The global white box server market size is estimated to reach $25.53 billion by 2025, according to a new study by Grand View Research. The white box server market size is progressing at a CAGR of 22.0% during the forecast period.
A white box server can be considered as a customized server built either by assembling commercial off-the-shelf components or unbranded products supplied by Original Design Manufacturers (ODM) such as Supermicro, Quanta Computers, Inventec, Hon Hai Precision Industry Company, Inventec Corporation, Wistron Corporation, MITAC Holdings Corporation, Compal Electronics; Celestica, Penguin, Hyve, Computing, Cisco, and Hewlett Packard. These servers would be easier to design for custom business requirements while offering improved functionality at a relatively cheaper cost, meeting an organization’s operational needs.
Increasing adoption of open source platforms such as Open Compute Project and Project Scorpio coupled with surging demand for micro-servers and containerization of data centers is expected to stoke the growth of the market. Spiraling demand for low-cost servers, higher uptime, and high degree of customization and flexibility in hardware design are likely to propel the market over the forecast period.
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Asia, North America
North America held the highest white box server market share in 2017. The growth of this market can be attributed to high saturation of data centers and surging demand for more data centers to support new big data, IoT, and cloud services.
Asia Pacific is anticipated to witness the highest growth during the forecast period due to burgeoning adoption of mobile and cloud services. Presence of key manufacturers offering low cost products would bolster the growth of the regional market.
The density optimized server segment is expected to exhibit the highest growth rate owing to increased use of white box servers across hyperscale datacenter environments delivering higher efficiency and scalability for enterprise users
Data Analytics and cloud adoption with increased server applications for processing workloads aided by cross-platform support in a distributed environment is also projected to augment the market. Open Infrastructure conducive to software-defined operations and housing servers, storage, and networking products would accentuate the market for storage and networking products during the forecast period.
Additionally, ODMs would be focused on price reduction as well as innovating new energy efficient products and improved storage solutions, stated Grand View Research, which in turn will benefit the market during the forecast period. However, ODM’s limited service and support services, unreliable server lifespans, and lack of technical expertise to design and deploy whitebox servers can hinder market growth over the forecast period.