Server Chassis Market

Server Chassis Market Size:

The global server chassis market size reached USD 337.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 435.9 Million by 2033, exhibiting a growth rate (CAGR) of 2.74% during 2025-2033. The market is driven by the growing demand for cloud services and data centers, the expansion of the artificial intelligence industry, rising investments in digital learning, and increasing server technology advancements.

Server Chassis Market Analysis:

• Major Market Drivers: The need for server chassis is primarily driven by the increase in cloud computing services and data center expenditures and by businesses embracing high-performance computing solutions to manage increasingly complicated workloads and expanding amounts of data. Additionally, several technological developments, such as the requirement for improved thermal management, flexibility, and scalability in server systems, are fostering market expansion.
• Key Market Trends: Modular and expandable server chassis designs are becoming popular as they simplify expansion and upgrading. The growing demand for adaptable and effective data center operations is consistent with this trend. Furthermore, the adoption of edge computing meets the growing need for distributed computing settings which is influencing server chassis designs to be more energy-efficient and compact.
• Geographical Trends: North America is leading the server chassis market due to significant data center expenditures and technical breakthroughs in these fields. In addition, the United States is a key contributor with a notable increase in data centers and cloud infrastructure around the area. Besides, Europe is expanding due to the necessity for regional data processing and increasing data privacy laws.
• Competitive Landscape: The leading server chassis companies include Ablecom Technology Inc., Advantech Co. Ltd., Chenbro Micom Co. Ltd., Cisco Systems Inc., In Win Development Inc., Intel Corporation, iStarUSA Inc., Mootek Technologies, OneChassis Technology Company Ltd., Rosewill Inc., SilverStone Technology Co. Ltd., among many others.
• Challenges and Opportunities: The ongoing technical advancements necessitates that businesses constantly develop and improve their goods, which poses challenges and puts pressure on resources while affecting the profit margins. On the other hand, server chassis market recent developments include the growing demand for energy-efficient and environmentally friendly server chassis. Moreover, companies that can offer solutions that reduce power consumption and increase sustainability are well-positioned for growth in these opportunities across the evolving market.

Server Chassis Market Trends:

Increasing Demand for Data Centers

The expanding usage of internet-connected devices, Internet of Things (IoT) applications, and growing digital corporate processes are driving the global market for data creation and escalating the demand for data centers. Data centers are also essential for safely and effectively handling, distributing, and storing enormous volumes of data. In these facilities, the purpose of the server chassis is to maintain the hardware in the best operating conditions including energy efficiency, advanced cooling systems, and scalable designs to accommodate different loads. According to the International Data Corporation (IDC), the first quarter of 2024 witnessed a 36.9% year-over-year increase in spending on compute and storage infrastructure for cloud environments, including dedicated and shared IT setups, reaching $33.0 Billion. Furthermore, non-cloud sector growth increased by 5.7% to $13.9 Billion in Q1 2024. As data center infrastructure investment keeps rising manufacturers are under increasing pressure to offer highly dependable and flexible server chassis solutions, thus positively surging server chassis market revenue. As a result, this trend is inspiring new ideas in chassis design, such as better airflow control and the use of materials that increase longevity while having a smaller environmental impact.

Expanding Artificial Intelligence (AI) Sector

The market for server chassis is driven by artificial intelligence's (AI) constant growth. . According to the IMARC Group estimates, in 2023 the global artificial intelligence industry was valued at $92.6 Billion. This market is anticipated to expand at a compound annual growth rate (CAGR) of 24.9% from 2024 to 2032, reaching $737.1 Billion by 2032. As artificial intelligence (AI) grows increasingly pervasive across industries like healthcare, automotive, and finance, there is a growing need for high-performance computing (HPC) systems. Furthermore, server chassis which are made to contain and safeguard these complex systems need to change to meet the demands of growing processing power and temperature control. Besides this, manufacturers are producing durable and scalable chassis designs to accommodate the powerful, dense components required for AI calculations with better cooling options and modular components that allow easy upgrades and technology advances. As a result, the server chassis meets the hardware needs of cutting-edge AI systems and keeps up with software advancements and AI-specific features, thus creating a positive server chassis market outlook.

