Server Microprocessor Market - Forecast(2021 - 2026)

Report Code: ESR 30644 Report Format: PDF + Excel (Delivery in 48 Hrs)

Server Microprocessor Market Overview

Server Microprocessor Market is forecast to reach $18.1 billion by 2026, growing at a CAGR 2.4% from 2021 to 2026. Server microprocessor includes more powerful processors as compared to the desktop computer. Even server microprocessors support multiple cores, multiple threads and multiple processors, to sustain its performance level. Server microprocessors and Integrated Circuits have an immense storage space and the ability to insert several disks into them. 

Growing data center footprint and demand from cloud service providers are driving the growth of the server microprocessor market. Companies are addressing the performance demands of modern workloads such as data analytics, Machine check architecture, cache memory Artificial Intelligence and are refining their designs accordingly. 

The expansion of mobile broadband, the rise of big data analytics and cloud computing are driving the demand for new data center infrastructures. As of 2019, according to CNNIC, the US owns almost 45 per cent of the global cloud and internet data centers. North America alone (US and Canada) has about 3254 data centers as of 2019, making it a major market for server microprocessors.

Server Microprocessor Market Report Coverage

The report: “Server Microprocessor Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of Server Microprocessor Market.

By Architecture: x86, ARM, Others
By Number of Cores: Less than 4 cores, 4-6 Cores, 6-8 Cores & More than 8 cores
By Enterprises: Small, Medium & Large Enterprises
By Application: Consumer Electronics, Server & Data Center, Automotive, BFSI, Industrial, Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC(China, Japan India, SK, Australia, Indonesia and Others), South America(Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).

Key Takeaways

  • The expansion of mobile broadband, the rise of big data analytics and cloud computing drive demand for new data center infrastructures. As of 2019, according to CNNIC, the US owns almost 45 percent of the global cloud and internet data centers. North America alone (US and Canada) has about 2854 data centers as of 2019, making it a leading market for server microprocessors.
  • The ARM segment is expected to rise at a higher CAGR rate over the forecast period. The ARM architecture is easy to manage, has a simple design and is powerfully effective.
  • Europe is expected to dominate the global market for server microprocessors during the forecast period. It is expected that Europe will have substantial scope for servers powered by microprocessors, as computer-intensive applications and cloud adoption are growing.
  • Huawei is seeking US independence for its processors. While the company obtained a license for ARMv8 architecture, it claimed that it would avoid using RISC-V in the future if the restrictions of the US government continued.

Server Microprocessor Market, By Region, 2020

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Server Microprocessor Market Segment Analysis - By Architecture

The ARM segment is expected to grow at a higher CAGR of 3.1% during the forecast period. The ARM machine check architecture is easy to handle, has a simple design and is powerfully effective. Due to its energy-efficient nature, the architecture is most compatible with low-power built-in and portable devices such as smartphones and notebooks. 

Recent advances in the architectural design of ARM have made these offering high-performance computing capabilities comparable to those offered by x86 architecture-based processors and integrated circuits. ARM allows its ISA to be licensed to any business that chooses to pay licensing costs and gives them the advantage of either developing their cores from scratch or using the predefined IP blocks offered by ARM. This facilitates the use of arm-based architecture in a broader range of products across industries.

Server Microprocessor Market Segment Analysis - By Application

The Server and Data Center segment is projected to dominate the server microprocessor market with a share of 51% in 2020. The rising spending by cloud service providers and communications service providers is set to drive the market despite decline in demand from OEMs in recent years. Covid-19 has particularly exacerbated the spending gulf between the cloud service providers and OEMs as there has been an increased shift towards capturing the cloud service provider market. New processor designs from Intel and AMD in particular have been the major drivers of technological adoption in the server and data center market.

