Gartner Research

Forecast Analysis: Servers, Worldwide

Published: 13 January 2020

ID: G00465042

Analyst(s): Naveen Mishra, Adrian O'Connell, Kiyomi Yamada, Wataru Katsurashima, Uko Tian

Summary

Server end-user spending has slightly increased from the last iteration with a five-year CAGR of 0.2% through 2023. Macro issues such as trade disputes, geopolitical issues or an economic slowdown are negatively impacting on the Chinese, Latin America and European server market.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

  • A Modest Recovery Starts From 2020
  • Server ASPs: Increased Due to Higher Demand for Richer Configurations

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Sourcing Choices — Hyperscale’s Data Center Investment Will Be Delayed Into 2020
    • Forecast Assumption: 7% of capacity demand from hyperscalers will move from 2019 into 2020
  • Influencing Factor: Sourcing Choices — Hyperscale’s Regional Expansion
    • Forecast Assumption: 40% of hyperscale server spending in new sites will come from deployments from outside of their headquarter countries by 2023 (up from 30% in 2019)
  • Influencing Factor: Sourcing Option — DRAM Price Declines
    • Forecast Assumption: In 2020, server DRAM pricing will decline 10%

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