Arm Server Market Overview
As per MRFR analysis, the Arm Server Market Size was estimated at 0.61 (USD Billion) in 2022. The Arm Server Market is expected to grow from 0.7 (USD Billion) in 2023 to 2.5 (USD Billion) by 2032. The Arm Server Market CAGR (growth rate) is expected to be around 15.14% during the forecast period (2024 - 2032).
Key Arm Server Market Trends Highlighted
The need for more energy-efficient data centers, the growing popularity of artificial intelligence (AI) and machine learning (ML) applications, and the growing need for cloud and edge computing are the main factors driving the arm server market.
Potential avenues for investigation or acquisition within the industry encompass the creation of novel Arm server chips that exhibit enhanced performance and efficiency, the enlargement of the Arm server network through the incorporation of fresh software and hardware collaborators, and the increasing uptake of Arm servers in developing economies.
The industry has seen recent developments such as the rise in demand for Arm-based cloud services, the expansion of Arm server usage for high-performance computing (HPC) applications, and the appearance of new Arm server providers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arm Server Market Drivers
Increasing Adoption of Arm-Based Servers in Cloud and Data Center Applications
The key growth driver of the Arm server market is the utilization of Arm-based servers in the cloud and data centers.
The main advantage of such servers over their traditional counterpart is significantly lower power consumption, higher performance per watt, and lower costs.
Therefore, they can be used in web serving, email, and big data applications. Since the need for data centers and clouds is expected to remain high in the future as well, there will be high demand in the market for Arm servers.
Growing Demand for High-Performance Computing (HPC) Applications
Another major driver of the Arm server market is the increasing demand for high-performance computing applications. HPC applications require a lot of computing power, and Arm-based servers can provide this power without consuming a lot of energy.
This makes Arm-based servers a good fit for a wide range of HPC applications, including scientific research, weather forecasting, and financial modeling.
As such applications become increasingly in demand, the demand for Arm-based servers is anticipated to also grow.
Government Initiatives to Promote Arm-Based Servers
Several governments around the world are promoting the adoption of Arm-based servers. For example, the Chinese government has made Arm-based servers a priority in its national development plan. The US government is also investing in research and development of Arm-based servers.
These government initiatives are expected to boost the demand for Arm-based servers in the coming years.
Arm Server Market Segment Insights
Arm Server Market Server Type Insights
The Arm Server Market is segmented by Server Type, including Virtualized Servers, Bare-Metal Servers, and Blade Servers. In 2023, the Virtualized Servers segment had the highest revenue by market share, and it is expected to continue to dominate the market for the duration of the forecast period.
This growth is due to the increasing number of organizations adopting virtualization technologies, which will enable multiple virtual machines to run on a single physical server. This will in turn help organizations reduce the costs of their IT infrastructure, as well as improve resource efficiency.
The Bare-Metal Servers segment is expected to have strong growth during the forecast period. Bare-metal servers offer dedicated resources to every individual virtual server, such that these servers are well-suited to running high-performance applications.
In addition, bare-metal servers are more secure than virtualized servers, as they are not usually targeted by the types of attacks to which virtualized servers are susceptible.
The Blade Servers segment is expected to have moderate growth over the forecast period. Blade servers are small and modular, which will help data centers that face space constraints.
In addition, blade servers are more power-efficient than the standard rack-mounted servers. This growth is due to the increased number of organizations that will adopt Arm-based servers in their data centers and cloud computing environments.
Arm-based servers are more power-efficient and cost-effective compared to the more traditional x86-based servers. The CAGR of 15.14% is estimated to lead to a 2024 revenue of USD 0.9 billion. The market is segmented by Server Type, with the highest revenue being held by Virtualized Servers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arm Server Market Deployment Type Insights
With the increasing adoption of cloud computing and the growing popularity of colocation services, the deployment type segment of the Arm Server Market is expected to witness significant growth in the coming years.
On-premises deployments accounted for the largest share of the market in 2023, owing to the need for data security and control among enterprises.
However, cloud deployments are expected to grow at a faster rate during the forecast period, driven by the increasing demand for scalability, flexibility, and cost-effectiveness.
Colocation deployments are also expected to gain traction as businesses seek to reduce their capital expenditure on data center infrastructure.
The Arm Server Market revenue from cloud deployments is projected to reach $1.2 billion by 2024, growing at a CAGR of 18.5% from 2024 to 2032. Colocation deployments are expected to generate $0.8 billion in revenue by 2024, with a CAGR of 16.3% over the forecast period.