Server Microprocessor Market Segment Analysis - By Geography

Europe is expected to dominate the global Server Microprocessor market with a share of more than 31.2% in 2020. It is estimated that Europe will provide significant scope for servers powered by microprocessors as compute-intensive applications and cloud adoption are increasing. Cloud computing is one of the strategic digital technologies promoted by the European Union to increase productivity and improve business services. These initiatives create a significant demand for data centers in the region, thereby driving the market.

In December 2018, the European Commission announced the selection of the Consortium European Processor Initiative (EPI). The goal of the initiative is to "develop, co-design, and introduce a low-power microprocessor and Integrated Circuits to the European market" enabling Europe to retain a significant part of this technology.

Server Microprocessor Market Drivers

Increase in Number of Data Centers

Over the last decade, Internet penetration has grown dramatically globally, leading to a rise in the number of data centers where server microprocessors are used. The growth in user-based online services such as Facebook, YouTube, Twitter and cloud computing has increased the demand for data centers. These centers store personal data in a centralized system that uses large-scale servers that contribute to market growth.

Open Instruction Set Architecture (ISA) to Gain Traction Amid US-China Trade War

The trade war between China and the United States could have a certain impact on the market. This is considered by US companies (Intel) as well as ARM, which have pledged to cut off Huawei's access to critical semiconductor components, such as SoCs and CPUs. This may result in increased dependence on open-source Instruction Set Architecture (ISA) such as MIPS, RISC-V, etc. For example, in July 2019, the Alibaba Group unveiled its first self-designed microprocessor, a key step in China's efforts to promote chip self-sufficiency. 

The launch has prompted China's technology giants to address trade clashes with the US (over access to technology). Huawei is also seeking US independence from their processors. While the company obtained a license for the architecture of ARMv8, it claimed that it would avoid using RISC-V in the future if the restrictions of the US government continued.

Server Microprocessor Market Challenges

High Cost

The high costs involved is the key factor that restricts the growth of the server microprocessor market. The faster the speed of the processor is higher is the cost involved. Factors such as high manufacturing costs for integrated microprocessor and integrated circuits, circuit design costs, rising sales of low-priced mobile devices, decreasing shipment of individual computers, and high raw material prices are expected to impede market growth over the forecast years. In addition, high capital investment, lack of skilled workers and sophisticated user design are some of the other factors expected to constrain the growth of the global microprocessor server market during the forecast period.

Server Microprocessor Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in Server Microprocessor Market. Server Microprocessor Market is expected to be dominated by major companies such as Advanced Micro Devices (AMD), Inc., Baikal Electronics, OJSC, Hisilicon Technologies Co., Ltd., IBM Corporation, Intel Corporation, Mediatek Inc., NVIDIA Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Toshiba Corporation, Others. 

Acquisitions/Technology Launches

  • In April 2020, Intel announced the launch of its 10th generation Core H series mobile processors. The new processors feature 8 cores and 16 threads, delivering performance with up to 5.3 GHz turbo. The processors also benefit from Intel’s Turbo Boost Max Technology 3.0, Adaptix Dynamic Tuning Technology, Integrated Wi-Fi AX201, and support for Thunderbolt 3 and Intel Optane memory, to offer immersive gameplay, high responsiveness, and intelligent performance tuning.
  • In June 2019, Marvell (Cavium's parent company) announced a wider strategic alliance with Arm to accelerate the design and production of the next generation Marvell ThunderX server processor technology. With this new deal, Arm will support Marvell's R&D in the field of server processor technology for at least three more years (until 2022). With this partnership, Marvell aims to expand its Arm-based server roadmap to enable the next generation of cloud and data center infrastructure.

