The data center blade server market is expected to grow at a CAGR of 9.01%, reaching a market size of US$32.896 billion in 2030 from US$21.374 billion in 2025.
The demand for data centre blade servers is increasing due to the growing focus on low power consumption and high productivity in the existing infrastructure. Its market growth is driven because of less physical space and energy usage, providing more processing power in less space, which further reduces the primary expenses for the enterprise. Installing the data centre blade server even reduces secondary costs like hardware cabling costs, facility charges, and the personnel hours required to configure and manage systems. The rise in demand for data centre blade servers is also attributed to the fact that they are a great substitute for traditional racks and tower servers that occupy a large surface area and consume a huge amount of power.
The increasing computer density, business optimization needs, and virtualization are also reasons for the growing demand for data centre blade servers. Companies are increasingly demanding data centre blade servers to streamline their IT operations and speed up their service delivery. The increasing adoption of virtualization applications, increasing load on data centres, and effective utilization of data centre space are also key drivers for the data centre blade server market.
The increasing requirement for storage space and connectivity worldwide with its branches, clients, and vendors through the network will provide businesses with better accessibility and wider reach to their customers. The virtualization segment will witness a substantial CAGR during the forecast period, owing to rising investments in artificial intelligence (AI) and its applications like augmented reality (AR). Virtualization is providing more space for enterprises and colocation centres, making more space for cloud computing and providing a bigger platform to share with their clients. The increase in usage of web hosting, virtualization, and cluster computing is due to reduced cost, efficient delivery service, wider reach, flexibility, scalability, and management of multiple infrastructures at once.
Growing adoption of colocation solutions and services owing to the rising volume of big data is leading to a rise in the demand for colocation, which, along with a growing focus on low power consumption, is boosting the adoption of data centres blade servers for reducing overall cost, while increasing their virtual space for providing their clients with more storage space and better networking solutions. The enterprise segment will also grow during the forecast period owing to the increasing demand for storage space, networking, and security. This makes enterprises use data centre blade servers for higher efficiency and cost-effectiveness.
Data accumulation is aided by the digitization of consumer health records into electronic medical records (EMR). Data centres are becoming increasingly necessary due to the latest advancements in medical equipment and the modernization of legacy operating systems. Examples of these advancements include personnel management and the improvement of patient response systems. Data centre cooling is thus required as a result of this need for data centres. The evolution of healthcare will shortly centre on reengineering clinical care and operations around digital health, with widespread and immediate use of advanced analytics and data to accomplish these objectives. Such accomplishments would necessitate the storage of vast amounts of data, which would fuel the demand for data centre blade servers during the projection period.
Due to several benefits, including the ability for patients from any location to access the necessary physician, telemedicine is becoming more and more popular. Because the regularly scheduled visits are changed, it is an efficient method that saves money and time while generating a lot of data and highlighting the need for data centres.
Besides this, many governmental organizations in different areas are stimulating the development of data centers in the field of healthcare. For instance, in November 2022, an announcement was made about launching a national repository of life science data by India’s government. Regional Center for Biotechnology, situated in Faridabad, houses the Indian Biological Data Center (IBDC).
The high initial cost associated with purchasing a blade server unit impedes market expansion. Installing sophisticated devices in small quantities can also be expensive. As a result, the cost factor is very important for market expansion.
The region is transitioning from storage on individual devices and systems to core clouds and network edges. A recent survey conducted by Intel Security indicates that the number of businesses utilizing hybrid cloud services alone has increased three times. It can be very advantageous that cloud providers are boosting security and enabling stronger, more reliable systems in businesses. Moreover, the area's businesses are making huge investments towards building AI frameworks, calling for immediate processing of enormous data volumes collected in real-time.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Data Center Blade Server Market Size in 2025 | US$21.374 billion |
| Data Center Blade Server Market Size in 2030 | US$32.896 billion |
| Growth Rate | CAGR of 9.01% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Data Center Blade Server Market |
|
| Customization Scope | Free report customization with purchase |