Micro Server IC Market Research Report - Global Forecast till 2027

Micro Server IC Market Research Report: By Component (Hardware, Software), Processor Type (Intel, ARM), Application (Web Hosting and Enterprise, Analytics and Cloud Computing, Edge Computing, Others), End-User (Enterprises, Data Centers) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2027

ID: MRFR/SEM/8988-HCR | December 2022 | Region: Global | 100 Pages         

Micro Server IC Market

Micro Server IC market is estimated to reach USD 1.68 Billion by 2026, registering a CAGR of 5.80% during the forecast period of 2020-2026.

Segmentation

By Component Hardware Software
By Processor Type Intel ARM
By Application Web Hosting and Enterprise Analytics and Cloud Computing Edge Computing
By End-User Enterprises Data Centers

Key Players

  • Intel Corporation (US)
  • ARM Holdings PLC (UK)
  • Hewlett Packard Enterprise (US)
  • Quanta Computer Inc. (Taiwan)
  • Applied Micro Circuits Corporation (US)
  • Marvell Technology Group Ltd. (UK)
  • Cavium Inc. (US)
  • Dell Technologies (US)
  • Penguin Computing (US)
  • Embedded Technology (Taiwan)
  • Fujitsu (Japan)
  • Super Micro Computer Inc. (US)

Drivers

  • Innovation
  • Invest in research and development
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Micro Server IC Market Overview:


The MicroServer IC market is estimated to reach USD 1.68 Billion by 2026, registering a CAGR of 5.80% during 2020–2026. The MicroServer ICs pack CPU, memory, system Input, and Output, which are less expensive than the traditional enterprise servers. Small and medium-sized businesses utilize the MicroServer ICs as they often operate with minimal IT staff, and the computing tasks are comparatively lesser. The MicroServer ICs are highly preferred due to their miniature structure and require less cooling than their traditional counterparts; they can be packed densely together as they are compact, thereby saving space.


 


Micro Servers ICs are generally utilized for particular tasks; they can't be replaced with specialized servers. Therefore the market sales of the MicroServer ICs are not affected by the sales of the specialized servers. The increasing trend of cloud computing, miniaturization of electronics, and growing consumer base for consumer electronics are impacting the overall growth of the MicroServer IC industry. Currently, Intel ICs are increasingly deployed owing to their smooth software support, which resulted in the increasing adoption of Micro Server ICs.


 


COVID 19 Analysis:


 


The widespread of COVID-19 has affected the overall production of chips and Integrated Circuits, additionally; the supply chain disruption also affected the overall growth of the Micro Server IC Market. On the other hand, a major end-user application such as manufacturers of electronics and semiconductors has reduced their production rate due to pandemic. This factor has also affected the Micro Server IC market demand. On the other hand, the demand for e-commerce, remote work, automation have been increased during the pandemic, this is expected to accelerate the growth of the Micro Server IC Industry.


 


Market Dynamics:


 


Market Drivers:


 


Recently, the manufacturers of Micro Servers ICs are making changes in the architecture design and are increasingly integrating new components into them to increase the overall capacity. Such integration of new components is impacting the overall growth of the micro server IC industry. The increasing adoption of edge computing, big data, cloud technologies is also driving the Micro Server IC market growth.


 


Some of the potential advantages of Micro Server ICs such as low costs incurred for the designing save space as they occupy very little space, hence they can allocate several Micro Server ICs in the integrated circuit. On the other hand, increasing demand for light computing tasks in the commercial sectors increasingly deploys the Micro Servers ICs. These factors are considered as the primary factors that stimulate the overall growth of the micro server IC market.


 


Market Opportunities:


 


Commercial personal computing devices are increasingly utilizing the Micro Server owing to the lower power consumption and lower space utilization. The lower consumption of power significantly cuts the running costs and electricity bills while performing computing efficiently. Such factors have propelled the commercial sectors and small-sized enterprises to adopt the Micro server ICs for processing their computing operations. 


