White Box Server Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Server Type:

Based on server type, the white box server market is segmented into Rackmount, GPU Servers, Workstations, Embedded, And Blade Servers.

Trends in the server type:

• White box servers tend to be less expensive compared to branded OEM servers because they utilize budget-friendly components and do not include branding costs.
• Customers have full authority over the server setup, allowing them to select parts that are most appropriate for their unique tasks and needs.
• Major cloud service providers and online firms depend significantly on such type of servers to effectively construct and expand their extensive data centers.
• These factors, analysis, and trends in hyperscale computing, edge deployments, and open hardware initiatives would further create the white box server market demand during the forecast period.

The rackmount segment accounted for the largest revenue share of 44.13% in the year 2024.

• Rackmount servers are essential in cloud infrastructure by providing the necessary processing power and storage capabilities for cloud services and applications.
• The growing implementation of edge and cloud computing architectures across various industries is driving the expansion of the rackmount segment. Edge computing depends on reliable and efficient solutions that rackmount servers can offer.
• The growth of this segment is propelled by the rising demand for scalable data centers, high-density computing, and advancements in emerging technologies such as IoT, cloud computing, and edge computing, presenting substantial prospects for market participants.
• For instance, in June 2024, Supermicro launched X14 AI, multi-node, rack server, and edge server, based on Xeon 6 processors. The new Supermicro X14 servers are compatible with the new Intel Xeon 6 processors, offering a range of rackmount servers designed for enterprise use, cloud service providers, entry-level models and mid-range, including the WIO platforms Hyper and CloudDC.
• These advancements in rack server segment would further drive the white box server market size and industry during the forecast period.

The embedded segment is anticipated to register the fastest CAGR during the forecast period.

• Embedded servers are utilized in industrial control systems and automation applications, providing affordable and customizable options.
• OCP is fostering innovation and standardization within the embedded server domain, encouraging open hardware designs and interoperability.
• Embedded servers present a budget-friendly option compared to branded solutions, particularly for specialized applications with distinct needs.
• As technology progresses, these servers are anticipated to provide innovative services and solutions.

By Component:

Based on component, the market is segmented into hardware, software, and services.

Trends in Component:

• White box servers tend to be less expensive than branded servers because they lack branding costs and utilize budget-friendly parts.
• These servers are increasingly powerful, accommodating the latest processors, memory, and storage technologies to manage workloads.
• They provide a cost-effective option for small businesses and organizations with limited IT budgets, compared to traditional servers.
• Thus, based on the above factors and analysis, the growing need for effective processors and components would further drive the market during the forecast period.

The hardware segment accounted for the largest revenue share in the year 2024.

• White box servers employ different storage solutions, such as hard disk drives (HDDs), solid-state drives (SSDs), or a mix of both. The selection of storage is based on the specific application needs, focusing on capacity, performance, and reliability.
• These servers are more compact, incorporating increased processing power and memory in a smaller sizing. This enhances the efficiency of data center space utilization and lowers the total cost of ownership.
• These servers come with network interfaces to link with other devices and networks. This enables them to communicate with clients, retrieve data from other servers, and engage in distributed computing environments.
• Therefore, the need for high performance infrastructure is reinforcing the necessity for better hardware, in turn driving the white box server market growth.

The service segment is anticipated to register the fastest CAGR during the forecast period.

• In contrast to branded servers that are sold as complete systems, these servers typically necessitate the integration and assembly of separate components. This process can be conducted internally or assigned to specialized service providers.
• Management service providers are increasingly delivering solutions for server management, which encompasses integration, maintenance, and support. This enables organizations to concentrate on their primary business activities.
• Automation tools and platforms are streamlining the setup and oversight of these servers, while minimizing the need for manual effort and enhancing efficiency.
• Container technologies such as Docker and Kubernetes are transforming how applications are deployed and regulated on such type of servers, which calls for specialized services.
• The trends in managed services, automation, and rising security issues are influencing the future of white box server market in services segment.