Arm Server Market Core Count Insights
The Arm Server Market is segmented by Core Count into 1-4 Cores, 5-8 Cores, 9-16 Cores, and 17+ Cores.
The 1-4 Cores segment is expected to account for the largest share of the market in 2023, with a market value of 0.35 (USD Billion) and is projected to reach 0.78 (USD Billion) by 2032, exhibiting a CAGR of 9.1%.
The 5-8 Cores segment is estimated to be valued at 0.28 (USD Billion) in 2023 and is anticipated to grow to 0.65 (USD Billion) by 2032, registering a CAGR of 10.2%. The 9-16 Cores segment is expected to witness significant growth, expanding from 0.07 (USD Billion) in 2023 to 0.85 (USD Billion) in 2032, with a CAGR of 20.1%.
The 17+ Cores segment is projected to grow from 0.05 (USD Billion) in 2023 to 0.23 (USD Billion) by 2032, representing a CAGR of 16.2%.
The market growth is primarily attributed to the increasing adoption of cloud and edge computing, which require servers with higher core counts for enhanced performance and efficiency.
Arm Server Market Application Insights
The application segment of the Arm Server Market is broadly classified into High-Performance Computing (HPC), Artificial Intelligence (AI), Data Analytics, Cloud Computing, and Virtualization.
Among these, the AI segment is anticipated to witness the fastest growth during the forecast period, owing to the increasing adoption of AI technologies across various industries.
The HPC segment is another significant contributor to the market, as Arm servers offer high performance and scalability for demanding scientific and research applications.
The Data Analytics segment is also expected to grow steadily as organizations increasingly rely on data-driven insights to make informed decisions.
Cloud Computing and Virtualization segments are also gaining traction, driven by the growing adoption of cloud-based services and the need for efficient resource utilization.
Overall, the Arm Server Market is witnessing strong growth across all application segments, driven by the increasing demand for powerful and efficient computing solutions.
Arm Server Market Memory Capacity Insights
The memory capacity segment plays a crucial role in shaping the dynamics of the Arm Server Market, with various capacities catering to diverse workload requirements.
Among the key segments, 16GB-32GB holds a significant share due to its cost-effectiveness and suitability for general-purpose applications.
However, the 64GB-128GB segment is expected to witness notable growth in the coming years, driven by the increasing adoption of memory-intensive applications such as virtualization, cloud computing, and data analytics.
Moving up the spectrum, the 256GB-512GB segment caters to high-performance computing (HPC) and enterprise applications that demand substantial memory resources.
This segment is expected to grow steadily as organizations seek to enhance their data processing capabilities. The 1TB+ segment, though currently a niche market, presents immense growth potential for specialized applications requiring massive memory capacities.
Overall, the Arm Server Market revenue is projected to reach new heights in the upcoming years, with advancements in-memory technology and the growing demand for powerful computing solutions driving the market growth.
Arm Server Market Regional Insights
The regional segmentation of the Arm Server Market offers insights into the market's geographic distribution and growth patterns.
North America is expected to dominate the market in 2023 with a revenue of 0.32 billion USD, primarily driven by the presence of major cloud service providers and early adoption of Arm-based servers.
Europe is projected to follow with a revenue of 0.20 billion USD, backed by government initiatives promoting energy efficiency and data center optimization.
APAC is anticipated to witness substantial growth, reaching 0.12 billion USD by 2032, fueled by increasing demand for data centers and cloud services.
South America and MEA are expected to contribute smaller but growing shares to the market, with revenues of 0.06 billion USD and 0.05 billion USD, respectively, by 2032.
These regions present opportunities for Arm-based server adoption due to growing investments in digital infrastructure and cloud computing.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arm Server Market Key Players and Competitive Insights
Major players in the Arm Server Market are adopting various strategies to gain a competitive edge in the Arm Server Market. Leading Arm Server Market players are focusing on product innovation, strategic partnerships, and acquisitions to expand their market share and strengthen their position in the market.
Some of the key trends in the Arm Server Market development include the increasing adoption of cloud computing, the growth of data-intensive applications, and the need for energy-efficient solutions.
The Arm Server Market Competitive Landscape is expected to remain competitive in the coming years, with the entry of new players and the consolidation of existing players.
Ampere Computing is a leading player in the Arm Server Market. The company's Ampere Altra family of processors is designed to deliver high performance and energy efficiency for cloud and enterprise applications.
