China Server Market Share

by btobers · Published August 30, 2025 · Updated February 12, 2025

The server market in China has evolved significantly over the past decade, becoming one of the largest and most competitive markets in the world. With rapid advancements in cloud computing, data centers, and digital infrastructure, China’s server market is witnessing robust growth. The increasing demand for cloud-based services, artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) has made servers a fundamental component in the backbone of modern technology.

As one of the largest economies globally, China has positioned itself as a leader in technological innovation, with the server market benefiting from large-scale infrastructure projects, a booming digital economy, and the expansion of e-commerce, entertainment, and online services. In 2023, the server market in China is valued at approximately ¥140 billion (around $20 billion), with a consistent growth rate of 12-15% annually. The market is primarily driven by increasing demand for processing power, storage solutions, and network connectivity.

The Chinese server market is highly diverse, with various players involved in different segments, including server manufacturers, cloud service providers, data center operators, and system integrators. Major global players, such as Dell Technologies, Hewlett Packard Enterprise (HPE), and Lenovo, dominate the server landscape, but there is also significant competition from local players, including Huawei, Inspur, and Baidu, which have gained substantial market share through their specialized offerings and focus on local needs.

Key Drivers of the Market

Cloud Computing Growth

One of the primary drivers of the server market in China is the rapid adoption of cloud computing services. The rise of cloud platforms has driven substantial demand for high-performance servers to manage large volumes of data, enable AI processing, and support applications in sectors such as finance, healthcare, e-commerce, and entertainment. China’s cloud computing market is expected to surpass ¥600 billion ($87 billion) in 2023, contributing directly to the growth of the server market.

The rise of major Chinese cloud providers such as Alibaba Cloud, Tencent Cloud, and Baidu AI Cloud has created a continuous need for servers capable of handling vast amounts of data and providing scalable solutions. The development of cloud infrastructure has led to greater server demand from both public and private sectors, including companies in industries ranging from telecommunications to manufacturing.

Data Center Expansion

The expansion of data centers across China is another significant driver of server market growth. Data centers house the infrastructure that powers cloud computing, e-commerce, online gaming, and digital services, and China is rapidly building large-scale, energy-efficient data centers to support these industries. In 2023, the Chinese data center market is valued at around ¥300 billion ($43 billion), with servers being essential for their operation.

The Chinese government’s emphasis on data security and the need for domestic data storage has also driven the growth of data centers. With more businesses and organizations migrating to digital-first operations, data centers have become critical assets in the digital economy, further boosting the demand for powerful and reliable server infrastructure.

Artificial Intelligence and Big Data

Artificial intelligence (AI) and big data analytics are driving demand for powerful server infrastructure that can handle complex computations and large-scale data processing. China’s AI sector is expanding rapidly, with significant investments in AI research and development across industries like finance, automotive, healthcare, and robotics. Servers capable of supporting AI training, deep learning, and high-performance computing (HPC) workloads are essential for powering this revolution.

The rise of AI and big data applications in China is expected to continue pushing the server market forward, especially in terms of increasing the demand for specialized servers designed for high-performance computing. With China positioning itself as a leader in AI development, server manufacturers are working on providing the infrastructure needed to support AI workloads, which require faster processing speeds, more memory, and efficient data storage solutions.

Major Segments in the Server Market

Enterprise Servers

Enterprise servers form a significant portion of the Chinese server market, particularly for businesses and organizations that require large-scale infrastructure to support their digital operations. These servers are used in data centers, cloud platforms, research institutions, and businesses with large IT requirements. The enterprise server market includes both traditional on-premises servers and virtualized server solutions designed to support cloud computing and large databases.

The enterprise server market in China is valued at approximately ¥80 billion ($12 billion) in 2023, making up about 60% of the total server market. These servers are critical for enterprises that need high availability, scalability, and processing power for applications such as ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), big data analysis, and other business-critical operations.

Cloud Servers

Cloud servers are another dominant segment of the server market in China, driven by the rapid adoption of cloud services by both large enterprises and small-to-medium businesses. Cloud servers offer businesses flexibility, scalability, and cost-efficiency compared to traditional on-premises solutions. In the past decade, China’s leading cloud service providers, including Alibaba Cloud, Tencent Cloud, and Baidu Cloud, have expanded their infrastructure and cloud offerings, fueling demand for servers capable of supporting cloud-based applications and services.

The cloud server segment in China is valued at around ¥35 billion ($5 billion) in 2023, accounting for 25% of the market share. The shift toward cloud-based solutions, as more businesses seek to reduce costs and improve efficiency, continues to drive the demand for cloud server infrastructure.

High-Performance Computing (HPC) Servers

High-performance computing (HPC) servers are specialized machines used for demanding computational tasks, such as scientific simulations, weather forecasting, research computing, and deep learning. In China, HPC servers are increasingly being used in AI research, medical research, and large-scale financial modeling. As China invests heavily in innovation and technological development, the demand for HPC servers is rising.

