The latest insights from the International Data Corporation have unveiled an impressive year for the global server market in 2024, showcasing tremendous growth driven by the increasing adoption of AI technologies by industry leaders. According to the report, the server market achieved a substantial 91% year-on-year growth, accumulating a remarkable $77.3 billion in revenue during the last quarter alone. This marks the second-highest growth rate since 2019, underscoring the burgeoning demand for advanced computational power.
NVIDIA continues to command the market, holding a whopping 90% share in GPU-embedded servers, largely due to the popularity of products like the GB200 NVL72 platform. Major corporations such as Amazon, Google, and Microsoft have been keen adopters, leveraging these advancements for heightened processing capabilities.
Interestingly, the x86 servers saw a 59.9% increase in revenue, which equates to $54.8 billion, while the non-x86 servers, including those optimized for AI and cloud with ARM and RISC-based architectures, experienced an astonishing 262.1% increase year-on-year. Although their total revenue was smaller at $22.5 billion, their rate of growth highlights a significant shift toward diversified server architectures.
The market for servers equipped with GPUs experienced remarkable growth, surging by 192.6% year-on-year in Q4 2024 and contributing approximately $235.7 billion over the entire year. This niche market has effectively doubled in size since 2020, with ODM Direct Vendors securing about 47.3% of the market share and enjoying a 155.5% growth rate, amounting to $36.57 billion in the final quarter of 2024. Leading brands such as Dell, SuperMicro, HP, IEIT Systems, and Lenovo also maintain a solid presence among the top players.
Regionally, Canada led with the fastest growth rate at 118.4% year-on-year. The USA amassed 56% of the total revenue, securing its position as a major contributor, followed by China with a 93.3% growth rate and accounting for 25% of the global revenue. Japan, Asia Pacific excluding Japan and China (APeJC), and EMEA regions also experienced positive growth, seeing 66.9%, 43.8%, and 28.2% expansions, respectively. However, Latin America faced a relatively slow progression in the market, achieving only a 7% growth rate.
These findings reflect a dynamic shift in the server market landscape, encouraging further innovation and adaptation in response to the evolving demands of AI and cloud computing. The thriving growth across different regions and technologies signifies a promising future for the industry.
