Global Micro Server IC Market (2021 to 2026) - Rising Importance of Edge Computing and Micro Data Centers Present Opportunities - ResearchAndMarkets.com

The "Global Micro Server IC Market with COVID-19 Impact Analysis by Offering (Hardware, Software), Processor Type (X86, ARM) Application (Web Hosting & Enterprise Applications, Analytics & Cloud Computing, Edge Computing), End-user, and Region - Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

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.

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 micro-controller, 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.

Market Dynamics

Drivers

• Low Power Consumption and Low Space Utilization of Micro Servers
• Growth in Trend of Cloud Computing and Web Hosting
• Emergence of Hyperscale Data Center Architecture

Restraints

• Application-Specific Nature of Micro Server Demands Additional Servers for Separate Applications
• Lack of Standard Specifications

Opportunities

• Increasing Need for New Data Centers Across Emerging Regions
• Rising Importance of Edge Computing and Micro Data Centers

Challenges

• Blade Servers May Limit Scope of Micro Server Usage

Companies Mentioned

• Advanced Micro Devices, Inc.
• Ambedded Technology Co. Ltd.
• Ampere Computing
• Bamboo Systems
• Christmann Informationstechnik + Medien GmbH & Co. KG
• Dell
• Fujitsu
• Hewlett Packard Enterprise Development L.P.
• Hiro Micro Data Centers
• Huawei Technologies Co. Ltd.
• IBM
• Intel Corporation
• Lattice Semiconductor
• Marvell
• Nvidia Corporation
• NXP Semiconductors
• Quanta Computer Inc.
• Sipearl
• STMicroelectronics
• Super Micro Computer, Inc.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210301005747/en/