The EMEA data center blade server market was valued at US$5.316 billion in 2019 and is expected to grow at a CAGR of 8.17% over the forecast period to reach a total market size of US$9.211 billion by 2026.
A blade server is a high-density, small, portable device that houses a computer that is used to manage and distribute data in an entire network. This device serves as an interface between computers, programs, applications, and systems. Essentially, a blade server is a modularly designed server computer that is optimized for using a minimum amount of physical space and energy. Most often, these are used by large data centers due to the fact that they need to maximize their space and power capacity utilization and efficiency, have high computing requirements, and can support a higher thermal and electrical load.
EMEA's growth in blade servers is driven by an increase in IT investments, automation, and virtualization. As Europe's data centers are expanding and the need for density optimization is growing, blade servers are becoming more popular in the region. Nevertheless, high investments required for blade server adoption can constrain the market's growth. Having to install racks or other hardware as part of the network infrastructure might result in higher adoption costs, which could be a hindrance to growth.
In terms of data center infrastructure, international corporations providing cloud services have partnered with third-party vendors to support their services with high-capacity data centers and blade servers to reduce operational costs. African countries have already adopted cloud computing in the last decade. Banks, for instance, have increasingly switched to cloud services like Amazon Web Services, Heroku, and Microsoft Azure that traditionally operated in-house servers and storage facilities.
The adaptation of digitalization is driving a requirement for data accumulation which can fuel the market. The deployment of 5G commercial networks has caused an increase in demand for high-speed internet in tier II and tier III cities throughout the Middle East. Hyperscale facilities will connect multiple edge data centers, creating a decentralized data center model. The Saudi Arabian market has been a leader in the expansion of 5G networks, with telecom companies Zain, Saudi Telcom Company, and MOBILY contributing significantly.
Renewable energy is the top priority of all the economies in the world and this is a key driver for the server blade market due to its minimum usage of energy.
As part of the Climate Neutral Data Centre Pact, by 2025? 75% of the power supplied to data centers in Europe must come from renewable energy sources, with 100% by December 31, 2030. This announcement is expected to boost the growth of the data center blade server market in Europe. The major investors in renewable energy initiatives are hyperscale data center providers. (Source: eudca.org)
By switching to less carbon-intensive fuels, data center operators and service providers are protecting the massive investments in generators. Microsoft and Kao Data both have alternative fuel initiatives at their data centers in Europe. At its UK campus in Harlow, Kao Data said it converted all backup generators to HVO (hydrotreated vegetable oil), reducing emissions of nitrogen oxide, carbon monoxide, and sulfur dioxide. particulate matter.
The EU's digital ambition will have an increasingly important impact on Europe's games ecosystem as a result of this commitment to innovation, economic growth, and progress. A rapidly growing segment of Europe's creative industries, video games represent one of Europe's most compelling economic sectors. Video game companies have increasingly moved to the cloud, due to the evolution of Europe's games ecosystem, which has produced generations of technology and creative talent. Cloud gaming services have recently appeared in the services lists of major tech and gaming companies, from PlayStation Now of Sony to the xCloud powered by Microsoft. File sharing, hosting of the virtual server platform, SSL encryption, and hosting of databases and applications are among its functionality. By enhancing storage capacity and reducing administration costs, Blade servers improve server performance.
Datacenter blade servers are expected to be constrained by high capital investment costs associated with integrating expensive technology. As compared to rack servers, blade servers have a higher initial cost, which in turn limits their market growth. Meanwhile, difficulties associated with blade server installation and restrictions on storage and expansion are hampering blade server market development in the Asia Pacific.
A number of significant players are present in the data center blade server market, which is moderately consolidated. Additionally, these companies invest constantly in acquiring and partnering with other companies to reach new markets. The barrier to entry for new players is also high as companies need more initial capital to enter the market.
|Market size value in 2019||US$5.316 billion|
|Market size value in 2026||US$9.211 billion|
|Growth Rate||CAGR of 8.17% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Data Center Type, Service, End-User, Vertical, And Geography|
|Regions covered||United Kingdom, Germany, France, Spain, Italy, Others|
|Companies covered||Dell, Cisco, Huawei, IBM, Lenovo, Inspur Systems, Fujitsu, NEC Corporation, INAP, AWS|
|Customization scope||Free report customization with purchase|
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.