The global server operating system market size was valued at USD 16.9 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030. The growth of the market is attributed to the increase in business spending on constructing a robust data center infrastructure. In addition, the rising adoption of hybrid cloud environments and increasing deployments of 5G networking technologies fuel the expansion of the market. However, the high server downtime and costs associated with server operating systems and the lack of trained IT personnel in data center facilities are limiting the industry growth. In contrast, technological advancements and rising security requirements in infrastructure are anticipated to provide lucrative growth opportunities for the market during the forecast period.
The leading participants in cloud computing are investing significantly in the global development of cloud infrastructure. For instance, in July 2021, Google LLC launched India's advanced infrastructure cloud development project. In 2020, the company invested approximately USD 4.5 billion in Jio Platforms for the country's digitization. Google LLC has approximately 79 cloud zones, 26 cloud regions, and 146 cloud availability points globally as of July 2021.
The COVID-19 pandemic has severely impacted all industries in the global economy, causing severe recessions globally. According to the United Nations Conference on Trade and Development (UNCTAD), it resulted in a 4.3% decline in the global gross domestic product in 2020. In addition, the pandemic has reduced end-user spending on data center infrastructure and overall IT investment. The reduction in IT technology as a whole has slowed the growth of the market. On the other hand, the increase in enterprise migration to the cloud and the rise in work from home are anticipated to enhance the market growth over the long run.
The pandemic gave an enormous boost to digital transformation and internet services worldwide with a major part of the companies and industries that have started collaborating and working from home. The need for data centers has increased since technologies that operate remotely are required to keep businesses operating during the pandemic. Following the pandemic, a new business environment has emerged, boosting cloud services and digitization as businesses modernize their digital infrastructure to support better working practices.
The windows segment accounted for the largest revenue share of over 55.0% in 2021 and is expected to dominate the market over the forecast period. Windows offers both cloud and on-premise solutions and is the most popular operating system used by businesses because it provides multiple features within a single platform, including enhanced security, easier administration of server core, automated client connectivity, and other features, which make it simpler for developers to manage and operate servers.
The Linux segment is expected to register the highest growth rate of 12.4% during the forecast period. Linux has become the foundation of enterprise computing as a result of the increased need for cloud computing and growing interest in virtualization and mobile technologies. In addition, openstack's adoption for cloud computing will be a natural driver for Linux.
The virtual machine segment accounted for the largest revenue share of over 55.0% in 2021 and is expected to continue to dominate the market over the forecast period. Organizations use virtual machine software to benefit from virtual desktop infrastructure (VDI). VDI deployments enable users to access desktop environments such as Windows or open-source operating systems such as Linux from a remote location. VMs also offer numerous advantages to organizations, such as cost savings, scalability, and security.
The physical segment is expected to expand at a CAGR of 8.8% during the forecast period. As physical servers offer ideal performance, better levels of enhanced security, and the flexibility to fully customize hardware and software architecture, they are superior to virtual servers. Companies utilize dedicated or physical servers because they offer simple and flexible scalability, the flexibility to dedicate resources to a specific use case, customization options, and high-security options.
The on-premise segment held the largest revenue share of over 50.0% in 2021. Due to the rising demand among SMEs, on-premise deployment is expected to grow in the years to come. On-premise deployment is expected to grow rapidly in the industry because it gives customers full access to their data, apps, and infrastructure while lowering operating costs and increasing security.
The cloud segment is expected to expand at a CAGR of 12.1% during the forecast period. Cloud deployment enables organizations to provide functionality with greater flexibility and efficiency. The primary benefits of cloud adoption for operating systems are lower costs and easy maintenance. Organizations can gain access to a large number of server operating systems and cloud platforms to conduct analysis and mapping using cloud-based solutions.
North America dominated the market with a revenue share of over 35.0% in 2021 and is anticipated to retain its position over the forecast period. Americans are anticipated to lead the global market due to the rising demand for server operating systems and the expansion of internet applications. Using Artificial Intelligence (AI) technology, the server operating system is utilized to manage many applications such as storage management and server management.
Asia Pacific is expected to expand at the highest CAGR of 11.1% during the forecast period. The market is being driven by the increasing adoption of cloud computing solutions across numerous businesses. As a result, several regional market participants are boosting their investments in cloud computing services. Several companies are even focused on providing server operating system services.
The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are undertaking strategies such as partnerships, collaborations, and product launches to survive the highly competitive environment and expand their business footprints. For instance, in September 2022, IBM revealed the next model of its LinuxONE server, a highly flexible Linux and Kubernetes-based platform designed to accommodate thousands of workloads inside the footprint of a single system1. IBM LinuxONE Emperor 4 includes technologies that can lower the energy usage of customers. Some prominent players in the global server operating system market include:
Cisco Systems, Inc.
Amazon Web Services
Canonical Ltd. (Ubuntu)
Market size value in 2022
USD 18.92 billion
Revenue forecast in 2030
USD 36.3 billion
CAGR of 8.5% from 2022 to 2030
Base year for estimation
2017 - 2020
2022 - 2030
Revenue in USD million and CAGR from 2022 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Operating system, virtualization, deployment, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Rest of Europe; China; India; Japan; Australia; South Korea; Rest of Asia Pacific; Brazil; Mexico; Argentina; Rest of Latin America; Saudi Arabia; South Africa; Rest of Middle East and Africa
Key companies profiled
Cisco Systems; Inc.; IBM Corporation; Oracle; Amazon Web Services; NEC Corporation; Microsoft Corporation; Unisys; Canonical Ltd. (Ubuntu)
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global server operating system market report based on operating system, virtualization, deployment, and region:
Operating System Outlook (Revenue, USD Million, 2017 - 2030)
Virtualization Outlook (Revenue, USD Million, 2017 - 2030)
Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Rest of Europe
Rest of Asia Pacific
Rest of Latin America
Middle East & Africa
Rest of MEA
b. The global server operating system market size was estimated at USD 16.9 billion in 2021 and is expected to reach USD 18.92 billion in 2022.
b. The global server operating system market is expected to grow at a compound annual growth rate of 8.5% from 2022 to 2030 to reach USD 36.3 billion by 2030.
b. North America dominated the server operating system market with a market share of 39.4% in 2021. This is attributed to the massive presence of market players.
b. Some key players operating in the server operating system market include Cisco Systems, Inc., IBM Corporation, Oracle, Amazon Web Services, NEC Corporation, Microsoft Corporation, Unisys, Canonical Ltd. (Ubuntu).
b. Key factors driving the market growth include the rising adoption of cloud platforms and infrastructure to surge demand for server OS.
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