Rugged Servers Market

Rugged Servers Market Analysis By Offering (Rugged Servers Hardware, Software & Services) By Type (Dedicated & Standard Rugged Servers) By Memory Size, By Application & By Region – Global Market Insights 2022 to 2032

Analysis of Rugged Servers market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Rugged Servers Market Outlook (2022-2032)

The global rugged servers market was valued at US$ 506.0 Million in 2021 and is projected to register a Y-o-Y increase of 6.5% in 2022 to be valued at US$ 539.0 Million

During the 2022-2032 period of assessment, demand is expected to rise at a 5.8% value CAGR, likely to reach US$ 945.4 Million by the end of the said forecast period.

Report Attributes Details

Anticipated Base Year Value (2021)

US$ 506.0 Million

Expected Market Value (2022)

US$ 539.0 Million

Projected Forecast Value (2032)

US$ 945.4 Million

Global Growth Rate (2022-2032)

5.8% CAGR

Growth Rate of the U.S (2022-2032)

5.5% CAGR

Expected Market Value of China (2032)

US$ 68.9 Million

Growth Rate of U.K (2022-2032)

4.8% CAGR

Key Market Players

  • Dell Technologies
  • Mercury Systems
  • Siemens
  • Core Systems
  • Crystal Group

Overall, the market landscape is poised to yield an absolute dollar opportunity worth US$ 406.4 Million by 2032. Sales of rugged server systems for military and aerospace applications will continue to flourish, with a documented CAGR of 6.1% from 2015 to 2021.

Moreover, dedicated servers will continue to remain the primary type, likely to register a CAGR worth 5.3% from 2022 to 2032. North America will remain at the forefront, generating an opportunity worth US$ 329.3 Million during the forecast period.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Rugged Servers Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

The rising penetration of big data technologies, cloud computing, and other advanced technologies has prompted rugged server providers to transform services to a whole new level. As per market research and competitive intelligence provider Fact.MR, the market witnessed a staggering 6.6% CAGR from 2015 to 2021. As enterprises strive to attain a competitive edge, rugged servers are a necessity.

Consistent up-gradation of rugged servers to provide a seamless user experience is the need of the hour. By incorporating avant-garde breakthroughs, service providers are not only able to reduce operational costs, but also enhance their returns on investment. Furthermore, changing compliance and governance requirements are also widening the scope of the market growth.

In the future, as more businesses rely on rugged servers they are continuously innovating their approaches, ushering efficiency, enhancing quality, and improving client experience. Whether it is to migrate, transform or build, deploying the right application strategy can work miracles. From 2022 to 2032, the rugged servers market is forecast to grow nearly 2x.

Prominent Rugged Servers Market Growth Drivers

Increasing use of IoT in industries increases demand for the rugged servers market

Extensive usage of rugged servers in military and aerospace, telecommunication, and Industries are some of the factors influencing the growth of the rugged server market in forecasting years. High digitalization in every sector boosts the growth of the market.

The rising importance of the mobile workforce and the need to access information anytime, anywhere has led enterprises to adopt rugged servers which in turn is boosting the growth of this market.

Increasing investment by the government for the development of the latest technologies to maintain their competitive edge over other companies has resulted in an increasing demand for rugged Servers which further fuels the growth of this market.

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Key Challenges Prevalent in the Global Rugged Servers Market

Data Privacy and Security Concerns may Impede Growth Prospects

High expenses related to deploying these servers and data security concern at remote locations limits the growth of the market in the forecasting period. As they are utilized in severe conditions and are frequently deployed in remote areas, automatic security procedures are required to protect against theft, malfunction, accidents, and malicious assaults.

Rugged servers are also prone to hacking and virus attacks that majorly result in the loss and misuse of valuable information and adversely affect industrial operations by disrupting the overall security mechanism. Security is the major concern for the processing and manufacturing industries. Thus rising data privacy and security concerns may hinder the market growth.

Influenced by high costs and the threat of data theft, several small-scale industries are keeping away from leveraging rugged server services. Organizations and industries are not completely capable to offer optimal performances because of the high administration and maintenance costs.

However, cost-cutting solutions and technological advancements have influenced the growth in the market size. It is very necessary to maintain a balance between these things to get positive growth in the rugged servers’ market share.

Rugged servers market forecast by Fact.MR

Country-wise Analysis

What is the Growth Outlook for the Rugged Servers Market in the U.S?

The growing need for digitalization and IoT widens the growth Opportunities

According to Fact.MR, demand for rugged server market in the U.S is likely to expand at a 5.5% value CAGR until 2032, forecast to yield an opportunity worth US$ 137.4 Million. Demand is further expected to be valued at US$ 329.3Million by the end of the said forecast period.

Growth is attributed to the extensive digitization of professional workspaces to streamline workflow and enhance productivity. With the emergence of industrial IoT and digitization, research and development activities and high-end advancements in the US and Canada will increase the demand for rugged servers market in the region.

Also, the rising demand for improved process flexibility and enhanced efficiency, minimizing the operation and maintenance costs in discrete industries, and harmonized production processes for effective supply-chain management are adding to the global rugged servers market growth over the forecast period. Furthermore, increasing defense spending is the major factor responsible for anticipated growth in this regional segment during the forecast period.

Will China emerge as an Attractive Rugged Servers Market?

