The ARM-Based Servers Market is expected to reach USD 5,768.4 million in 2023 and expand at a CAGR of 12.6% to reach USD 18,955 million by 2033.
Demand for ARM-based servers is rising due to the increased need for efficient data center operations with increased computing power and low energy and cooling requirements.
Moreover, the growing importance of upgrading computing and hardware processing technologies has generated new growth opportunities in the global ARM-based servers market.
Server-based computing is an important area of research that has seen significant progress in the recent decade. Key players in the ARM-based servers market are acknowledging that the development of servers is leading toward a fundamental shift in the server-based computing industry.
| Attributes | Details |
|---|---|
| Historical Value (2022) | USD 5,196.8 million |
| Current Year Value (2023) | USD 5,768.4 million |
| Expected Forecast Value (2033) | USD 18,955 million |
| Historical CAGR (2018 to 2022) | 10.5% |
| Projected CAGR (2023 to 2033) | 12.6% |
The demand for ARM-based servers is rising, as it is an effective transition from the 12 or 24-port x 86 servers, which packs a powerful punch with their power boost. Though, the ARM-based server in contrast operates workloads with low-power processors that share processing tasks rather than use brute force, such as X86 servers.
As a result, the ARM-based servers market share is anticipated to rise during the forecast period. Moreover, as many businesses have invested in ARM-based servers in response to the beginning of the digital revolution, it is expected that demand for these servers may increase.
The existence of a central digital infrastructure has allowed makers of ARM-based servers to accelerate the production, operation, and monitoring procedures. As a result of investments made in digital transformation, the adoption of ARM-based servers is constantly increasing.
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As ARM processors are part of CPUs built on the RISC (reduced instruction set computer) architecture created by Advanced RISC Machines, the adoption of ARM based servers technology is growing.
Reduced instruction set computer (RISC) processors is designed to execute a small number of computer instructions quickly. As a result, there are expected to be numerous opportunities for growth in the ARM-based servers market during the forecast period.
Elements Expected To Hasten The Market Expansion For Arm-Based Servers :
Data Centers require as much computational power as possible from their rack architecture, which is why ARM-based servers come into play. Moreover, system-on-chip (SoC), software defined networking (SDN) and the increase in ARM-chips in IoT and wearables are some of the latest trends in the market.
Smartphones using ARM Chips and penetration of the internet are driving the ARM-based server market to prolific growth. Many businesses are switching to ARM-based servers to ensure smooth data processing. Furthermore, the increased use of social media across various industries created the demand for ARM-based servers.
Some limitations of the ARM-based server include :
Principal Consultant
In 2022, North American market held a 34.2% market share of the global market.
The presence of a core digital infrastructure has enabled companies to expedite manufacturing, operations, and monitoring processes. The investments made towards digital transformation are angling down to the global ARM-based servers market.
Several companies are migrating to ARM-based servers to ensure the seamless processing of data. Increased use of social media across key industrial verticals has also paved the way for market growth.
These vendors are focusing on developing a robust consumer base in the data center industry. Furthermore, it is of primary importance for the market players to continually upgrade their infrastructure and functional dynamics.
Europe's ARM-based servers market accounted for about 19.8% in 2022. The fact that the European Union is sponsoring the development of its own server CPUs, with matrix math and FPGA accelerators also coming from European providers, is expected to expand the region’s market size.
The European Union is likely to design server CPUs for both general-purpose applications and large-class supercomputers on its own feet. It is a challenging undertaking that Philippe Notton's French Start-up Silicon Pearl is attempting to complete.
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| Countries | 2022 Value Share in Global Market |
|---|---|
| United States | 20.8% |
| Germany | 9.3% |
| Japan | 6.7% |
The United States ARM-based servers market has witnessed significant growth in recent years. The rollout of 5G networks in the United States is expected to create new opportunities for ARM-based servers.
As 5G technology drives increased data processing requirements and network densification, ARM-based servers can provide efficient computing solutions at the network edge. Many organizations in the United States are exploring customized server designs to meet specific workload requirements.
The United States is home to several prominent players in the ARM-based servers market, including Ampere Computing, Marvell Technology Group, and NVIDIA.
