Server Operating System Market Report 2025

The server operating system market size has grown rapidly in recent years. It will grow from $67.26 billion in 2024 to $75.18 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to mainframe evolution, UNIX dominance, Microsoft windows server, open source initiatives, client-server architecture.

The server operating system market size is expected to see rapid growth in the next few years. It will grow to $126.06 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to user experience enhancement, energy efficiency focus, enhanced management tools, internet of things (IoT) integration, open source proliferation. Major trends in the forecast period include cloud computing adoption, virtualization technologies, containerization and Kubernetes, security enhancements, compatibility with new architectures.

The increasing adoption of cloud platforms is expected to drive the growth of the server operating system market in the future. A cloud platform encompasses the operating system and hardware of a server within an Internet-based data center, enabling software and hardware products to operate remotely. These platforms support the server operating system by managing the operations, execution, and processes of virtual machines, virtual servers, and virtual infrastructure, alongside the underlying hardware and software resources. As a result, the rising utilization of cloud platforms boosts the demand for server operating systems. For example, a report from the Statistical Office of the European Communities indicated that in 2023, 42.5% of enterprises in the EU purchased cloud computing services, primarily for email, file storage, and office software. This marks a 4.2 percentage point increase compared to the share of enterprises using cloud services in 2021. Thus, the growing adoption of cloud platforms is significantly propelling 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.

Major companies in the server operating system market are concentrating on developing innovative technological solutions, such as network chips, to improve performance, scalability, and security within data centers. Network chips are specialized hardware components that manage and optimize data transmission across networks, enhancing communication systems' performance and efficiency. For example, in October 2024, AMD, a US-based IT corporation, launched the MI325X. This new model boasts a significant increase in memory capacity and bandwidth compared to the MI300X, which offered only 192 GB of HBM3 memory and a bandwidth of 5.3 TB/s. The enhancements in the MI325X enable it to support larger AI models more effectively, making it particularly well-suited for training large language models and executing inference operations.

Major companies in the server operating system market are focusing on developing Linux operating systems to enhance performance, security, and scalability in data centers, cloud computing, and enterprise environments. Linux systems provide increased flexibility, greater control over hardware, and the ability to customize solutions to meet specific user requirements. For instance, in May 2023, Red Hat, a US-based software company, released Red Hat Enterprise Linux (RHEL) 8.8, designed to improve security, automation, and system management. This version introduced features such as the default disabling of root account logins on new installations and enhanced options for configuring network-bound disk encryption (NBDE). Additionally, RHEL 8.8 includes upgrades to the image builder tool, enabling users to create optimized operating system images with various security and system configuration options through a graphical user interface.

In August 2024, Advanced Micro Devices, Inc. (AMD), a US-based multinational semiconductor company known for designing and producing a diverse range of products, acquired ZT Systems for an undisclosed amount. This acquisition is intended to foster innovation and deliver high-performance computing solutions that enable customers across various industries to achieve their objectives. ZT Systems is a US-based company that specializes in designing and manufacturing custom server and storage solutions.

Major companies operating in the server operating system market 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., CoreOS Inc., XCP-ng.

Europe was the largest region in the server operating system market in 2024. 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.

A server operating system (OS) refers to an advanced type of operating system specifically designed for installation and functioning on server computers. It boasts sophisticated features essential for client-server architecture and corporate computing environments. Prominent server OS examples encompass Red Hat Enterprise Linux, Windows Server, and Mac OS X Server.

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.

The server operating systems market research report is one of a series of new reports that 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.

This product will be delivered within 3-5 business days.