Micro Server IC Global Market Report 2024

The micro server IC market has grown rapidly in recent years. It will grow from $1.48 billion in 2023 to $1.69 billion in 2024 at a compound annual growth rate (CAGR) of 14.0%. The expansion observed in the historical period can be ascribed to concerns regarding energy efficiency, heightened instances of motor failures, cost reduction goals, the implementation of predictive maintenance, and the escalating trend of industrial automation.

The micro server IC market is expected to see rapid growth in the next few years. It will grow to $2.84 billion in 2028 at a compound annual growth rate (CAGR) of 13.9%. The anticipated growth in the forecast period can be linked to the increasing demand for remote monitoring, the expansion of renewable energy sources, initiatives in smart manufacturing, a heightened focus on condition-based monitoring, growing concerns about cybersecurity, and integration with analytics platforms. Key trends expected in the forecast period encompass advancements in condition-based monitoring, integration with control systems, the adoption of cloud-based solutions, the incorporation of artificial intelligence (AI) and machine learning (ML), and customization tailored for specific industries.

The growth of the micro server IC market is anticipated to be fueled by the increasing demand for new data centers. Data centers serve as facilities that consolidate a company's shared IT infrastructure for data processing and storage operations. Micro server ICs are gaining popularity in data center applications due to their cost-effectiveness, lower power consumption, and smaller physical footprint. This rising need for new data centers is expected to drive the micro server IC market's expansion. As an example, in January 2022, STACK Infrastructure and Oaktree Capital Management collaborated to build a 36MW data center complex in Inzai, Japan, with completion scheduled for the fourth quarter of 2023. Additionally, CDC Data Centers announced a $2.5 billion investment in its Eastern Creek Sydney data center, aiming to reach a total operational capacity of 700MW by 2023 through the construction of new data centers.

The growth of the micro-server IC market is further propelled by the increasing adoption of cloud computing. Cloud computing involves delivering various computing services over the internet, utilizing micro server ICs for their energy efficiency, scalability, and optimized performance in handling lightweight computing tasks. According to the International Data Corporation (IDC), global revenue from public cloud services reached $545.8 billion in 2022, reflecting a significant growth of 22.9% compared to 2021. Hence, the growing prevalence of cloud computing is a key factor driving the micro server IC market.

A prominent trend in the micro server IC market is product innovation, with major companies focusing on developing new offerings. For instance, in November 2021, STMicroelectronics N.V. introduced an NFC Type 2 Tag IC with cost-effective pricing, enhanced privacy features, and improved NDEF functionality. This NFC Forum-certified IC complies with industrial ISO/IEC 14443-A specifications and uses energy harvested from the 13.56MHz RF transmitter field. This innovative product emphasizes the industry's commitment to advancing micro server IC technology.

Strategic partnerships are also a prevalent approach among major companies in the micro-server IC market. This collaborative strategy involves leveraging each other's strengths and resources to achieve mutual benefits. In November 2023, SiMa.ai partnered with Supermicro to build a Machine Learning System-on-a-Chip (MLSoC) integrated with Supermicro's SYS-E300-13AD high-performance compact edge server. This partnership aims to provide industry-leading remote servers with efficient edge ML enablement through the SiMa.ai MLSoC platform.

In February 2022, Advanced Micro Devices, Inc. (AMD) made a significant acquisition by acquiring Xilinx for $49 billion. This strategic move extends AMD's focus beyond CPUs and GPUs, incorporating a substantial portfolio of reprogrammable chips known as field programmable gate arrays (FPGAs). AMD anticipates that this acquisition will significantly expand its opportunities in data centers, embedded computing, and telecommunications. Xilinx, the acquired company, specializes in designing and developing programmable logic semiconductor devices and related software design tools, including micro server technology.

Major companies operating in the micro server IC market report are Intel Corporation, Advanced Micro Devices Inc., Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Fujitsu Limited, Super Micro Computer Inc., STMicroelectronics N.V., NXP Semiconductors N.V., Huawei Technologies Co. Ltd., Quanta Computer Inc., Embedded Technology Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Qualcomm Technologies Inc., Texas Instruments Incorporated, Futurasmus KNX Group, Tyan Computer Corporation, MiTAC Holdings Corp., Penguin Computing Inc., NEC Corporation, Inspur Group Co. Ltd., Lenovo Group Limited, ASUSTeK Computer Inc., Cisco Systems Inc., Inventec Corporation, Wistron Corporation, Foxconn Technology Group, Pegatron Corporation, ZT Systems Company, Aaeon Technology Inc., Arm Holdings plc, Ampere Computing LLC, Marvell Technology Group Ltd., Broadcom Inc.

North America was the largest region in the micro server IC market in 2023. The regions covered in the micro server IC market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the micro server ic market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The essential constituents of a micro server IC encompass both hardware and software. Software denotes a compilation of instructions or a set of programs executing specific actions in response to user requests. Its uses span online hosting, streaming videos, file downloads, social networking, and potentially corporate login management. Processor types vary and include x86 and ARM. Diverse applications range from web hosting and enterprise applications to analytics, cloud computing, and edge computing, catering to end users such as enterprises and data centers.

The micro server IC market research report provides micro server IC market statistics, including micro server IC industry global market size, regional shares, competitors with a micro server IC market share, detailed micro server IC market segments, market trends, and opportunities, and any further data you may need to thrive in the micro server IC industry. This micro server IC market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The micro server IC market consists of sales of storage solutions, power discrete modules, and circuit protection. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.