The global ARM-based servers market is valued at USD 8,976.0 million in 2024. The industry was seen to have USD 8,059.0 million in 2023. The industry is projected to show a CAGR of 13.3% from 2024 to 2034. The business is set to surpass USD 31,349.4 million by the end of 2034.
The ARM-based servers are growing due to the rising demand for energy-efficient and high-performance computing solutions across various industries such as IT, telecommunications and healthcare. The organizations prefer ARM-based servers due to low power consumption and scalability which are very ideal for handling workloads in cloud computing, edge computing and data centers.
Global ARM-Based Servers Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 8,059.0 million |
| Estimated Size, 2024 | USD 8,976.0 million |
| Projected Size, 2034 | USD 31,349.4 million |
| Value-based CAGR (2024 to 2034) | 13.3% |
As the businesses accept digital transformation due to the growing need for servers capable of supporting advanced applications such as artificial intelligence, machine learning and 3D imaging. ARM processors known for their flexibility and efficiency are gaining traction in the domains which propels the market growth.
The telecommunications and automotive industries help for leveraging ARM-based servers for connectivity solutions and signal processing. In healthcare sector the servers help to utilized for medical imaging and real-time data analytics and this help for enhancing the demand.
North America are dominating the ARM-based servers market due to its well-established data center infrastructure and focus on adoption of cloud services. The countries such as India and China are emerging as high-growth markets due to the expansion of IT ecosystems and the rising adoption of advanced computing solutions. The availability of ARM-based solutions is tailored to regional needs and thus help for accelerating the growth.
The market is witnessing innovation through various partnerships and collaborations between hardware manufacturers and software developers for ensuring compatibility and help for optimizing performance to specialized applications. The developments help to indicate a promising future for ARM-based servers in diverse industries.
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The below table presents the expected CAGR for the global ARM-Based Servers market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the ARM-Based Servers industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 12.7%, followed by a slightly higher growth rate of 13.5% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 12.7% (2023 to 2033) |
| H2 | 13.5% (2023 to 2033) |
| H1 | 12.6% (2024 to 2034) |
| H2 | 13.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 12.6% in the first half and remain higher at 13.8% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
ARM Cortex-A processors propels the demand due to their high-performance capabilities in data centers and cloud computing
The ARM Cortex-A processors help for recognizing for their high-performance capabilities that makes very ideal for data center and cloud computing applications. The processors are designed to handle intensive workloads efficiently help for enabling faster data processing and help to improve scalability. The rise of AI, machine learning, big data analytics and the demand for Cortex-A processors has shift due to their ability to manage high- tasks while maintaining energy efficiency.
The adoption of ARM Cortex-A processors in hyper scale data centers has increased over 20% due to their adaptability for cloud-native applications. According to the USA CHIPS and Science Act focused on allocation and allocated USD 52 billion for semiconductor R&D and manufacturing are projected to boost the ARM-based server market by promoting advanced processor development.
Cortex-R processors are essential for industries needing real-time data analytics and processing reliability
The ARM Cortex-R processors are very essential for industries require for real-time data analytics and high reliability such as automotive, telecommunications and aerospace. The processors excel in latency-sensitive environments where split-second decision-making is very crucial.
The use in automotive server systems for autonomous vehicles has seen a 15% increase in adoption in the past year. The UK National AI Strategy help to emphasizes real-time data processing capabilities for smart city initiatives had fueled the demand for Cortex-R processors.
Cortex-M Processors Create Lucrative opportunities in expanding IoT server solutions with efficient processing.
By supporting IoT and edge computing solutions with energy-efficient processing the processors are focused on adopting in low-power servers for managing localized IoT ecosystems such as smart home devices and industrial IoT. In Cortex-M processor shipments for IoT-focused applications from the period 2022 and 2023.
The countries such as India and Australia help for introducing the policies to expand IoT infrastructure. In 2023, India IoT policy framework help to grow the IoT market to USD 15 billion by the end of 2025 help for encouraging the development of ARM-based servers to optimized with Cortex-M processors.
