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    Arm Server Market

    ID: MRFR/ICT/24793-HCR
    128 Pages
    Aarti Dhapte
    October 2025

    Arm Server Market Research Report By Server Type (Virtualized Servers, Bare-Metal Servers, Blade Servers), By Deployment Type (On-Premise, Cloud, Colocation), By Core Count (1-4 Cores, 5-8 Cores, 9-16 Cores, 17+ Cores), By Application (High-Performance Computing (HPC), Artificial Intelligence (AI), Data Analytics, Cloud Computing, Virtualization), By Memory Capacity (16GB-32GB, 64GB-128GB, 256GB-512GB, 1TB+) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Arm Server Market Infographic

    Arm Server Market Summary

    As per MRFR analysis, the Arm Server Market Size was estimated at 0.9312 USD Billion in 2024. The Arm Server industry is projected to grow from 1.072 USD Billion in 2025 to 4.391 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 15.14 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Arm Server Market is experiencing robust growth driven by energy efficiency and cloud integration.

    • The North American region remains the largest market for Arm servers, reflecting a strong demand for energy-efficient solutions.
    • Asia-Pacific is emerging as the fastest-growing region, propelled by increasing cloud computing services and edge computing adoption.
    • Virtualized servers dominate the market as the largest segment, while bare-metal servers are witnessing rapid growth due to their performance advantages.
    • Key market drivers include the rising demand for energy efficiency and the growth of cloud computing services, which are shaping the competitive landscape.

    Market Size & Forecast

    2024 Market Size 0.9312 (USD Billion)
    2035 Market Size 4.391 (USD Billion)
    CAGR (2025 - 2035) 15.14%

    Major Players

    Amazon (US), NVIDIA (US), Ampere Computing (US), Marvell Technology (US), Cavium (US), Huawei (CN), Fujitsu (JP), Oracle (US), Samsung (KR)

    Arm Server Market Trends

    The Arm Server Market is currently experiencing a transformative phase, characterized by a growing inclination towards energy-efficient computing solutions. This shift is largely driven by the increasing demand for sustainable technology across various sectors. Organizations are recognizing the potential of Arm architecture to deliver high performance while consuming less power, which aligns with global sustainability goals. Furthermore, the rise of cloud computing and edge computing is propelling the adoption of Arm servers, as these platforms require scalable and efficient processing capabilities. As businesses seek to optimize their operations, the Arm Server Market appears poised for substantial growth, with innovations in hardware and software further enhancing its appeal. In addition, the competitive landscape of the Arm Server Market is evolving, with numerous players entering the field. This influx of new entrants is fostering innovation and driving down costs, making Arm servers more accessible to a wider range of enterprises. The collaboration between hardware manufacturers and software developers is also noteworthy, as it facilitates the creation of tailored solutions that meet specific industry needs. Overall, the Arm Server Market is likely to continue its upward trajectory, influenced by technological advancements and a collective push towards greener computing solutions.

    Energy Efficiency Focus

    The Arm Server Market is increasingly emphasizing energy efficiency, as organizations strive to reduce their carbon footprint. This trend reflects a broader commitment to sustainability, with Arm architecture offering a compelling solution for high-performance computing with lower energy consumption.

    Cloud and Edge Computing Integration

    The integration of Arm servers within cloud and edge computing frameworks is becoming more prevalent. This trend is driven by the need for scalable and efficient processing capabilities, allowing businesses to optimize their operations and enhance service delivery.

    Emerging Competitive Landscape

    The competitive landscape of the Arm Server Market is rapidly changing, with new entrants fostering innovation and driving down costs. Collaborations between hardware and software developers are creating tailored solutions, further enhancing the market's attractiveness.

    The increasing adoption of Arm architecture in data centers is reshaping the landscape of server technology, driven by demands for energy efficiency and performance optimization.