By Processor:

Based on the processor, the market is segmented into Intel, AMD, and ARM

Trends in the Processor:

• The communication systems are moving to higher bit rates, this drives the development of bit error rate tester with wider bandwidth, faster pattern generation and analysis, and support for advanced modulation schemes.
• Modern testers are often equipped with other test and measurement equipment to provide comprehensive network analysis.
• Processors are increasingly embedding security features such as secure boot, memory encryption, and others to safeguard sensitive data.
• Thus, growing need for enhanced security features would further supplement the white box server market trends during the forecast period

The Intel segment accounted for the largest revenue in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• Intel processors lead the market due to their established reputation for providing high-performance and reliable solutions. They are extensively used across diverse applications, ranging from enterprise servers to data centers, with their exceptional performance and robust support ecosystem.
• Ongoing innovation, exemplified by the release of new generations of Xeon processors, helps maintain their edge in processing power, energy efficiency, and integrated features. Intel's strong partnerships with major OEMs and its extensive product portfolio reinforce its dominant position in the market.
• For instance, in June 2024, Intel launched its next-generation server processors. Achieving the same computing power as its second-generation chips will require approximately 67% fewer server racks using the efficiency model, which is intended for media serving, website operations, and database calculations.
• These factors and developments would further drive the white box server market share during the forecast period.

By Operating System::

Based on operating system, the market is segmented into linux, windows, UNIX.

Trends in operating system:

• Open-source Linux distributions present an economical option compared to proprietary operating systems, making them appealing for these server implementations.
• The extensive open-source environment offers numerous tools and applications for overseeing and enhancing the capabilities of servers operating on Linux.
• The growth of cloud-native applications and microservices structures drives the increased use of containerization technologies on servers.
• Security is a vital consideration when selecting an OS for servers. Organizations seek operating systems with robust security features and proactive community backing for addressing vulnerabilities.
• Organizations must thoughtfully evaluate these trends and select an operating system that most closely matches their unique workload demands, financial limitations, and overall IT strategy for the future.

The linux segment accounted for the largest revenue share in the year 2024.

• Linux provides exceptional customization and flexibility, enabling businesses to modify their server setups to meet particular requirements without the limitations of proprietary software. This flexibility is especially advantageous in the server sector, where cost-effectiveness and optimization are essential.
• Linux's open-source characteristics result in reduced licensing fees, making it a desirable choice for companies aiming to lower operational costs.
• In addition, Linux's strong security capabilities and active community support enhance its appeal as organizations focus on reliability and scalability in their server frameworks.
• The trends of Linux dominance, server virtualization, containerization, and the focus on security are shaping the future of these server deployments, in turn driving the white box server market growth.

The windows segment is anticipated to register the fastest CAGR during the forecast period.

• Windows Server OS mainly provides strong performance, dependability, and security characteristics vital for enterprise-grade applications. Its ability to work with an extensive array of hardware and software platforms makes it a preferred choice for organizations aiming to develop scalable and effective server architectures.
• Moreover, the commonality and extensive adoption of Windows OS in numerous corporate environments diminish training and transition expenses, further boosting its appeal.
• The thorough support and regular updates offered by Microsoft also contribute significantly to keeping the systems secure, which is essential for sustaining operational continuity and safeguarding sensitive information.
• The trends and analysis in the operating system would further drive the global market during the forecast period.

By Enterprise Size:

Based on enterprise size, the market is segmented into large and small & medium.

Trends in Enterprise Size:

• Enterprises are utilizing these servers for targeted tasks such as video transcoding, AI inference, or data analytics, often alongside larger server systems.
• The transition to edge computing is a significant factor driving the market. Enterprises require data to be processed nearer to its source, and these servers provide the essential computing power and connectivity needed for this.
• As companies embrace hybrid cloud strategies, these servers can be pivotal in linking on-premises infrastructure with cloud resources, facilitating smooth data flow and application delivery.
• Thus, factors including as growing digital transformation initiatives and increasing data volumes would further drive the market during the forecast period.

The large enterprise segment accounted for the largest revenue share in the year 2024.

• Large enterprises are increasingly prioritizing hosted application servers due to their ability to manage workloads from multiple locations, often utilizing the same database.
• The deployment of hosted application servers is easier than that of traditional application servers, as it eliminates the need for initial installations and minimizes system integrations, thereby lowering operational and maintenance expenses. A hosted application server is entirely managed by a service provider who routinely updates the system and provides ongoing technical and customer support.
• Market players are concentrating on introducing industry-specific solutions to appeal to potential business clients and boost their market revenue.
• For instance, in May 2022, Nokia Corporation launched the Nokia Cloud Native Communication Suite, specifically created for 4G, 5G, and Wi-Fi deployments. The solution includes a Media Resource Function (MRF), Telephony Application Server (TAS), and Cloud Native Network Function (CNF), among others.
• These factors and developments in large enterprise segment would further drive the market during the forecast period.