 


The increasing number of internet users across the globe is demanding more data centers across the world. The increasing number of IT sectors, Telecoms, Banking, healthcare, and other sectors which require computing operations demand more data centers, due to which the Micro Servers IC market value is expected to multiply in the forecast period. 


 


Market Restraints:


The Microservers are commonly known as application-specific servers, they are not compatible with other applications. Web-hosting, dedicated hosting, were the major applications of Micro Servers. However if the user requires additional space or capacity, the user had to increase the nodes and upgrade the software to get it compatible with the workload of the application. 


 


The Micro Servers are not fit for handling the large volume of data which are generated by the large enterprises, since the Micro Servers have small storage capacities, they are not compatible with these applications.


 


Market Challenges:


 


The popularity of blade servers is rapidly increasing. They are arranged as slim, blades in the electronic circuit boards which are considered the most efficient computing devices which are utilized in modern businesses. On the other hand, the microservers are restricted to certain applications are not generally preferred for large computing jobs. These factors are considered as the major challenging attribute for Micro Server IC market growth.


 


The Micro Servers can’t be replaced with high-power processors, they are sold along with the higher power specialized servers. The Micro Servers can’t be used for the demanding computing tasks that are carried out in the IT enterprises, advanced scientific computing, technical computing workloads, etc.


 


Cumulative Growth Analysis:


 


The Micro Server IC market demand has been rapidly increasing owing to the multiple driving factors that include increasing investment by the leading IC manufacturers to retain the demand-supply ratio even during unpredictable situations. On the other hand, the market players and manufacturers are spreading awareness about the Micro Server IC among the public. They are also incorporating new business strategies to increase the Micro Server IC market growth. Hence the Micro Server IC market is expected to surpass over USD 1.68 billion by the year 2026 while registering a CAGR of 35.2% during the forecast period. The increasing trend of Cloud computing, virtualization, digitalization of industrial procedures, autonomous vehicles, cloud technologies, dedicated hosting, increasing number of data centers in several developing countries are stimulating the Micro Servers IC market growth in recent years. The number of internet users has been increasing year over year which is also impacting the Micro Server IC market growth.


 


Value Chain Analysis:


 


The IC manufacturers are increasing their investments after the pandemic to develop the R&D and increase the production rate of the Micro Server ICs. On the other hand, the new launches of Micro Server ICs with security standards and processing technologies were adopted to enhance the performance, increase the nodes and scalability. On the other hand, the manufacturers are increasingly creating awareness and advertising their products to increase the awareness and spread about the potential benefits of Micro Server ICs and their performance. 


 


There are no standardized specifications for the Micro Server ICs to fit in several applications. This aspect is expected to hinder the overall growth of the Micro Server IC industry. However, the increasing adaptation of Cloud Computing, digitalization of the industries, increasing demand for miniature electronic devices, and increasing consumer base for consumer electronics are expected to present lucrative opportunities for the overall growth of the Micro server IC industry.


 


Segment Overview:


 


Based on Component:


 



  • Hardware

  • Software


 


Based on Processor Type:


 



  • x86

  • ARM


 


Based on Application:


 



  • Web Hosting & Enterprise

  • Analytics & Cloud Computing

  • Edge Computing


 


Based on End User:


 



  • Enterprises



  • Small

  • Mid-scale

  • Large



  • Data Centers


 


Regional Analysis:


 


The Asia-pacific region is expected to dominate the Micro Servers IC market value in the forecast period owing to the expansion of data centers across the region. An increasing number of internet services and the potential benefits of Micro Servers are getting recognized by enterprises and industries in recent times. Such factors are propelling the overall growth of the Micro Server IC industry. Additionally, The Chinese government has decided to invest about USD 1.4 trillion by the year 2025, the collaborated private firms and government organizations to increase the opportunity for connected devices, AI, and autonomous driving applications. Such initiatives from the countries such as China are expected to propel the Micro Server IC market growth. 