    U.S. Department of Energy

    Arm Server Market Drivers

    Emerging Competitive Landscape

    The Arm Server Market is characterized by an evolving competitive landscape, with numerous players entering the market. This influx of competition is fostering innovation and driving down prices, making Arm servers more accessible to a wider range of customers. Companies are increasingly investing in research and development to enhance the capabilities of Arm-based solutions. As a result, the market is expected to witness a compound annual growth rate of approximately 10% over the next five years. This dynamic environment presents both challenges and opportunities for existing and new entrants in the Arm Server Market.

    Growth of Cloud Computing Services

    The Arm Server Market is significantly influenced by the expansion of cloud computing services. As enterprises migrate to cloud-based infrastructures, the demand for scalable and efficient server solutions rises. Arm servers, with their ability to handle diverse workloads and provide high performance per watt, are well-positioned to meet these needs. Recent statistics indicate that the cloud computing market is projected to grow at a compound annual growth rate of over 15% in the coming years. This growth is likely to drive further adoption of Arm servers, as organizations seek to optimize their cloud environments.

    Rising Demand for Energy Efficiency

    The Arm Server Market is experiencing a notable shift towards energy efficiency, driven by increasing operational costs and environmental concerns. Organizations are actively seeking solutions that minimize energy consumption while maximizing performance. Arm servers, known for their low power requirements, are becoming increasingly attractive. According to recent data, the energy-efficient design of Arm architecture can lead to a reduction in power usage by up to 30% compared to traditional x86 servers. This trend is likely to continue as businesses prioritize sustainability and cost-effectiveness, thereby propelling the Arm Server Market forward.

    Increased Adoption of Edge Computing

    The Arm Server Market is witnessing a surge in the adoption of edge computing technologies. As data processing moves closer to the source of data generation, the need for efficient and compact server solutions becomes paramount. Arm servers, with their lightweight architecture, are ideally suited for edge applications, enabling real-time data processing and analytics. The edge computing market is expected to grow significantly, with estimates suggesting a market size exceeding 20 billion dollars by 2026. This trend indicates a robust opportunity for the Arm Server Market to capitalize on the demand for edge solutions.

    Advancements in Artificial Intelligence

    The Arm Server Market is being propelled by advancements in artificial intelligence (AI) and machine learning (ML). As organizations increasingly leverage AI for data analysis and decision-making, the need for powerful yet efficient computing solutions intensifies. Arm servers, with their ability to deliver high performance while maintaining energy efficiency, are becoming a preferred choice for AI workloads. Recent analyses suggest that the AI market could reach over 500 billion dollars by 2024, indicating a substantial opportunity for the Arm Server Market to cater to this growing demand.

    Market Segment Insights

    By Server Type: Virtualized Servers (Largest) vs. Bare-Metal Servers (Fastest-Growing)

    In the Arm Server Market, the server type segment displays distinct market share dynamics, with Virtualized Servers leading the way. This dominance can be attributed to increased demand for flexibility, scalability, and the efficient use of server resources. Bare-Metal Servers are rapidly gaining traction, appealing to organizations seeking raw performance and control over their computing environments, particularly in high-performance computing and data-intensive applications. Blade Servers, while present, have a smaller share in comparison to these other two types due to higher costs and specific use cases that limit their broader adoption. The growth trends within this segment are fueled by the increasing need for agile infrastructures that support cloud services and virtualization. Virtualized Servers are expected to maintain their lead as organizations continue to embrace cloud computing and Hybrid IT solutions. Meanwhile, Bare-Metal Servers are experiencing significant growth as enterprises prioritize high performance and dedicated resources for demanding workloads. Blade Servers may expand their niche use but will likely lag behind the more versatile and adaptable server solutions that cater to a broader market need.

