Server Operating System Market: The Shift Towards Subscription Models

The global server operating system market size was valued at USD 16.9 billion in 2021 and is projected to reach USD 36.3 billion by 2030, expanding at a CAGR of 8.5% from 2022 to 2030. Market growth is primarily driven by increasing enterprise investments in building advanced and resilient data center infrastructures.

Furthermore, the growing adoption of hybrid cloud environments and the accelerated deployment of 5G networking technologies are propelling market expansion. However, factors such as high server downtime, elevated operational costs, and a shortage of skilled IT professionals in data centers are restraining growth. On the other hand, continuous technological advancements and heightened security requirements are expected to create significant opportunities for market players over the forecast period.

Leading cloud service providers are investing heavily in expanding global cloud infrastructure. For example, in July 2021, Google LLC launched India’s advanced infrastructure cloud development project. Earlier in 2020, Google invested nearly USD 4.5 billion in Jio Platforms to support the country’s digitization. As of July 2021, Google operated 79 cloud zones, 26 cloud regions, and 146 cloud availability points worldwide.

The COVID-19 pandemic had a notable impact on the global economy, driving recessions across industries. According to the United Nations Conference on Trade and Development (UNCTAD), global GDP fell by 4.3% in 2020. The pandemic reduced end-user spending on data center infrastructure and IT investments, temporarily slowing market growth. However, the rapid migration to cloud platforms and the widespread shift to remote working boosted long-term demand.

The pandemic also accelerated digital transformation and global adoption of internet-based services. As organizations embraced remote collaboration, the need for data centers and virtual technologies rose significantly. Post-pandemic, enterprises are actively modernizing digital infrastructure, which continues to fuel demand for cloud services and advanced server operating systems.

Key Market Highlights:

• North America held the largest revenue share of over 35% in 2021.
• Asia Pacific is forecasted to record the fastest CAGR of 11.1% from 2022 to 2030.
• By operating system, the Windows segment accounted for over 55.0% revenue share in 2021.
• By virtualization, the virtual machine segment dominated with more than 55.0% revenue share in 2021.
• By deployment, the on-premise segment captured over 50% share in 2021.

Download a free sample PDF of the Server Operating System Market Intelligence Study from Grand View Research.

Market Performance:

• 2021 Market Size: USD 16.9 Billion
• 2030 Projected Market Size: USD 36.3 Billion
• CAGR (2022–2030): 8.5%
• North America: Largest market in 2021
• Asia Pacific: Fastest-growing market

Prominent Companies & Market Dynamics

The server operating system market is highly fragmented, with strong competition among global and regional players. Key companies are adopting strategies such as partnerships, collaborations, and product innovations to expand market presence. For instance, in September 2022, IBM introduced its next-generation LinuxONE server — a Linux and Kubernetes-based platform designed to run thousands of workloads within a single system. The IBM LinuxONE Emperor 4 also features technologies that help reduce customer energy consumption.

Key Companies:

• Cisco Systems, Inc.
• IBM Corporation
• Oracle
• Amazon Web Services
• NEC Corporation
• Microsoft Corporation
• Unisys
• Canonical Ltd. (Ubuntu)

Explore Horizon Databook – the world’s most comprehensive market intelligence platform by Grand View Research.

Conclusion

The global server operating system market is set for consistent growth, driven by investments in data center infrastructure, increasing hybrid cloud adoption, and rapid 5G rollouts. Although challenges such as downtime costs and a lack of skilled IT personnel persist, innovations in security, cloud integration, and energy-efficient solutions are unlocking new opportunities. With North America holding the largest share and Asia Pacific leading in growth, the market will remain a vital enabler of digital transformation through 2030.