Increasing Investment in Digital Learning

The dramatic shift toward digital learning due to the COVID-19 pandemic has profoundly impacted the server chassis market. The market is growing due to the shift that companies and educational institutions made to online platforms which is escalating the demand for powerful server infrastructure that supports e-learning and remote working technologies. Additionally, the surge in digital traffic demands the construction of more data centers with cutting-edge server chassis that can manage larger data volumes and continuous operations. According to the Organization for Economic Cooperation and Development (OECD), Croatia has launched a comprehensive program to reform its higher education sector as part of the National Plan for Recovery and Resilience 2021-2026. This plan aims to modernize higher education and enhance its relevance, quality, and accessibility for the population. One significant initiative within these reforms is the e-Universities program, an ambitious digital transformation effort for higher education launched in 2022. The program seeks to bolster investment in the digital infrastructure of higher education institutions. A primary goal is to ensure that at least 90% of public higher education institutions in Croatia, including universities, polytechnics, and colleges, experience improvements in their infrastructure. Hence, this growth in the e-learning market is contributing to the server chassis market growth as the backbone of digital infrastructure needs to evolve to support this digital transformation.

Server Chassis Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, form, distribution channel, and application.

Breakup by Type:

• 1U Server Chassis
• 2U Server Chassis
• 3U Server Chassis
• 4U Server Chassis
• Others
   

1U server chassis accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes 1U, 2U, 3U, 4U, and other server chassis. According to the report, the 1U server chassis represented the largest segment.

1U server chassis emerging as the predominant category due to its small form, which enables optimal space utilization in data centers and allows for the accommodation of a larger number of servers in a restricted area. Furthermore, the 1U chassis is especially well-liked for its effective cooling capabilities and flexibility in high-density computing environments, features that are critical for meeting the ever-increasing demands of modern organizations for data processing. Furthermore, technological developments have improved the 1U server chassis' performance capabilities, which makes them ideal for flexible and scalable IT infrastructure installations. Hence, the server chassis market forecast predicts robust growth due to widespread adoption across various sectors. Along with this, key players are introducing advanced product variants to meet these needs. For instance, Supermicro's latest offerings include the H13 3U MicroCloud Multi-Node Server and the 1U and 2U Mainstream Server Family, all optimized with the AMD EPYC 4004 Series processors. These solutions are designed to deliver superior performance per watt and provide power-efficient options suitable for cloud hosting and small-to-medium-sized businesses.

Breakup by Form:

• Rack Mount
• Pedestal
   

Rack mount holds the largest share of the industry

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes rack mount and pedestal. According to the report, rack mount accounted for the largest market share.

Rack mount servers are attributed to the scalability, accessibility, and efficient cooling mechanisms that rack mount servers offer, making them ideal for data centers and enterprises with high-density computing needs. These servers are designed to be installed in a standardized electronic enclosure, which helps in optimizing space and enhancing the manageability of physical hardware. As businesses increasingly rely on big data and cloud computing, the demand for rack mount servers continues to grow due to their ability to accommodate multiple servers per rack and their flexibility in configuration to meet specific workload requirements.

Breakup by Distribution Channel:

• Direct Sales
• Distributors
   

Distributors represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes direct sales and distributors. According to the report, distributors represented the largest segment.

Distributors represent the largest segment, as they play a pivotal role in bridging manufacturers and end-users across various industries. Additionally, the extensive networks and deep market penetration capabilities of distributors, enable them to effectively cater to diverse client requirements. They offer value-added services such as customized solutions, technical support, and after-sales services, enhancing customer satisfaction and loyalty. Furthermore, distributors also facilitate quicker delivery times and easier access to the latest technologies, thereby significantly influencing the server chassis demand.

Breakup by Application:

• Personal Use
• Commercial
   

Commercial exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes personal use and commercial. According to the report, commercials accounted for the largest market share.

