White Box Server Market Size, Share & Trends Analysis Report By Server (Rack & Tower, Blade, Density Optimized), By Business Type (Datacenters, Enterprise), By Processor, And Segment Forecasts, 2018 - 2025

Report Overview

The global white box server market size was valued at USD 5.61 billion in 2017. It is projected to register a CAGR of 22.0% during the forecast period. A white box server is a customized server built either by assembling commercial off-the-shelf components or unbranded or generic computer products supplied by original design manufacturers (ODM).

Data explosion coupled with digitization and business growth on an extensive scale has underscored the need for data centers. Growing demand for low-cost servers, higher uptime, and a high degree of customization and flexibility in hardware design is anticipated to escalate the growth of the market.

Over the past few years, the networking industry has seen OEM vendors contracting ODMs to build networking equipment and load their software solutions on these products. Commoditization of networking equipment and the emergence of the Open Compute Project (OCP) by Facebook have led the industry to innovate new hardware designs to support the upsurge of data and networking capacity. Such radical shifts in the industry moving towards open networking models will create new opportunities for OEMs and ODMs, thereby fostering the growth of the market.

White box servers are easier to design for custom business requirements and can offer improved functionality at a relatively cheaper cost meeting an organization’s operational needs. Major data center operators such as Google, Facebook, and Amazon replicated the white box paradigm with networking switches, where they defined a standard Ethernet Switch architecture.

Similarly, enterprises of all sizes are shifting towards white box servers and running Linux or other operating systems. Using such white box server solutions, an enterprise can separate hardware and software purchase decisions, which can effectively reduce server costs.

Although whitebox servers offer numerous benefits for data center and enterprise users, lack of technical expertise in their designing and deployment can limit the growth of the market. High manufacturing and R&D costs will result in vendors implementing technologies at a lower price and focus on mass scale production to reduce the overall costs. The limited scope of support services on offer from ODMs can also hinder the market growth.

Server Type Insights

The rack and tower server segment commanded approximately 65.0% of the overall revenue in 2017. 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 is estimated to help the segment maintain dominance throughout the forecast period.

Further, the density-optimized server segment is expected to register the highest CAGR of 26.8% during the forecast period. The growth of the segment can be attributed to the increasing use of custom, high-density servers across hyperscale data center environments offering high performance, enhanced energy efficiency, and capacity to handle massive server loads.

Processor Type Insights

In 2017, the x86 segment dominated the white box server market in 2017. It is likely to retain its position through 2025. Over the past few decades, x86 architectures and TCP/IP networking protocols have been the default standard offering cheap and more server options to end users.

As IT infrastructures become more agile and deploy custom software to support varying organizational needs, the market for non-x86 servers is poised to post a higher CAGR during the forecast period. Increasing demand for virtualization, containerization, and improved power efficiency will spur the growth of the segment.

Business Type Insights

Datacenters were the most prominent business type segment, contributing over 65.0% of the overall revenue in 2017. The booming digital revolution is leading to upsurge in the demand for data centers to handle high volume of data and support a variety of applications & devices.

Datacenter operators deploy a variety of hardware and software solutions to meet changing consumer requirements. White box servers can be a cheaper alternative as well as offer a high degree of customization offering a perfect fit for emerging business requirements and conserving IT budgets.

Regional Insights

North America accounted for approximately 30.0% of the global market in 2017. Increasing use of ICT technologies and digitalization of enterprises are transforming traditional IT environment, which in turn is contributing to the growth of the regional market. The region is highly saturated with the highest number of data center facilities hosting some of the biggest data centers in the world.

此外,亚太地区预计将见证highest CAGR during the forecast period. The regional market can be characterized by increasing adoption of mobile devices and digital services boosting the demand for data centers to support varying consumer and enterprise needs. Presence of prominent market players such as Wistron Corporation; Quanta Computer Inc.; Inventec Corporation; and Hon Hai Precision Industry Company Ltd.; will bolster market growth over the coming years.

Key Companies & Market Share Insights

Prominent market players include MiTac Holdings Corp.; Celestica Inc.; Compal Electronics; Penguin Computing; Super Micro Computer Inc.; Hyve Solutions; Wistron Corporation; Quanta Computer Inc.; Inventec Corporation; Hon Hai Precision Industry Company Ltd.; and ZT Sytems.

Industry players are highly focused on R&D initiatives to innovate cost & power efficient server solutions as well as new improved storage solutions that can boost system performance up to 30-50% as compared to traditional servers. Key vendors in the market are anticipated to emphasize innovating server design and go-to-market strategies to cope with the emerging transition state of the market.

White box Server Market Report Scope

Report Attribute	Details
Market size value in 2020	USD 8,783.2 million
2025年的收入预测	USD 25,529.7 million
Growth Rate	CAGR of 22.0% from 2018 to 2025
Base year for estimation	2017
Historical data	2015 - 2016
Forecast period	2018 - 2025
Quantitative units	Revenue in USD million and CAGR from 2018 to 2025
Report coverage	Revenue forecast; company ranking; competitive landscape; growth factors; and trends
Segments covered	服务器类型、业务类型、处理器和地区。
Regional scope	北美;欧盟rope; Asia Pacific; Latin America; Middle East & Africa.
Country scope	U.S.; Canada; U.K.; Germany; France; Germany; Spain; Italy; India; China; Japan; South Korea; Argentina; Mexico; and Brazil.
Key companies profiled	MiTac Holdings Corp.; Celestica Inc.; Compal Electronics; Penguin Computing; Super Micro Computer Inc.; Hyve Solutions; Wistron Corporation; Quanta Computer Inc.; Inventec Corporation; Hon Hai Precision Industry Company Ltd.; and ZT Sytems.
Customization scope	Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country; regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the subsegments from 2015 to 2025. For this study, Grand View Research has segmented the global whitebox server market report based on server type, business type, processor, and region:

• Server Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Rack & Tower

  • Blade

  • Density-Optimized

• Business Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Data centers

  • Enterprise

• Processor Type Outlook (Revenue, USD Million, 2015 - 2025)

  • x86 Server

  • Non-x86 Server

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

    • 加拿大

    • Mexico

  • 欧盟rope

    • The U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • 印度

    • China

    • Japan

    • South Korea

  • South America

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)