The global rugged servers market size is projected to reach USD 652 million by 2025; it is expected to grow at a CAGR of 6.5% during forecast period.

The growth of the rugged servers market is majorly driven by rising demand for industrial IoT, stringent regulatory requirements across various industries, and growing demand for rugged servers in the military, industrial, and power sectors.

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Dedicated segment expected to lead the rugged servers market in 2020

Dedicated rugged servers are expected to account for the larger share of the rugged servers market in 2020. As rugged servers are majorly used in mission-critical applications, military & aerospace, and industrial sectors are the major end users of these servers. These sectors operate under critical temepratures, vibrations, or dusty conditions; hence, access and transfer of data become difficult. Dedicated rugged servers prove to be the most suitable servers for operating in such conditions and are designed and manufactured as per the specific requirements related to these applications.

Military & aerospace application is expected to hold the largest size of the rugged servers market in 2020.

Critical missions and projects in military and aerospace sectors involve critical data that is transmitted to client devices through servers. As these missions are usually carried out in extreme environmental conditions, rugged servers are the most suitable servers to operate reliably in such conditions. Therefore, the military & aerospace application segment is expected to continue to account for the largest size of the market during the forecast period.

Rugged servers market in North America contributed the largest share in 2019.

Military & aerospace, telecommunication, and power—key end users of rugged servers—are highly established in the North American countries majorly the US and Canada, owing to high-end advancements and research & development activities. Furthermore, the growing demand for improved process flexibility and enhanced efficiency, harmonized production processes for effective supply-chain management, and minimizing the maintenance and operation costs in discrete industries are expected to boost the adoption of rugged servers in industrial applications of the country during the forecast period.

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Key Market Players

The rugged servers players have implemented various types of organic as well as inorganic growth strategies, such as product launches, product developments, parnerships, and agreements to strengthen their offerings in the market. The major players are Dell Technologies, Mercury Systems, Siemens, Core Systems, and Crystal Group.

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