The increasing memory density of servers will continue to drive demand for server memory, DRAMexchange, a research division of Taipei-based TrendForce Corp (集邦科技), said in a report on Thursday.
Server DRAM sales are expected to record 28.6 percent growth next year, the highest among all the DRAM product lines, the report said.
Moreover, the supply-demand dynamics for DRAM products will remain tight next year, with contract prices of server DRAM likely to grow further, by between 5 percent and 8 percent in the first quarter of next year, following substantial growth of 40 percent this year, the report said.
DRAMexchange said that in addition to Intel Corp’s and Advanced Micro Devices Inc’s (AMD) introduction of new server processors this year, new data center construction projects carried out by Alphabet Inc’s Google, Amazon.com Inc’s Web service unit, Facebook Inc and Microsoft Corp’s Azure cloud platform also boost the demand for server DRAM.
As for mainstream DRAM modules, price quotes for 32 gigabyte (GB) server modules from first-tier factories will hit US$300 per unit and prices will be even higher at second-tier plants, supporting high price levels during the first quarter of next year, the report said.
Driven by the surging demand for servers at data centers, global server shipments could grow 5.53 percent next year from this year, DRAMexchange said.
The demand for servers has soared in recent years due to industrial transformation and growing popularity of “smart” devices, DRAMexchange said, adding that the market shows growing demand for servers to integrate services, especially those requiring large amounts of data for computation and training, as well as those provided by virtual platforms and by cloud storage providers.
Hewlett Packard Enterprise Co, Dell Inc and Lenovo Group Ltd (聯想) are the top three server suppliers, the report said, adding that the three companies are expected to retain their dominance in the global server market next year, with market shares of 17 percent, 16 percent and 7 percent respectively in terms of shipments.
This year, the three companies’ market shares were 18 percent, 17 percent and 7 percent respectively, the report said.
Based on DRAMexchange’s analysis, a data center requires 10 million to 20 million GB of server DRAM on average.
By 2020, major global data centers will be carrying out more than 10 construction projects worldwide, of which more than 80 percent will be initiated by North American companies, the researchers said.
On the other hand, the Chinese data center market is also growing on the back of the government’s supportive policies, it said, adding that the yearly growth rate is projected to remain between 20 percent and 30 percent until 2020.
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