 


The United States has showcased the market value of USD 168.6 million in the year 2020 and is expected to grow at a steady pace in the forecast period. On the other hand, China is the second-largest economy worldwide is expected to reach a market value of over USD 1.5 billion by the year 2027 while registering a CAGR of 45.1%.


 


Competitive Landscape:


 



  • Intel Corporation (US)

  • ARM Holdings PLC (UK)

  • Hewlett Packard Enterprise (US)

  • Quanta Computer Inc. (Taiwan)

  • Applied Micro Circuits Corporation (US)

  • Marvell Technology Group Ltd. (UK)

  • Cavium Inc. (US)

  • Dell Technologies (US)

  • Penguin Computing (US)

  • Embedded Technology (Taiwan)

  • Fujitsu (Japan)

  • Super Micro Computer, Inc. (US)

  • Advanced Micro Devices, Inc. (US)

  • NVIDIA Corporation (US)

  • IBM Corporation (US)


 


Recent Developments:


The Year 2020:


Intel Corporation has launched the Software Guard Extension, a data security technology that protects confidential data such as biometric factors, medical and confidential data, passwords, and intellectual properties. The technology secures them when they are processed in memory. This method creates a trusted space that helps the data stay unmodified, secured, and confidential when used in memory. Cloud services, blockchain, and other emerging technologies benefit from this technology.


The Year 2020:


Si-Five Inc, one of the leading market players, has developed a Core IP processor, which is made of free and open RISC-V instruction set architecture designed to enable features such as performance and efficiency. The processor is primarily developed with the primary goal of achieving scalability. The processor can be tailored according to the organization's workload with varied parameters of the architecture.


 


Report Overview:


 


This report has covered:


 



  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segment Overview

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 1.68 Billion
  CAGR   5.80% (2020-2026)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Component, Application and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Intel Corporation (US), ARM Holdings PLC (UK), Hewlett Packard Enterprise (US), Quanta Computer Inc. (Taiwan), Applied Micro Circuits Corporation (US), Marvell Technology Group Ltd. (UK), Cavium Inc. (US), Dell Technologies (US), Penguin Computing (US), Ambedded Technology (Taiwan), Fujitsu (Japan), Super Micro Computer, Inc. (US), Advanced Micro Devices, Inc. (US), NVIDIA Corporation (US), IBM Corporation (US), SiPearl (France), christmann informationstechnik + medien GmbH & Co. KG (Germany), STMicroelectronics (Switzerland), NXP Semiconductors (The Netherlands), Bamboo Systems Group Ltd. (UK), Huawei Technologies Co., Ltd (China), Ampere Computing (US), and Lattice Semiconductor (US)
  Key Market Opportunities   Increasing deployment of new data centers across emerging nations
  Key Market Drivers

  • Innovation
  • Invest in research and development


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    Frequently Asked Questions (FAQ) :

    The global micro servers IC market size is expected to reach USD 1.68 billion by 2026.

    The micro servers IC market is predicted to expand at 5.80% CAGR from 2020 to 2026.

    The micro servers IC market is driven by its utilization by small and medium businesses for their computing needs.

    APAC can display a robust growth rate in the micro servers IC market owing to deployment of new data centers.

    Marvell Technology Group Ltd., Lattice Semiconductor Super Micro Computer, Inc., Quanta Computer Inc., Intel Corporation, STMicroelectronics, Applied Micro Circuits Corporation, Huawei Technologies Co., Ltd, Embedded Technology, ARM Holdings PLC, IBM Corporation, Penguin Computing, Advanced Micro Devices, Inc., Bamboo Systems Group Ltd., SiPearl, christmann informationstechnik + medien GmbH & Co., KG, NVIDIA Corporation, Ampere Computing, Hewlett Packard Enterprise, Dell Technologies, Cavium Inc., NXP Semiconductors, and Fujitsu are key players of the micro servers IC market.