Server printed circuit boards (PCBs) are used in servers to electrically connect circuit components including integrated circuits, connectors and other components. Server PCBs aid in enhancing server performance and facilitate faster data communication. Increasing adoption of cloud-based services and data analytics along with growing data volumes driven by 5G rollout and proliferation of IoT devices have increased the need for data center expansion globally.

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 Opportunity:

The opportunity in data center expansion is projected to drive significant growth of the server PCB market during the forecast period. Rapid digital transformation across industries and rising dependency on cloud-based applications have necessitated additional investment in data center infrastructure worldwide. As per a recent report, global data center IP traffic is expected to grow at a CAGR of 26% from 2021 to 2026. This is expected to generate demand for thousands of new servers which will require server PCBs for electrical connectivity and performance enhancement. With implementation of 5G technology and proliferation of IoT devices generating huge data volumes, data centers will need to scale up significantly to manage this escalating data traffic. This rising requirement for server infrastructure from colocation providers and cloud service operators provides promising opportunities for server PCB manufacturers during the forecast period.

Porter’s Analysis

Threat of new entrants: The Global Server PCB Market Size has high initial capital investment required to set up a manufacturing plant and R&D facility which acts as a barrier for new players. However, the growth opportunities attract new players.

Bargaining power of buyers: The buyers have moderate bargaining power due to availability of substitutes and less differentiation between products offered by various players. However, their needs for servicing and maintenance gives an edge to existing players.

Bargaining power of suppliers: The industry players face moderate bargaining power from suppliers due to availability of substitutes and less differentiation between components supplied by different vendors. However, integrated players have an advantage.

Threat of new substitutes: There is threat from new technologies like edge and cloud computing reducing demand for on-premises servers. However, existing investments in data centers reduce impact of substitutes in short term.

Competitive rivalry: The market has high competitive rivalry due to presence of many global and regional players offering similar products. Players differentiate based on product innovation, quality, and service.

SWOT Analysis
Strength: Established global footprint helps leaders serve major data centers worldwide. Technological expertise enables product innovation.

Weakness: Commoditization of standard components reduces margins. Infrastructure upgrades require huge capital.

Opportunity: Growth in hyperscale data centers and demand for high-density servers boost opportunities. Edge computing promotes decentralized infrastructure.

Threats: Economic slowdowns lower IT budgets. Open-source solutions increase competition. Trade tensions impact global supply chains.

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