White Box Server Market Report 2025

The white box server market size has grown rapidly in recent years. It will grow from $18.55 billion in 2024 to $21.74 billion in 2025 at a compound annual growth rate (CAGR) of 17.2%. The growth in the historic period can be attributed to open compute project (OCP) influence, increased data center buildouts, commoditization of hardware, hyper-scale data center deployments, and vendor independence.

The white box server market size is expected to see exponential growth in the next few years. It will grow to $46.52 billion in 2029 at a compound annual growth rate (CAGR) of 21%. The growth in the forecast period can be attributed to increasing focus on energy efficiency, demand for high-performance computing, focus on security and compliance, market liberalization and competition, and digital transformation initiatives. Major trends in the forecast period include customization and open architecture, GPU acceleration for AI workloads, software-defined infrastructure, transition to 5g networks, and competition with traditional OEMs.

The increasing number of data centers is anticipated to drive the growth of the white box server market in the coming years. Data centers are facilities that provide shared access to applications and data via a sophisticated network, computing, and storage infrastructure. A white box server functions as an operating system and can also serve as virtualization software for data centers. For example, in September 2024, the National Telecommunications and Information Administration, a US government agency, reported that the United States has approximately 5,000 data centers, with demand for these facilities expected to grow by around 9% annually until 2030. Thus, the rising number of data centers is propelling the growth of the white box server market.

The growth of the white box server market is further propelled by an upsurge in cyberattacks and fraud. As organizations face an increased frequency of cybersecurity threats, there is a growing inclination towards white-box servers to enhance security configurations. The use of white-box servers allows organizations to implement customized security measures tailored to their specific requirements, potentially improving resilience against cyber threats. A report by AAG in October 2023 highlighted a significant 125% increase in global cyberattacks, emphasizing the escalating threat landscape faced by individuals and organizations. Consequently, the surge in cyberattacks and frauds is a key driver fostering the growth of the White Box Server market.

Companies in the white box server market are focusing on new product innovations to maintain their competitive edge. For example, in October 2024, Supermicro, a US-based technology firm, introduced Liquid-Cooled SuperClusters designed specifically for AI data centers, powered by the NVIDIA GB200 NVL72 platform. These superclusters are engineered to address the increasing energy demands of AI infrastructures while promoting sustainability through liquid cooling technology. Each rack can accommodate 72 NVIDIA Blackwell GPUs and 32 NVIDIA Grace CPUs, facilitating exascale AI computing capabilities.

Major companies in the white box server market are concentrating on developing advanced, cost-effective solutions, such as Telco Systems’ Edgility, to improve service delivery and address the needs of modern cloud environments. Telco Systems’ Edgility offers a robust framework for deploying and managing edge services, enhancing scalability and performance in dynamic network settings. For instance, in January 2022, Telco Systems, a US-based telecommunications firm, and Advantech, a Taiwan-based company specializing in IoT intelligent systems and embedded platforms, introduced an out-of-the-box platform to streamline the deployment of virtual services at the network edge. This platform aims to simplify the integration of various network functions, allowing service providers to rapidly implement and manage virtualized services. The solution is designed for quick deployment, minimizing the time and complexity associated with setting up virtual services.

In August 2022, DXN Limited, an Australian company specializing in high-quality health and wellness products, particularly those containing ganoderma, partnered with OrionVM. This collaboration aims to develop the DXN Cloud platform by integrating OrionVM's cloud technology with DXN's Tier-III certified data center, providing a reliable and cost-effective hybrid cloud solution. OrionVM, also based in Australia, focuses on delivering cloud infrastructure services powered by white box server technology to enhance performance and flexibility.

Major companies operating in the white box server market include Fujitsu Ltd., Foxconn Electronics Inc., Hon Hai Precision Industry Company Ltd., Dell Inc., Huawei Investment and Holding Co. Ltd., Cisco Systems Inc., Pegatron Corporation, Quanta Computer Inc., Compal Inc., Jabil Inc., Wistron Corporation, Hewlett Packard Enterprise Company, Inventec Corporation, Wiwynn Corporation, Celestica Inc., Super Micro Computer Inc., ASpeed Technology Inc., ZT Systems Co, Hyve Solutions Corp., MiTAC Holdings Corp, Silicon Mechanics Inc., Iron Systems Inc., Equus Computer Systems, Penguin Computing Inc., Servers Direct LLC, Stack Velocity Group.

North America was the largest region in the white box server market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the white box server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the white box server market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

White box servers are data center computer servers that are not associated with well-known brand names and are constructed using off-the-shelf components from multiple vendors rather than being manufactured and sold by a specific brand or manufacturer.

The primary form factor types in white box servers include rack and tower servers, blade servers, and density-optimized servers. Rack servers are designed to be mounted on a standard equipment rack, which is a metal frame holding multiple servers in a vertical arrangement. These servers find applications across various business types, including data centers and enterprise customers. The processors used in white box servers can be X86 servers or non-X86 servers, and they may run various operating systems such as Linux and others.

The white box server market research report is one of a series of new reports that provides white box server market statistics, including white box server industry global market size, regional shares, competitors with a white box server market share, detailed white box server market segments, market trends and opportunities, and any further data you may need to thrive in the white box server industry. This white box server 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.

The white box server market consists of sales of chassis, memory, hard disk drives, network interface cards, and cooling solutions. 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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