Server Processor/Server Chipset Market - Forecast(2021 - 2026)

Report Code: ESR 0690 Report Format: PDF + Excel (Delivery in 48 Hrs)

Server Processor market Overview

The Server Processor market size is forecast to reach $52.4 billion by 2026, growing at a CAGR of 6.2%% in the period 2021-2026. The Server Processor is one of the primary components of a Server that enables the analytical decision-making processes. The factors that are estimated to drive the Server Processor Industry are the increasing penetration of internet, adoption of cloud storage and Data Flow Management System and rising BYOD trend as the growing number of users working from home due to the COVID19 pandemic, and this has led to the increase in demands for data centers across the globe. Furthermore, rise in the user-based online services such as YouTube, Facebook, and Twitter, along with the cloud computing have given rise to the demand for data centers as huge volumes of data are generated from IoT devices which again lead to the demand of the Server Processor Industry. Furthermore, increasing demands of interdependent motherboard chip andcloud gaming has also led to increase in demands of data centers which further drives the Server Processor Market.

Report Coverage

The report: “Server Processor Industry Outlook - Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Server Processor Market.
By Deployment: On-premise and On-cloud            
By Technology: 7nm, 10nm, 14nm and 22nm
By Organization Size: Small and Medium-sized Enterprises (SMEs), Large enterprises
By Application: Web Hosting and Enterprise Applications, Analytics and Cloud Computing, Edge Computing and Others
By End Users: Power, Automotive, Mining, Oil and Gas, Travel and Hospitality, Food and beverage, Healthcare, Aerospace and Defense, Agriculture, Logistics and Transportation, General Manufacturing, Consumer Electronics, Retail and E-commerce, Government and others
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South Korea, Australia and Others), South America(Brazil, Argentina and others)and RoW (Middle east and Africa)

Key Takeaways 

  • North America dominated the server processor market in 2020 with a share close to 30% s the region is one of the major hubs for the ICT industry and has the highest number of data centers in the world.
  • The increasing demands and investments towards Data centers all around the globe are analyzed for the significant drive of the server processor market
  • The 10nm technology held the major share of the global Server Processor market in 2020, owing to high adoption rates of power efficient server processors. 

Server Processor Market share, By Region, 2020

 

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Server Processor market Segment Analysis – By Organization Size

By Organization Size, the Server Processor market is segmented into Small and Medium-sized Enterprises (SMEs) and Large enterprises. The Large enterprises segment is analyzed to hold maximum share of 60.1% in 2020, owing to the remarkable adoption of IT infrastructure. The growing demand of enhanced server performance and flexibility among organization to aim optimum computer manageability is also witnessed to drive the market growth. In September 2019, Dell Technologies introduced a portfolio of all-new Dell EMC PowerEdge servers. The EMC PowerEdge servers of Dell is a prompt solutions that is designed to deliver High-Performance Computing (HPC), as well as simplified management integrations by the major providers of software and public cloud, designed to provide immense demands of the modern data center units. Therefore, the launches of innovative processor capabilities for unparalleled performance in large-scale business units, and other application-specific instruction set processor for advanced networking are accelerating the growth of the Server Processor market. 

Server Processor market Segment Analysis – By Manufacturing Technology

By Technology, the Server Processor market is segmented into 7nm, 10nm, 14nm and 22nm. The 10nm technology held the major share of the global Server Processor market in 2020, owing to high adoption rates of power efficient server processors. In September 2019, Intel had launched its new 10nm server processors called Ice lake, successor to Cascade Lake which is expected to start shipping by first quarter of 2021; while AMD has launched and started delivering their new 2nd generation EPYC family of server processors based on 7nm architecture. However, intel still continues research and developments on the new 7nm architecture. Therefore, the adoption and up gradation of newer and Powerful 7nm server processors with the increased focus towards AI processing and Symmetric Multi-Processing in various industries for HPC’s such as big data storage management and analytics are some of the factors that are analyzed to drive the growth of Server Processor market. 

Server Processor market Segment Analysis – By Geography

North America dominated the server processor market in 2020 with a share close to 30% , followed by Europe and APAC. North America is one of the major hubs for the ICT industry owing to the fact that it has the highest number of data centers in the world and majority of the ICT multinationals like Google, Microsoft have their headquarters in North America. In August 2020, to build a data centre in Gallatin, northeast of Nashville, Facebook invested US$800 million for managing the generation of large volumes of data. With GDPR laws implemented in Europe, the servers storing data in the US are no longer compliant with GDPR and EU privacy laws. This has necessitated the development of data centers in the EU locally and has led to an increase in the demands of server processors in the region. The increased availability of cheaper high speed internet access in the developing countries in APAC region has led to a rise in the penetration across end users which lead to generation of more data which propels the need for hyperscale data centers to be set up locally which finally drives the need for server processors. In August 2020, the global interconnection and data center, Equinix, Inc. acquired GPX Global Systems, Inc., and invested US$161 million to expand in India, which again highlights the growing demand for the server processor market. Therefore, the emergence of advanced technologies and interdependent motherboard chip innovation are some of the significant factors that are influencing the growth of the Server Processor Industry.

