What Has Been the Growth of the Micro Server IC Market So Far?
The micro server ic market has seen considerable growth due to a variety of factors.
•In recent times, the market size of micro server IC has experienced rapid growth. It is projected to expand from $1.66 billion in 2024 to $1.88 billion in 2025, with a compound annual growth rate (CAGR) of 13.1%.
This significant growth during the historical period can be linked to issues related to energy efficiency, an increase in motor failures, objectives to reduce costs, the implementation of predictive maintenance, and a surge in industrial automation.
What Are the Future Growth Projections for the Micro Server IC Market?
The micro server ic market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the micro server IC market is forecasted to experience substantial growth, to $3.21 billion by 2029 with a CAGR of 14.3%.
Several factors that could spur growth during this period include the need for remote monitoring, rising renewable energy initiatives, smart manufacturing efforts, attention to condition-based monitoring, concerns over cybersecurity, and integration with analytics platforms. Key trends during this forecasted period include advancements in condition-based monitoring, integration with control systems, cloud-based solutions, along with artificial intelligence (AI) and machine learning (ML), and customization tailored for particular industries.
Which Factors Are Boosting Growth In The Micro Server IC Market?
The growth of the micro server IC market is predicted to be propelled by the escalating demand for new data centers. Data centers are facilities which consolidate a company's collective IT infrastructure and operations for data storage and processing. Micro server ICs are gaining popularity in data center applications due to their cost-efficiency, reduced energy consumption, and compact physical size. Therefore, the upward trend in the need for new data centers is anticipated to fuel the micro server IC market. In January 2022, for example, a partnership was announced between STACK Infrastructure, a US-based IT company offering digital infrastructure, and Oaktree Capital Management L.P., a US-based asset management firm, to build a 36MW data center facility in Inzai, Japan. The project kicked off in the second quarter of 2022 and its capacity is expected to be operational in the final quarter of 2023. Furthermore, by 2030, it's projected by Huawei's Intelligent World 2030 report that the amount of data produced worldwide will surpass one yottabyte (equivalent to a quadrillion gigabytes) by 2030. Consequently, the surge in the demand for fresh data centers is propelling the expansion of the micro server IC market.
What Key Areas Define The Segmentation Of The Global Micro Server IC Market?
The micro server IC market covered in this report is segmented –
1) By Component: Hardware, Software
2) By Processor Type: X86, ARM
3) By Application: Web Hosting And Enterprise Application, Analytics And Cloud Computing, Edge Computing
4) By End User: Enterprises, Data Center
Subsegments:
1) By Hardware: Microprocessors, Memory Chips, Storage Devices, Networking Components, Power Management ICs, Other Hardware Components
2) By Software: Operating Systems, Middleware, Virtualization Software, Management Software, Application Software, Other Software Solutions
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How Are Emerging Trends Reshaping The Dynamics Of The Micro Server IC Market?
Product innovation is emerging as a pivotal trend in the micro server IC market. Dominant companies in this market are emphasizing the creation of superior products. For instance, Intel Corporation, hailing from the US and known for its semiconductor manufacturing, unveiled its Xeon 6 server processors in June 2024, marking a notable leap in data center technology. These new processors are specifically crafted to optimize both performance and power efficiency, catering to the escalating needs of present-day data centers. Intel pronounces that the Xeon 6 processors produce up to 2.6 times greater performance per watt relative to their predecessors, putting them among the most energy-saving options available in the market. This introduction is part of Intel's plan to bolster its foothold in the AI and cloud-native application areas, blending hardware enhancements with improved software features. The Xeon 6 processors have been engineered to collaborate smoothly with Intel’s Gaudi AI accelerators, aiming at high-demand applications like AI model training and inference.
Who Are the Key Players in the Micro Server IC Market?
Major companies operating in the micro server IC market include:
• Intel Corporation
• Advanced Micro Devices Inc.
• Hewlett Packard Enterprise Development LP
• Dell Technologies Inc.
• Fujitsu Limited
• Super Micro Computer Inc.
• Huawei Technologies Co. Ltd.
• Quanta Computer Inc.
• Qualcomm Technologies Inc.
• Tyan Computer Corporation
• MiTAC Holdings Corp.
• Penguin Computing Inc.
• NEC Corporation
• Inspur Group Co. Ltd.
• Lenovo Group Limited
• ASUSTeK Computer Inc.
• Cisco Systems Inc.
• Inventec Corporation
• Foxconn Technology Group
• ZT Systems Company
• Aaeon Technology Inc.
• Arm Holdings plc
• Ampere Computing LLC
• Marvell Technology Group Ltd.
What Is The Most Dominant Region In The Micro Server IC Market?
North America was the largest region in the micro server IC market in 2024. The regions covered in the micro server IC market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
