The Global ARM-Based Servers Market size is expected to reach USD15.7 billion by 2031, rising at a market growth of 14.1% CAGR during the forecast period.
The European region's focus on sustainability, energy efficiency, and compliance with strict data privacy regulations has encouraged the adoption of these servers. Countries like Germany, the UK, and France have seen growing investments in cloud infrastructure, edge computing, and AI-driven technologies, all of which benefit from ARM’s power-efficient architecture. Consequently, the Europe region would acquire nearly 31% of the total market share by 2031.
Cloud computing requires handling massive amounts of data and running complex workloads, and ARM’s architecture offers a scalable, cost-effective solution to these demands. Major cloud providers such as Microsoft Azure, Google Cloud, and Oracle Cloud are integrating ARM-based processors into their offerings to capitalize on the performance and efficiency benefits of ARM's architecture. Hence, these factors will aid in the growth of the market.
Additionally, Edge computing revolutionizes the processing, analysis, and delivery of data by allowing computations to take place in close proximity to the data source rather than relying on centralized data centers. One of the key sectors driving this trend is telecommunications, particularly with the advent of 5G networks. Thus, the rise of edge computing, driven by the need for localized data processing in low-power environments, is a significant factor propelling the growth of these servers.
However, Over the years, many enterprises have built robust infrastructures around x86 servers, developing or purchasing software solutions specifically designed for this architecture. The challenge is particularly acute for large-scale enterprises with mission-critical applications that have been fine-tuned over decades to run optimally on x86 systems. Hence, such issues may hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The European region's focus on sustainability, energy efficiency, and compliance with strict data privacy regulations has encouraged the adoption of these servers. Countries like Germany, the UK, and France have seen growing investments in cloud infrastructure, edge computing, and AI-driven technologies, all of which benefit from ARM’s power-efficient architecture. Consequently, the Europe region would acquire nearly 31% of the total market share by 2031.
Cloud computing requires handling massive amounts of data and running complex workloads, and ARM’s architecture offers a scalable, cost-effective solution to these demands. Major cloud providers such as Microsoft Azure, Google Cloud, and Oracle Cloud are integrating ARM-based processors into their offerings to capitalize on the performance and efficiency benefits of ARM's architecture. Hence, these factors will aid in the growth of the market.
Additionally, Edge computing revolutionizes the processing, analysis, and delivery of data by allowing computations to take place in close proximity to the data source rather than relying on centralized data centers. One of the key sectors driving this trend is telecommunications, particularly with the advent of 5G networks. Thus, the rise of edge computing, driven by the need for localized data processing in low-power environments, is a significant factor propelling the growth of these servers.
However, Over the years, many enterprises have built robust infrastructures around x86 servers, developing or purchasing software solutions specifically designed for this architecture. The challenge is particularly acute for large-scale enterprises with mission-critical applications that have been fine-tuned over decades to run optimally on x86 systems. Hence, such issues may hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Rapid growth of cloud computing
- Rise of edge computing applications
- Support for high-performance workloads
Restraints
- Compatibility with existing software ecosystems
- Higher costs of transition and integration
Opportunities
- Advancements in ARM technology
- Rising demand for green data centers
Challenges
- Relatively underdeveloped ecosystem of developer support
- Performance concerns in high-performance computing (HPC)
Processor Outlook
By processor, the market is divided into 32-bit and 64-bit. The 32-bit segment garnered 15% revenue share in the market in 2023. 32-bit architecture remains relevant in specific applications where lower processing power and memory requirements are sufficient.OS Outlook
On the basis of OS, the market is classified into Android, iOS, and Windows. The iOS segment recorded 12% revenue share in the market in 2023. Although primarily associated with consumer devices, iOS has gained traction in enterprise environments, particularly in industries like healthcare, education, and finance, where data security and streamlined performance are paramount.Vertical Outlook
On the basis of vertical, the market is segmented into automotive, healthcare, telecommunications, oil & gas extraction, bioscience, industrial automation, and others. The bioscience segment procured 9% revenue share in the market in 2023. ARM-based servers are increasingly utilized in bioscience for research, genomics, and big data analysis. They offer the computational power required to process large datasets efficiently while maintaining energy efficiency.
