Published: 07 October 2019
Summary
In this update, server market spending has been slightly reduced through 2023, reflecting a five-year CAGR of 0.5%, while shipments will grow at a five-year CAGR of 1.9%. The Chinese server market will decelerate because of U.S. trade issues, causing weaker domestic demand due to the uncertainty.
Included in Full Research
- Forecast Assumptions
- Market Impacts
- Notable Changes
- Market Decline in 2019, Followed by Modest Recovery in 2020
- Server ASPs Are Declining but at a Slower Pace
- Influencing Factor: Geopolitical Factors — Trade and Tariff Issues
- Forecast Assumption: Indirect effects from trade issues will be bigger than direct impacts for the server market through 2020.
- Influencing Factor: Geopolitical Factors — U.S. and China Trade Disputes
- Forecast Assumption: By 2025, all top five Chinese server providers will adopt Chinese homegrown processors (from virtually zero in 2019).
- Influencing Factor: Sourcing Option — DRAM Price Declines
- Forecast Assumption: The DRAM market will be in an oversupply for the whole of 2019; the annual sufficiency will be 103.7%.