Software Compatibility Challenges for ARM-Based Servers in Legacy Applications
Many enterprise systems, applications and databases help to optimized for x86 architecture which has been the standard in servers. The organizations will face difficulties when trying to run applications on ARM-based servers.
The main issue is that software developed for x86 processors will not run efficiently or at all on ARM-based without significant modifications or emulation layers. This will lead to performance issues, increased costs for adaptation and it will delay in longer deployment times. For businesses that mostly rely on legacy system and this will be a major barrier for adopting ARM-based solutions.
Principal Consultant
From the period 2019 to 2023 the ARM-based servers market seen a growth rate of 10.2% CAGR due to the rising demand for energy-efficient processors in data centers, cloud computing and edge computing. By the end of 2023, the market value reached 8,059 million and this is fueled by sectors such as IT, telecommunications, and healthcare.
Looking ahead, from 2024 to 2034, the market is poised at a CAGR of 13.3% due to the digital transformation, cloud adoption and the rise of AI and machine learning. By the end of 2024, the market is estimated and valued at 8,976 million.
The growth will further accelerate due to the advancements in edge computing, IoT and government backing for energy-efficient technologies. By the end of 2034 the market is expected to reach 31,349.4 million with the focus on adoption in emerging markets such as India and China, as well as increased use in cloud and hyper scale data centers.
Tier 1 vendors are dominating the market and caters around 45% to 50% of the global market. The vendors are well-established with the significant resources dedicated to research and development, strong brand recognition and has a wide-reaching customer base.
Vendors such as Amazon Web Services, Ampere Computing and Fujitsu are leading the ARM-based server solutions and help for targeting hyperscaler, cloud services and large enterprises. The players are pioneering in ARM server adoption help for leveraging their advanced technologies and global presence to capture the largest share of the market.
Tier 2 vendors cater around 15% to 20% of the market. The vendors are important regional players or niche providers that help to offer specialized solutions to specific industries. The market is growing due to increased demand for customized ARM-based solutions in sectors such as healthcare, automotive and telecommunications.
Vendors such as Huawei, Marvell Technology and Oracle are the mid-tier players offering ARM-based servers in select regions and help for catering to enterprises and they are tailored solutions for specific workloads.
Tier 3 vendors cater around 25% to 30% of the market and this vendor consist of smaller or emerging players and help to focus on specialized applications such as edge computing or Internet of Things solutions. The vendors typically serve smaller enterprises or specific verticals with customized ARM-based servers. Tier 3 vendors such as NVIDIA, Linaro and Toshiba which are focused on expansion for their presence in the ARM server space.
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The section highlights the CAGRs of countries experiencing growth in the ARM-Based Servers market, along with the latest advancements contributing to overall market development. Based on current estimates, India, China and USA are expected to see steady growth during the forecast period.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| India | 15.2% |
| China | 14.0% |
| Germany | 11.9% |
| Japan | 13.2% |
| United States | 12.8% |
The adoption of arm based server and the computing applications in India is fueled by several initiatives such as Digital India and the rapid expansion of IT infrastructure. The servers offer energy efficiency and scalability and making them very ideal for government-backed digital transformation projects and private cloud setups.
The Digital India has been instrumental propelling the demand for scalable computing resources with the programs such as BharatNet help to connect 250,000 villages with broadband infrastructure. The initiative is focused on emphasizing sustainable and cost-effective technology and this projected cost is USD 5.6 billion and help for ARM-based solutions. India is anticipated to see substantial growth at a CAGR 15.2% from 2024 to 2034 in the ARM-Based Servers market.
China tech industry is growing rapidly and help for integrating ARM-based servers for 3D graphics and imaging applications in fields such as augmented reality, gaming and simulation. The government is focused on providing grants and subsidies for ARM-based solutions and the China government policy such as Made in China 2025 help to promote domestic semiconductor innovation.
In 2023, Tencent deployed ARM-based servers to enhance cloud rendering for gaming platforms. China’s AR/VR market is projected to reach USD 29.5 billion by the end of 2026 and this will further propel the demand for high-performance ARM-based graphics servers. China ARM-Based Servers market is anticipated to expand from 747.0 Million in 2024 to 2,591.6 Million by 2034 poised at a CAGR 14.0% during this period.
