Micro Server IC Market Size, Analysis, Share & Forecast 2030

Report Description

The global micro server IC market is anticipated to reach USD 2.2 billion by 2028, expanding at a CAGR of 12.6% during forecast period, 2021-2028. Micro servers are small equipment that are used in low-power microprocessor chips and other areas where space is limited. With the exception of DRAM, boot FLASH, and power circuits, the majority of the server motherboard capacities are integrated on a single microprocessor. A micro server integrated circuit (IC) has thousands or millions of semiconductors which includes resistors, transistors, and capacitors. Micro server integrated circuits (ICs) are used as a chip to execute calculations. Transistors in micro server ICs are extremely small, measuring in nanometers. The power consumption of stripped-down silicon in micro servers is significantly lower than the 90-W-plus thermal design power (TDP) of processors within high-end servers, with micro server chips frequently having a TDP of less than 45 W and down to sub-10-W levels.

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The COVID-19 outbreak has had significant impact on the global micro server IC Market. Electronics and semiconductor production facilities have been halted due to global slowdown and workforce shortages. The pandemic has produced a long-term decline in production efficiency, and travel bans and facility closures have kept workers away from their workplaces, resulting in a slowdown in the growth of the micro server IC market in 2020. The pandemic has also accelerated current trends in remote work, e-commerce, and automation, creating enormous prospects for micro server IC post-pandemic.

Market Trends, Drivers, Restraints, and Opportunities

• Low power consumption and low space utilization of micro servers, development in the trend of cloud computing and online hosting, and the introduction of hyperscale data center design are some of the key driving drivers of the micro server IC market.
• To improve micro-server capacity, users increase the number of nodes and related software to make it suitable of managing heavy workloads. This limitation of the micro server functions as a constraint for the micro server market when compared to other standard servers where such system upgrade is usually not required.
• Micro server ICs deployment in data center applications due to cost-effectiveness and growing demand for data centers in various industries such as IT & telecom, banking, healthcare, agricultural, and government are expected to aid in the market growth.

Scope of the report:

The report on micro server IC market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Micro Server IC Market Segment Insights

Hardware segment to account a major market share

Based on offerings, the market can be bifurcated into hardware and software. The hardware segment is anticipated to hold a major market share during the forecast period. The hardware is one of the most important components of SoC. Firms such as Intel and ARM are aiming to improve the capability of their ICs by making the structure dense and more efficient. Micro server is used for dedicated hosting, front-end web, big data workloads, content delivery network, computing applications, low space and application specific functionality is driving the market growth. Furthermore, the emerging edge computing ecosystem, which provides advanced computational, storage, and networking capability close to data sources to achieve both low-latency event processing and high-throughput analytical processing, is expected to drive the market.

X86 segment to continue its dominance in the market

On the basis of processor types, the market can be divided into X86 and ARM. The x86 segment to dominate the micro server market during the forecast period. This is due to the large number of consumers and firm partners using x86 owing to its smooth software support. Moreover, the use of 14nm manufacturing technology to generate a wide range of chips is driving segment growth.

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Edge computing segment to grow at a steady rate

In terms of applications, the market can be segregated into web hosting and enterprise applications, analytics and cloud computing, and edge computing. The edge computing segment is expected to grow at a steady rate share during the forecast period. The implementation of hyperscale cloud and growing investments in IoT are driving the segment growth. Edge computing applications is driven by cloud-independent solutions developed by independent application developers, system integrators, and industries. Moreover, growing adoption of 5G technologies provides lower latency in the consumer sector. Edge computing is becoming increasingly important for applications such as linked and autonomous vehicles, smart manufacturing and IoT, and smart cities.

Enterprises segment to hold a major market share

Based on end-users, the market can be classified as enterprises and data centers. The enterprises segment is expected to hold a major market share during the forecast period. With the rapid growth of smartphones, social platforms, big data, and IoT, the quantity and diversity of data has increased rapidly. Managing dense workloads, increasing data storage and security, upgrading outdated systems, and adapting to technology all require a mobile workforce. As a result, the key applications and data are stored on-premises or in the cloud, and it is critical to update IT infrastructure, particularly servers, to make them easy to operate and entirely secure. Small and medium-sized firms require server solutions that not only meet current requirements but also easily handle future demands while cutting expenses. Micro servers utilize lower power per node, reduce costs, and increase operational efficiency which makes them an ideal choice for medium-size enterprises. Micro servers use less power per node, reduce cost, and improve operational efficiency, making them an alternative for medium enterprises.

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The market in Asia Pacific to exhibit a high CAGR

In terms of regions, the market can be categorized as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific is expected to exhibit a high CAGR during the forecast period. This is due to the presence of countries with dense population and the increased acceptance of micro servers among small and medium-sized businesses Data generation has been fueled by the increased penetration of Internet service, and adoption of smart gadgets. This fuels the expansion of data centers in the Asia Pacific. Moreover, the increasing importance of micro servers due to low power consumption and cost-effective solutions are employed for light load applications in data centers driving the regional market growth. In recent years, data centers have emerged as a hotspot in the China IT market. China aims to invest an estimated USD 1.4 trillion over the next six years, in collaboration with government and private technology heavyweights such as Alibaba and Huawei, to create opportunities for connected devices, AI, and autonomous driving applications, which drive edge computing applications.