Core Type Outlook
Based on core type, the market is bifurcated into ARM cortex-A core based servers and ARM cortex-M core based servers. The ARM cortex-M core based servers segment procured 21% revenue share in the market in 2023. While the Cortex-M cores are generally optimized for lower power consumption and are often used in embedded systems and microcontrollers, their use in servers is increasingly recognized for specific applications that require power efficiency and real-time capabilities.Application Outlook
Based on application, the ARM-based servers market is segmented into mobile computing, 3D graphics, internet of things (IoT), smart homes, wearables, sensors, enterprise & infrastructure networking, and wireless communications. The internet of things (IoT) segment acquired 21% revenue share in the ARM-based servers market in 2023. As the number of connected devices and smart ecosystems continues to grow, ARM-based servers are being utilized to manage the data and communication requirements of IoT networks.>Regional Outlook
Region-wise, the ARM-based servers market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 37% revenue share in the ARM-based servers market in 2023. The primary causes of the regional market's expansion are the region's robust technological infrastructure and the extensive adoption of advanced computing solutions across various industries.Recent Strategies Deployed in the Market
- Aug-2024: Oracle introduced OCI Ampere A2 ARM Cloud Compute, expanding its cloud offerings with ARM-based servers. These new instances are powered by Ampere's ARM processors and are designed to deliver high-performance and energy-efficient computing for a variety of cloud and enterprise workloads. This move positions Oracle as a key player in the ARM-based server market, providing scalable solutions for cloud infrastructure.
- May-2024: Ampere Computing joined hands with Qualcomm, an American multinational corporation specializing in semiconductor and telecommunications equipment, to launch an ARM-based AI server. This collaboration aims to combine Ampere’s ARM-based server expertise with Qualcomm’s technology to advance AI server solutions. The new server is designed to enhance performance and efficiency in AI applications, reflecting a significant development in the ARM-based server market.
- Feb-2024: ARM Limited collaborated with Samsung Electronics, known for its advanced semiconductor technology, to optimize the next-generation Cortex-X CPU using Samsung Foundry’s latest GAA process technology. This partnership aims to enhance ARM Limited’s Cortex-X processors for improved performance in server applications.
- Jan-2024: Huawei introduced a new chipset designed with ARM architecture to advance its server technology. This development highlights Huawei’s commitment to incorporating ARM-based designs into its server solutions, aiming to enhance performance and efficiency in server applications.
- Nov-2023: Microsoft unveiled its Maia AI processor and Cobalt ARM-based chip, aiming to enhance its AI and cloud computing capabilities. The Maia AI processor focuses on advanced artificial intelligence tasks, while the Cobalt chip utilizes ARM architecture to improve performance in data centers. This move emphasizes Microsoft’s commitment to integrating ARM-based technology into its hardware strategy to bolster AI and cloud infrastructure.
List of Key Companies Profiled
- ZTE Corporation
- Lenovo Group Limited
- Oracle Corporation
- Hewlett Packard Enterprise Company
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- Marvell Technology Group Ltd.
- Cloudflare, Inc.
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Microsoft Corporation
- Ampere Computing LLC
- Arm Limited (SoftBank Group Corp.)
- NVIDIA Corporation
Market Report Segmentation
By Core Type
- ARM Cortex-A Core Based Servers
- ARM Cortex-M Core Based Servers
By Processor
- 64-bit
- 32-bit
By OS
- Android
- iOS
- Windows
By Vertical
- Telecommunications
- Automotive
- Healthcare
- Oil & Gas Extraction
- Bioscience
- Industrial Automation
- Other Verticals
By Application
- Mobile Computing
- 3D Graphics
- Internet of Things (IoT)
- Smart Homes
- Wearables
- Sensors
- Enterprise & Infrastructure Networking
- Wireless Communications
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global ARM-Based Servers Market by Core Type
Chapter 6. Global ARM-Based Servers Market by Processor
Chapter 7. Global ARM-Based Servers Market by OS
Chapter 8. Global ARM-Based Servers Market by Vertical
Chapter 9. Global ARM-Based Servers Market by Application
Chapter 10. Global ARM-Based Servers Market by Region
Chapter 11. Company Profiles
Companies Mentioned
Some of the key companies in the ARM-Based Servers Market include:- ZTE Corporation
- Lenovo Group Limited
- Oracle Corporation
- Hewlett Packard Enterprise Company
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- Marvell Technology Group Ltd.
- Cloudflare, Inc.
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Microsoft Corporation
- Ampere Computing LLC
- Arm Limited (SoftBank Group Corp.)
- NVIDIA Corporation
Methodology
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