Server Operating System Global Market Report 2024

The global server operating system market has grown rapidly in recent years. It will grow from $60.88 billion in 2023 to $68.76 billion in 2024 at a compound annual growth rate (CAGR) of 12.9%. Historical growth in the server operating system realm was driven by several factors. These include the evolutionary progress of mainframes, the prevalent dominance of UNIX systems, the influence of Microsoft Windows Server, initiatives in the open-source community, and the widespread adoption of client-server architecture.

The global server operating system market is expected to see rapid growth in the next few years. It will grow to $110.27 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The anticipated growth in the upcoming period for server operating systems will be fueled by efforts to enhance user experience, a heightened focus on energy efficiency, improved management tools, integration with the Internet of Things (IoT), and the continued proliferation of open-source initiatives. Key trends expected in this forecast period encompass increased adoption of cloud computing, advancements in virtualization technologies, the rise of containerization and Kubernetes, emphasis on security enhancements, and ensuring compatibility with emerging architectures.

The server operating system market is anticipated to experience substantial growth, driven by the increasing adoption of cloud platforms. Cloud platforms, comprising the operating system and hardware of servers in Internet-based data centers, enable the coexistence of software and hardware products remotely. These platforms manage the operations, execution, and processes of virtual machines, virtual servers, and virtual infrastructure, along with back-end hardware and software resources. The demand for server operating systems is propelled by the rising adoption of cloud platforms. Eurostat reports that in 2021, 41% of EU enterprises primarily used cloud computing for tasks like file storage and emails, emphasizing the growing demand for cloud computing among enterprises. This trend contributes significantly to the growth of the server operating system market.

The growth of the server operating system market is further fueled by the increasing internet penetration globally. Internet penetration, representing the percentage of a population with internet access, signifies the level of digital connectivity in a specific region. Server operating systems play a crucial role in providing the infrastructure and connectivity necessary for the expanding internet penetration. As of August 2023, Demand Sage reports that there are 5.3 billion internet users worldwide, accounting for over 65% of the world's population. This number is projected to reach 6.54 billion by 2025. The rising internet penetration acts as a driving force for the growth of the server operating system market.

A key trend in the server operating system market is product innovation, with major companies focusing on developing new solutions to meet customer demands. For example, in November 2021, RedHat, a prominent US-based software company in the server operating system sector, introduced the Linux 9 Beta version featuring advanced features and improvements. RHEL 9 Beta, based on upstream kernel version 5.14, is designed for demanding hybrid multi-cloud installations spanning physical, on-premises, public cloud, and edge computing. The release includes capabilities to meet strict compliance requirements, such as smart card authentication via the web console, additional security profiles, integrated OpenSSL 3, integrity measurement architecture, digital hashes and signatures, and SSH root password login disabled by default. This innovation contributes to the ongoing evolution and competitiveness of the server operating system market.

Key players in the server operating system market are introducing innovative server models, such as the Power E1080, to meet the specific needs of organizations and enhance IT infrastructure efficiency. IBM, a prominent US-based technology and information company, launched the Power E1080 in September 2021, marking the introduction of a new server family based on the Power10 processor, tailored for hybrid cloud environments. The Power E1080 is designed for security and operational agility, featuring industry-first-minute metering of Red Hat software, improved performance, advanced security tools, and enhanced AI capabilities. This server aims to provide organizations with a secured and seamless hybrid cloud experience, ensuring architectural consistency and scalability across hybrid cloud environments. Leveraging the capabilities of Power10, the Power E1080 delivers up to 30% more performance per core and 50% better total capacity, emphasizing efficiency, security, and enterprise AI.

In a strategic move to strengthen its position in the server and cloud security domain, Sophos, a UK-based security software and hardware company, acquired Capsule 8 in July 2021. The acquisition, executed for an undisclosed amount, enabled Sophos to expand its detection solutions for under-protected server and cloud environments running Linux systems. Capsule 8, a US-based company specializing in Linux and other operating systems, brought valuable expertise and technologies to enhance Sophos' capabilities in ensuring the security of servers and cloud deployments. This acquisition reflects the industry's commitment to addressing evolving security challenges in server environments and underscores the importance of robust solutions in safeguarding critical IT infrastructure.

Major companies operating in the server operating system market report are Microsoft Corporation, Google LLC, Amazon.com Inc., International Business Machines Corporation (IBM Corporation), Oracle Corporation, SUSE LLC, Canonical Ltd., Cisco Systems Inc., Apple Inc., Dell Technologies Inc., Hewlett Packard Enterprise Company LP, Fujitsu Limited, Debian GNU/Linux, PC/OpenSystems LLC, Huawei Technologies Co Ltd., Red Hat Inc., NEC Corporation, VMware Inc., Citrix Systems Inc., Wind River Systems Inc., Lenovo Group Limited, Inspur Group Co. Ltd., Mphasis Limited, Mindtree Limited, L&T Infotech Limited, Hexaware Technologies Limited, Zensar Technologies Limited, CoreOS Inc., Cyanogen Inc., XCP-ng

Europe was the largest region in the server operating system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the server operating system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the server operating system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary server operating systems encompass Windows, Linux, UNIX, and others. Microsoft Windows comprises various operating systems developed by Microsoft, available in 32-bit and 64-bit versions. It offers a graphical user interface (GUI), multitasking capabilities, virtual memory management, and support for diverse peripheral devices. Deployment options span both cloud-based and on-premise setups. Virtualization status includes both virtual machines and physical machines, utilized across large enterprises, small and medium-sized businesses. These OSs find application across multiple industries such as IT, BFSI, manufacturing, retail, e-commerce, government, healthcare, and various other sectors.

This report provides server operating systems market statistics, including server operating systems industry global market size, regional shares, competitors with a server operating systems market share, detailed server operating systems market segments, market trends and opportunities, and any further data you may need to thrive in the server operating systems industry. This server operating systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An operating system market consists of sales of NetWare, macOS Server, FreeBSD servers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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