Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34674
The server operating system market is estimated to reach a valuation of US$34.5 Bn by the year 2031, at a CAGR of 11.8%, during the forecast period 2024 to 2031.
Key Highlights of the Market
|
Market Attributes |
Key Insights |
|
Market Size (2024) |
US$15.8 Bn |
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Market Value (2031) |
US$34.5 Bn |
|
Forecast Growth Rate (CAGR 2024 to 2031) |
11.8% |
|
Historical Growth Rate (CAGR 2019 to 2023) |
10.7% |
The server operating system market growth is ascribed to the rise in corporate expenditure on establishing a resilient data center infrastructure. Furthermore, the growing utilization of hybrid cloud settings and the escalating implementation of 5G networking technologies are driving the market growth.
Nevertheless, the market expansion is being constrained by the frequent and lengthy periods of server unavailability, the expenses linked to server operating systems, and the scarcity of skilled IT staff at data center facilities.
On the other hand, the market is expected to see profitable growth prospects throughout the projected timeframe due to improvements in technology and increasing security demands in infrastructure.
Further, the increased adoption of hybrid cloud environments for server infrastructure is a growing market trend. A hybrid cloud environment refers to the combination of cloud-based resources with on-premises IT infrastructure. In this setup, both on-premises and cloud systems collaborate to achieve an enterprise's IT goals and support business operations.
The service has several advantages, including safeguarding investments, flexibility and scalability within regulatory guidelines, and multiple chances for cost reduction, particularly for small businesses.
Worldwide, businesses are increasingly implementing hybrid and public cloud-based applications to fulfil their operational needs. The increasing adoption of cloud-based servers and the significant increase in company investment in cloud services have driven server operating system market expansion.
The global market has witnessed significant growth and transformation from 2019 to 2023, witnessing a growth rate of 10.7%, driven by technological advancements, increasing demand for cloud computing, and the proliferation of data-intensive applications across various industries.
In 2019, the market experienced a robust start with the continuing shift towards cloud computing.
Enterprises increasingly adopted cloud-based solutions to streamline operations, reduce IT infrastructure costs, and enhance scalability. This market trend fuelled demand for server operating systems optimized for virtualization, containerization, and hybrid cloud environments.
Major players in the server operating system market, such as Microsoft with Windows Server, and Red Hat with Enterprise Linux, focused on enhancing their platforms to support cloud-native applications and workloads.
Post-pandemic recovery, and ongoing digitalization efforts propelled the server operating system market into 2022 and 2023.
Enterprises focused on optimizing IT operations, enhancing data management capabilities, and leveraging AI-driven insights through advanced server operating systems.
The market witnessed a shift towards open-source operating systems like Linux distributions, which offered flexibility, cost-effectiveness, and community-driven innovation.
Vendors continued to innovate with features such as improved scalability, container orchestration, and integration with edge computing architectures to support emerging IoT applications.
Rising Adoption of Cloud Technology
The server operating system market is estimated to witness growth due to the rising use of cloud storage infrastructure and the expansion of data center facilities.
Organizations are becoming more aware of the effectiveness and ability to handle large workloads that cloud server operating systems provide, resulting in a swift adoption of server operating systems.
Prominent market participants, such as Amazon Web Services (AWS), are depending on tailored server operating system (OS) solutions to support their cloud architecture, highlighting the vital importance of server OS in delivering cloud services.
Increased Expenditure on Data Centers
Data centers have become an essential component of contemporary computer infrastructures in organizations. They are increasingly seen as essential business criteria, rather than external facilities, for data storage and business operating models.
The necessity for data center and server operating systems has been prompted by the significant increase in data centers and their usage in various industries, resulting in a lucrative demand for such systems.
Servers are commonly regarded as the primary catalyst for the expansion of the data center architecture. In server environments, programs can be executed using physical or virtual resources, distributed among containers, or shared among remote nodes in an edge computing framework.
Hence, the requirement for a server operating system is crucial in facilitating the networking of the data center architecture, ultimately propelling the expansion of the server OS market.
High Installation Costs
The market has many restraints that affect the market share of Linux Server OS, Enterprise Server OS, Server OS management, and Cloud Server Operating Systems.
The industry faces the challenge of increasing demand for server operating systems customized for specific applications and the difficulties involved in choosing the appropriate server.
Expensive installation and support expenses pose a significant barrier to the expansion of the server operating system market.
The Information Technology Intelligence Consulting Corporation (ITIC) has reported excessively high costs associated with system downtime.
As an illustration, in the year 2020, the worth of one hour of server downtime was estimated to be US$100,000, and the cost escalated to US$1,670 per minute per server. These expenses could hinder the expansion of the Server OS industry.
Multi-Lingual & Localised Solutions
The server operating system market presents many opportunities influenced by the changing IT environments.
As businesses continue to shift towards cloud computing, providers of server operating systems are taking advantage of the opportunity to offer smooth integration and hybrid solutions.
Microsoft's Windows Server 2023 is a notable instance, as it effortlessly combines with Azure, allowing organizations to expand their local infrastructure to the cloud.
Advanced security features offer a potential opportunity for expansion, as providers create sophisticated mechanisms to combat the increasing risk of cyberattacks.