    Virtualized Servers (Dominant) vs. Bare-Metal Servers (Emerging)

    In the current landscape of the Arm Server Market, Virtualized Servers hold a dominant position due to their ability to maximize hardware utilization and simplify resource management. Organizations are increasingly leaning towards virtualization to enhance operational efficiency and reduce costs. In contrast, Bare-Metal Servers, while classified as emerging, are capturing attention for providing higher performance by allowing users to deploy dedicated hardware solutions ideal for intensive applications. They are appealing for scenarios where latency and processing power are critical, including AI and machine learning workloads. As each segment evolves, Virtualized Servers will continue to maintain their stronghold, while Bare-Metal Servers will carve out a significant share, especially among users requiring tailored computing environments.

    By Deployment Type: On-Premises (Largest) vs. Cloud (Fastest-Growing)

    In the Arm Server Market, the deployment type segment is characterized by three prominent categories: On-Premises, Cloud, and Colocation. Currently, On-Premises holds the largest market share, driven by traditional enterprises relying on in-house infrastructure for enhanced security and control. In contrast, Cloud offers a rapid expansion, as businesses increasingly shift towards flexibility and scalability, appealing strongly to organizations seeking cost-effective solutions. Furthermore, Colocation serves as a hybrid strategy, allowing businesses to outsource infrastructure while maintaining a level of control over operations. Market growth in the Deployment Type segment is primarily fueled by digital transformation initiatives pushing enterprises towards adopting cloud services. The Cloud segment is experiencing the fastest growth due to the increasing demand for remote work solutions and the scalability advantages it presents. Meanwhile, On-Premises remains relevant for sectors requiring stringent data governance. Colocation also sees growth as it allows businesses to modernize infrastructure without the need for significant capital investment, catering to a diverse range of customer needs.

    On-Premises (Dominant) vs. Cloud (Emerging)

    On-Premises deployment remains the dominant choice in the Arm Server Market, particularly among large enterprises that prioritize control over their IT infrastructure. This segment appeals to sectors such as finance and healthcare, where data security is paramount. Organizations can customize their server configurations to meet specific regulatory requirements, aiding in compliance and risk management. Conversely, the Cloud segment is emerging rapidly, embracing innovative approaches like edge computing and containerization to enhance operational efficiency. It targets startups and SMEs looking for flexible computing power without heavy initial investments. The shift from traditional models highlights a growing acceptance of hybrid frameworks, combining the strengths of On-Premises systems with the agility of Cloud solutions.

    By Core Count: 5-8 Cores (Largest) vs. 17+ Cores (Fastest-Growing)

    In the Arm Server Market, the distribution of core count segments reveals that the '5-8 Cores' category holds the largest market share, catering effectively to a substantial portion of enterprise workloads. Businesses benefit from the balanced performance and power efficiency that these core counts offer, making them a popular choice among data centers and cloud service providers. In contrast, the '17+ Cores' segment is emerging rapidly, leveraging the growing demand for high-performance computing applications that require substantial parallel processing capabilities.

    5-8 Cores (Dominant) vs. 9-16 Cores (Emerging)

    The '5-8 Cores' segment is characterized by its ability to deliver an optimal balance of performance and energy efficiency, which is essential for mainstream server applications. It is a dominant player in the market, appealing to a wide range of users, from small businesses to large enterprises that require dependable performance. On the other hand, the '9-16 Cores' segment is considered emerging, as it caters to niche markets demanding increased performance for specialized tasks like data analytics and complex computations. Users in this segment are beginning to recognize the potential benefits, which include enhanced multi-threading capabilities and improved throughput, driving interest and adoption.

    By Application: Cloud Computing (Largest) vs. Artificial Intelligence (Fastest-Growing)

    In the Arm Server Market, the application segment is diversely populated with several key areas including High-Performance Computing (HPC), Artificial Intelligence (AI), Data Analytics, Cloud Computing, and Virtualization. Among these, Cloud Computing dominates the market, representing the largest portion of application usage due to its widespread adoption and critical importance for modern enterprises. Meanwhile, Artificial Intelligence emerges not only as a crucial application area but also as the fastest-growing segment, reflecting the increasing need for intelligent solutions across industries.

