The dedicated server market is made up of many different players. In this article, you will find out how large the dedicated server market is and how it’s changing in size.
What is a dedicated server?
A dedicated server is a physical server that is solely dedicated to one customer. This customer has full access to the server’s resources, including CPU, memory, and storage. A dedicated server provides the highest level of performance and security for businesses that require the utmost in control and flexibility.
What is the market size?
The dedicated server market is estimated to be worth $39 billion in 2024. This is up from $15.9 billion in 2016. The CAGR for the period between 2016 and 2020 is 8.6%.
This market includes Bare Metal, Single-tenant, and Multi-tenant servers.
Bare Metal Dedicated Servers are physical machines that are rented out by web hosting providers. The customer has full control over the server and its resources. These servers are usually more expensive than other types of servers because the customer does not have to share resources with anyone else.
Single-tenant Dedicated Servers are also physical machines that are rented out by web hosting providers, but in this case, the customer shares resources with other customers of the same host. This can lead to lower costs for the customer, but it also means that they have less control over the server than with a Bare Metal server.
Multi-tenant Dedicated Servers are virtual machines that are rented out by web hosting providers. In this case, multiple customers share the same physical machine, which leads to lower costs for all involved parties. However, customers have even less control over these servers than they do with Single-tenant Dedicated Servers since they are sharing resources with other customers.
Which regions have the largest markets?
The dedicated server market is large and growing. Here are some quick facts:
- The global dedicated server market is expected to reach $37.79 billion by 2025, up from $17.21 billion in 2018
- The Asia-Pacific region is expected to have the largest market share, followed by North America and Europe
- The top three countries with the largest markets are China, the United States, and Japan
If you’re looking to tap into this growing market, it’s important to know which regions have the largest markets. Here’s a closer look at the regional breakdown:
Asia-Pacific: As mentioned, the Asia-Pacific region is expected to have the largest share of the dedicated server market by 2025. This is due to the growing demand for cloud services in countries like China and India.
North America: North America is expected to be the second largest region for dedicated servers. This is largely due to the presence of major players like Amazon Web Services (AWS) and Microsoft Azure in the region.
Europe: Europe is expected to be the third largest region for dedicated servers. However, growth in this region is expected to be slower than in other regions due to data privacy concerns and regulations like GDPR.
Types of Dedicated Servers
- Managed Dedicated Servers
Managed dedicated servers come with a higher price tag, but you get what you pay for in terms of support and maintenance. With a managed server, your hosting provider will take care of all the technical aspects of running your server, including security, updates, and backups. This is ideal for businesses that don’t have the resources to manage their own servers or don’t have the expertise to do so.
- Unmanaged Dedicated Servers
Unmanaged dedicated servers are less expensive than managed servers, but they require more work on your part. You’ll be responsible for all the technical aspects of running your server, including security, updates, and backups. This option is best for businesses that have the resources and expertise to manage their own servers.
- Cloud Dedicated Servers
Cloud dedicated servers are a newer type of server that combines the best features of both managed and unmanaged servers. With a cloud server, you get the flexibility and scalability of a cloud environment, along with the support and management provided by a traditional hosting provider. This option is ideal for businesses that want the best of both worlds.
The dedicated server market is large and growing. With the increasing demand for high-powered servers, there are a number of companies that are providing these services. This market is expected to continue to grow as more businesses require the use of dedicated servers. If you are considering using a dedicated server, be sure to research the different providers to find one that meets your needs.