Server printed circuit boards (PCBs) are circuit boards designed to house several electronic components required for servers. Server PCBs find major application in server systems used across various industries like IT, telecommunication, healthcare, BFSI, and more. These boards enable connection and power delivery to various server components including processors, chipsets, memory modules, and interfaces. With growing digitalization and need for data storage, analysis, and management across industries, the demand for high-performance data centers has increased significantly over the past few years. This growing demand for data centers is one of the major drivers estimated to boost the global server PCB market during the forecast period.

The global server PCB Market is estimated to be valued at US$ 45.22 Bn 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 Dynamics:

One of the major drivers for the growing Global Server PCB Market Size is the increasing demand for data centers. With digital transformation initiatives across industries, huge volumes of data are being generated every day which needs to be stored, managed and analysed. This has led to significant investments in establishing high-performance data centers in recent years. As per a report by Statista, the global data center IP traffic is expected to reach 20.6 zettabytes per year by 2023 from 10.8 zettabytes per year in 2018. Server PCBs are integral components used across servers deployed in data centers to carry out core data center functions efficiently. Thus, the booming data center market is augmenting demand for server PCBs as well.

Another factor influencing the server PCB market positively is the rising number of data centers worldwide. Major cloud service providers like Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba Cloud, and others are engaged in expanding their data center footprint globally. For instance, according to a report by Synergy Research Group, hyperscale operators added 36 new data center builds in 2019 alone. As these data centers require thousands of servers, the demand for server PCBs is growing significantly.

SWOT Analysis

Strength: The server PCB market has high demand in data centers, IT and telecommunication sectors. Server PCBs offer optimized circuit design and compact size for efficient operation. Manufacturers provide advanced PCB designs with increased memory capability and bandwidth.
Weakness: Frequent technological upgrades in servers require timely PCB modifications which increases costs. Faulty PCBs can severely impact server performance.Raw material price volatility also poses financial challenges.
Opportunity: Emerging applications of AI, cloud computing and 5G networks will fuel the need for high-performance servers. This offers scope for innovative server PCB designs with quicker response and better heat management. The growing server rental market in developing countries presents new business avenues.
Threats: Intense competition among PCB manufacturers constrains pricing flexibility. Strict environment regulations discourage use of hazardous materials in PCB production. Trade wars and geo-political tensions disrupt global supply chains.

Key Takeaways

The global server PCB market is expected to witness high growth driven by exponential data usage. Data centers are expanding capacities and upgrading infrastructure to handle augmented workloads. Server virtualization trends also drive demand for more powerful PCBs. The global server PCB Market is estimated to be valued at US$ 45.22 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.

North America currently dominates due to strong data center investments by leading technology giants. However, Asia Pacific server PCB market is projected to witness the highest CAGR during the forecast period. This is attributed to ongoing digital transformation programs of governments across APAC. Countries such as China, Japan, and India are enhancing network infrastructure to bolster their positions as global outsourcing hubs. Rising penetration of cloud computing is propelling data center expansion too.

Key players

Key players operating in the server PCB market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG. These companies focus on developing novel materials and thermal management solutions to accommodate higher power capacities in servers.

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