Allied Market Research

Micro Server IC Market Expected to Reach $3.27 Billion By 2030


Report Code : A13137

quote “The global micro server IC market share is expected to witness a considerable growth with the gaining popularity of cloud computing. Besides, digitalization of businesses has increased IT infrastructure spending, which, in turn, propels the market growth rapidly.” quote

Ruchal Humbare
Lead Analyst, Semiconductor and Electronics

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According to a new report published by Allied Market Research, titled, “Micro Server IC Market By Component, Processor Type, Application, and End User: Global Opportunity Analysis And Industry Forecast, 2021–2030,”

The micro server IC market size was valued at $1.06 billion in 2020, and is projected to reach at $3.27 billion by 2030, growing at a CAGR of 13.3% during the forecast period.

A micro server IC is a small server appliance, which is based on a system on a chip (SoC). Most of the server motherboard functions are integrated on a single microchip, except DRAM, boot FLASH, and power circuits. Thus, the main chip contains more than only compute cores, caches, memory interfaces, and PCI controllers. Major application areas of micro servers IC include media storage and internet data center, especially for applications such as lightweight web serving, simple content delivery nodes, and low-end dedicated hosting. 

Some of the prime drivers of the micro server IC industry are upsurge of industry revolution 4.0., emergence of hyperscale computing, and power efficient & highly compact micro server ICs. Considering these factors, the market is estimated to experience steep growth in the future. However, micro servers have limited applications that act as a major barrier for the micro server IC market growth. Contradictory, increasing deployment of data centers and digitalization of businesses are expected to create lucrative opportunities for the market growth during the forecast period.

The hardware segment was the highest contributor to the market in 2020, owing to rising adoption of micro servers for dedicated hosting, computing applications, big data workloads, front-end web, content delivery network, and low space and application-specific functionality. The x86 segment had prominent share in the market in 2020, owing to wide range of consumers and company’s partners that deploy x86 based ICs due to smooth software support. In addition, web hosting & enterprise had significant market share in 2020, owing to growing importance of online presence of businesses. Moreover, on the basis of end user, the enterprise segment had significant market share in 2020, owing to ease of management and secure data hosting in the cloud.

COVID-19 Impact Analysis 

COVID-19 not only impacted the operations of various micro server IC manufacturers companies, but also affected the budget of end users. Despite IT spending's downturn, spending on remote working apps, platforms, and infrastructure witnessed significant growth. Thus, it slowed down the growth of the micro server IC market during the pandemic. However, the market is estimated to witness substantial growth post recovery from the pandemic.

Region-wise, North America holds a significant share in the global micro server IC market. U.S. holds the major market share, owing to the presence of leading market players and higher rate of technology adoption in the region.

Key Findings Of The Study

  • In 2020, the hardware segment accounted for maximum revenue and is projected to grow at a notable CAGR of 12.8% during the forecast period.
  • The x86 segment accounted for more than 60.0% of the micro server IC market trends in 2020.
  • The edge computing segment of the micro server IC market analysis is projected to grow at a CAGR of 18.6% during the forecast period.
  • North America contributed major share in the market, accounting for more than 35.0% share in 2020.

The key players profiled in the report include Advanced Micro Devices, Inc., Dell Technologies, Fujitsu Limited, and Hewlett Packard Enterprise Development L.P., Huawei Technologies Co. Ltd., Intel Corporation, Nvidia Corporation, NXP Semiconductors, STMicroelectronics, and Super Micro Computer, Inc. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the micro server IC market.

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quote Micro Server IC Market By Component (Hardware and Software), Processor Type (x86 and ARM), Application (Web Hosting & Enterprise, Analytics & Cloud Computing, and Edge Computing), and End User (Enterprises and Data Centers): Opportunity Analysis and Industry Forecast, 2021–2030 quote

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