The global server market is expected to reach USD 257 billion in sales in 2024, driven by the surging demand for generative AI applications, as reported by the Commercial Daily News on December 16. Data center system spending, a key component of IT procurement, is projected to grow by 15.5% annually, reaching USD 367.2 billion in 2025, marking the highest growth among all IT categories over the past two years. Servers, including AI models, are poised to dominate this spending surge, providing a major boost to Taiwanese supply chain players.
Global server shipments are estimated to hit 13.6 million units in 2024 and 14.4 million units in 2025, representing year-on-year growth of 5.8% and 6.4%, respectively, according to the Taipei-based Market Intelligence & Consulting Institute (MIC). AI servers are forecast to account for 17.8% of total server shipments in 2024, with this share climbing to nearly 24% by 2027, reflecting a compound annual growth rate (CAGR) of 10.5%. Cloud service providers (CSPs) are driving this AI server surge, with key players such as Wistron and Quanta positioned to benefit from strong demand.