Rising Demand in BFSI Sector Boosts High Availability Server Market

The global high availability server market can be segmented on the basis of service sector into banking, financial service and insurance (BFSI), IT and telecommunication, retail, medical and healthcare, government, and manufacturing.

The global market for high availability servers is witnessing significant growth, driven by the increasing demand for systems that ensure minimal downtime and maximum uptime. Both large and medium-sized enterprises are aggressively integrating high availability servers into their infrastructure to enhance operational efficiency and reliability. This market's robust expansion is fueled by the need for advanced server configurations that support better skill sets and provide superior features.

High availability servers are engineered to offer minimal processing latency and maximum uptime through hardware redundancy, significantly reducing the risk of hardware failures. This advantage is particularly appealing to sectors like banking, financial services, and insurance (BFSI), as well as retail, which require secure, efficient, and rapid access to vast amounts of data. These sectors' reliance on high availability servers for their critical operations is a primary driver of market growth. The BFSI sector alone accounted for 19% of the market share in 2016 and is expected to continue its rapid growth due to the sector's need for reliable, uninterrupted data access.

However, the market's expansion is not without challenges. The high cost of high availability servers and their maintenance expenses pose significant barriers. Additionally, a general lack of awareness about the benefits and applications of these servers further hinders market growth. Despite these challenges, the market is projected to expand at a robust CAGR of 11.7% from 2017 to 2025, reaching a valuation of USD 12,306.9 million by 2025 from USD 4,105.0 million in 2015.

Geographically, North America leads the global high availability server market, holding a substantial 42% share in 2016. This dominance is attributed to the region's high installed base and deep penetration of high availability servers across critical industries like IT, telecommunications, BFSI, and retail. North America's growth is also bolstered by multinational companies capitalizing on the promising markets in the U.S. and Canada. Meanwhile, the Asia Pacific region is expected to experience the highest growth rate, with a projected CAGR of 13.0% from 2017 to 2025, driven by technological innovations and the expanding data center equipment market, particularly in China. In Europe, the uptake of advanced cloud-based technologies and the presence of multinational firms in the U.K. and Germany significantly contribute to market growth.

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Key players in the high availability server market include IBM Corporation, Dell Inc., Stratus Technologies, Inc., Hewlett Packard Enterprise, Oracle Corporation, Fujitsu, NEC Corporation, Cisco Systems Inc., Unisys Global Technologies, and CenterServ International Ltd. These companies are continuously innovating and expanding their offerings to meet the growing demand for high availability servers.

The COVID-19 pandemic has further accelerated the need for robust IT infrastructures, with companies realigning their strategies to ensure business continuity and adapt to new digital demands. The shift towards 24/7 operational requirements, particularly in sectors like healthcare and stock markets, underscores the critical importance of high availability servers in today's digital economy. As businesses strive to minimize downtimes and maintain uninterrupted services, the global high availability server market is poised for continued growth and innovation.


Amit Mohite

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