TrendForce Jibang: global server shipments will be revised down to 13.835 million units in 2023, down 2.85% from the same period last year.
CTOnews.com, May 19, according to a research report released by TrendForce Jibang WeChat, due to the four major CSP (CTOnews.com note: cloud service providers) have reduced their procurement volume, OEM such as Dell and HPE also lowered their annual shipment forecasts during February to April, a decrease of 15% and 12% respectively compared with the same period last year. Coupled with the impact of the international situation and economic factors, the outlook for server demand is not good. The report estimates that global server shipments this year will be further revised down to 13.835 million units, down 2.85 per cent from the same period last year.
TrendForce Jibang Consulting said, "the server market situation in the first half of the year is not optimistic. In the first quarter, due to the off-season effect and terminal inventory correction, server shipments decreased by 15.9% month-on-month. In the second quarter, due to the fact that the previous peak industrial season did not happen as scheduled, the quarter-on-month growth forecast is only 9.23%." In addition, in addition to the continuous impact on server shipments such as the reduction of shipments by OEM and the continuous adjustment of inventory in the supply chain, the ESG issue enables CSP to extend the useful life of servers, thereby reducing procurement volume, while complying with enterprise control of capital expenditure, and OEM increasing the support life of the old platform is also one of the reasons affecting market conditions. "
TrendForce Jibang Consulting said, "at the same time, ChatBOT, which is hotly discussed in the market this year, will indeed drive AI server shipments, including Microsoft, Google and other cloud service providers. The report estimates that AI server shipments will grow by more than 10% in 2023 compared with the same period last year. However, since AI servers still account for less than 10% of total server shipments, it is not possible to reverse the overall server weakness."
TrendForce Jibang Consulting said, "overall, whether the server market can be reversed this year needs to observe the speed of inventory destocking. Based on the current progress, it will be as short as the second half of this year; as long as the first half of 2024. At the same time, the progress of inventory deregulation will also affect the introduction schedule of the new platform and reduce the willingness of the original factory to change production and price reduction. According to the current market forecast, it is still not ruled out that server shipments will continue to be revised throughout the year."
