Microserver Market Size - By Application, By Processor, By End Use, By Vertical, Analysis, Share, Growth Forecast, 2025 - 2034
Report ID: GMI12777
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Published Date: December 2024
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Report Format: PDF
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Premium Report Details
Base Year: 2024
Companies covered: 15
Tables & Figures: 180
Countries covered: 21
Pages: 150
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Microserver Market Size
The global microserver market size was valued at USD 8.5 billion in 2024 and is projected to grow at a CAGR of 9.6% between 2025 and 2034. As cloud computing continues to dominate the enterprise IT landscape, microserver are increasingly being adopted for cloud and data center environments. Microserver technology has benefited greatly from advancements in processor and storage technologies. For example, ARM-based processors, known for their power efficiency and low heat generation, have become a popular choice.
Allowing them to handle tasks traditionally performed by larger, more power-hungry servers, making them more viable for a broader range of applications. For instance, in October 2024, Intel and AMD announced the creation of the x86 Ecosystem Advisory Group. This initiative is a strategic move to expand the x86 ecosystem in response to the increasing popularity of ARM chips in personal computing, particularly for laptops and desktops.
Microservers offer high scalability and energy efficiency, crucial traits for modern cloud data centers and virtualized environments that are growing and complex. The push towards cloud infrastructure is directly fueling the demand, because they allow businesses to run workloads efficiently in a virtualized environment. They also provide enhanced density, so that more computing power can be packed into a smaller physical space, leading to better resource utilization. Cloud providers and businesses alike are benefiting from the ability to deploy cost-effective microserver systems that support large-scale, high-performance computing without taking up excessive space or requiring substantial power consumption.
Microserver Market Trends
The microserver industry is experiencing a shift driven by the growing trend of edge computing, where data is processed closer to its source rather than being transmitted to centralized data centers. This shift allows for lower latency, real-time processing, and reduced bandwidth costs, which are particularly valuable for industries relying on IoT, autonomous systems, and industrial automation. Known for their compact design and energy efficiency, are becoming ideal solutions for edge computing applications.
These devices can be deployed in remote locations or within IoT hubs, providing high-performance computing with minimal space and power requirements. The demand is expected to increase as industries such as healthcare, smart cities, and automotive leverage real-time data processing at the edge to improve operational efficiency and decision-making.
Another significant trend driving the microserver market is the increasing adoption of cloud computing and the expansion of virtualized environments. As businesses shift toward cloud infrastructure, they are looking for ways to maximize the density and efficiency of their data centers, which has made them a compelling choice.
Microservers, while ideal for many applications, have limited processing power, which can restrict their ability to handle complex, resource-intensive tasks. Their compact design and energy efficiency come at the expense of high computational capability, making them less suitable for tasks such as large-scale data analysis or heavy-duty AI processing. Additionally, integrating them into legacy systems can be challenging, as they may not always be compatible with older hardware or software architectures, requiring costly upgrades or extensive customization.
Microserver Market Analysis
Based on application, the microserver industry is divided into data centers, cloud computing, media storage, data analytics, and others. The data center segment holds over 40% of the market in 2024. This dominance is driven by the increasing demand for energy-efficient, space-saving, and cost-effective solutions in modern data centers. Microservers are ideal for handling large-scale data storage, processing, and management tasks while minimizing power consumption. The rapid growth of cloud services, combined with the need for smaller, high-density servers to meet the demands of big data and IOT applications, continues to drive the demand for this segment.
The cloud computing segment is witnessing growth, driven by the ongoing shift to cloud-based services. Microservers are becoming a preferred solution for cloud service providers due to their scalability, flexibility, and lower operating costs. As cloud adoption increases across various industries, the demand in this sector is expected to rise substantially, particularly in edge computing and distributed cloud architectures. The media storage and data analytics segments are experiencing growth, though they represent smaller portions of the overall market.
Based on end use, the microserver market is segmented into Small and Medium Enterprises (SMEs) and Large Enterprises. In 2024, the large enterprise segment accounting for 66.9% of the market share. This dominance is driven by the increasing need for scalable, high-performance computing solutions in data centers, cloud services, and AI-driven applications. Large enterprises rely on microservers for their energy efficiency, space-saving design, and ability to manage data-intensive workloads, making them essential for handling vast amounts of data and executing complex computational processes. The growing adoption of cloud technologies and edge computing further propels demand in this segment.
The SME segment, while holding a smaller share of the market, is experiencing steady growth. SMEs are increasingly adopting microservers due to their lower upfront costs, compactness, and reduced power consumption. These attributes make them an attractive option for smaller businesses that seek to upgrade their IT infrastructure without investing in large-scale data centers.
U.S. microserver market is anticipated to reach USD 6 billion by 2034. The demand for microservers in North America is fueled by the region's advanced technology infrastructure and the growing need for data centers, cloud services, and edge computing. With a concentration of leading companies such as HPE, Dell Technologies, and IBM, the U.S. market benefits from ongoing innovations in processing power, energy efficiency, and scalability. Investments in AI, data analytics, and cloud technologies further drive microserver adoption, positioning the United States as a major hub for microserver growth.
In Europe, the microserver market is seeing strong growth due to increasing demand for energy-efficient computing solutions. Regulatory pressures for sustainability and reduced environmental impact are pushing the adoption of smaller, more efficient server systems. Companies across Europe, particularly in sectors such as IT, telecommunications, and healthcare, are turning to microservers to meet the rising demand for cloud-based services and data management.
The Asia Pacific region is expected to show strong growth in the microserver market through 2034. With a focus on technological advancements and competitive manufacturing costs, countries such as Japan, South Korea, and India are leading the way in microserver adoption. This growth is fueled by the region's shift toward digitalization and cloud services, with strong investments in data infrastructure and processing technologies.
Microserver Market Share
In 2024, HPE, Dell Technologies, Fujitsu, AMD, Supermicro, Penguin Computing, and IBM collectively held a significant 39.7% market share in the microserver industry. Their strong presence is due to their advanced technological capabilities, extensive product portfolios, and established relationships with key players across industries. These companies have made significant strides in developing efficient, high-performance microservers that are tailored to meet the evolving needs of various sectors, including data centers, cloud computing, and edge computing.
Their solutions offer compact, energy-efficient designs that help customers optimize space and power consumption without sacrificing performance. By leveraging their expertise in server architecture, microprocessors, and system integration, these companies have positioned themselves as vital contributors to the ongoing transformation of IT infrastructure. Their ability to provide scalable solutions, combined with strong partnerships with global OEMs and service providers, enables them to stay ahead in the competitive microserver industry, which continues to grow as demand for more efficient computing solutions increases.
Microserver Market Companies
Major players operating in the microserver industry are:
Microserver Industry News
The microserver market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) and shipment (units) from 2021 to 2034, for the following segments:
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Market, By Application
Market, By Processor
Market, By End Use
Market, By Vertical
The above information is provided for the following regions and countries: