The Edge Singapore Published on Mon, Jun 14, 2021 

Worldwide server market grew by 12% y-o-y to US$20.9 billion in the first quarter of 2021. The low-base effect helped but demand is increasing in line with healthier economic conditions too, says IDC.

Worldwide, shipment of servers grew by 8.3% y-o-y to nearly 2.8 million units in the same quarter.

The biggest gains were enjoyed by the so-called “volume” servers market segment, with an increase of 15.4% y-o-y to US$17.3 billion; mid-range servers suffered a slight dip of 2.7% y-o-y to US$2.4 billion and high-end servers grew by 0.1% y-o-y to US$1.2 billion.

“The first quarter 2021 server market performance benefited from a comparison against the most difficult quarter of last year’s pandemic stricken year, but this fact doesn’t tell a complete story,” said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC.

“The considerable increase of server investments during the quarter were also buoyed by global economic tailwinds along with increased investments targeting the modernization of business applications, datacentre infrastructure, and IT operations,” he added.

During the quarter, Dell Technologies won the most market share with 17% of the total revenue.

HPE/H3C(a) was the second-largest company, accounting for 15.9% of total revenue.

Inspur/Inspur Power Systems(b) and Lenovo were tied for second runner-up with 7.2% and 6.9% respective share of total revenue.

On a geographic basis, server revenue in China was up 29.1% y-o-y while Asia/Pacific (excluding China and Japan) increased 16.6% y-o-y. Latin America declined 9.1% y-o-y and North America grew 10.6% y-o-y.