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1. Server Microprocessor Market Overview
    1.1 Definitions and Scope
2. Server Microprocessor Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Application
    2.3 Key trends segmented by Geography
3. Server Microprocessor Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company 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 (Comparison of General Price of Industry Solutions)
4. Server Microprocessor Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. Server Microprocessor Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Server Microprocessor Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Server Microprocessor Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. Server Microprocessor Market – By Architecture (Market Size -$Million/Billion)
    8.1 X86
    8.2 ARM
    8.3 Others
9. Server Microprocessor Market – By Number of Cores (Market Size -$Million/Billion)
    9.1 Less than 4 Cores
    9.2 4-6 Cores
    9.3 6-8 Cores
    9.4 Above 8 Cores
10. Server Microprocessor Market – By Enterprises (Market Size -$Million/Billion)
    10.1 Small Enterprises
    10.2 Medium Enterprises
    10.3 Large Enterprises
11. Server Microprocessor Market – By Applications (Market Size -$Million/Billion)
    11.1 Consumer Electronics
    11.2 Server and Data Center
    11.3 Automotive
    11.4 BFSI
    11.5 Industrial
    11.6 Others
12. Server Microprocessor Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 Germany
        12.2.2 France
        12.2.3 UK
        12.2.4 Italy
        12.2.5 Spain
        12.2.6 Russia
        12.2.7 Netherlands
        12.2.8 Others
    12.3 APAC
        12.3.1 China
        12.3.2 Japan
        12.3.3 South Korea
        12.3.4 India
        12.3.5 Australia
        12.3.6 Indonesia
        12.3.7 Malaysia
        12.3.8 Others
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Chile
        12.4.4 Colombia
        12.4.5 Others
    12.5 RoW
        12.5.1 Middle East
        12.5.2 Africa
13. Server Microprocessor Market - Market Entropy
    13.1 New product launches
    13.2 M&A's, collaborations, JVs and partnerships
14. Server Microprocessor Market – Industry Competitive Landscape (Premium)
    14.1 Market Share – Global
    14.2 Market Share by Region
    14.3 Market Share By Architecture
15. Server Microprocessor Market – Key Company List by Country Premium (Premium)
16. Server Microprocessor Market - Company Analysis
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10

