Server Shipments to Fall an Estimated 2.85% YoY in 2023
TrendForce reveals that alongside the four major CSPs reducing their procurement volumes, OEMs like Dell and HPE have also scaled back their annual shipment volume forecasts at some point between February and April, predicting YoY declines of 15% and 12%, respectively. Furthermore, server demand in China is facing headwinds due to geopolitical and economic challenges. Consequently, TrendForce projects a downward revision in global server shipment volumes for this year—a 2.85% YoY decrease at 13.835 million units.
TrendForce emphasizes that the server market in 1H23 remains pessimistic, with 1Q23 shipments experiencing a 15.9% QoQ decrease due to off-season factors and end-user inventory adjustments. The expected industry boom in 2Q23 failed to materialize, leading to a modest QoQ growth estimate of only 9.23%. Persistent influences on server shipments include OEMs lowering shipment volumes, subdued domestic demand in China, and continuous supply chain inventory adjustments. ESG issues have also led CSPs to prolong server lifecycles and reduce procurement volume. Moreover, OEMs are lengthening supports period for older platforms as businesses seek to control capital expenditures, further contributing to market strain.
TrendForce emphasizes that the server market in 1H23 remains pessimistic, with 1Q23 shipments experiencing a 15.9% QoQ decrease due to off-season factors and end-user inventory adjustments. The expected industry boom in 2Q23 failed to materialize, leading to a modest QoQ growth estimate of only 9.23%. Persistent influences on server shipments include OEMs lowering shipment volumes, subdued domestic demand in China, and continuous supply chain inventory adjustments. ESG issues have also led CSPs to prolong server lifecycles and reduce procurement volume. Moreover, OEMs are lengthening supports period for older platforms as businesses seek to control capital expenditures, further contributing to market strain.