The micro server IC market is estimated to be USD 1.2 billion in 2021 and is projected to reach USD 2.2 billion by 2026; it is expected to grow at a CAGR of 12.6% from 2021 to 2026.
Some of the key driving factors of the Micro server
IC market are low power consumption and low space utilization of micro servers,
growth in the trend of cloud computing and web hosting, and emergence of
hyperscale data center architecture.
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Hardware segment of micro server IC market to hold highest
market share during the forecast period
Hardware is expected to constitute the largest market share of micro server ICs during the forecast year. Since hardware constitutes the main part of an SoC, companies such as Intel and ARM are working toward increasing the capability of their ICs by making the architecture denser and more efficient. Rising adoption of micro servers for dedicated hosting, front-end web, big data workloads, content delivery network, computing applications, and low space and application-specific functionality drive market growth. Moreover, the emerging edge computing ecosystem, namely the provisioning of advanced computational, storage and networking capability near data sources to achieve both low-latency event processing and high-throughput analytical processing, is expected to drive the market for micro server hardware in the coming years.
Egde computing application to hold highest CAGR in micro server
IC market from 2021 to 2026
Edge
computing is one of the emerging applications for micro server ICs and is
expected to hold the highest growth rate during the forecast period. The
implementations of hyperscale cloud and growing investments in IoT have pushed
edge computing into further limelight. As organizations strive to remain
competitive in the digital business era, especially in a post-pandemic world,
edge computing is a new enabler of customer insights and retention. Independent
software vendors, system integrators, and enterprises will look to build
cloud-independent solutions which will drive edge computing applications.
Additionally, the growing adoption of 5G solutions will offer reduced latency
and a way to connect the rising number of edge devices, particularly in the
consumer space. There has been the rising need for edge computing for
applications such as connected and autonomous vehicles, smart manufacturing and
IoT, and smart cities. It has spurred the growth of edge data centers, and the
rising importance of compact servers due to space constraints provides
opportunity for micro servers.
Enterpise end user segment to hold highest market share during
the forecast period
The
enterprise end-user segment of the micro server IC market is expected to hold
the highest market share during the forecast period. With the growth of
smartphones, social platforms, big data, and IoT, the quantity and diversity of
data has become huge. Managing dense workloads, ramping up data storage and
security, upgrading legacy systems, and accommodating the technology demand a
mobile workforce. Therefore, it has become important to modernize IT
infrastructure, especially servers, to make them easy to manage and completely
secure—whether critical applications and data are hosted on-site or in the
cloud. Small and medium enterprises need server platforms that not only address
current needs but also seamlessly handle future workloads, while lowering
costs. Micro servers utilize lower power per node, reduce costs, and increase
operational efficiency which makes them an ideal choice for medium-size
enterprises.
Micro server IC market in APAC to grow at the highest rate from 2021 to 2026
APAC
is expected to grow at the fastest rate for the micro server IC market owing to
the presence of countries with large populations and rising adoption of micro
servers across small and medium enterprises. The increasing penetration of
internet services, along with the adoption of smart devices, has been fueling
data generation. This further fuel the expansion of data centers in the APAC
region. Rising importance of micro servers due to low power consumption and
cost-effective solutions can be used for light load applications in data
centers, which also drives the growth of the market. Data centers have become
the hotspot of the IT market in China in recent years. China plans to invest an
estimated USD 1.4 trillion over 6 years to 2025, in collaboration with
government and private technology giants such as Alibaba and Huawei to generate
opportunities for connected devices, AI, and autonomous driving applications,
which will further drive edge computing applications.
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