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Server Operating System Market Size, Share & COVID-19 Impact Analysis, By Operating System (Windows, Linux, UNIX, and Others), By Virtualization Status (Virtual Machine, Physical, and Virtualized), By Deployment Model (Cloud and On-premise), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI106601

 

KEY MARKET INSIGHTS

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The global server operating system market size was valued at USD 92.74 billion in 2021. The market is projected to grow from USD 100.89 billion in 2022 to USD 227.77 billion by 2029, exhibiting a CAGR of 12.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with server operating system experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 7.4% in 2020 as compared to 2019.


Key players in the market are developing advanced server-based operating systems for web servers that function in a client/server architecture to cater to the demand of computers on the network. Servers, including web, mail, file, database, application, and print rely on operating systems to assist users with various functions. Windows Server, MacOS X Server, and Linux versions such as Red Hat Enterprise Linux (RHEL) and SUSE Linux based Enterprise Server OS is the popular operating systems for wide range of the applications in data centers. A server operating system assists organizations in running large programs and handling complex tasks such as data transfers. Also, the rising adoption of cloud platforms and data center infrastructure is driving the demand for server OS.


COVID-19 IMPACT


Declined Spending on Data Center Infrastructure Decreased Demand during Pandemic


The COVID-19 pandemic has caused significant disruption across all industries in the global economy, which resulted in severe recessions worldwide. The COVID-19 pandemic has resulted in around 4.3% contraction in the world’s gross domestic product in 2020, according to the United Nations Conference on Trade and Development (UNCTAD).


Further, the pandemic has declined the overall end-user spending on the data center infrastructure. According to Gartner Inc., end-users’ expenditure on data center infrastructure was reduced by around 10.3% in 2020 owing to restricted cash flow constraints during the pandemic. Also, the pandemic has declined overall IT spending.


Based on the above factors, overall global IT technology spending has been declined during the COVID-19 pandemic over the short term. The decline in overall IT technology has resulted in weakening demand for the global server operating system market growth. However, the increase in shift of enterprises towards the cloud, rising work from home, BYOD trend, and others, is expected to strengthen the market during the long term period. According to Right Scale’s Report for 2019, 91% of businesses have used public cloud service, and 72% used the private cloud.


LATEST TRENDS


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Increasing Adoption of Hybrid Cloud Environments for Server Infrastructure Supports Market Growth


Globally, enterprises are adopting hybrid and public cloud-based applications to meet their business requirements. The rising number of cloud-native server users and surge in enterprise spending on embracing cloud services have propelled the market growth. According to the Forbes Survey, in 2020, the enterprises invested around USD 12 million annually on cloud services worldwide. The companies in the market are deploying cloud-native applications for assessing the web-based application storing data from a remote server with the help of software and hardware resources. According to the IDC predictions, more than 40% of enterprise applications will be deployed on cloud-native infrastructure by 2024. Further, increasing adoption of Linux-based operating systems, with the surge in server deployments by enterprises, is expected to strengthen the market growth.


DRIVING FACTORS


Rising Adoption of Cloud Platform and Infrastructure to Surge Demand for Server OS


Rising adoption of cloud platform and infrastructure and surging data center infrastructure investments by the leading players aid the market growth. The key players in the cloud computing market are investing a considerable amount in the development of cloud infrastructure around the globe. For instance, in July 2021, Google LLC launched an advanced cloud infrastructure development project in India. In 2020, the company invested around USD 4.5 billion on Jio Platforms for digitization in the country. As of July 2021, Google LLC has around 79 cloud zones, 26 cloud regions, and 146 cloud availability points worldwide.


Also, in April 2020, Alibaba Cloud invested around USD 28 billion for cloud infrastructure developments. The investment focused on the expansion of Alibaba Cloud’s technologies, such as its servers, operating system, and chips in its existing data centers.