Linux distributions, such as Red Hat, have implemented SELinux to strengthen the operating system's defences against vulnerabilities. Furthermore, the widespread use of IoT devices and edge computing creates possibilities for customizing Server OS specifically for these settings.
Windows OS Accounts for 58% Market Share
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Market Segment by Operating System |
Market Value Share 2023 |
|
Windows |
58% |
Based on operating system, the market is further segmented into windows and Linux, where the windows operating system dominates the server operating system market share.
Windows provides a range of solutions, including both cloud and on-premise options. It is the preferred operating system for businesses due to its comprehensive features, such as improved security, simplified server core administration, automated client connectivity, and other tools that facilitate server management and operation for developers.
During the forecast period, the Linux segment is projected to experience the greatest growth rate of 12.4%. Linux has become the cornerstone of enterprise computing due to the rising demand for cloud computing and the growing fascination with virtualization and mobile technologies. Furthermore, the implementation of OpenStack in cloud computing will naturally promote the use of Linux.
The Virtual Machine Segment Leads the Way with 55% Share
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Market Segment by Virtualization |
Market Value Share 2023 |
|
Virtual Machine |
55% |
Based on virtualization, the global server operating system market share is further classified into virtual machine physical, where virtual machine segment dominates the market share with 55% of the total market share.
The virtual machine segment had the highest revenue share, surpassing 55.0%. It is projected to maintain its dominance in the market during the forecast period.
Organizations utilize virtual machine software to take advantage of virtual desktop infrastructure (VDI). VDI installations facilitate remote access to desktop environments, including Windows and Linux operating systems.
Virtual machines (VMs) provide several benefits to enterprises, including cost efficiency, scalability, and enhanced security.
The physical segment is projected to grow at a compound annual growth rate (CAGR) of 8.8% throughout the projection period.
Physical servers surpass virtual servers in terms of optimal performance, heightened security measures, and the ability to fully tailor hardware and software architecture.
Companies choose dedicated or physical servers due to their straightforward and adaptable scalability, the ability to allocate resources specifically for a certain purpose, customization possibilities, and robust security features.
On-Premise Deployment Accounts for 53% Revenue Contribution
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Market Segment by Deployment |
Market Value Share 2023 |
|
On-Premise |
53% |
Based on the deployment segmentation, the global server operating system market is further divided into on premise and cloud, where the on premise segment dominates the market share.
The industry anticipates a significant increase in on-premise deployment due to its ability to provide clients with complete control over their data, applications, and infrastructure, while simultaneously reducing operational expenses and enhancing security.
The cloud segment is projected to grow at a CAGR of 12.1% throughout the projection period. Cloud deployment allows enterprises to deliver capabilities with increased flexibility and efficiency.
The key advantages of using cloud technology for operating systems include reduced expenses and simplified maintenance. Organizations can utilize a wide range of server operating systems and cloud platforms to perform analysis and mapping tasks using cloud-based solutions.
North America dominates the global market share with 35% of the market share.
|
Region |
Market Value Share 2023 |
|
North America |
35% |
North America had the largest market share, accounting for more than 35.0% of the revenue, and it is expected to maintain its position during the forecast period.
The North American region is anticipated to take the lead in the global server operating system market share, driven by the increasing demand for server operating systems and the growth of internet applications.
The server operating system employs Artificial Intelligence (AI) technologies to oversee several tasks, including storage management, and server management.
The Asia Pacific region is projected to experience the greatest compound annual growth rate (CAGR) of 11.1% throughout the projection period. The market is being propelled by the growing implementation of cloud computing solutions in various businesses.
Consequently, numerous local market actors are increasing their investments in cloud computing services. Several companies specialize in offering server operating system services.
January 2024 -
Microsoft launched the first preview of the Windows Server 2025, which is the first of its kind for the next Windows Server LTSC.
May 2023 -
Red Hat, one of the leading cloud tech companies globally, introduced its new products Enterprise Linux 8.8 and 9.2, which will simplify the Linux Platform over a hybrid cloud.
January 2023 -
Dell Technologies announced its decision to expand its PowerEdge Servers portfolio to cater to enhanced performance and energy-efficient design.
The global server operating system market is characterized by intense competition and rapid technological advancements, driven by key players vying for market dominance and innovation leadership.
The competitive landscape of the global market is dynamic, driven by innovation, strategic partnerships, and a focus on meeting evolving enterprise needs for scalability, security, and digital transformation.
As competition intensifies, key players continue to differentiate themselves through advanced technology integration, customer-centric solutions, and robust support for hybrid cloud and containerized environments.
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Attributes |
Details |
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Forecast Period |
2024 - 2031 |
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Historical Data Available for |
2019 - 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Operating System
By Virtualization
By Deployment
By Region
To know more about delivery timeline for this report Contact Sales
The global server operating system market is estimated to exhibit a CAGR of 11.8% during the forecast period.
North America is the leading region in the global server operating system market.
The global server operating system market is segmented based on operating system, virtualization and deployment.
Cisco Systems, Inc., IBM Corporation, Oracle, Amazon Web Services, NEC Corporation, are some of the major key companies in the market.
On Premise is the dominant deployment type in the market.
