The micro server integrated circuits (IC) industry is undergoing rapid transformations to adapt to data centers, cloud computing, and edge computing. The energy efficiency, scalability, and affordability of these compact servers have made them popular. These servers were designed for lightweight, specialized tasks. Market dynamics are driven by data-intensive applications, edge computing needs, and technological advancements.
The Micro Server IC Market is heavily influenced by the exponential growth of data in the digital age. Apps, Internet of Things devices, and connected systems generate massive amounts of data, making good data processing solutions essential. Micro servers are ideal for fast data processing since they can handle lightweight workloads. Thus, micro servers are essential when standard servers are too much.
Technological advances in microprocessor architecture influence market dynamics. Micro server integrated circuits are more powerful and versatile due to chip design, power efficiency, and performance improvements. These advances increase micro server capabilities, making them suitable for more applications and workloads, expanding the market.
Edge computing is another major driver of micro server integrated circuits. Edge computing processes data near the source of creation, unlike centralized data centers. Micro servers are ideal for edge computing due to their compact size, low power consumption, and ability to handle location-specific workloads. The market for micro server integrated circuits is expected to grow as more industries use edge computing for real-time data processing and low latency.
Cost-effectiveness affects micro server integrated circuit market dynamics. Traditional data centers are expensive to build and operate. Micro servers allow businesses to expand their computer infrastructure without spending much more. This cost advantage appeals to SMEs and businesses looking to maximize their IT spending.
Another factor affecting industry dynamics is cloud computing's popularity. Micro servers' ability to handle specialized workloads makes cloud-based services flexible and scalable. Small servers complement cloud architecture. Cloud service providers utilize micro server integrated circuits (ICs) in their data centers to balance and cost-effectively handle various workloads.
The Micro Server IC Market must consider many issues. Edge computing data privacy and security problems and limited processing capacity for demanding applications are among these difficulties. Addressing these challenges is crucial for sustained development and market acceptance.
Micro Server IC Market Size was valued at USD 1.26 Billion in 2023. The Micro Server IC Market industry is projected to grow from USD 1.33 Billion in 2024 to USD 1.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.53% during the forecast period (2024 - 2032). Increased demand for cloud computing as well as the expanding acceptance of big data analytics are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for micro server IC is being driven by the Micro servers consumes less electricity and take up less space. Micro servers consume less energy and take up less space than traditional high-end servers. Micro servers rely on low-power integrated circuits (ICs) comparable to those found in consumer computers. Furthermore, the power consumption of stripped-down silicon in micro servers is far lower than the 90-W-plus TDP of processors inside high-end servers, with micro server chips frequently having a TDP of less than 45 W and even less than 10 W.
Lower power consumption equals lower operational costs, making them more valuable for computing work per dollar. Organizations may squeeze more processing capabilities into a given amount of space while consuming less power than typical server systems due to the lower power and space needs of micro servers. This contributes to reducing electricity costs, lowering data centre running costs considerably.
CPUs are the most power-hungry component in servers. As power efficiency is pursued, the degree of relevant computation is approximated to produce new performance per joule or watt metrics. Because they function fairly across varied system architectures, there aren't many benchmark systems that can assist with this assessment.
The microservers are marketed as a solution for cloud and edge computing applications. Enterprise servers account for over 60% of global server shipments, while hyperscale server applications account for approximately 30%. The building of data centres and the adoption of 5G technology are expected to drive significant growth in demand for tiny servers used in edge computing during the forecast period 2020-2025. For example, cloud Infrastructure Company Packet introduced edge microservers in Open19 racks in December 2018, which were deployed across all of Packet's cloud and edge facilities.
Data traffic is always increasing, increasing the necessity for safe and dependable data storage and processing. Companies are constructing new data centres or upgrading current data centres to accommodate this massive amount of data, as well as developing hyperscale or mega data centres. Additionally, in order to manage these data centres profitably, organizations must cut the associated costs. Servers and computers are the most expensive components of a data centre. As a result, low-cost, high-performance servers are gaining traction in the microserver industry.
The Micro Server IC Market segmentation, based on Component includes Hardware, Software. During the projected year, hardware is expected to account for the greatest market share of micro server IC. Because hardware is the most important component of a SoC, firms like Intel and ARM are aiming to improve the capability of their ICs by making the design denser and more efficient.
Market growth is being driven by the increasing use of micro servers for dedicated hosting, front-end web, large data workloads, content delivery networks, computational applications, and low space and application-specific functionality.
The Micro Server IC Market segmentation, based on Processor Type, includes Intel, ARM. During the forecast period, the Intel category leads the market. Large numbers of tiny Intel-based computing nodes can handle some of the expanding lightweight scale-out workload requirements while simultaneously attaining new levels of power efficiency and density.
Micro servers have developed as a viable alternative for certain sorts of activities, such as low-end dedicated hosting and basic content distribution, which may be scaled successfully with a large number of relatively lightweight nodes.