The HPC server market in China is valued at approximately ¥15 billion ($2.2 billion) in 2023, and it is projected to grow rapidly, driven by the increasing need for computational power across industries like AI, big data, healthcare, and national defense. HPC servers are also being deployed by academic institutions, research centers, and government agencies working on complex simulations and analysis.

Storage Servers

Storage servers are critical for businesses and organizations that require vast amounts of storage capacity for their data. These servers are designed to store, manage, and back up large volumes of data, ensuring that businesses can access their information efficiently and securely. As the amount of data generated by businesses and consumers continues to grow exponentially, storage servers have become indispensable.

The storage server segment in China is valued at approximately ¥10 billion ($1.5 billion) in 2023. Businesses are investing heavily in storage infrastructure to support the growing volume of data generated by digital services, IoT devices, and big data applications. With the rapid growth of data centers and the expansion of cloud computing services, the demand for storage servers will continue to increase.

Major Players in the Chinese Server Market

Lenovo

Lenovo is the leading player in China’s server market, holding an estimated market share of around 25% in 2023. The company’s success in the server market is attributed to its extensive product portfolio, including enterprise servers, HPC servers, storage solutions, and cloud infrastructure. Lenovo’s data center solutions cater to a wide range of businesses, from small startups to large enterprises, providing them with scalable and reliable server infrastructure.

In addition to its strong domestic presence, Lenovo has a significant international footprint, with products used by businesses and organizations in North America, Europe, and Asia. Lenovo’s market value in the Chinese server market is estimated to be ¥35 billion ($5 billion) in 2023.

Lenovo’s Key Strengths

Strong product portfolio: Lenovo offers a diverse range of servers, including enterprise, HPC, and storage solutions, catering to a wide range of business needs.
Global presence: Lenovo’s strong international presence gives it a competitive advantage in terms of reach and market share.

Inspur

Inspur is another leading player in China’s server market, with an estimated market share of around 20% in 2023. As one of the largest IT solution providers in China, Inspur manufactures a broad range of server products, including enterprise servers, HPC systems, storage servers, and cloud computing infrastructure. The company is a key supplier to China’s cloud service providers, data centers, and research institutions.

Inspur has capitalized on the growing demand for high-performance computing and data center infrastructure in China, and it has become a dominant force in the Chinese server market. Inspur’s market value in China’s server sector is estimated to be ¥28 billion ($4 billion) in 2023.

Inspur’s Key Strengths

Comprehensive solutions: Inspur provides end-to-end solutions, including hardware, software, and cloud services, helping it maintain a strong position in the market.
Strong partnerships: The company has established key partnerships with Chinese cloud providers and enterprises, ensuring steady demand for its products.

Huawei

Huawei, a leading telecommunications and IT company, is another major player in China’s server market. The company holds a market share of around 15% in 2023, and its server division has seen rapid growth due to the increasing demand for cloud computing, AI, and big data applications. Huawei’s server solutions are known for their reliability, performance, and scalability, making them popular among enterprise customers and cloud providers.

Huawei’s market value in the server sector is estimated to be ¥20 billion ($2.9 billion) in 2023. The company’s focus on innovation, particularly in the fields of 5G, AI, and cloud computing, has helped it remain competitive in the rapidly evolving server market.

Huawei’s Key Strengths

Advanced technology: Huawei is known for its cutting-edge technologies in the fields of cloud computing, 5G, and AI, which enhances the performance of its server offerings.
Strong brand reputation: Huawei’s established reputation in telecommunications and IT gives it an edge in securing high-profile contracts and partnerships.

Dell Technologies

Dell Technologies is a key global player in the Chinese server market, with an estimated market share of around 10% in 2023. Dell’s product offerings include enterprise-grade servers, storage solutions, and high-performance computing systems designed for businesses and data centers. The company’s servers are widely used across industries, including finance, healthcare, and e-commerce, and its solutions are known for their reliability, performance, and scalability.

Dell Technologies’ market value in China’s server market is estimated to be ¥14 billion ($2 billion) in 2023. The company continues to focus on expanding its presence in the Chinese market, especially as demand for cloud infrastructure and big data processing grows.

Dell’s Key Strengths

Global expertise: Dell has a strong international reputation and experience in providing enterprise-grade server solutions to businesses of all sizes.
Focus on innovation: The company continually invests in R&D to improve the performance and efficiency of its server products, especially in the areas of AI and data analytics.

Future Trends and Market Outlook

Cloud Computing and AI Integration

As cloud computing and AI continue to grow, the demand for powerful and efficient server infrastructure will increase. Servers designed to handle high-performance computing (HPC) workloads, AI processing, and big data analytics will be in high demand, creating new opportunities for server manufacturers to develop specialized hardware and software solutions.