The server chassis market overview states that the commercial sector holds the largest market share due to escalating demand for robust IT infrastructure among businesses to support cloud computing, data centers, and large-scale enterprise operations. Additionally, commercial organizations often require server chassis that provide high durability, scalability, and security to handle significant data traffic and ensure seamless operation. As businesses continue to embrace digital transformation, the need for advanced server solutions in the commercial sector is expected to grow, further fueling the growth of this market segment. The server chassis designed for commercial applications typically features enhanced cooling systems, flexible drive configurations, and support for multiple servers, aligning with the complex requirements of modern business environments.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest server chassis market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest regional market for server chassis.

The server chassis market in North America is distinguished as the largest regional segment due to several key factors. Additionally, the presence of major technology corporations and advanced data centers drives robust demand for server chassis, which are crucial for housing and protecting critical server hardware. North America's market dominance is further bolstered by significant investments in cloud computing and the integration of AI technologies across various sectors, including finance, healthcare, and retail. Additionally, this region also shows a high adoption rate of innovative server technologies, which supports the need for versatile and scalable server chassis solutions to accommodate growing data traffic and processing needs, reinforcing its position as a market leader in this sector. Hence various key players are introducing advanced product variants to meet these needs. For instance, on 21 May 2024, Supermicro, Inc. a comprehensive IT solution provider specializing in AI, Cloud, Storage, and 5G/Edge technologies, announces new additions to its AMD-based H13 server generation. These servers, powered by AMD EPYC 4004 Series processors, offer an excellent mix of performance and efficiency. Among the new products is the MicroCloud multi-node solution, which can accommodate up to ten nodes in a 3U chassis, making it an ideal choice for cloud-native applications.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the server chassis industry include Ablecom Technology Inc., Advantech Co. Ltd., Chenbro Micom Co. Ltd., Cisco Systems Inc., In Win Development Inc., Intel Corporation, iStarUSA Inc., Mootek Technologies, OneChassis Technology Company Ltd., Rosewill Inc., SilverStone Technology Co. Ltd.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• At present, key players in the server chassis market are actively enhancing their market positions through various strategic initiatives. They are focusing on research and development to innovate and improve the functionality and efficiency of their server chassis products. This includes the incorporation of advanced materials for better heat dissipation and durability, as well as designs that allow for easier scalability and maintenance. Moreover, these companies are forming strategic alliances and partnerships with other technology firms to broaden their market reach and integrate their server chassis solutions with other IT infrastructure components. Furthermore, there is a noticeable increase in investments toward eco-friendly and energy-efficient designs due to the growing demand for sustainable technology solutions in data centers and IT environments.

Server Chassis Market News:

• 27 May 2024, InWin Development Inc., a top innovator in PC gaming and enthusiast hardware, server, and workstation assembly services, announced its latest products at COMPUTEX 2024 in June 2024. The company presented the much-anticipated return of the signature series and the cutting-edge artificial intelligence (AI) server chassis.
• On 4 June 2024, Chenbro, a leader in the design and production of branded rackmount systems, participated in COMPUTEX Taipei from June 4th to 7th. The focus was on artificial intelligence (AI), and Chenbro highlighted its latest NVIDIA MGX chassis products and OCP DC-MHS cloud server chassis solutions, aiming to capture new AI business opportunities. The company showcased off-the-shelf (OTS) server chassis solutions designed for AI, Cloud, storage, and edge applications, along with JDM/OEM products developed in collaboration with customers which demonstrates Chenbro's strong R&D and manufacturing abilities and its commitment to creating mutually beneficial partnerships.

Server Chassis Market Report Scope:

Key Questions Answered in This Report:

• How has the global server chassis market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global server chassis market?
• What is the impact of each driver, restraint, and opportunity on the global server chassis market?
• What are the key regional markets?
• Which countries represent the most attractive server chassis market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the server chassis market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the server chassis market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the server chassis market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the server chassis market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global server chassis market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the server chassis market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global server chassis market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the server chassis industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.