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    Arm Server Market

    ID: MRFR/ICT/24793-HCR
    128 Pages
    Aarti Dhapte
    September 2025

    Arm Server Market Research Report By Server Type (Virtualized Servers, Bare-Metal Servers, Blade Servers), By Deployment Type (On-Premise, Cloud, Colocation), By Core Count (1-4 Cores, 5-8 Cores, 9-16 Cores, 17+ Cores), By Application (High-Performance Computing (HPC), Artificial Intelligence (AI), Data Analytics, Cloud Computing, Virtualization), By Memory Capacity (16GB-32GB, 64GB-128GB, 256GB-512GB, 1TB+) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2034

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    Arm Server Market Summary

    The Global Arm Server Market is projected to grow from 1.5 USD Billion in 2024 to 4.39 USD Billion by 2035, indicating robust growth potential.

    Key Market Trends & Highlights

    Arm Server Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 10.25% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 4.39 USD Billion, reflecting increasing demand for Arm server technology.
    • In 2024, the market is valued at 1.5 USD Billion, laying a strong foundation for future growth.
    • Growing adoption of cloud computing due to the need for efficient data processing is a major market driver.

    Market Size & Forecast

    2024 Market Size 1.5 (USD Billion)
    2035 Market Size 4.39 (USD Billion)
    CAGR (2025-2035) 10.25%

    Major Players

    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 Trends

    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.

    The increasing adoption of Arm architecture in data centers is reshaping the landscape of server technology, driven by demands for energy efficiency and performance optimization.

    U.S. Department of Energy

    Arm Server Market Drivers

    Market Growth Projections

    The Global Arm Server Market Industry is on a trajectory of substantial growth, with projections indicating a rise from 1.5 USD Billion in 2024 to 4.39 USD Billion by 2035. This growth is underpinned by a compound annual growth rate of 10.25% from 2025 to 2035. The increasing adoption of Arm architecture across various sectors, including cloud computing, AI, and edge computing, suggests a robust demand for these servers. As organizations continue to prioritize energy efficiency and performance, the Global Arm Server Market is likely to expand, reflecting the evolving technological landscape.

    Rising Adoption of Edge Computing

    The Global Arm Server Market Industry is witnessing a shift towards edge computing, driven by the need for real-time data processing and reduced latency. As more devices become interconnected, the demand for localized computing solutions increases. Arm servers, with their compact design and energy efficiency, are well-positioned to support edge computing applications. This trend is expected to contribute to the market's growth, as organizations seek to enhance their operational efficiency. The anticipated growth from 1.5 USD Billion in 2024 to 4.39 USD Billion by 2035 underscores the potential of Arm servers in addressing the challenges posed by edge computing.

    Growing Demand for Energy Efficiency

    The Global Arm Server Market Industry experiences a notable surge in demand for energy-efficient computing solutions. Organizations are increasingly seeking to reduce operational costs and carbon footprints, leading to a shift towards Arm architecture, which is known for its low power consumption. This trend is particularly evident in data centers, where energy efficiency is paramount. The Global Arm Server Market is projected to reach 1.5 USD Billion in 2024, reflecting the industry's commitment to sustainability. As businesses prioritize eco-friendly practices, the adoption of Arm servers is likely to accelerate, contributing to a more sustainable technological landscape.

    Expansion of Cloud Computing Services

    The proliferation of cloud computing services significantly influences the Global Arm Server Market Industry. As enterprises migrate to cloud-based infrastructures, the demand for scalable and efficient server solutions intensifies. Arm servers, with their ability to handle diverse workloads while maintaining energy efficiency, are becoming increasingly attractive. The market is expected to grow from 1.5 USD Billion in 2024 to an estimated 4.39 USD Billion by 2035, indicating a robust compound annual growth rate of 10.25% from 2025 to 2035. This growth is driven by the need for flexible and cost-effective cloud solutions, positioning Arm servers as a key player in the evolving cloud landscape.

    Increased Investment in Research and Development

    Investment in research and development is a critical driver for the Global Arm Server Market Industry. As technology evolves, companies are focusing on innovation to enhance server performance and capabilities. This trend is evident in the growing number of partnerships and collaborations aimed at advancing Arm architecture. The market's projected growth from 1.5 USD Billion in 2024 to 4.39 USD Billion by 2035 reflects the industry's commitment to continuous improvement. Enhanced R&D efforts are likely to lead to the development of more powerful and efficient Arm servers, catering to the diverse needs of modern enterprises.

