“Emergence of hyperscale data center architecture is set to drive the micro server IC market”

The Micro server IC market  is valued at USD 1.2 billion in 2021 and is projected to reach USD 2.2 billion by 2026; it is expected to grow at a CAGR of 12.6% from 2021 to 2026. Hyperscale computing is a distributed computing environment in which the volume of data and the demand for certain types of workloads can increase rapidly and yet still be accommodated quickly in a cost-effective manner. Hyperscale data centers are most widely adopted for cloud infrastructure by cloud service providers. The ultra-low power micro servers maximize the performance and energy efficiency for cost-effective hyper-scale computing environments.

Micro servers are being launched by various vendors, offering different specifications and component systems. As micro servers are a nascent product category of the server market in comparison to rack servers and blade servers, it is very difficult to lay down a precise definition of its attributes and features. The lack of design standards between vendor solutions and customized clustering software will be the restraint for its adoption in big data center environments.

Blade servers are gaining popularity over rack-mounted servers in large office operations all across the world. Micro servers are limited to some applications such as web servers that do not require multi-CPU cores. The development of new hardware and software technology with increased computing power such as 64-bit processors by Intel (US) and ARM (UK) and low-power SoCs by ARM (UK) would make micro servers a better competitor for blade servers. These developments would help micro servers to serve more technologies such as server clustering and cloud data centers so that they can run traditional businesses of high workload applications.

“ARM processor:: The fastest processor type segment of micro server IC market .”

ARM-based processors are expected to grow at the highest rate during the forecast period. A new wave of servers produced with ARM-based system-on-a-chip (SoC) has already made headway in competing against X86 processors, especially with low-power or special-use models. ARM licenses its chip designs to hundreds of semiconductor companies, which build that design into their own chips before selling them to a broad spectrum of markets. ARM’s partners can produce a wider range of micro server platforms, each of which can have a different design catering to different workload applications. Due to their flexibility, small size, efficiency, and low price, ARM processors are a great choice for infrastructure. It is anticipated that the market share of ARM-based micro servers will increase in the coming years with the recent acquisition by NVIDIA. The acquisition will lead to better product availability at a lower price than competitors.

“Software: The fastest offering segment of the micro server IC market .”

Software is used in an SoC to control the operation of the components. Software plays an important part as it helps provide better portability and enables better functioning of the SoC. It is needed for controlling the microcontroller, microprocessor, peripherals, and interfaces. Other software includes software drivers and software modules which are essential to control operations of the hardware. The functions of software keep on changing according to the specific need of the applications. The list of micro server software providers includes Microsoft, Red Hat, Citrix, and Oracle. The recent acquisition of ARM by NVIDIA will provide better software support for micro server peripherals; therefore, companies will start focusing on providing better software solutions for ARM-based ICs.

“Edge Computing: Fastest growing application of Micro server IC market”

Edge computing is an exciting new approach to network architecture that helps organizations break beyond the limitations imposed by traditional cloud-based networks. Although cloud computing continues to play an important role in modern network architecture, the exciting possibilities offered by IoT devices, which are capable of processing the data they gather closer to the source, are forcing companies to rethink their approach to IT infrastructure. The development of cloud-based technology and edge computing has made it easier for businesses to scale their operations. There has been a rising need for edge computing for applications such as connected and autonomous vehicles, smart manufacturing and IIoT, and smart cities. It has spurred the growth of edge data centers, and the rising implementation of compact servers due to space constraints provides an opportunity for micro servers.

“North America: The leading region in the global micro server IC market .”

North America is projected to account for the largest size of the micro server IC market from 2021 to 2026. The increased R&D in the field of IoT and increasing cloud-based services is creating the need for new and improved ICs for better, faster computing to process the huge amounts of data created. North America has the largest number of data centers globally. The growing demand for high data transfer rates, increased demand for communication devices such as smartphones and tablets induced with 5G network connectivity, the growing market for wearable devices, and growing data center applicability are driving the growth of the micro server IC market in North America. This boosted the growth of the micro server IC market in North America, giving it the highest market share.

The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:

• By Company Type: Tier 1 – 40%, Tier 2 – 25%, and Tier 3 – 35%
• By Designation: C-level Executives – 35%, Directors – 28%, and Others – 37%
• By Region: North America – 49%, Europe – 21%, APAC – 19%, RoW – 11%

Intel Corporation (US), Advanced Micro Devices, Inc. (US), Hewlett Packard Enterprise Development LP (US), Quanta Computer Inc. (Taiwan), NVIDIA Corporation (US), Ambedded Technology Co., Ltd. (Taiwan), Dell Inc. (US), Fujitsu (Japan), Marvell (US), Super Micro Computer Inc. (US), Ampere Computing LLC. (US), Bamboo (UK), christmann informationstechnik + medien GmbH & Co. KG (Germany), HIRO micro data centers (Netherlands), Huawei Technologies Co. Ltd. (China), IBM (US), Lattice Semiconductor (US), NXP Semiconductors (Netherlands), SiPearl (France), and STMicroelectronics (Switzerland) are some of the key players in the micro server IC market.

Research Coverage:

The report segments the micro server IC market  and forecasts its size, by value, based on Offering (Hardware, Software), Processor Type (X86, ARM), Application (Web Hosting and Enterpise applications, Analytics and Cloud Computing, Edge Computing), End-User (Enterpises and Data Center) and Region (North America , Europe, APAC, and RoW),.

The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the micro server IC market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Key Benefits of Buying the Report

The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the micro server IC market and provides them information on key market drivers, restraints, challenges, and opportunities. Report also covers COVID-19 impact on micro server IC market.