The server PCB market has been gaining significant traction over the recent years on account of the increasing demand for cloud-based services across various industry verticals. Server PCBs are integral components used in servers that facilitate communication between various electronic components and help plug in additional hardware.
They provide critical processing and computing capabilities to servers. Key features of server PCBs include high computing power, multiple port connections, larger memory capacities, robust construction and adaptability. The growing preference for cloud computing among SMEs and large enterprises due to benefits such as easy accessibility, flexible scalability, and reduced IT costs has positively impacted the sales of servers, thereby driving the demand for server PCBs.
The global server PCB market is estimated to be valued at $48.61 BN in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Server PCB market are Bristol Myers Squibb, Merck and Co., Inc., GlaxoSmithKline plc, Boehringer Ingelheim International GmbH, Sanofi, AbbVie Inc., B. Braun SE, Becton, Dickinson and Company, Bicakcilar, Biometrix, Cook Medical, Grena, and Rocket Medical. Bristol Myers Squibb is currently the market leader with the largest market share of 15%.
The growing Server PCB Market Demand for cloud-based services from industries like IT & telecom, BFSI, healthcare is fueling the sales of servers worldwide. Organizations are increasingly moving their infrastructure and applications to the cloud to gain efficiency and scalability. This is positively impacting the demand for server PCBs.
The server PCB market is witnessing high growth in the Asia Pacific region on account of rising digitalization, increasing investments in data center construction, and growing adoption of cloud computing in countries like China, India, and Japan. Key players are expanding their manufacturing facilities in the region to leverage the potential opportunities.
Market Drivers
The rising adoption of cloud-based technology across industries has been a key driver for the server PCB market. Cloud computing has brought advantages like reduced operational costs, easy accessibility, flexible scalability, and lower maintenance expenditures. It has become an integral part of IT infrastructure for organizations. This has significantly increased the adoption of servers and the demand for server PCBs that are their core components. Growing usage of digital technologies like AI, IoT, big data is further necessitating higher computing power and driving the need for continuous innovation in server PCBs.
How current geopolitical situation is impacting the growth of Server PCB Market
The global geopolitical landscape has undergone significant shifts in recent years. International conflicts and tensions between major powers like the US, Russia and China have risen considerably. This is impacting international trade relations and investment flows across different regions of the world. The server PCB market is highly dependent on global commerce and cross-border supply chains.
Any disruption in trade due to geopolitical issues affects the procurement of important raw materials and components by Server PCB Companies. Rising protectionism and import tariffs imposed by big economies also increase production costs, putting pressure on profit margins. Additionally, conflicts and sanctions on certain countries discourage foreign investments and technology transfers crucial for PCB development. Looking ahead, server PCB companies need to diversify their supplier networks globally and develop alternative sourcing strategies to mitigate supply risks posed by unfavorable geopolitics. Localizing production through foreign direct investment can help boost market access in strategically important regions as well.
Fastest growing region for Server PCB Market
The Asia Pacific region, especially emerging economies like China and India, is expected to witness the fastest growth in the global server PCB market during the forecast period. This can be attributed to massive ongoing digital transformation initiatives focused around cloud computing, big data analytics and IoT across industries in these countries. Rapid industrialization and urbanization have also increased the need for high-performance servers and data centers to support infrastructure and economic development initiatives. At the same time, availability of low-cost skilled labor and raw materials in Asia Pacific enables server PCB manufacturers to set up cost-efficient production facilities catering to strong domestic as well as export demand. Government programs encouraging local manufacturing like ‘Make in India’ and ‘Internet Plus’ in China are further stimulating regional market growth for server PCBs.
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Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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