Rugged Servers Market Analysis and Forecast by Size, Share, Growth, Trends 2030

The rugged servers market size is projected to reach US$ 976.69 million by 2030 from US$ 632.81 million in 2022. The market is expected to register a CAGR of 5.6 % during 2022–2030. The development of advanced rugged servers is likely to remain a key trend in the market.

Rugged Servers Market Analysis

In manufacturing industries, rugged servers are used in applications such as robotics, automation, and process control systems, where reliability and durability are essential. Manufacturers increasingly seek advanced technologies to simplify production plant operations and scale manufacturing volumes. The adoption of consumer-grade servers and industrial computers has increased in the manufacturing industry as rugged servers are reliable and durable and can overcome various technical difficulties associated with consumer-grade servers—including withstanding extreme heat, dust, shock, and vibration of factory floors. The manufacturing industry uses the rugged server to collect and analyze real-time data, which helps the manufacturers improve their production supply chain.

Rugged Servers Market Overview

The demand for rugged servers is increasing in several industries, such as aerospace, defense, oil & gas, transportation, and mining, due to the rising need for data storage and computing capabilities in remote and rugged locations. These servers are deployed in aircraft, military vehicles, mining sites, offshore platforms, and other rugged environments where regular servers may fail to function effectively. Rugged servers deliver high-performance computing, data storage, and cyber protection for seamless, real-time communications and networking, situational awareness, surveillance, weapons control, and autonomous vehicles. These servers provide powerful computing capabilities, enabling them to quickly and accurately analyze large and complex data sets to reduce exploration costs. Further, the oil and gas facilities and pipeline stations regularly store and dispense large combustible and flammable liquids. As gas, vapor, or dust can accumulate in different areas of electronic systems installed for automation and control, they should be designed to resist the unintentional ignition of explosive and flammable gases and liquids by electrical arcing or other thermal means.

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Rugged Servers Market: Strategic Insights

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Rugged Servers Market Drivers and Opportunities

Growing Oil & Gas and Mining Sectors to Favor Market

Oil & gas and mining sectors have been experiencing significant growth in the US over the years. Oil & gas and mining are the two most attractive sectors from the technology developer's perspective, as these two industries are becoming increasingly popular for advanced technologies. The adoption of advanced technologies continues to prevail, with increasing attraction toward sophisticated and rugged data centers and servers. As oil & gas and mining industries experience harsh environments, which degrade the quality of traditional data centers and servers, the demand for rugged data centers and servers is increasing, fueling market growth. The oil & gas sector is witnessing substantial growth in the US. According to the Energy Information Administration (EIA), in 2022, the US natural gas production grew by 4%, to 4.9 billion cubic feet per day [Bcf/d] compared to 2021. Out of the total natural gas production, Appalachia, Permian, and Haynesville accounted for 60% in 2022. Also, as per the same source, the crude oil production in the country is anticipated to average 12.4 million barrels per day (b/d) in 2023 and 12.8 million b/d in 2024. Thus, such growth in oil and gas extraction is surging the adoption of advanced technologies, data security concerns, and a vast amount of data maintenance.

Developments in Energy & Power Industry

The energy & power industry is among the fastest-growing industries in the US. According to EIA, the renewable energy capacity, mostly from wind and solar, will reduce electricity generation from coal-fired and natural gas-fired power plants in 2023-2024. In 2022, wind and solar accounted for 14% of US electricity generation. The electricity generation from wind and solar is expected to rise to 16% in 2023 and 18% in 2024. In April 2022, Crystal Group Inc.—a leading designer and manufacturer of rugged computer and electronic hardware—launched the CMS-01171, the first iteration of the ES373S17 substation server, the first VMware-validated configuration of virtualization-enabled servers. This system combines real-time automation, cybersecurity, auto-failover, remote management, and zero-trust security features for power grid modernization. Thus, such growing advancements by the market players will further propel the market growth.

Rugged Servers Market Report Segmentation Analysis

Key segments that contributed to the derivation of the rugged servers market analysis are type, application and technology.

• Based on the type, the rugged servers market is segmented as universal and dedicated.
• In terms of end user, the market is segmented into aerospace, oil & gas, manufacturing, telecommunication, mining, energy, logistics, construction, and others.

Rugged Servers Market Share Analysis by Geography

The geographic scope of the rugged servers market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The US, in particular, has a strong demand for rugged servers in military applications and aerospace industries, as rugged servers are majorly deployed to sustain extreme conditions, harsh weather, and vibrations. The US rugged server market growth is attributed to high investments by the US Department of Defense in IT modernization programs. Defense Department spending is expected to reach US$ 842 billion in fiscal year 2024, a 3.2% increase from the spending in FY2023, under the budget proposal released by the Biden administration.

Rugged Servers Market Regional Insights

The regional trends and factors influencing the Rugged Servers Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Rugged Servers Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Rugged Servers Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Rugged Servers Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Rugged Servers Market are:

1. Core Systems Inc
2. Crystal Group Inc
3. Mercury Systems Inc
4. Systel Inc
5. Trenton Systems Inc

Disclaimer: The companies listed above are not ranked in any particular order.

Rugged Servers Market News and Recent Developments

The rugged servers market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the rugged servers market are listed below:

• Expando AB has won a substantial order valued at over SEK 100 million from a prominent Nordic defense company. The order includes advanced technology and will be used on a high-profile defense platform.

(Source: Expando AB, March 2022)

• Mercury Systems Inc. secures mission-critical technologies for aerospace and defense. It announced it received a $56 million contract award from a leading defense prime contractor to facilitate the rapid data processing requirements for a defense radar application. (Source: Mercury Systems Inc., June 2023)

Rugged Servers Market Report Coverage and Deliverables

The “Rugged Servers Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• rugged servers market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• rugged servers market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• rugged servers market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the rugged servers market
• Detailed company profiles