The global white box server market is anticipated to value USD 25.53 billion until 2025. It is also expected to register a CAGR of 22.0% over the forecasted years, 2018 to 2025. Rising adoption of several open-source platforms like Project Scorpio and Open Compute Project coupled with the rising demand for containerization and micro-servers is estimated to trigger the market growth.
There has been a significant rise in the number of OEM vendors approaching ODMs (original design manufacturers) for developing networking equipment. Rapid commoditization and emergence of OCP (Open Compute Project) by Facebook have driven the need for the development of the latest hardware designs for enhancing network and data capacity.
These servers can be easily designed to meet customized business needs and can provide enhanced functionality at lower costs. Several key players operating data centers like Amazon, Facebook, and Google are replicating the white box paradigm along with networking switches. This is anticipated to propel the market growth for white box servers across the globe.
Market Share Insights
The global market includes key players such as Celestica Inc.; MiTac Holdings Corp.; Penguin Computing; Compal Electronics; Hyve Solutions; Inventec Corporation; ZT Sytems; and Hyve Solutions. They are constantly engaged in product development and innovation to gain a competitive advantage over players.
They are focusing majorly on R&D activities for the development of power and cost-efficient server solutions. Also, they are increasing their focus towards the deployment of enhanced storage solutions which can boost performance by 30-50% as that of conventional servers. They are also developing innovative go-to-market strategies and innovative server designs to widen their geographical reach.
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Regional Insights
In 2017, North America held the largest share of more than 30.0% across the global market. This can be attributed to the shifting trend of digitalization prevailing among several enterprises and the rising usage of ICT technologies by key organizations located in this region. Further, the surging number of data centers across countries like the U.S. and Canada is also anticipated to fuel up the market growth.
The Asia Pacific is anticipated to register the fastest growth over the forecasted period, 2018 to 2025. The rising adoption of digital services and mobile devices by the millennial population has boosted the need for the generation of data centers. Thus, the demand for white box servers is projected to increase in these data centers thereby driving the market growth across this region.
COVID-19 Impact Insights
The global white-box server market is impacted positively on account of the ongoing COVID-19 crisis. The imposition of work from home policies by several organizations and the implementation of the online education system are driving the need for strong servers across the globe. Also, travel restrictions by several governments, the rising influence of the e-commerce industry, and the surging usage of the internet are propelling the need for efficient and flexible servers, thereby facilitating the market growth. Such factors are also projected to propel market growth over the post-pandemic period.
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