Global Server Market Experiences Remarkable 91% Year-on-Year Growth; NVIDIA Leads GPU-Embedded Servers with 90% Market Share

The most recent analysis of the Server Market has been released by IDC, highlighting a year of remarkable profitability for prominent industry players.

2024 Server Market Insights: $77.3 Billion Revenue and Growth Dynamics

According to the report from the International Data Corporation, the global server market has experienced explosive growth due to increased demand and the rapid integration of AI technologies. The statistics indicate a significant 91% year-on-year increase in 2024 compared to 2023, marking the second-highest growth rate since 2019.

This remarkable surge has contributed to an accumulated revenue of $77.3 billion in the last quarter of 2024, primarily driven by the growing adoption of GPU-embedded servers. NVIDIA continues to dominate this segment, commanding over 90% of the GPU-embedded server market share. Their advanced solutions, such as the GB200 NVL72, have been in high demand, particularly from major players like Amazon, Google, and Microsoft, who leverage NVL72 alongside Blackwell B200 GPUs for enhanced computational capabilities.

In the x86 server segment, a year-on-year growth of approximately 59.9% was noted, generating around $54.8 billion in revenue. Conversely, non-x86 servers showed an exceptional growth rate of 262.1%, albeit with a lower revenue generation of $22.5 billion. Non-x86 servers incorporate specialized architectures, including ARM and RISC designs, tailored for artificial intelligence and cloud computing applications, while x86 servers utilize the Intel and AMD architectures.

Within this landscape, servers equipped with embedded GPUs saw an astonishing 192.6% year-on-year growth in Q4 2024, culminating in cumulative earnings of $235.7 billion for the year. This market segment has nearly doubled in size since 2020. Moreover, ODM Direct Vendors maintain a strong presence, capturing approximately 47.3% of the market share and achieving a growth rate of 155.5% year-on-year. Their Q4 2024 revenue reached $36.57 billion, followed closely by established firms like Dell, SuperMicro, HP, IEIT Systems, and Lenovo, each contributing significant market shares.

Regional Growth Trends in the Server Market

Regionally, Canada exhibited the highest growth in the server market with an impressive year-on-year increase of 118.4%.The United States secured second place, accounting for 56% of total revenue, while China achieved a notable 93.3% year-on-year growth, contributing approximately 25% of the global total. Additional regions, including Japan, the Asia-Pacific excluding Japan (APeJC), and EMEA, saw respectable growth rates of 66.9%, 43.8%, and 28.2% respectively. In contrast, Latin America recorded the slowest growth rate at a modest 7%.

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