The global micro
server IC market is expected to reach USD 1.35 Billion by 2022, at a
CAGR of 44.0% between 2016 and 2022. In the present scenario, data traffic is
continually rising, driving the demand for secure and reliable storage and
processing of data.
To accommodate
this large data, companies are deploying new data centers or upgrading their
existing data centers and developing hyperscale or mega data centers.
Other major
drivers for the growth of the market are low power consumption and space usage
by micro servers, growing trend of cloud computing.
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Market Dynamics
Opportunity: Emerging Need for New Data Centers in Less Technologically Advanced Region
The efforts for construction of new data
centers provides a huge market for micro server market in technically less
advanced regions such as APAC, MEA, and LA in the coming years. The market for
data centers is still in emerging phase in these regions and the shift in
paradigm for data centers setups from technically advanced regions to less
technically advance would take at least five years to show results. Thus, it
would take some time before the market for micro server ICs starts showing
better results in market share in these technologically advancing regions.
According to the report of U.S. Department of Energy published in 2015, the
data center space in China is increasing at a rate of 20% annually and 10%
annually in the overall APAC region.
Challenge: Blade Servers May Limit The Scope Of Micro Server Usage
A blade server is a server chassis housing
multiple slim, modular electronic circuit boards, known as server blades. Each
blade is a server, often dedicated to a single application. Blade servers are
currently the most efficient large computing devices and are often used by
modern businesses as the backbone of the official computer infrastructure.
Blade servers are gaining popularity over the rack-mounted servers in large
office operations all over the world. Micro servers are limited to some
applications such as web servers that do not require multi-CPU cores. The
development of new hardware and software technology with increased computing
power such as 64-bit processors by Intel (U.S.) and ARM (U.K.), 14-nm
technology by Intel, and less power SoC’s by ARM (U.K.) would make micro
servers a better competitor for blade servers. These developments would help
micro servers to serve more technologies such as server clustering and cloud
data centers so that they can run traditional business of high workload
applications.
Micro Server IC Market for Medium Sized
Organizations Held the Largest Market Share During the Forecasted Period
The medium
sized organizations are adopting micro server IC’s owing to their lower buying
and installing cost. In addition, it is easy to upgrade the system if the load
increases by simply increasing the server nodes. Thus, medium scale enterprise
segment holds the largest market for micro server IC’s. These organizations
need to scale immediately whenever required to stay competitive in the market.
Micro servers help such organizations to meet their IT requirements as they are
easy to set up, use, and maintain without taking up a lot of space. They provide
plenty of power, security, and expansion without requiring dedicated IT
resources, which are imperative for medium enterprises.
Micro Server IC Market for Data Centers is Expected
to Demonstrate the Fastest Growth in the Micro Server IC During the Forecast
Period
A data
center is a facility used to house computer systems and associated components,
such as telecommunications and storage systems. Micro servers are less
expensive and consume less power and space than traditional enterprise-class
rack servers. They can easily be grouped into clusters and are well suited for
tasks that do not require multiple CPUs. The growing need for data centers in
various business domains such as IT& telecom, banking, healthcare,
agriculture, and government, among others would drive the data center
application to grow at the highest CAGR during the forecast period.
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Micro Server IC Market in APAC Region Held the
Largest Share of the Market in 2017
The micro
server IC market is expected to grow at the highest CAGR in APAC as countries
such as India and China are witnessing huge technological advancements and the
region is expected to witness many startup’s and business expansions in the
coming years. Currently, the demand for application specific servers is huge.
The main reason for this is the increasing need for data centers and cloud
computing in fast developing economies such as India and China that still have
a huge potential for internet connectivity. The application specific customization
capability of micro servers provides a better option for data centers and cloud
computing companies to use the micro servers as per the workload need. Thus,
such features of micro servers would create huge demand for micro servers in
the APAC region.
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