Micro Server IC Market Report 2025

The micro server IC market size has grown rapidly in recent years. It will grow from $1.66 billion in 2024 to $1.88 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to energy efficiency concerns, increased motor failures, cost reduction objectives, predictive maintenance, rise in industrial automation.

The micro server IC market size is expected to see rapid growth in the next few years. It will grow to $3.21 billion in 2029 at a compound annual growth rate (CAGR) of 14.3%. The growth in the forecast period can be attributed to remote monitoring needs, renewable energy growth, smart manufacturing initiatives, focus on condition-based monitoring, cybersecurity concerns, integration with analytics platforms. Major trends in the forecast period include advancement in condition-based monitoring, integration with control systems, cloud-based solutions, artificial intelligence (ai) and machine learning (ml), customization for specific industries.

The rising demand for new data centers is anticipated to accelerate the growth of the micro server IC market in the future. A data center is a facility that consolidates a company's shared IT infrastructure and operations for data processing and storage. Micro server ICs are gaining popularity in data center applications due to their lower cost, reduced power consumption, and smaller physical size. Consequently, the growing need for new data centers is expected to enhance the micro server IC market. For instance, in January 2022, STACK Infrastructure, a U.S.-based IT company, and Oaktree Capital Management, L.P., a U.S. asset management firm, announced a partnership to build a 36MW data center complex in Inzai, Japan. This project commenced in the second quarter of 2022, with capacity expected to be available by the fourth quarter of 2023. Additionally, according to Huawei's Intelligent World 2030 report, by 2024, the volume of global data generated is projected to exceed one yottabyte (a quadrillion gigabytes) by 2030. Therefore, the increasing demand for new data centers is propelling the growth of the micro server IC market.

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.

Product innovation is a significant trend gaining traction in the micro server IC market. Major players in this sector are prioritizing the development of advanced products. For example, in June 2024, Intel Corporation, a U.S.-based semiconductor manufacturer, introduced its Xeon 6 server processors, marking a notable advancement in data center technology. This new product line is designed to enhance both performance and energy efficiency, meeting the rising demands of modern data centers. Intel reports that the Xeon 6 processors offer up to 2.6 times the performance per watt compared to previous models, making them one of the most energy-efficient options available. This launch aligns with Intel's strategy to bolster its presence in the AI and cloud-native application markets, combining hardware improvements with enhanced software capabilities. The Xeon 6 processors are specifically engineered to integrate smoothly with Intel’s Gaudi AI accelerators, targeting high-demand applications like AI model training and inference.

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 include Intel Corporation, Advanced Micro Devices Inc., Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Fujitsu Limited, Super Micro Computer Inc., Huawei Technologies Co. Ltd., Quanta Computer Inc., Qualcomm Technologies Inc., 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, Foxconn Technology Group, ZT Systems Company, Aaeon Technology Inc., Arm Holdings plc, Ampere Computing LLC, Marvell Technology Group Ltd.

North America was the largest region in the micro server IC market in 2024. 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.

A micro server integrated circuit denotes a type of integrated circuit comprising a singular chip housing a CPU, memory, and system input/output. This technology finds application in enterprises with limited or no IT personnel, and it can also prove advantageous in data centers for swift or temporary tasks.

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 is one of a series of new reports that 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.

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