    Advancements in Artificial Intelligence and Machine Learning

    The integration of artificial intelligence and machine learning technologies is reshaping the Global Arm Server Market Industry. Arm servers are well-suited for AI workloads due to their efficient processing capabilities and scalability. As organizations increasingly adopt AI-driven applications, the demand for high-performance computing solutions rises. The Global Arm Server Market is poised for significant growth, with projections indicating a rise to 4.39 USD Billion by 2035. This trend suggests that Arm architecture may become a preferred choice for AI and machine learning applications, further solidifying its position in the competitive server market.

    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.

    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

    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%.

    Arm Server Market Application Insights

    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

    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.

    Get more detailed insights about Arm Server Market Research Report - Forecast till 2034

    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.

    Arm Server Market Regional Insights

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    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 market include

    Industry Developments

    • Q1 2025: Arm Holdings CEO Rene Haas projects 50% data center CPU market share by 2025 Arm Holdings CEO Rene Haas stated in a CNBC interview that the company expects to reach 50% market share in data center CPUs by the end of 2025, up from 15% in 2024, driven by surging demand for AI workloads and energy-efficient computing.
    • Q1 2025: Arm Holdings reports first-ever $1 billion Q1 revenue, driven by 25% YoY royalty growth Arm Holdings announced that its first-quarter fiscal 2026 revenue surpassed $1 billion for the first time in a Q1 period, with a 25% year-over-year increase in royalties, attributed to strong adoption of Arm-based chips in data centers and AI applications.
    • Q2 2025: Arm-based servers to grow 70% this year IDC reported that shipments of Arm-based servers are expected to increase by 70% in 2025, fueled by the launch of large rack-scale configurations such as Nvidia's DGX GB200 NVL72, which are designed for AI processing.
    • Q1 2025: Nvidia's Arm chips rapidly gain share in server market as AI booms Nvidia's Arm-powered GB200 servers saw rapid adoption in Q1 2025, contributing to a record $95.2 billion global server market as hyperscalers expanded AI infrastructure using Arm-based systems.

    Future Outlook

    Arm Server Market Future Outlook

    The Arm Server Market is projected to grow at a 10.25% CAGR from 2024 to 2035, driven by increasing demand for energy-efficient computing and cloud services.

    New opportunities lie in:

    • Develop specialized Arm-based solutions for edge computing applications.
    • Invest in partnerships with cloud service providers to enhance Arm server adoption.
    • Focus on R&D for optimizing Arm architecture for AI workloads.

    By 2035, the Arm Server Market is expected to achieve substantial growth, solidifying its position in the global technology landscape.

    Market Segmentation

    Arm Server Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    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 Server Type Outlook

    • Virtualized Servers
    • Bare-Metal Servers
    • Blade Servers

    Arm Server Market Deployment Type Outlook

    • On-Premises
    • Cloud
    • Colocation

    Arm Server Market Memory Capacity Outlook

    • 16GB-32GB
    • 64GB-128GB
    • 256GB-512GB
    • 1TB+

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 0.93 (USD Billion)
    Market Size 2025 1.72 (USD Billion)
    Market Size 2034 3.81 (USD Billion)
    Compound Annual Growth Rate (CAGR) 15.14% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2034
    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

    FAQs

    What is the market size of the Arm Server Market?

    Arm Server Market is expected to reach a valuation of USD 1.72 billion in 2025 and is projected to grow at a CAGR of 15.14% from 2025 to 2034, reaching USD 3.81 billion by 2034.

    What are the key regions in the Arm Server Market?

    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.

    What are the key applications of Arm Servers?

    Arm Servers are used in a wide range of applications, including cloud computing, enterprise computing, high-performance computing, and edge computing.

    Who are the key competitors in the Arm Server Market?

    The key competitors in the Arm Server Market include Ampere Computing, Marvell Technology, Qualcomm, and Amazon Web Services (AWS).

    What are the key trends in the Arm Server Market?

    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.

    What are the challenges facing the Arm Server Market?

    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.

    What are the opportunities for growth in the Arm Server Market?

    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.

    What is the outlook for the Arm Server Market?

    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.

    What are the key factors driving the growth of the Arm Server Market?

    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.

    What are the key challenges facing the Arm Server Market?

    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.

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