With the advancement of digitalization, servers are gradually emerging as the core of data storage and computing. According to data from Trendforce, a market research and research organization, the use of DRAM in servers continues to rise, and now accounts for more than 30% of the DRAM market for the whole year. The server market is expected to show even stronger growth by 2025, with a record 40% production rate, surpassing Mobile DRAM as a key focus for manufacturers.
epidemicEmotional dividends and the promotion of digital transformation
In the past three years, the epidemic has brought certain dividends to the server market. Under the pandemic, personal life and business needs have changed dramatically, including working from home, remote learning, etc., increasing reliance on data centers, and increasing the need for enterprise transformation. These factors are driving the growth of the data center and server market, especially the increasing demand for smaller data centers, which is driving the growth of the server market.
With the centralization of computing power in data centers, the implementation of edge computing, and the commercialization of 5G, servers will be more widely used in fields such as the metaverse, autonomous driving, and the Internet of Things. From 2021 to 2025, the growth in server demand will drive memory growth far beyond PCs and smartphones. In addition, OEMs have been focusing on the server market since 2020 and expect to surpass the mobile market in 2025. This means that the server market is gradually becoming the new focus of the semiconductor industry.
Future opportunities in the server market
With the development of mobile computing and big data, the way data is stored and computed in traditional data centers is changing. Many Internet giants have begun to try to build their own servers by partnering with low-cost manufacturers, which makes traditional server manufacturers such as HP, Dell, and IBM face huge challenges. According to the latest data, HP's market share has slipped from 35% to 31%, while Dell's market share has increased to 28%. IBM even sent out the news that it wanted to do the business of x86 servers.
In the face of the decline in revenue of the three major network manufacturers, the development of Chinese server manufacturers in 2023 should be more cautious. Some of China's major server manufacturers, which focus on the business model of the cloud market and the customer base of large cloud providers, are relatively less stressed. Future servers not only need to pursue high performance and low power consumption, but also need to make breakthroughs in storage efficiency, CPU utilization, and computing speed. At the same time, with the continuous development of cloud computing technology, the competition in the server market will also shift from simple product competition to competition in software and hardware comprehensive capabilities. Against this backdrop, server vendors need to think about how to seize the opportunities of the future.
How to seize the opportunities of the future?
Chinese server manufacturers need to increase investment in technology research and development, improve their independent innovation capabilities, and master core technologies. At the same time, it is necessary to establish close cooperative relations with outstanding scientific research institutions and colleges and universities at home and abroad, introduce advanced technology and talents, and improve the overall technical strength.
At the same time, the development of emerging fields: metaverse, autonomous driving, Internet of Things, etc., cannot be ignored. Chinese server manufacturers should pay close attention to the changes in these emerging markets, expand new application scenarios, and strengthen communication and exchanges with domestic and foreign customers to improve market influence by participating in well-known exhibitions at home and abroad, holding technical seminars, and releasing new products.
In the context of globalization, win-win cooperation is an important path for enterprise development. Chinese server manufacturers need to actively seek strategic cooperation with outstanding enterprises at home and abroad to jointly develop markets, share resources and share risks. Through strong alliances, we will jointly promote the prosperity and development of the server market.