Web Hosting and Enterprise, Analytics and Cloud Computing, and Edge Computing are the application-based segments of the Micro Server IC Market. Edge computing is one of the developing applications for micro server ICs, with the greatest growth rate expected during the forecast period. Edge computing has gained prominence as a result of the launch of hyperscale cloud and rising investments in loT.
Edge computing is a new enabler of consumer insights and retention as businesses strive to remain competitive in the digital business era, particularly in a post-pandemic context. Edge computing applications will be powered by cloud-independent solutions produced by independent software vendors, system integrators, and businesses.
Based on end-user, the Micro Server IC Market is segmented into Enterprises and Data Centres. The micro server IC market's enterprise end-user segment is anticipated to have the maximum market share during the projected period. The volume and variety of data has increased dramatically with the rise of smartphones, social media, big data, and IoT.
A mobile workforce is necessary to manage dense workloads, increase data storage and security, upgrade legacy systems, and keep up with technology. Therefore, whether crucial applications and data are stored on-site or in the cloud, it is now crucial to modernize IT infrastructure, especially servers, to make them simple to operate and 100 percent safe.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Micro Server IC Market area will dominate this market, due to rising R&D investments in miniaturized ICs are likely to fuel demand for micro server IC systems.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Micro Server IC Market accounts for the second-largest market share because of growing data centre deployment in emerging countries .Further, the German Micro Server IC Market held the largest market share, and the UK Micro Server IC Market was the fastest growing market in the European region
The Asia-Pacific Micro Server IC Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the existence of nations with big populations and the increasing popularity of micro servers among small and medium-sized businesses. Moreover, China’s Micro Server IC Market held the largest market share, and the Indian Micro Server IC Market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Micro Server IC Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Micro Server ICindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Micro Server IC industry to benefit clients and increase the market sector. In recent years, the Micro Server IC industry has offered some of the most significant advantages to medicine. Major players in the Micro Server IC Market, including Marvell Technology Group Ltd. (UK), Cavium Inc. (US), Dell Technologies (US), Penguin Computing (US), Ambedded Technology (Taiwan), Fujitsu (Japan) and others, are attempting to increase market demand by investing in research and development operations.
Arm is a British semiconductor and software design company based in Cambridge, England that primarily designs ARM processors (CPUs). It also creates other chips, sells software development tools under the DS-5, RealView, and Keil brands, and sells systems and platforms, as well as system-on-a-chip (SoC) infrastructure and software. In September 2020, Cortex-R82, the highest performance Cortex-R processor with 64-bit support and Linux capability, was introduced by ARM. It is intended to speed the development and deployment of next-generation enterprise and computational storage solutions. It combines increased performance and memory access with vast ARM Linux and server ecosystems.
The Hewlett Packard Enterprise Company (HPE) is an American global information technology corporation headquartered in Spring, Texas. HPE was created on November 1, 2015, in Palo Alto, California, as part of the Hewlett-Packard company's separation. It is a company that specializes in servers, storage, networking, containerization software, and consultancy and support. In March 2020, HPE unveiled its HE Small Business Solutions Portfolio, which includes three new options centred on the latest HE ProLiant Gen10 Plus MicroServer. The use cases for the system are Office in a Box, Scalable File and Backup, and Edge to Cloud. The new server from HE is a configured, tested, and proven solution with automated deployment and a monthly subscription starting at less than USD 20.
Intel Corporation (US)
ARM Holdings PLC (UK)
Hewlett Packard Enterprise (US)
Quanta Computer Inc. (Taiwan)
Applied Micro Circuits Corporation (US)
Marvell Technology Group Ltd. (UK)
Cavium Inc. (US)
Dell Technologies (US)
Penguin Computing (US)
Embedded Technology (Taiwan)
Fujitsu (Japan)
Super Micro Computer Inc. (US)
October 2020, With the next Ice Lake server CPUs, Intel Corporation will introduce its Software Guard Extension secret computing technology to the company's Xeon Scalable family for the first time, along with improved capabilities and new security features.
October 2020, AMD paid USD 35.0 billion for Xilinx in an all-stock transaction. The merger will create the industry's foremost high-performance computing firm, considerably increasing AMD's product range and customer base across broad growth industries where Xilinx is a market leader.
September 2020, NVIDIA and SoftBank Group Corp. (SBG) announced a definitive agreement in which NVIDIA will purchase ARM Limited from SoftBank for USD 40.0 billion. The combination of NVIDIA's leading Al computing platform with ARM's massive ecosystem will result in the formation of a top computing firm for the age of Al, speeding innovation while expanding into large, high-growth sectors.
Hardware
Software
Intel
ARM
Web Hosting and Enterprise
Analytics and Cloud Computing
Edge Computing
Enterprises
Data Centers
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
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