Global server shipments, after reaching the peak of 2020 in the second quarter, are estimated to have slipped 6% sequentially in the third quarter as demand began to turn weak and will drop further in the fourth quarter.
Second-quarter 2020 global server shipments enjoyed a strong growth thanks to soaring demand for cloud computing services and from the work-from-home (WFH) segment in addition to shipments deferred from the prior quarter and early inventory preparation to cope with the resurgence of the coronavirus outbreak.
According to Digitimes Research's statistics and analyses, first-quarter 2020 global server shipments are estimated to come to 3.65 million units, representing a 16.9% on-quarter drop.
Global server shipments went up 13.4% sequentially in the fourth quarter of 2019 thanks to rising demand from US large datacenter companies and China's server market. However, shipments in the first quarter of 2020 are expected to be affected by China's coronavirus outbreak.
Digitimes Research estimates that global server shipments moderately declined 1.4% in 2019 but will turn to show positive growth of 6.6% in 2020, totaling 16.01 million units.
Global server shipments grew 11.2% sequentially in third-quarter 2019 with inventory depletion that began from the second-half 2018 to first- and second-quarter 2019 coming to an end.
According to Digitimes Research's observation, the server market is experiencing sluggish growth in 2019 with customer inventory level running high. However, as inventory depletion comes to an end, businesses continue to engage in digital transformation, AI applications become more and more popular and cloud service operators aggressively promote hybrid cloud, global server shipments are expected to grow 5% in 2020, and the growth momentum can sustain for the medium to long term.
Global server shipments amounted to 3.26 million units in first-quarter 2019, down 10.7% compared to the prior quarter and 9.4% to the corresponding period of 2018.
According to Digitimes Research's statistics and analyses, as previously forecast, weakening demand, delayed transition to new platforms and high levels of first-half 2018 shipments resulted in a decline in global server shipments in fourth-quarter 2018.
According to Digitimes Research statistics and analyses, Taiwan-based server vendors, including suppliers of motherboards, end systems, storage devices and related network equipment, continue to enjoy growth in 2018. In terms of volume, global server shipments will show continuing growth throughout 2018 and 2019.
