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The micro servers market is estimated to grow by USD 32.8 billion, at a CAGR of 10.87% between 2023 and 2028. Market growth depends on several critical factors that shape the landscape of computing and digital services. Key among these are the shift toward edge computing, which addresses the demand for real-time data processing and reduced latency in applications like IoT and AI. Concurrently, there is a growing reliance on cloud services across various sectors, driven by the need for scalable and accessible computing resources. Additionally, the market's expansion is propelled by the increasing requirement for high-density servers capable of handling data-intensive workloads. These elements collectively define a dynamic environment where technological advancements and evolving consumer demands intersect, fostering innovation and driving the evolution of computing infrastructure to support the complexities of modern digital environments effectively.
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The market share of the large enterprise segment will be significant during the forecast period. Large enterprises are increasingly opting for micro servers to store, manage, and process information efficiently. Storing information on on-site servers is complex and expensive for organizations that are operational in different industries across various geographical locations due to the high cost of hardware and the need for physical space. Cloud-based solutions make it easy and convenient for organizations to access tools and information remotely and enhance the efficiency of document-sharing between multiple workplaces. The rising demand for cloud services will drive the adoption of microservers during the forecast period.
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The large enterprises segment was valued at USD 20.72 billion in 2018. Cloud services provide on-demand scalability of storage resources for large enterprises to collect, store, and analyze information. Therefore, real-time access to information and files at multiple locations and devices is the primary factor driving large enterprises to adopt micro servers during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in this region is primarily driven by the increasing adoption of cloud services by enterprises across different industries in the US and Canada. Enterprises are opting for cloud solutions to reduce the operating expenditure and capital expenditure incurred on on-premises data centers. Enterprises are increasingly adopting cloud solutions from hyper scale providers, such as AWS, Microsoft, and Oracle, to meet the computing capacity requirements with minimum expenditure. The increasing adoption of advanced technologies such as IoT and big data in sectors such as healthcare and BFSI is expected to drive the demand for micro servers in North America.
Micro servers, also known as computing nodes, are compact and energy-efficient servers that offer significant advantages over traditional high-end servers. These servers utilize low-power processors, RAM, and storage to deliver computing power while minimizing energy costs and physical space requirements. Microserver architecture is based on a scale-out design, which allows for easy scalability and redundancy. Micro servers are increasingly being adopted in information centers, web hosting, enterprise-class rack servers, and cloud services. They are also used in social networks, devices, and hybrid cloud environments. The market for micro servers is driven by the need for high-density servers with low power consumption.
Further, key components of micro server hardware configurations include low-power processors, RAM, and storage. Micro servers offer system reliability and can be used as an alternative to high-end servers, blade servers, and server blades. They are also suitable for use in personal computers and web hosting applications. The market for micro servers is expected to grow significantly due to the increasing demand for energy-efficient and scalable computing solutions. Additionally, the adoption of cloud services and public cloud providers is also driving the growth of the micro server market.
The shift toward edge computing is notably driving market growth. The rise of edge computing has led to the development of edge data centers, increasing the need for micro servers. Industries like telecommunications, manufacturing, and energy are generating more information, driving the demand for advanced edge platforms. To meet this demand, market Companies are creating new edge computing platforms to enhance information management capabilities at the edge of the network, focusing on scalability, redundancy, performance, and efficiency. Edge computing offers the advantage of keeping information close to the client machine, reducing latency, and improving server response times.
Additionally, there is a growing demand for NVMe-enabled SSDs, which offer greater efficiency in edge computing compared to SAS/SATA SSDs, particularly in developing countries and emerging nations. This demand is driving innovation among suppliers to bridge the advanced gap in these regions. As edge computing continues to expand, the demand for storage solutions for edge data centers will increase, driving market growth in the forecast period.
Increased investments in data centers particularly hyper-scale data centers (HDCs) is the key trend in the market. An HDC is an upgraded version of a traditional data center that uses a greater number of physical servers and virtual machines than traditional servers. It offers higher information storage and computing speed. The demand for HDCs is driven by the increased market momentum for analytics. The rapidly growing trend of new social media applications and the digitization of major industries, such as healthcare and retail, have led to the generation of vast volumes of information.
Moreover, hyperscalers are making continuous investments to expand and build centers. Over the last few years, hyper scalers have invested approximately USD 200 billion in capacity expansion and opening new data centers. Such investments from hyper scalers are propelling the growth of the market. Therefore, the increase in the number of hyperscalers will have a positive impact on the growth of the market during the forecast period.
Increasing data center consolidation is the major challenge impeding market growth. These service providers are physically consolidating multiple data centers into a single large data center to reduce their physical footprint and achieve a more efficient IT architecture. The consolidation of all resources in one location provides the data center service provider with higher scalability and flexibility and hence allows more control over these operations. It also leads to reduced hardware expenditure.
Further, it helps reduce the operational and maintenance expenditure for data center service providers. Due to the above advantages, more providers are opting for data center consolidation. Thus, growing data center consolidation will reduce the demand for information storage solutions in data centers, which will adversely impact the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
IRON Global Inc. - The company offers micro servers such as MicroCloud modular server system as its key offerings. The company offers various services such as end-to-end manufacturing services, turnkey integration, global logistics, OEM hardware platforms, supply chain management, turnkey data center infrastructures, industry solutions, and others.
The market report also includes detailed analyses of the competitive landscape of the market and information about 11 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Micro servers, also known as computing nodes, are compact, self-contained servers that offer hardware configurations including low-power processors, RAM, and storage. These servers are designed to address the challenges of energy costs and physical space requirements in data centers. Microserver architecture offers scalability, redundancy, and system reliability, making it an attractive option for organizations undergoing digital transformation and economic development. Micro servers are used in various applications such as data processing, web hosting, and databases. They are ideal for edge computing, where data processing needs to occur closer to the source. Micro servers can be compared to monolithic servers, high-end servers, enterprise-class rack servers, blade servers, and rack-mounted servers. In addition, micro servers are powered by 64-bit processors and System-on-Chips (SoCs), making them energy-efficient and cost-effective. The use of low-power ICs in micro servers further reduces energy consumption. Micro servers can be used in personal computers and web hosting, as well as in cloud computing and virtualization environments.
Further, containerization technologies have also gained popularity in micro server deployments, enabling efficient use of resources and improved system performance. With the increasing demand for data analytics and network services, the market for micro servers is expected to grow significantly in the coming years. Also, the market is pivotal in hyperscale data center architecture and enterprises' scale-out strategies. These compact servers cater to diverse applications like IoT technologies, autonomous vehicles, and smart manufacturing in smart cities. With low Thermal Design Power (TDP) and ARM-based designs, micro servers are integral to hyperscale cloud solutions and 5G deployments. They support Big Data analytics and handle data generation from smartphones, social platforms, and smart devices. As public and private cloud providers adopt micro servers, their role in efficient data processing for internet services and enterprise end-users continues to expand, driving innovation in server technology and infrastructure.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
Market growth 2024-2028 |
USD 32.8 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
9.53 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acer Inc., Dawning Information Industry Co. Ltd., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Inspur Group., Intel Corp., IRON Global Inc., Lenovo Group Ltd., Plat Home Co. Ltd., Quanta Computer Inc., and Super Micro Computer Inc. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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