The country helps to leverages ARM-based servers for signal processing in defense and telecom sectors. The servers are very pivotal for real-time data analytics in applications such as radar systems, satellite communication and secure networks. The different initiatives such as CHIPS Act of 2022 help for allocation and allocated USD 52 billion to semiconductor production and this will be fostering innovation in ARM-based processors.
The defense agencies are focused on utilizing ARM servers for their low power consumption and ability to handle complex analytics. USA is anticipated to see substantial growth up to 12.8% in the ARM-Based Servers market significantly holds dominant share of 74.5% in 2024.
The section provides detailed insights into key segments of the ARM-Based Servers market. The operating system category includes 32-bit operating system and 64-bit operating system. Industry category such as aerospace & defense, automotive, consumer electronics, telecommunications, energy & utilities, healthcare and others. Among these, 64-bit operating system is growing quickly. The energy & utilities hold largest market shares in arm-based servers.
| Operating System | 64-Bit Operating Systems |
|---|---|
| CAGR (2024 to 2034) | 13.9% |
As the organizations shift to cloud and edge computing environments. The operating systems help for enhancing performance, increased memory access and the ability to support more demanding applications. The transition to 64-bit architecture allows it to handle a larger address space which is very crucial for applications involving large datasets and intensive computing tasks.
The industries such as healthcare, automotive and telecommunications are focused on adopting 64-bit ARM servers for their ability to deliver faster processing speeds and better scalability.
The government of USA is focused on allocated in semiconductor industry and according to the CHIPS Act the government allocated USD 52 billion to boost domestic semiconductor manufacturing and it is projected to encourage the use of advanced ARM processors in a variety of applications for those requiring 64-bit capabilities. 64-Bit Operating Systems is anticipated to see substantial growth at a CAGR 13.9% from 2024 to 2034 in the ARM-Based Servers market.
| Industry | Energy & Utilities |
|---|---|
| Value Share | 26.8% |
The increasing emphasis on smart grids, renewable energy management and IoT-based infrastructure are very ideal for processing large volumes of data help for minimizing energy consumption. The servers are particularly well-suited for real-time data analytics, edge computing and AI applications in energy management where high efficiency and reliability are very crucial.
According to the USA government and their initiative such as Clean Energy Future allocated USD 25 billion to modernize the energy grid and invest in sustainable energy solutions. The initiative is projected and focused on adoption of ARM-based servers in the energy and utilities sector. As these systems help for designing to handle data-intensive operations and keep energy costs low. Energy & Utilities are projected to dominate the ARM-Based Servers market, capturing a substantial share of 26.8% in 2024.
The competition in the ARM-based server is highly competitive with major players such as Ampere, Fujitsu and Super micro help to develop innovative solutions to meet the rising demand for energy-efficient computing. The leaders are focusing on enhancing server performance, scalability and energy efficiency through the advancements in ARM architecture.
The entry of new players and growing partnerships are propelling the innovation for AI, cloud and edge computing applications. The established companies help for leveraging open-source collaborations to expand market reach.
Industry Update
In terms of Processor Core, the segment is divided into ARM Cortex-A, ARM Cortex-M, ARM Cortex-R and Others.
In terms of operating system, the segment is segregated into 32-bit operating system and 64-bit operating system.
In terms of application, the segment is segregated into computing, 3D graphics & imaging, connectivity, signal processing and others.
In terms of industry, the segment is segregated into aerospace & defense, automotive, consumer electronics, telecommunications, energy & utilities, healthcare and others.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa.
The Global ARM-based servers industry is projected to witness CAGR of 13.3% between 2024 and 2034.
The ARM-based servers industry stood at USD 8,976.0 million in 2024.
The ARM-based servers industry is anticipated to reach USD 31,349.4 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 14.2% in the assessment period.
The key players operating in the Global ARM-Based Servers industry are Ampere Computing, Qualcomm, Fujitsu, Supermicro, Hewlett Packard Enterprise (HPE), NVIDIA, Marvell Technology, Huawei Technologies.
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