by Server PCBs are critical components that enable communication between the CPU, chipsets, memory and other vital components within a server. They are high-density multi-layer printed circuit boards designed to meet rigorous reliability and performance requirements of servers used across various industries. The demand for server PCBs is rising steadily owing to the rising adoption of server systems for cloud computing, data center applications and enterprise infrastructure needs. With rapid digital transformation across organizations, the need for advanced server infrastructure to support mission critical applications is increasing substantially. This is fueling investments in high-performance servers and data centers globally.
The global server PCB market is estimated to be valued at US$ 45.22 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Some of the notable trends shaping the Global Server PCB Market Size include –
1. Increased Adoption of Hyperscale Data Centers: Hyperscale cloud providers are rapidly setting up large data center facilities across the globe to cater to the rising demand from enterprises transitioning to cloud-based infrastructure. This is driving significant investments in advanced servers with higher processing power and memory capacity. Server PCB manufactures are developing innovative designs to support the evolving requirements of hyperscale data centers.
2. Miniaturization of Components: Manufacturers are miniaturizing circuit board designs to support increased density and integration of components on server motherboards. Advent of advanced chip packaging technologies is enabling placement of multiple-die chip configurations on compact server PCB footprints. Miniaturized designs facilitate deployment of high-performance servers in compact rack enclosures.
3. Rise of Edge Computing Infrastructure: Widespread adoption of IoT, ML/AI and connected devices is propelling the edge computing market. Edge infrastructure deployments rely on purpose-built servers installed at the network edge for localized processing. This presents new opportunities for server PCB manufacturers to develop specialized designs integrated with edge optimized hardware.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the server PCB market is moderate as it requires huge capital investments to set up manufacturing facilities. However, the market is growing rapidly creating opportunities for new players to enter.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of many vendors providing server PCBs. Buyers can negotiate on price and demand better services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many component suppliers and establishing long term relationships helps reduce dependence on single supplier.
Threat of new substitutes: There is no direct substitute for server PCBs. Alternatives like system on chips provide some competition but cannot entirely replace server PCBs.
Competitive rivalry: The server PCB market sees intense competition among existing vendors to gain market share through product innovation and pricing strategies.
Key Takeaways
The global server PCB market is expected to witness high growth over the forecast period supported by increasing investments in data centers globally. The global server PCB market is estimated to be valued at US$ 45.22 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.
Regional analysis: North America dominates the global server PCB market currently supported by strong presence of data center operators in the region. Asia Pacific is expected to emerge as the fastest growing regional market with countries like China and India significantly expanding their data center infrastructure to support digitalization.
Key players: Key players operating in the server PCB market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG. These players are focusing on developing advanced server PCB solutions through innovations and expanding their global footprint through strategic collaborations to leverage growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
