Japan's PC server market grew almost 25 per cent in 2005, Tokyo-based MM Research Institute (MMRI) reported this week. Shipment value increased almost 20 per cent to $1.83bn. Just over half a million units were shipped.

"There are two major reasons for the growth," MMRI said in a press release. "Major telecoms companies invested heavily on servers throughout the year and, in the second half, investments by major and medium-sized companies in manufacturing and distribution recovered gradually."

MMRI expects the market to continue to expand in 2006 as Japan's economy recovers from recession. The firm predicts shipments to grow 12.8 per cent this year, to reach a new record of 575,000 units.