July 27, 2024
Server PCB market

Server PCB Market is Estimated to Witness High Growth Owing To Increasing Demand for Data Centers

The Server PCB Market is estimated to be valued at US$ 45.22 Billion in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Server PCBs are used in servers which provide data processing, storage and computational facilities to a vast number of users across the globe. Server PCBs enable high speed data processing and management of massive data flows. They offer superior signal integrity, high density connectivity and enhanced thermal management. With increasing digitalization and growth of data centers, the demand for servers and server PCBs is growing continuously.

Market key trends:-

One of the key trends driving the server PCB market growth is increasing digitalization and rising demand for data centers. As more businesses adopt digital technologies such as cloud, big data analytics and IoT, the volume of data being generated is witnessing exponential growth. This is fueling the need for large data centers to store and process massive amounts of data. Growing data center investments by large technology companies such as Amazon, Microsoft, Google and Facebook are contributing significantly to the server PCB demand. Additionally, rising demand for edge computing is another major trend boosting the market. Edge computing requires deployment of large numbers of compact servers at the edge locations. This decentralized computing model relies on large scale usage of server boards and PCBs. Ongoing technological advancements in server PCB designs to deliver higher performance, greater density and better thermal management are expanding the applications of server PCBs.

Porter’s Analysis:-

  • Threat of new entrants: The threat of new entrants is moderate as the server PCB market requires high capital investment and technological knowledge.
  • Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established players providing similar products.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many raw material suppliers.
  • Threat of new substitutes: The threat of new substitutes is low as server PCBs have limited substitutes.
  • Competitive rivalry: The competitive rivalry is high due to many global players competing on pricing and product differentiation.

SWOT Analysis:-

  • Strengths: Established global distribution network and high technical expertise.
  • Weaknesses: Significant R&D investment required and volatile raw material prices.
  • Opportunities: Growing demand for data centers and rising server virtualization.
  • Threats: Trade protectionism and increasing competition from local players in developing markets.

Key Takeaways:-

The Global Server PCB Market Demand is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing demand for cloud computing and data centers. The North America region currently dominates the market due to heavy investments in cloud services and data centers by technology companies in the region. The Asia Pacific region is expected to grow at the fastest pace due to rising investments by Chinese companies in cloud infrastructure and increasing adoption of colocation and managed hosting services.

Key players operating in the server PCB market are Nanya PCB (Taiwan), Tripod Technology Corporation (Taiwan), Unimicron Technology Corporation (Taiwan), Ibiden Co., Ltd. (Japan), Compeq Manufacturing Co., Ltd. (Taiwan), TTM Technologies, Inc. (United States), Kingboard Holdings Limited (Hong Kong), Shennan Circuits Company Limited (China), AT&S Austria Technologie & Systemtechnik AG (Austria), Multek (a subsidiary of Flex Ltd.) (United States).

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it