The latest data on the Server Market has been published by IDC, revealing how profitable 2024 was for the giants.
Global Server Market Achieved $77.3B in Revenue in Q4 2024; Non-x86 Servers Saw a Significantly Higher Growth Rate Than x86 Servers
The data for the worldwide server market has been published by the International Data Corporation, revealing a staggering growth in the sector, thanks to the high demand and adoption of AI by the giants. The statistics reveal that the global server market saw a 91% growth year-on-year in 2024 compared to 2023, which is the second-highest growth rate since 2019.
Such a high growth rate has resulted in the accumulation of $77.3 billion in revenue in the last quarter of 2024 and comes as a result of increased adoption of GPU-embedded servers. The market is still dominated by NVIDIA and, as per the report, NVIDIA holds over 90% of the market share in GPU-embedded servers. The company has been shipping its powerful solutions such as GB200 NVL72 to its customers. Giants such as Amazon, Google, and Microsoft have been active customers of the Blackwell B200 GPUs and the NVL72 platform for increased computational power.
The x86 servers witnessed roughly 59.9% Y-o-Y growth in 2024 with around $54.8 billion generated in revenue. The non-x86 servers saw massive growth with 262.1% Y-o-Y even though the revenue is comparatively smaller compared to x86 servers at $22.5 billion. The non-x86 servers include specialized architectures such as ARM and RISC-based designs, crafted for AI and cloud computing, while the x86 servers are based on Intel and AMD architectures.
Servers with embedded GPUs witnessed a staggering 192.6% Y-o-Y growth in Q4 2024 and generated about $235.7 billion in the whole year. This market has roughly grown by 2X compared to how big it was in 2020. That said, ODM Direct Vendors remain the major players in the market, holding about 47.3% of the total share and witnessing a 155.5% Y-o-Y growth. The revenue comes out to be $36.57 billion in Q4 2024 while companies like Dell, SuperMicro, HP, IEIT Sytems, and Lenovo follow with decent market shares as well.
The region that saw the fastest server market growth was Canada with a roughly 118.4% Y-o-Y rate. The USA comes second, accumulating 56% of total revenue, and China is third with 93.3% Y-o-Y growth and taking about 25% of the total global revenue. Japan, APeJC, and EMEA also saw decent growth, with 66.9%, 43.8%, and 28.2% Y-o-Y growth, but Latin America saw the slowest growth at just 7%.
About the author: Sarfraz Khan is a hardware reporter with a focus on PC components and the builder community. With years of experience writing about PC hardware and laptops, his work has been featured on several reputable technology publications. Sarfraz's hands-on experience is demonstrated through his first-person accounts of using and comparing different hardware configurations, providing practical and relatable insights for everyday users. His technical analysis is respected by peers in the enthusiast community and has been cited by specialized hardware sites such as Germany's Igor's Lab.
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