The rising adoption of cloud-based platforms in major industries will propel the growth of the market

The rugged servers market in China is poised to yield a dollar opportunity worth US$ 27.7 Million from 2022-2032, anticipated to expand at a CAGR of 5.3%. Furthermore, the country is anticipated to reach a valuation of US$ 68.9 Million by the end of the said forecast period. Extensive migration towards cloud-based business models as a part of business innovations is propelling the market growth. Increased use of high technology and cloud-based services led to significant growth in the market.

Also, emerging as the pinnacle of the global digital transformation and telecommunications, China is likely to present highly attractive growth opportunities for rugged server service providers in the long –run.

Moreover, technological developments in R&D activities and the minimization of maintenance and operating costs in different sectors are anticipated during the forecast timeframe to accelerate the adoption of rugged servers in the country's industrial applications. Also, the increasing need for secure data transfer and ongoing advancements in wireless cellular infrastructure is adding to the global market growth in the region.

Country-wise Forecast CAGRs for the Rugged Servers Market









South Korea


Category-wise Insights

Rugged Servers in Military and Aerospace to be Top Growth Driver in the Coming Years

According to Fact.MR Military and aerospace is likely to remain the top application category, growing at a value CAGR of 5.6% from 2022 to 2032.  As these servers are designed to meet the operating temperatures, environmental conditions, and shock and vibration requirements of the most demanding environments.

In the military and aerospace, communication systems and several weapons are being connected to computers such solutions are particularly designed to deliver high performance and reliability in harsh environments.

Demand is increasing due to the requirement of maintaining data consistency across independently designed applications, orchestrating the integrated flow of multiple activities by disparate applications, and providing access to data and functionality from independent applications.

Dedicated Servers to account for the highest growth based on Server Type

On the basis of type rugged servers are categorized into dedicated and standard servers, from which the dedicated servers segment accounts for the highest CAGR of 5.3% through the forecasted period.

As dedicated rugged servers are the most appropriate servers to work under such critical situations like critical temperatures, vibrations, or dusty conditions and are manufactured in compliance with the particular specifications associated with these applications. They are specifically used in the military & aerospace and industrial sectors. The standard servers also generated significant demand for the rugged servers market.

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Competitive Landscape

The global market for rugged servers is characterized by the presence of multiple vendors, aiming to offer extensive consulting and integration services to clients. Additionally, enterprises are seeking out, specialized service providers, offering solutions tailor-made to suit their business objectives. In addition, the vendors are likely to leverage up-gradation to gain an edge over other competitors in the market.

  • In April 2022, Crystal Group, Inc., a leading designer, and manufacturer of rugged computer and electronic hardware, announced its first VMware-validated configuration of virtualization-enabled servers. In collaboration with Intel and VMware, Crystal Group developed its VMware Validated Solution to consolidate the work of multiple discrete hardware solutions into a single, hyper-converged system. This software-agnostic, hyper-converged system combines real-time automation, remote management, cybersecurity, auto failover, and zero-trust security features for utilities as they pursue significant power grid modernization efforts.
  • In November 2021, Mercury Systems, a leader in trusted, secure mission-critical technologies for aerospace and defense, completes the acquisition of Avalex Technologies. The acquisition is directly aligned with strategy and will enable the growing demand for digitally converged solutions in the C4I and platform/mission management markets.

Key Segments Covered in the Rugged Servers Market Study

  • By Offering :

    • Hardware
    • Software & Services
  • By Type :

    • Dedicated
    • Standard 
  • By Memory size :

    • <256 GB
    • From 256 GB- 512 GB
    • >512GB-1TB
    • >1TB
  • By Application :

    • Military and Aerospace
    • Telecommunication
    • Industrial Applications
    • Energy & Power
    • Marine Applications
    • Other Applications
  • By Region :

    • North America
    • Europe
    • Asia Pacific
    • Middle East and Africa
    • Latin America

- FAQs -

At what value will the market for rugged servers close in 2032?

By 2032, the market for rugged servers is likely to be valued at US$ 945.4 Million.

What is the expected worth of the rugged server market industry in 2022?

Fact.MR expected demand for the rugged server market to reach US$ 539.0 Million by 2022.

Which server type will account for the maximum rugged server market revenue?

Dedicated servers will account for maximum revenue, expanding at a 5.3% CAGR

What is the expected forecast CAGR for the rugged server market from 2022-2032?

From 2022-2032, rugged server market demand is likely to surge at a 5.8% CAGR

What is the expected market value for the U.S rugged server market?

By 2032, Fact.MR expects the U.S market for the rugged server to reach US$ 329.3 Million

How opportunistic is the Chinese market for rugged servers?

China is expected to register a 5.3% CAGR with regard to the rugged server market industry

What is the expected growth rate for the U.K market?

U.K is expected to document a CAGR worth 4.8% in the rugged server market

By Application type, which category is likely to remain prominent until 2032?

Military and aerospace will remain most sought after, expanding at CAGR of 5.6% until 2032

What was the market worth for the rugged server market in 2021?

As of 2021, Fact.MR estimated the rugged server market to have reached US$ 506.0 Million

At what CAGR did the rugged server market flourish from 2015-2021?

From 2015-2021, the rugged server market grew at a 6.6% value CAGR

Rugged Servers Market

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