Rugged Servers Market Expected to reach $652 million by 2025

The global rugged servers market size was valued at USD 475 million in 2020 and is projected to reach USD 652 million by 2025; it is expected to grow at a CAGR of 6.5% from 2020 to 2025. The growth of the rugged servers market is majorly driven by rising demand for industrial IoT, stringent regulatory requirements across various industries, and growing demand for rugged servers in the military, industrial, and power sectors.

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The >1 TB segment is expected to dominate the market in 2020 by contributing the largest share of the overall market. The growth of this segment can be attributed to the extensive application of these servers in military & aerospace, industrial, and power sectors, where higher memory size is required for effective data accessibility. The increasing demand for industrial automation, IoT integration across manufacturing industries, and rising need to achieve energy efficiency in manufacturing operations are other major factors driving the market growth.

The military & aerospace segment is expected to account for the largest share of the rugged servers market during the forecast period. Critical missions and projects in military and aerospace sectors involve critical data that is transmitted to client devices through servers. As these missions are usually carried out in extreme environmental conditions, rugged servers are the most suitable servers to operate reliably in such conditions. Therefore, the military & aerospace application segment is expected to continue to account for the largest size of the market during the forecast period.

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Rugged servers market in APAC is expected to grow at the highest CAGR during the forecast period. The ever-increasing use of telecom network services by domestic, as well as industrial, end users, ongoing advancements in wireless cellular infrastructure, and rising demand for secure data transfer is expected to fuel the demand for rugged servers in APAC. Mobile data services are also growing rapidly in APAC as mobile operators have reduced prices of their services to extend them to maximum end users. APAC has become a world leader in digital platforms. It has two of the most densely populated countries—China and India—in the world. Due to its large population and a broad base of consumers, the telecommunications sector finds ample opportunities for growth. Also, China, Japan, South Korea, and India are among the major countries in APAC that have an established industrial base. These industries are significant end users of rugged servers.