White Box Server Market Overview
The Global White Box Server market size is estimated to reach $15.8 billion by 2027, growing at a CAGR of 15.3% during the forecast period 2022-2027. This is due to the increasing demand for public cloud computing services, growing adoption of micro servers in data centers and other major factors. Blade servers are widely used across hyper-scale data center environments due to their capability to offer high-performance computing, enhanced energy efficiency and capacity to handle massive server loads. Rapid data generation, an increasing number of data centers and growing utilization of white servers in the open computer project and similar projects are some of the factors set to transform the White Box Server industry outlook in the coming time. The growing acceptance of work-from-home culture in various organizations and increasing emphasis on virtual learning are analyzed to significantly drive the growth of the White Box Server market during the forecast period.
White Box Server Report Coverage
The “White Box Server Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the White Box Server Market.
- Rackmount segment in the White Box Server market is analyzed to grow at the fastest rate of 16.8% CAGR in the global White Box Server market during the forecast period 2022-2027. It is due to the rising deployment of data centers in the business & industrial sectors, increasing demand for high-performance computing servers and other major factors.
- Based on application White Box Server market for data centers is analyzed to grow with the highest CAGR during 2022-2027, attributed to the increasing adoption of low-cost storage facilities, rising technological knowledge among medium-sized data centers and so on.
- North America dominated the global White Box Server market with a share of 38% in 2021, attributed to the presence of a large number of data centers, increasing adoption of White Box Servers in data centers & enterprise solutions and so on.
White Box Server Market Value Share, by region, 2021 (%)
White Box Server Market Segment Analysis - by Type
The rackmount segment in the White Box Server market is analyzed to grow at the fastest rate of 16.8% CAGR in the global White Box Server market during the forecast period 2022-2027. Factors attributing to this market growth include the rising deployment of data centers in the business & industrial sectors, increasing demand for high-performance computing servers to deliver optimal results with faster networking and others. Additionally, rising advancements in emerging technologies such as edge computing, IoT and cloud computing are likely to provide numerous opportunities to encourage the demand for rackmount servers. In August 2022, DXN Limited launched DXN Cloud, an Australian-built and hosted full rack-to-cloud solution, to provide customers with highly flexible & cost-effective systems. Such factors are set to accelerate the growth of the Rackmount segment within the White Box Server industry over time.
White Box Server Market Segment Analysis - by Application
Based on application White Box Server market for data centers is analyzed to grow with the highest CAGR 2022-2027, attributed to the increasing adoption of low-cost storage facilities, rising technological knowledge & experience among small & medium-sized data centers and other major factors. Furthermore, white servers are widely adapted by data centers due to their increased scalability and ease of migration from existing technology. In March 2020, Google announced plans to invest more than $10 billion in white box server development for US offices and data centers in 2020, as well as to expand its Google Cloud campus in Seattle. These factors are set to boost the growth of data center applications within the White Box Server industry in the coming time.
White Box Server Market Segment Analysis - by Geography
North America dominated the global White Box Server market with a share of 38% in 2021, attributed to the presence of a large number of data centers, increasing adoption of white box servers in data centers and enterprise solutions run by large internet companies such as Facebook, Google and so on. Additionally, increased use of information & communication technologies along with the rising R&D activities by leading market players namely, Celestica Inc &Penguin Computing, are propelling the demand for white box servers in the region. In January 2020, Vapor IO announced its plans to build 36 edge data center sites across the U.S. by 2021. These factors are set to transform the White Box Server industry outlook in the North American markets.
White Box Server Market Drivers
Growing acceptance of work-from-home culture in various organizations:
Increasing acceptance of work-from-home culture in various companies is boosting the growth of the White Box Server Market. Working from home generates a large amount of useful data that must be safely stored. Blade servers enable data backup and have multiple, redundant storage compartments, resulting in their increased adoption among organizations. It aids in the backup of useful data generated by various network systems and ensures secure and accessible data storage. In January 2022, Advantech collaborated with Telco to launch a white box platform for enterprises & service providers to simplify & streamline edge device management and services across multiple websites. According to a report by TechSolution in 2021, using white box servers provided by OEMs resulted in 20% lower total costs and 25% increased energy efficiency. These factors would eventually help in expanding the White Box Server market size in the long run.
Increasing emphasis on virtual learning is driving the need for strong servers:
Growing trends toward virtual learning are driving the demand for powerful servers, which further accelerates the growth of the White Box Server market. Strong servers are required to optimize the space and performance requirements of the students for virtual learning. White box servers are available at remote locations through managed colocation and private data centers. A network administrator can remotely control the white box server functionality without physically accessing the host server. BYJU'S has reported a 200% increase in the number of new students using the platform in India since it announced free live classes on its Think and Learn mobile app. In May 2020, the Government of India launched the PM eVIDYA program to make e-learning more accessible to students and teachers while also promoting and strengthening digital education in India. Such developments are resulting in the wider adoption of distance learning programs, which further leads to increased adoption of white box servers. These factors are set to elevate the growth of the White Box Server market size in the coming time.
White Box Server Market Challenge
The increasing number of difficulties associated with configuring & managing White Box Servers:
Growing difficulties associated with configuring and managing White Box Servers are limiting the market growth. White box servers can be difficult to configure and manage since compatibility between network servers may be limited due to differences in parts and construction. The performance of white box servers can be affected by the quality of the components used and the QA testing. Furthermore, the market for compatible parts is not as developed as it is for OEM servers, resulting in installation complexities & high cost of white box servers. According to Alibaba, the cost of white box servers ranges from $299.00-$999.00 per unit. Such factors are impeding the growth of the White Box Server industry during the forecast period.
White Box Server Industry Outlook
Product launches, acquisitions and R&D activities are key strategies adopted by players in the White Box Server Market. The top 10 companies in the White Box Server market are:
- Quanta Computer Inc.
- Servers Direct
- Stack Velocity Group
- Silicon Mechanics
- Super Micro Computer Inc.
- Inventec Corporation
- Wistron Corporation
- Penguin Computing
- Advantech Co., Ltd
- Radisys Corporation
- In July 2021, Radisys Corporation launched the Radisys White Box Combo PON OLT for commercial deployments, which supports both G-PON and XGS-PON within the same PON port of the OLT.
- In January 2021, Advantech collaborated with O-RAN ALLIANCE to Support White Box development that is capable of processing sustained communication workloads at the network edge.
- In January 2020, Quanta Computer Inc. updated its White Box Servers from the equation, removing approximately 25-30% of the costs of hardware.
Relevant Report Titles:
Report Code: ESR 0690
Report Code: ITR 0374
Report Code: ESR 30644
For more Electronics Market reports, please click here