    Cloud Computing (Dominant) vs. Artificial Intelligence (Emerging)

    Cloud Computing has established itself as the dominant application in the Arm Server Market, driven by the escalating need for scalable and flexible solutions. This segment leverages Arm architecture's power efficiency and cost-effectiveness, making it ideal for both service providers and enterprises. On the other hand, Artificial Intelligence represents an emerging segment characterized by rapid technological advancements and a surge in demand for machine learning applications. The integration of AI in various sectors is driving the need for optimized computing resources, which Arm servers are well-positioned to provide, making it a critical area for future growth.

    By Memory Capacity: 64GB-128GB (Largest) vs. 256GB-512GB (Fastest-Growing)

    In the Arm Server Market, the memory capacity segment showcases a diverse distribution, with the 64GB-128GB range holding the largest market share. This segment is favored for its balanced performance capabilities, making it suitable for a variety of applications from enterprise workloads to cloud services. In contrast, the 256GB-512GB range is rapidly gaining traction, driven by the increasing demand for high-performance computing solutions that require enhanced memory capacity to handle complex tasks efficiently.

    Memory Capacity: 64GB-128GB (Dominant) vs. 256GB-512GB (Emerging)

    The 64GB-128GB memory capacity range is positioned as the dominant choice in the Arm Server Market, appealing to enterprises seeking reliable performance without overcapacity. This range effectively serves mid-tier workloads, striking a balance between cost and efficiency, which is crucial for businesses managing intensive data applications. Meanwhile, the 256GB-512GB segment is emerging as a key player, catering to the soaring demand for data-heavy applications such as machine learning and AI. Organizations are increasingly investing in this higher memory range to capitalize on the benefits of augmented computational power and performance, ultimately enhancing their operational capabilities.

    Get more detailed insights about Arm Server Market

    Regional Insights

    North America : Tech Innovation Leader

    North America is the largest market for Arm servers, holding approximately 45% of the global share. The region's growth is driven by increasing demand for energy-efficient computing solutions and the rise of cloud services. Regulatory support for green technologies and data center optimization further catalyzes market expansion. The U.S. government initiatives promoting advanced computing technologies also play a significant role in this growth. The competitive landscape is dominated by key players such as Amazon, NVIDIA, and Oracle, which are investing heavily in Arm architecture. The U.S. remains a hub for innovation, with companies like Ampere Computing and Marvell Technology leading the charge. The presence of established tech giants and startups alike fosters a vibrant ecosystem, ensuring North America's continued leadership in the Arm server market.

    Europe : Emerging Market Dynamics

    Europe is witnessing significant growth in the Arm server market, accounting for approximately 30% of the global share. The region's demand is fueled by the increasing adoption of cloud computing and artificial intelligence applications. Regulatory frameworks promoting digital transformation and sustainability are also key drivers. Countries like Germany and the UK are at the forefront, leveraging government initiatives to enhance their technological infrastructure. Leading countries in Europe include Germany, the UK, and France, with a competitive landscape featuring companies like Huawei and Fujitsu. The presence of these key players, along with local startups, is fostering innovation and collaboration. The European market is characterized by a strong emphasis on data privacy and security, which influences the adoption of Arm server technologies.

    Asia-Pacific : Rapid Growth and Adoption

    Asia-Pacific is rapidly emerging as a significant player in the Arm server market, holding around 20% of the global share. The region's growth is driven by increasing investments in data centers and cloud infrastructure, particularly in countries like China and Japan. Government initiatives aimed at enhancing technological capabilities and promoting digital economies are pivotal in this growth trajectory. China and Japan are leading the charge, with major companies like Huawei and Fujitsu investing heavily in Arm server technologies. The competitive landscape is evolving, with local firms entering the market and driving innovation. The region's focus on cost-effective and energy-efficient solutions is shaping the future of Arm servers, making it a key area for growth in the coming years.