Server Processor market Drivers

Increasing demands and investments towards Data centers all around the globe

With the growing technology like Cloud Computing and Big Data, there has been an increasing shift in the dependency on the Servers and data centers. Server Processors are at the heart of any data center. In February, 2020 Google had announced to invest $10Billion towards expansion of data centers. Other multinational tech companies like Microsoft and Facebook have also planned to invest towards development and expansion of data centers and is set to drive the Server Processor market.

Increasing focus towards AI

The new server processors have dedicated processing cores and integrated GPU for AI implemented tasks such as neural network processing. With technologies Leveraging AI such as connected car, IoT, edge computing on the rise, the infrastructure end also needs to be capable of handling such tasks easily. Furthermore, the newer chips using smaller architecture are more power efficient and have more processing power owing to more number of transistors that can be integrated in the chip. This makes server processors more adaptive to scalability and has led to an increase in adoption of server processors which drives the Server processors Industry. For Instance: i in February 2021, the BBVA collaborated with Google Cloud to launch a new AI platform for preventing cyberattacks, specifically to the financial infrastructures, which drives the Server processors market positively. 

Server Processor Market Challenges

Significant time required for market launch

The Server processors are designed to function 24X7 without failure. This designing needs to be done with a very high level of precision with zero tolerances. Hence a lot of time and money is spent in carefully designing, fabricating and testing of these processors. Intel's recent press release said that it is now twelve months behind its targets and isn't on track to produce its 7nm process in an economically viable way. According to the market reports, 7nm CPUs will not debut on the market until late 2022 or early 2023. This significant time needed to launch across the market acts as a hindrance in the growth of the server processor market outlook. 

Market Landscape

Products launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Server Processor market. The Server Processor Top 10 companies include Intel Corporation, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Quanta Computer Inc., NVIDIA Corporation, Ambedded Technology Co., Ltd., Dell Inc., Fujitsu, Marvell, and among others

Acquisitions/Technology Launches

  • In November 2020, Intel and Google Cloud have announced their collaboration to simplify enterprises’ ability to adopt and deploy cloud-first business models using their existing on-premise, self-managed hardware.
  • In April 2020, AMD announced their 2nd Gen of AMD EPYC™ processor family with 3 processors based on the AMD Infinity Architecture. With this, AMD becomes the first to market an x86 processor based on 7nm technology, with double the core density and optimizations that improve instructions per cycle which results in 4 times the Floating-Point performance as compared to generation 1 processors.

Relevant Report Titles:

Server Processor/Server Chipset Market

Report Code: ESR 0690

Server Storage Area Network (San) Market

Report Code: ITR 35813

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1. Server Processor Market Overview
    1.1 Definitions and Scope
2. Server Processor Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Server Processor Market Type
    2.3 Key trends segmented by Geography
3. Server Processor Market
    3.1 Comparative Analysis
        3.1.1 Product/Service Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Server Processor Market – By Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital Funding
5. Server Processor Market – By Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Framework
    5.2 Customer Analysis
    5.3 Case Studies
    5.4 Ease of Doing Business Index
6. Server Processor Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Network of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Network of substitutes
7. Server Processor Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
    7.4 Vendors & Partners 
8. Server Processor Market – By Deployment
    8.1 On-premise
    8.2 On-cloud
9. Server Processor Market – By Technology
    9.1 7nm
    9.2 10nm
    9.3 14nm
    9.4 22nm
10.  Server Processor Market – By Organization Size
    10.1 Small scale and medium sized enterprises
    10.2 Large Enterprises
11. Server Processor Market – By Application
    11.1 Web Hosting and Enterprise Applications
    11.2 Analytics and Cloud Computing
    11.3 Edge Computing
    11.4 Others
12. Server Processor Market – By Industry Vertical 
    12.1 Power
    12.2 Automotive
    12.3 Mining
    12.4 Oil and Gas
    12.5 Travel and Hospitality
    12.6 Food and beverage
    12.7 Healthcare
    12.8 Aerospace and Defense
    12.9 Agriculture
    12.10 Logistics and Transportation
    12.11 General Manufacturing
    12.12 Consumer Electronics
    12.13 Retail & E-commerce
    12.14 Government
    12.15 Others
13. Server Processor Market – By Region
    13.1 North America
        13.1.1 U.S
        13.1.2  Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 Germany
        13.2.2 France
        13.2.3 UK
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Russia
        13.2.7 Others
    13.3 APAC
        13.3.1 China
        13.3.2 Japan
        13.3.3 South Korea
        13.3.4 India
        13.3.5 Australia
        13.3.6 Others
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Others
    13.5  Rest of World (RoW)
        13.5.1 Middle East
        13.5.2 Africa
14. Server Processor Market - Industry Landscape Analysis (Premium)
    14.1 Market Share by Region
    14.2 Market Share by Industry
    14.3 Market Share by Type
15. Server Processor Market - Key Companies by Country (Premium)
16. Server Processor Market Entropy
    16.1 New Product Launches
    16.2 M&As, Collaborations, JVs and Partnerships
17. Server Processor Market - Company Analysis
    17.1 Intel Corporation
    17.2 Advanced Micro Devices, Inc.
    17.3 Hewlett Packard Enterprise Development LP
    17.4 Quanta Computer Inc.
    17.5 NVIDIA Corporation
    17.6 Ambedded Technology Co., Ltd.
    17.7 Company- 6
    17.8 Company- 7
    17.9 Company- 8
    17.10 Company-9
    17.11 Company- 10
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