According to Digitimes Research's statistics and analyses, the 2021 global server market has a supply-demand gap as large cloud service operators step up orders to meet the pandemic-driven demand for cloud services, WFH and online services but the IC and component shortage disrupts shipment schedules.
Third-quarter global server shipments only increased 8.5% from the prior quarter due to some ICs and components being in worse shortage than the others.
Large datacenter demand will remain the main growth driver for server shipments 2021 through 2026. On top of that, 5G white-box telecom datacenter demand will also spur some growth. Along with IC and component supply gradually returning to normal levels, global server shipments are projected to grow at a CAGR of 6.9%.
Taiwan-based makers' server-related revenues are expected to climb 7.6% on year in 2021, buoyed by growing demand from cloud service operators, while global server shipments will pick up 5.6% on year.
Global server shipments, after reaching the peak of 2020 in the second quarter, are estimated to have slipped 6% sequentially in the third quarter as demand began to turn weak and will drop further in the fourth quarter.
Second-quarter 2020 global server shipments enjoyed a strong growth thanks to soaring demand for cloud computing services and from the work-from-home (WFH) segment in addition to shipments deferred from the prior quarter and early inventory preparation to cope with the resurgence of the coronavirus outbreak.
According to Digitimes Research's statistics and analyses, first-quarter 2020 global server shipments are estimated to come to 3.65 million units, representing a 16.9% on-quarter drop.
Global server shipments went up 13.4% sequentially in the fourth quarter of 2019 thanks to rising demand from US large datacenter companies and China's server market. However, shipments in the first quarter of 2020 are expected to be affected by China's coronavirus outbreak.