Also, the server operating system provides several functionalities for the data center such as a central interface for managing multiple users, implementing securities, and other administrative processes. An increase in data centers deployments across the globe, owing to a surge in the adoption of managed services has propelled the global market growth.


RESTRAINING FACTORS


High Server Downtime and Cost Related to Deployment Hinders Market Growth


High costs related to server downtime of the operating systems and deployment hinder the market growth. According to the Information Technology Intelligence Consulting Corporation (ITIC), in 2020, server downtime costs for a single server were valued at around USD 100,000 for one hour of downtime that was relatively expensive. However, the server downtime cost was valued at USD 1,670 per minute/per server. Also, around 88% of the respondents’ calculated one-hour downtime costs for the companies is USD 301,000 or more. Such a high cost of server downtime might hinder the market growth.


SEGMENTATION


By Operating System Analysis


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Linux Segment Captured Largest Server Operating System Market Share Owing to Product Adoption across Government Sector


By operating system, the market is divided into Windows, Linux, UNIX, and others. Among all, Linux OS is expected to hold the largest market share during the forecast period. The growth is owing to advantages including open source, low cost, upright performance, compatibility, and security. Further, windows are anticipated to grow at a significant rate owing to advanced multi-layer security and modernizing workloads on Azure on the cloud and on-premises.


UNIX and others are expected to demonstrate significant growth rate during the forecast years as they provide multitasking and multi-user capabilities. UNIX is an extensively used operating system across computing mobile devices, including desktop operating systems, netbook, and server systems.


By Virtualization Status Analysis


Virtual Machine Analytics to Drive Major Revenue


By virtualization status, the market is divided into virtual machine, physical, and virtualized.


The virtual machine gained maximum share in 2021, owing to the primary goal of virtual machines (VMs) being to run an operating system from the same hardware at the same time. Without virtualization, running several OS, such as Linux kernel and windows, would need the use of two distinct physical units. The physical and virtualized segment is expected to grow at the highest CAGR during the forecast period.


By Deployment Model Analysis


On-premise Deployment to Hold Major Share Owing to Rising Demand across SMEs


By deployment model, the market is divided into cloud and on-premise. Among this, the on-premise deployment model is expected to hold largest share in 2021 owing to security concerns, businesses, and rising integration and implementation of analytical solutions. On-premises deployment is expected to increase rapidly in the industry since it allows customers complete control over their data, apps, and infrastructure while cutting operating costs and boosting security.


Cloud deployment assists organizations in offering functionality with higher flexibility and efficiency in practically every industry. Lower costs and much less maintenance are two primary benefits of increasing cloud adoption of the operating system. Organizations may access a vast quantity of server operating systems and use cloud platforms to undertake analysis and mapping with the aid of cloud-based solutions.


REGIONAL INSIGHTS


In the scope we have included three major regions, the Americas, EMEA, and Asia Pacific.


The Americas region is expected to dominate the global market, owing to the increasing demand for server OS and surging online applications. Server operating system is used to manage several applications such as storage management, server management, and others using artificial intelligence (AI) technology. Further, government investment across the region is anticipated to drive the growth of the market. According to the U.S. Federal Government statement, 28% of the enterprises in the United States investment is in IT firms, and the U.S. federal government spends more than USD 100 billion annually on the IT sector.


Europe and the Middle East & Africa are probable to showcase a considerable CAGR in the global market. An increase in overall ICT spending across Europe has increased the demand for server operating system to assist organizations in the digital transformation of business. According to Forrester's Data Center Map, there are more than 139 co-location data centers in 16 countries across the Middle East. An increase in the number of co-location data centers is expected to create ample opportunity for the key players in the market.


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Similarly, Asia Pacific is anticipated to showcase the highest CAGR during the forecast period. The increasing number of data centers with a surge in investments by the leading players in Asia Pacific drives the market. India and China have the highest number of colocation data centers, 160 and 87, respectively. An increase in the digital technology penetration in countries such as India, China, Japan, and others, is expected to create ample opportunity for key players in the market. The computing systems in the colocation data centers are based on server-based operating systems. Hence, it drives the market growth in these countries.