These companies have made significant investments in research and development, driving innovation and fostering market growth. Leading cloud service providers and hyperscale data centers in the United States are actively exploring ARM-based server solutions.
Collaborations between ARM server manufacturers and these industry giants are likely to propel market expansion and adoption.
The Germany ARM-based servers market is witnessing significant growth. Germany, one of Europe's leading economies, presents a significant market opportunity for ARM-based servers. Germany's automotive industry is embracing digital transformation and connected car technologies.
ARM-based servers play a vital role in handling data-intensive workloads, such as autonomous driving algorithms, vehicle telemetry, and real-time analytics. As the automotive industry progresses towards electric vehicles and autonomous driving, the demand for ARM-based servers is expected to increase further.
Germany has stringent regulations and standards regarding data privacy and security. Government regulations related to data privacy and security, such as the General Data Protection Regulation (GDPR), are impacting the market. ARM-based servers can provide enhanced security features and compliance capabilities.
This makes them a preferred choice for organizations handling sensitive data.
The Japan ARM-based servers market is experiencing rapid growth. The manufacturing industry in Japan is embracing digital transformation and Industry 4.0 initiatives. ARM-based servers are being adopted to support smart factory environments.
They enable real-time monitoring, predictive maintenance, and efficient production processes. Japan has a strong presence in the supercomputing field. ARM-based servers are being explored for supercomputing applications, driven by their potential for high-performance computing and energy efficiency.
Japan has a robust IT infrastructure and is a prominent player in the global technology market. The country's increasing data center requirements and the need for energy-efficient and high-performance servers have fueled the demand for ARM-based servers.
The government has been actively promoting innovation and digitalization across various industries. The concept of "Society 5.0" and similar initiatives foster an environment that encourages the adoption of ARM-based servers.
| Countries | Value CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 12.1% |
| China | 14.6% |
| India | 13.5% |
The United Kingdom ARM-based servers market is witnessing significant growth due to technological advancements, increasing demand for energy-efficient data centers, and the emergence of cloud computing. The government has been actively promoting digital infrastructure development and innovation.
Initiatives such as the National Data Strategy and the Data Centers of the Future program encourage the adoption of advanced technologies, including ARM-based servers, to support digital transformation and economic growth.
Cloud service providers in the United Kingdom are embracing ARM-based servers to enhance their infrastructure's performance and reduce operating expenses. The United Kingdom has a vibrant start-up ecosystem, particularly in the technology sector.
Many start-ups are focused on developing innovative software solutions that are optimized for ARM-based servers. This trend contributes to the increasing demand for these servers in the country.
China has been emphasizing the development of its domestic semiconductor industry to reduce dependency on imported technologies. This focus has resulted in increased investments in domestic manufacturing and research, driving the China ARM-based servers market growth.
The government has been actively promoting the development of the semiconductor industry, including ARM-based server technologies, through initiatives such as the "Made in China 2025" and "National Integrated Circuit Industry Investment Fund."
China has a flourishing cloud computing market, with key players like Alibaba Cloud, Tencent Cloud, and Baidu Cloud leading the way. These companies are increasingly adopting ARM-based servers to enhance their data center efficiency and reduce operational costs. The rapid growth of e-commerce and online retail in China has resulted in a massive increase in data processing requirements.
As e-commerce companies expand their operations and optimize supply chains, the demand for efficient computing solutions like ARM-based servers rises. The growth of the e-commerce and retail sectors indirectly drives the ARM-based servers market.
The rapid expansion of cloud infrastructure in India is driving the demand for ARM-based servers. As more businesses and organizations move towards cloud-based services, the need for efficient and scalable server solutions has increased, favoring the India ARM-based servers market expansion.
The rapid growth of mobile network operators and the increasing adoption of 4G and 5G technologies have led to a significant rise in data traffic. ARM-based servers play a vital role in supporting the telecommunications industry.
The Indian government's focus on initiatives like Digital India and Make in India has led to increased investments in the country's technology infrastructure. ARM-based servers, being a part of the indigenous technology ecosystem, are likely to benefit from these government initiatives.
