in terms of delivering tiny, high-performance servers for edge deployment.
The arrival of "green" white box servers, which are designed with energy economy and sustainability in mind, is an intriguing trend to monitor. As data centres are under increasing pressure to decrease their carbon footprint, we anticipate server design advances that prioritise power efficiency and incorporate eco-friendly materials. Furthermore, the rising use of liquid cooling technologies in white box servers indicates a promising future for improving energy efficiency and enabling higher-density computing systems.
Major Players:
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Quanta Computer Inc.
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Wiwynn Corporation
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Inventec Corporation
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Hon Hai Precision Industry Co., Ltd. (Foxconn)
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MiTAC Holdings Corp.
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Celestica Inc.
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Inspur Group
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Huawei Technologies Co., Ltd.
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Lenovo Group Limited
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Supermicro Computer, Inc.
Key Developments:
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August 2023: Quanta Computer introduced a new range of AI-optimized white box servers including liquid cooling technology to suit the rising need for high-performance computing in AI applications.
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In November 2023, Wiwynn Corporation announced a strategic relationship with a leading semiconductor manufacturer to offer next-generation edge computing servers for 5G networks.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Quanta Computer Inc.
5.2. Wiwynn Corporation
5.3. Inventec Corporation
5.4. Hon Hai Precision Industry Co., Ltd. (Foxconn)
5.5. MiTAC Holdings Corp.
5.6. Celestica Inc.
5.7. Inspur Group
5.8. Huawei Technologies Co., Ltd.
5.9. Lenovo Group Limited
5.10. Supermicro Computer, Inc. (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Adoption of open-source hardware and software designs for enhanced customization and flexibility
6.1.2. Rise of "green" white box servers focusing on energy efficiency and sustainability
6.1.3. Growing adoption of liquid cooling technologies in white box servers
6.2. Market Drivers
6.2.1. Rapid growth of hyperscale data centers and cloud service providers fueling demand for cost-effective, high-performance servers
6.2.2. Increasing focus on reducing IT infrastructure costs among enterprises
6.2.3. Rising demand for customizable server infrastructure
6.3. Market Restraints
6.3.1. Concerns over reliability, support, and compatibility with existing IT infrastructure
6.3.2. Perception challenges and brand loyalty to traditional server vendors
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY FORM FACTOR (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Rack-mount Server
7.1.1. 1U servers
7.1.2. 2U servers
7.1.3. 4U servers
7.2. Blade Server
7.2.1. Full-height blade servers
7.2.2. Half-height blade servers
7.3. Tower Server
7.3.1. Mini tower servers
7.3.2. Mid-tower servers
8. BY BUSINESS TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Data Centers
8.1.1. Hyperscale data centers
8.1.2. Colocation data centers
8.2. Enterprise Customers
8.2.1. Large enterprises
8.2.2. Small and medium-sized enterprises
9. BY PROCESSOR TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. X86 Server
9.1.1. Intel-based servers
9.1.2. AMD-based servers
9.2. Non-X86 Server
9.2.1. ARM-based servers
9.2.2. POWER-based servers
10. BY OPERATING SYSTEM (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Linux Operating System
10.1.1. CentOS
10.1.2. Ubuntu Server
10.2. Windows Server Operating System
10.2.1. Windows Server Standard
10.2.2. Windows Server Datacenter
10.3. Unix Operating System
10.3.1. Oracle Solaris
10.3.2. IBM AIX
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Form Factor:
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Rack-mount Server
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Blade Server
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Tower Server
By Business Type:
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Data Centers
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Enterprise Customers
By Processor Type:
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X86 Server
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Non-X86 Server
By Operating System:
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Linux Operating System
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Windows Server Operating System
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Unix Operating System
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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