KEY INDUSTRY PLAYERS


Emphasis of Key Players on Developing Server Operating System to Strengthen Market Competition


The companies operating in the market, such as Google LLC (Alphabet Inc.), Microsoft Corporation, Amazon Web Services (AWS), IBM Corporation (Red Hat, Inc.), and others, are developing OS integrated with advanced technologies.



  • September 2021 – Microsoft Corporation launched an advanced windows server that delivers innovation in hybrid, security, and containers. Windows Server 2022 offers scalability improvements such as support for 2,048 logical cores running on 64 physical support, and 48TB of memory support.

  • November 2021 – Red Hat Enterprise Linux (RHEL) launched the 9 Beta version with advanced features and improvements. RHEL Beta 9 is created on kernel upstream type 5.14 and facilitates a preview of major updates of RHEL. This is designed for hybrid multi-cloud deployments, on-premises, physical, public cloud, and edge computing.


KEY INDUSTRY DEVELOPMENTS:



  • September 2021 – Trend Micro, Inc. launched a Cloud data center in India to provide data sovereignty and data security in the country. The data center was launched to assist enterprises in securely adopting the operating system for servers with a security framework.

  • January 2022 – Amazon Web Services, Inc.’s AWS launched speed optimizations solution for Microsoft Windows Server on Amazon EC2. Microsoft Windows Server provides 65% faster speed on Amazon’s Elastic Computing Cloud (EC2).


REPORT COVERAGE


An Infographic Representation of Server Operating System Market

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The global market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors contributing to the market's growth in recent years.


Report Scope and Segmentation






















































  ATTRIBUTE



   DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Operating System, Virtualization Status, Deployment Model, and Region



By Operating System




  • Windows

  • Linux

  • Unix

  • Others



By Virtualization Status




  • Virtual Machine

  • Physical

  • Virtualized



By Deployment Model




  • Cloud

  • On-premise



By Region




  • Americas (By Operating System, Virtualization Status, Deployment Model, and Country)

    • U.S. (By Operating System)

    • Canada (By Operating System)

    • Mexico (By Operating System)

    • Brazil (By Operating System)

    • Argentina (By Operating System)

    • Rest of America



  • EMEA (By Operating System, Virtualization Status, Deployment Model, and Country)

    • U.K. (By Operating System)

    • Germany (By Operating System)

    • France (By Operating System)

    • Italy (By Operating System)

    • Spain (By Operating System)

    • Russia (By Operating System)

    • Benelux (By Operating System)

    • Nordics (By Operating System)

    • Turkey (By Operating System)

    • Israel (By Operating System)

    • GCC (By Operating System)

    • South Africa (By Operating System)

    • Rest of EMEA



  • Asia Pacific (By Operating System, Virtualization Status, Deployment Model, and Country)

    • China (By Operating System)

    • India (By Operating System)

    • Japan (By Operating System)

    • South Korea (By Operating System)

    • ASEAN (By Operating System)

    • Oceania (By Operating System)

    • Rest of Asia Pacific





Frequently Asked Questions

According to Fortune Business Insights, the global market is expected to reach USD 227.77 billion by 2029.

Fortune Business Insights says that the market stood at USD 92.74 billion in 2021.

The market is expected to grow at a CAGR of 12.3% during the forecast period (2022-2029).

Linux operating system is expected to lead the market during the forecast period.

Rising adoption of cloud native environments and increasing investments in developing cloud infrastructure by the leading players are the key drivers for market growth.

Microsoft Corporation, Google LLC (Alphabet Inc.), Amazon Web Services (AWS), IBM Corporation (Red Hat, Inc.), Oracle Corporation, and SUSE Group are the top companies in the market.

The cloud segment holds the major market share.

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