The e-commerce and retail sectors in India are witnessing substantial growth, driven by increasing internet penetration and digital transactions. ARM-based servers are well-suited to handle the massive data processing requirements of e-commerce platforms, logistics, and supply chain management systems, thereby influencing the ARM-based servers market.
| Segment | 2022 Value Share in Global Market |
|---|---|
| ARM Cortex-A Based Server Core Type | 72.7% |
| Telecommunication Vertical | 33.5% |
The dominance of the ARM cortex-A-based server segment can be attributed to its performance, efficiency, scalability, broad industry support, lower cost, and customization options. The Cortex-A cores offer a balance between performance and energy efficiency, making them ideal for server applications.
Their scalability allows server manufacturers to build systems tailored to their specific requirements, and their broad industry support has led to the development of optimized software and hardware infrastructure. Additionally, ARM cortex-A-based servers often provide a cost advantage compared to ARM Cortex-M-based Servers due to their simplified and power-efficient architecture.
The flexibility for customization and integration with specialized hardware accelerators further enhances their appeal. These factors have collectively contributed to the dominance of the ARM Cortex-A-based server segment.
The supremacy of the telecommunication segment can be attributed to several key factors.
Several startups are looking at leveraging opportunities in the global ARM-based servers market. The ascent of digital transformation has led several business entities in the market to invest in digital technologies.
A start-up named Ampere Computing says it has filed a confidential application with the USA Securities and Exchange Commission for an initial public offering. The company makes central processors for servers based on the Arm architecture.
Renee James, a former Intel president who created Ampere in 2017, is the company's CEO and chairman. Ampere creates server chips based on Arm's ISA, which are intended to compete with x86 CPUs produced by AMD and Intel.
Altra and other Arm CPUs from Ampere are making headway in data centers as cloud giants choose to use processors that are competitive in terms of performance while using less power.
An offering is likely to provide the Santa Clara, California-based business with a crucial source of funding for expansion. The money raised from an IPO is anticipated to help it achieve its goals of gaining a bigger share of the server-chip industry.
Attributed to the presence of such a high number of participants, the market is highly competitive. While global players such as Huawei Technology Co. Ltd. and IBM Corporation account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in North America.
Recent Developments In The Arm Based Servers Market
The market size is predicted to be USD 18,955 million by 2033.
By 2023, the North America market may be dominated by a 34.2% market share.
China ARM-based servers’ market may register a CAGR of 14.6% through 2033.
The market in Europe makes up around 19.8% of the overall.
By 2023, ARM cortex-A based server core type segment captures 72.7% of the market share.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Core Type 5.1. ARM Cortex-A Core Based Servers 5.2. ARM Cortex-M Core Based Servers 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Processor 6.1. 32-bit Operating System 6.2. 64-bit Operating System 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By OS 7.1. Android 7.2. iOS 7.3. Windows 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Mobile Computing 8.2. 3D Graphics 8.3. Internet of Things (IoT) 8.4. Smart Homes 8.5. Wearables 8.6. Sensors 8.7. Enterprise and Infrastructure Networking 8.8. Wireless Communications 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Products 9.1. Processors 9.2. Graphics & Multimedia 9.3. Physical IP 9.4. Development Tools 9.5. IoT Solutions 9.6. System IP 9.7. Wireless IP 9.8. Security Solutions 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Verticals 10.1. Automotive 10.2. Healthcare 10.3. Telecommunications 10.4. Oil & Gas Extraction 10.5. Bioscience 10.6. Industrial Automation 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. South Asia and Pacific 11.6. East Asia 11.7. Middle East and Africa 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Key Countries Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. Marvell Technology 21.2. MACOM Technology Solutions 21.3. Huawei Technology Co. Ltd 21.4. IBM Corporation 21.5. Texas Instruments Incorporated 21.6. ARM Holdings Plc. 21.7. Microsoft Corporation 21.8. Red Hat Inc. 21.9. HP Inc. 21.10. Citrix Systems Inc. 21.11. SuSE Inc. 21.12. Canonical Ltd. 21.13. Linaro Ltd. 21.14. Xilinx Inc. 21.15. LSI Corporation 21.16. Dell Inc. 21.17. Advanced Micro Devices Inc. 21.18. Broadcom Corporation 21.19. QUALCOMM Incorporated 22. Assumptions & Acronyms Used 23. Research Methodology
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ARM-based Servers Market