    Middle East and Africa : Untapped Market Potential

    The Middle East and Africa region is gradually emerging in the Arm server market, currently holding about 5% of the global share. The growth is primarily driven by increasing digital transformation initiatives and investments in IT infrastructure. Governments in countries like South Africa and the UAE are implementing policies to enhance technological adoption, which is expected to boost market growth significantly. Leading countries in this region include South Africa, the UAE, and Kenya, where local players are beginning to explore Arm server technologies. The competitive landscape is still developing, with opportunities for both established companies and startups. The focus on improving connectivity and data center capabilities is likely to attract more investments, paving the way for future growth in the Arm server market.

    Key Players and Competitive Insights

    The Arm Server Market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for energy-efficient computing solutions and the proliferation of cloud services. Major players such as Amazon (US), NVIDIA (US), and Ampere Computing (US) are strategically positioning themselves to capitalize on these trends. Amazon (US) focuses on enhancing its cloud infrastructure with Arm-based solutions, while NVIDIA (US) emphasizes the integration of AI capabilities into its server offerings. Ampere Computing (US) is dedicated to delivering high-performance Arm processors tailored for cloud applications, thereby contributing to a competitive environment that prioritizes innovation and technological advancement.

    Key business tactics within the Arm Server Market include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of offerings, yet the collective impact of major companies shapes the competitive dynamics, fostering an environment where innovation and strategic partnerships are paramount.

    In August 2025, Amazon (US) announced the launch of its latest Arm-based EC2 instances, designed to provide enhanced performance for machine learning workloads. This strategic move underscores Amazon's commitment to leveraging Arm architecture to optimize cloud services, thereby reinforcing its competitive edge in the cloud computing sector. The introduction of these instances is likely to attract a broader customer base seeking efficient and scalable solutions.

    In September 2025, NVIDIA (US) unveiled its new line of Arm-based servers, specifically engineered for AI and machine learning applications. This development signifies NVIDIA's intent to dominate the AI server market by offering tailored solutions that meet the growing demands of data-intensive applications. The strategic importance of this launch lies in NVIDIA's ability to integrate its advanced GPU technology with Arm architecture, potentially reshaping the competitive landscape in the AI domain.

    In July 2025, Ampere Computing (US) secured a partnership with a leading cloud service provider to deliver customized Arm-based solutions. This collaboration highlights Ampere's focus on expanding its market reach and enhancing its product offerings. The strategic alliance is expected to bolster Ampere's position in the cloud computing sector, as it aligns with the increasing demand for specialized Arm solutions that cater to specific customer needs.

    As of October 2025, current competitive trends in the Arm Server Market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. Looking ahead, it appears that competitive differentiation will increasingly pivot from price-based strategies to a focus on technological innovation, supply chain reliability, and the ability to deliver tailored solutions that meet evolving market demands.

    Key Companies in the Arm Server Market market include

    Industry Developments

    • Q1 2025: Arm Holdings CEO Rene Haas projects 50% data center CPU market share by 2025 Arm Holdings CEO Rene Haas stated in a CNBC interview that the company expects to reach 50% market share in data center CPUs by the end of 2025, up from 15% in 2024, driven by surging demand for AI workloads and energy-efficient computing.
    • Q1 2025: Arm Holdings reports first-ever $1 billion Q1 revenue, driven by 25% YoY royalty growth Arm Holdings announced that its first-quarter fiscal 2026 revenue surpassed $1 billion for the first time in a Q1 period, with a 25% year-over-year increase in royalties, attributed to strong adoption of Arm-based chips in data centers and AI applications.
    • Q2 2025: Arm-based servers to grow 70% this year IDC reported that shipments of Arm-based servers are expected to increase by 70% in 2025, fueled by the launch of large rack-scale configurations such as Nvidia's DGX GB200 NVL72, which are designed for AI processing.
    • Q1 2025: Nvidia's Arm chips rapidly gain share in server market as AI booms Nvidia's Arm-powered GB200 servers saw rapid adoption in Q1 2025, contributing to a record $95.2 billion global server market as hyperscalers expanded AI infrastructure using Arm-based systems.