The small & medium segment is anticipated to register the fastest CAGR during the forecast period.

• MEs are becoming more dependent on IT for a range of functions, such as data storage, application hosting, collaboration, and managing customer relationships. This creates a need for strong and dependable server infrastructure.
• SMEs possess varied IT needs. White box servers permit them to tailor their server setups to align with their individual requirements, choosing components that ideally fit their workloads and applications.
• A significant number of SMEs are embracing hybrid cloud approaches, merging local infrastructure with cloud services. White box servers can be effortlessly incorporated into cloud settings, providing both flexibility and scalability.
• These advantages are anticipated to further drive the need for servers in small and medium enterprises throughout the forecast period.

By Application:

Based on the application, the white box server market is segmented into data center, cloud computing, media storage, data analytics, content delivery, high performance computing facilities, and others.

Trends in the Application:

• The growing dependence on cloud services is fuelling the need for affordable and scalable infrastructure, making these servers a desirable choice.
• As energy costs rise and environmental concerns increase, the energy efficiency of these servers significantly contributes to their adoption.
• Thus, increasing need for energy efficiency and development of cloud computing would further supplement the white box server market trends during the forecast period.

The data center segment accounted for the largest revenue share in the year 2024 and is expected to register the highest CAGR during the forecast period.

• The increasing demand for scalable and economically viable infrastructure to accommodate the rapid rise in data creation and processing propels segment development.
• White box servers deliver customizable and versatile options, enabling data centers to adjust hardware setups to meet specific needs, thereby boosting performance and efficiency.
• The drive towards cloud computing, big data analysis, and the internet of things (IoT) has further amplified the need for strong and flexible server solutions.
• Additionally, these servers offer a competitive advantage by lessening reliance on conventional OEM suppliers, resulting in cost reductions and enhanced control over the supply chain.
• Data centers utilize these servers to improve operational flexibility, handle growing workloads, and lower total infrastructure expenses while ensuring reliability and performance.
• For instance, in December 2024, Microsoft launched new data center design that optimizes AI workloads and consumer zero water for cooling. By implementing chip-level cooling methods, Microsoft can provide accurate temperature regulation without the evaporation of water. Although water remains necessary for functions such as restrooms and kitchens, this approach will eliminate the requirement for over 125 billion liters of water annually for each data center.
• Thus, based on the above factors and developments, such as growing need for scalable and economically viable infrastructure, would further drive the market during the forecast period.

By End-User:

Based on the end use, the white box market is segmented into IT & telecom, BFSI, government & defense, healthcare, retail, and others.

Trends in the end use:

• White box servers are ideal for particular tasks and workloads, including web serving, caching, and data analytics. This characteristic appeals to organizations with varied computing requirements, enabling them to optimize their infrastructure for multiple applications.
• These servers find use in several areas, such as data storage, network management, and application hosting. The scalability of these servers enables enterprises to grow their IT infrastructure to meet increasing business needs without significant expenses.
• As companies increasingly digitalize and utilize big data, their dependence on effective server solutions ensures the large IT & telecom organizations market dominance.

The IT & telecom segment accounted for the largest revenue in the year 2024 and is expected to register the highest CAGR during the forecast period.

• Telecom providers are embracing Network Function Virtualization (NFV) to virtualize network operations, substituting specialized hardware with software which executing these servers, which allows for enhanced adaptability and responsiveness.
• The implementation of 5G networks necessitates a substantial infrastructure enhancement. White box servers present an economical and tailored option for installing 5G base stations and core network elements.
• White box servers can be effortlessly adjusted in scale to accommodate fluctuating requirements, rendering them perfect for cloud settings and expanding telecom networks.
• For instance, in February 2024, Supermicro, Inc., revealed its state-of-the-art servers designed for the 5G, telecommunications, and Edge AI sectors. Supermicro's advancements promise improved performance per watt, serving both public and private 5G frameworks, and setting the stage for new AI applications. Their products feature leading-edge specifications, such as NVIDIA Grace Hopper Superchip, AMD EPYC 8004 Series processors, and 5th Gen Intel Xeon processors.
• Thus, based on the above factors, such as growing 5G infrastructure, would further drive the white box server market growth during the forecast period.