Micro Server IC Market: Global Industry Analysis and Forecast 2026

The Micro server IC market is projected to reach USD 2.2 billion by 2026, growing at a CAGR of 12.6% during the forecast period. 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.

Key Players
The market is dominated by micro server IC companies such as Intel Corporation (US), Advanced Micro Devices, Inc. (US), Hewlett Packard Enterprise Development LP (US), Quanta Computer Inc. (Taiwan), and NVIDIA Corporation (US).

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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.

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

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 fuels 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.