    Future Outlook

    Arm Server Market Future Outlook

    The Arm Server Market is projected to grow at a 15.14% CAGR from 2024 to 2035, driven by increasing demand for energy-efficient computing and cloud services.

    New opportunities lie in:

    • Development of specialized Arm-based cloud solutions for AI workloads.
    • Expansion into edge computing applications leveraging Arm architecture.
    • Partnerships with telecom providers for 5G infrastructure using Arm servers.

    By 2035, the Arm Server Market is expected to solidify its position as a leader in energy-efficient computing.

    Market Segmentation

    Arm Server Market Core Count Outlook

    • 1-4 Cores
    • 5-8 Cores
    • 9-16 Cores
    • 17+ Cores

    Arm Server Market Application Outlook

    • High-Performance Computing (HPC)
    • Artificial Intelligence (AI)
    • Data Analytics
    • Cloud Computing
    • Virtualization

    Arm Server Market Server Type Outlook

    • Virtualized Servers
    • Bare-Metal Servers
    • Blade Servers

    Arm Server Market Deployment Type Outlook

    • On-Premises
    • Cloud
    • Colocation

    Arm Server Market Memory Capacity Outlook

    • 16GB-32GB
    • 64GB-128GB
    • 256GB-512GB
    • 1TB+

    Report Scope

    MARKET SIZE 20240.9312(USD Billion)
    MARKET SIZE 20251.072(USD Billion)
    MARKET SIZE 20354.391(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)15.14% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesGrowing demand for energy-efficient computing solutions drives innovation in the Arm Server Market.
    Key Market DynamicsRising demand for energy-efficient computing drives innovation and competition in the Arm Server Market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

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    FAQs

    What is the projected market valuation of the Arm Server Market by 2035?

    The Arm Server Market is projected to reach a valuation of 4.391 USD Billion by 2035.

    What was the market valuation of the Arm Server Market in 2024?

    In 2024, the Arm Server Market had a valuation of 0.9312 USD Billion.

    What is the expected CAGR for the Arm Server Market during the forecast period 2025 - 2035?

    The expected CAGR for the Arm Server Market during the forecast period 2025 - 2035 is 15.14%.

    Which companies are considered key players in the Arm Server Market?

    Key players in the Arm Server Market include Amazon, NVIDIA, Ampere Computing, Marvell Technology, Cavium, Huawei, Fujitsu, Oracle, and Samsung.

    What are the projected revenues for virtualized servers in the Arm Server Market by 2035?

    Projected revenues for virtualized servers in the Arm Server Market are expected to reach 1.748 USD Billion by 2035.

    How does the revenue for bare-metal servers compare to that of blade servers by 2035?

    By 2035, bare-metal servers are projected to generate 1.309 USD Billion, while blade servers are expected to reach 1.334 USD Billion.

    What is the anticipated revenue for cloud deployment in the Arm Server Market by 2035?

    The anticipated revenue for cloud deployment in the Arm Server Market is projected to be 1.746 USD Billion by 2035.

    What revenue is expected from high-performance computing applications in the Arm Server Market by 2035?

    High-performance computing applications are expected to generate 0.8928 USD Billion in the Arm Server Market by 2035.

    What is the projected revenue for memory capacities of 256GB-512GB in the Arm Server Market by 2035?

    The projected revenue for memory capacities of 256GB-512GB in the Arm Server Market is expected to reach 1.7688 USD Billion by 2035.

    How does the revenue for on-premises deployment compare to colocation by 2035?

    By 2035, on-premises deployment is projected to generate 1.746 USD Billion, whereas colocation is expected to reach 0.939 USD Billion.

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