LIST OF TABLES

1.Global Server Microprocessor Market, By Design Market 2019-2024 ($M)
1.1 Arm Market 2019-2024 ($M) - Global Industry Research
1.2 X86 Market 2019-2024 ($M) - Global Industry Research
2.Global Server Microprocessor Market, By End-User Market 2019-2024 ($M)
2.1 Large Enterprise Market 2019-2024 ($M) - Global Industry Research
2.2 Medium Enterprise Market 2019-2024 ($M) - Global Industry Research
2.3 Small Enterprise Market 2019-2024 ($M) - Global Industry Research
3.Global Server Microprocessor Market, By Design Market 2019-2024 (Volume/Units)
3.1 Arm Market 2019-2024 (Volume/Units) - Global Industry Research
3.2 X86 Market 2019-2024 (Volume/Units) - Global Industry Research
4.Global Server Microprocessor Market, By End-User Market 2019-2024 (Volume/Units)
4.1 Large Enterprise Market 2019-2024 (Volume/Units) - Global Industry Research
4.2 Medium Enterprise Market 2019-2024 (Volume/Units) - Global Industry Research
4.3 Small Enterprise Market 2019-2024 (Volume/Units) - Global Industry Research
5.North America Server Microprocessor Market, By Design Market 2019-2024 ($M)
5.1 Arm Market 2019-2024 ($M) - Regional Industry Research
5.2 X86 Market 2019-2024 ($M) - Regional Industry Research
6.North America Server Microprocessor Market, By End-User Market 2019-2024 ($M)
6.1 Large Enterprise Market 2019-2024 ($M) - Regional Industry Research
6.2 Medium Enterprise Market 2019-2024 ($M) - Regional Industry Research
6.3 Small Enterprise Market 2019-2024 ($M) - Regional Industry Research
7.South America Server Microprocessor Market, By Design Market 2019-2024 ($M)
7.1 Arm Market 2019-2024 ($M) - Regional Industry Research
7.2 X86 Market 2019-2024 ($M) - Regional Industry Research
8.South America Server Microprocessor Market, By End-User Market 2019-2024 ($M)
8.1 Large Enterprise Market 2019-2024 ($M) - Regional Industry Research
8.2 Medium Enterprise Market 2019-2024 ($M) - Regional Industry Research
8.3 Small Enterprise Market 2019-2024 ($M) - Regional Industry Research
9.Europe Server Microprocessor Market, By Design Market 2019-2024 ($M)
9.1 Arm Market 2019-2024 ($M) - Regional Industry Research
9.2 X86 Market 2019-2024 ($M) - Regional Industry Research
10.Europe Server Microprocessor Market, By End-User Market 2019-2024 ($M)
10.1 Large Enterprise Market 2019-2024 ($M) - Regional Industry Research
10.2 Medium Enterprise Market 2019-2024 ($M) - Regional Industry Research
10.3 Small Enterprise Market 2019-2024 ($M) - Regional Industry Research
11.APAC Server Microprocessor Market, By Design Market 2019-2024 ($M)
11.1 Arm Market 2019-2024 ($M) - Regional Industry Research
11.2 X86 Market 2019-2024 ($M) - Regional Industry Research
12.APAC Server Microprocessor Market, By End-User Market 2019-2024 ($M)
12.1 Large Enterprise Market 2019-2024 ($M) - Regional Industry Research
12.2 Medium Enterprise Market 2019-2024 ($M) - Regional Industry Research
12.3 Small Enterprise Market 2019-2024 ($M) - Regional Industry Research
13.MENA Server Microprocessor Market, By Design Market 2019-2024 ($M)
13.1 Arm Market 2019-2024 ($M) - Regional Industry Research
13.2 X86 Market 2019-2024 ($M) - Regional Industry Research
14.MENA Server Microprocessor Market, By End-User Market 2019-2024 ($M)
14.1 Large Enterprise Market 2019-2024 ($M) - Regional Industry Research
14.2 Medium Enterprise Market 2019-2024 ($M) - Regional Industry Research
14.3 Small Enterprise Market 2019-2024 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Server Microprocessor Market Revenue, 2019-2024 ($M)
2.Canada Server Microprocessor Market Revenue, 2019-2024 ($M)
3.Mexico Server Microprocessor Market Revenue, 2019-2024 ($M)
4.Brazil Server Microprocessor Market Revenue, 2019-2024 ($M)
5.Argentina Server Microprocessor Market Revenue, 2019-2024 ($M)
6.Peru Server Microprocessor Market Revenue, 2019-2024 ($M)
7.Colombia Server Microprocessor Market Revenue, 2019-2024 ($M)
8.Chile Server Microprocessor Market Revenue, 2019-2024 ($M)
9.Rest of South America Server Microprocessor Market Revenue, 2019-2024 ($M)
10.UK Server Microprocessor Market Revenue, 2019-2024 ($M)
11.Germany Server Microprocessor Market Revenue, 2019-2024 ($M)
12.France Server Microprocessor Market Revenue, 2019-2024 ($M)
13.Italy Server Microprocessor Market Revenue, 2019-2024 ($M)
14.Spain Server Microprocessor Market Revenue, 2019-2024 ($M)
15.Rest of Europe Server Microprocessor Market Revenue, 2019-2024 ($M)
16.China Server Microprocessor Market Revenue, 2019-2024 ($M)
17.India Server Microprocessor Market Revenue, 2019-2024 ($M)
18.Japan Server Microprocessor Market Revenue, 2019-2024 ($M)
19.South Korea Server Microprocessor Market Revenue, 2019-2024 ($M)
20.South Africa Server Microprocessor Market Revenue, 2019-2024 ($M)
21.North America Server Microprocessor By Application
22.South America Server Microprocessor By Application
23.Europe Server Microprocessor By Application
24.APAC Server Microprocessor By Application
25.MENA Server Microprocessor By Application
26.Advanced Micro Devices, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Baikal Electronics, Ojsc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Hisilicon Technology Co , Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Ibm Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Intel Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Mediatek Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Nvidia Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Qualcomm Technologies, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Texas Instrument Incorporated, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Toshiba Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)