Ampere Computing has partnered with major cloud providers and system integrators to offer its solutions to a wide range of customers. The company is also investing in research and development to expand its product portfolio and maintain its competitive advantage.
Qualcomm is another major player in the Arm Server Market. The company's Centriq family of processors is designed for high-performance computing and cloud applications.
Qualcomm has partnered with major server manufacturers to offer its solutions to a wide range of customers. The company is also investing in research and development to expand its product portfolio and maintain its competitive advantage.
Key Companies in the Arm Server Market Include:
- Samsung Electronics
- Fujitsu
- Microsoft
- Qualcomm
- Dell Technologies
- SiFive
- ASUSTEK Computer
- Marvell Technology
- Ampere Computing
- Supermicro
- Huawei Technologies
- H3C
- Lenovo Group
- Arm Holdings
Arm Server Market Developments
The Arm server market is projected to experience significant growth in the coming years, driven by factors such as the increasing adoption of cloud and edge computing, the growing demand for energy-efficient solutions, and the expanding use of artificial intelligence (AI) and machine learning (ML) applications.
Major players in the market include Ampere Computing, Qualcomm, and Marvell Technology Group. Recent developments include the launch of new Arm-based server platforms by these companies, as well as the growing adoption of Arm-based servers by cloud providers and hyperscalers.
Arm Server Market Segmentation Insights
Arm Server Market Server Type Outlook
- Virtualized Servers
- Bare-Metal Servers
- Blade Servers
Arm Server Market Deployment Type Outlook
- On-Premises
- Cloud
- Colocation
Arm Server Market Core Count Outlook
- 1-4 Cores
- 5-8 Cores
- 9-16 Cores
- 17+ Cores
Arm Server Market Application Outlook
- High-Performance Computing (HPC)
- Artificial Intelligence (AI)
- Data Analytics
- Cloud Computing
- Virtualization
Arm Server Market Memory Capacity Outlook
- 16GB-32GB
- 64GB-128GB
- 256GB-512GB
- 1TB+
Arm Server Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
0.61(USD Billion) |
| Market Size 2023 |
0.7(USD Billion) |
| Market Size 2032 |
2.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.14% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Samsung Electronics, Fujitsu, Microsoft, Qualcomm, Dell Technologies, SiFive, ASUSTEK Computer, Marvell Technology, Ampere Computing, Supermicro, Huawei Technologies, H3C, Lenovo Group, Arm Holdings |
| Segments Covered |
Server Type, Deployment Type, Core Count, Application, Memory Capacity, Regional |
| Key Market Opportunities |
Cloud and hyperscale computing Data centers and enterprise High-performance computing Edge computing Telecommunications |
| Key Market Dynamics |
Rising cloud computing, growing demand for energy efficiency, expanding data center infrastructure, increasing adoption of HPC, and government initiatives |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Arm Server Market is expected to reach a valuation of USD 0.7 billion in 2023 and is projected to grow at a CAGR of 15.14% from 2024 to 2032, reaching USD 2.5 billion by 2032.
The key regions in the Arm Server Market are North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to hold the largest market share in 2023, followed by Europe, Asia-Pacific, and the Rest of the World.
Arm Servers are used in a wide range of applications, including cloud computing, enterprise computing, high-performance computing, and edge computing.
The key competitors in the Arm Server Market include Ampere Computing, Marvell Technology, Qualcomm, and Amazon Web Services (AWS).
Some of the key trends in the Arm Server Market include the increasing adoption of cloud computing, the growing demand for high-performance computing, and the increasing popularity of edge computing.
Some of the challenges facing the Arm Server Market include the high cost of Arm servers, the limited availability of Arm-based software, and the lack of a standardized Arm server ecosystem.
Some of the opportunities for growth in the Arm Server Market include the increasing adoption of Arm servers by cloud providers, the growing demand for Arm-based servers for high-performance computing, and the increasing popularity of edge computing.
The outlook for the Arm Server Market is positive. The market is expected to grow at a CAGR of 15.14% from 2024 to 2032, reaching USD 2.5 billion by 2032.
The key factors driving the growth of the Arm Server Market include the increasing adoption of cloud computing, the growing demand for high-performance computing, and the increasing popularity of edge computing.
The key challenges facing the Arm Server Market include the high cost of Arm servers, the limited availability of Arm-based software, and the lack of a standardized Arm server ecosystem.
