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Key Trends Reshaping the Micro Server IC Market: Intel Launches Xeon 6 Server Processors To Enhance Performance And Energy Efficiency In Data Centers Industry Transformation
Micro Server IC Market
Micro Server IC Market Size Growth Forecast: What to Expect by 2025?
The market size of micro server IC has experienced a substantial increase in the past few years. The market, which is valued at $1.66 billion in 2024, is projected to escalate to $1.88 billion in 2025, signifying a compound annual growth rate (CAGR) of 13.1%. The historic rise can be associated with factors such as concerns over energy efficiency, rising occurrences of motor failures, objectives towards reducing costs, pursuit of predictive maintenance, and a surge in industrial automation.
How Will the Micro Server IC Market Size Evolve and Grow by 2029?
Expectations are high for the micro server IC market size, foreseeing a robust growth in the coming years. The valuation is poised to reach "$3.21 billion by 2029, growing at a compound annual growth rate (CAGR) of 14.3%. Factors contributing to this anticipated growth during the forecast period include the need for remote monitoring, increase in renewable energy production, implementation of smart manufacturing strategies, emphasis on condition-based monitoring, rising cybersecurity issues, and incorporation on analytics platforms. Key trends to observe in this period include improvements in condition-based monitoring, integration with control systems, adoption of cloud-based solutions, progress in artificial intelligence (AI) and machine learning (ML), and tailored solutions for specific industries.
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What Drivers Are Propelling the Growth of Micro Server IC Market Forward?
The rise in demand for more data centers is projected to fuel the expansion of the micro server IC industry. A data center serves as a hub that amalgamates an organization's shared IT infrastructure for data processing and storage operations. Due to their affordable price, reduced power usage, and compact physical size, micro server ICs are becoming increasingly popular in data center settings. Thus, the surge in demand for additional data centers is likely to stimulate the micro server IC industry. For instance, STACK Infrastructure, an American IT company, and Oaktree Capital Management, L.P., a US-based investment management firm, declared a partnership in January 2022 to build a 36MW data center complex in Inzai, Japan. The project kicked off in the second quarter of 2022, with the expected delivery schedule in the final quarter of 2023. Furthermore, Huawei's Intelligent World 2030 report projects that the global data generation volume will surpass one yottabyte (a quadrillion gigabytes) by 2030. Hence, the escalating demand for fresh data centers is paving the way for the expansion of the micro server IC industry.
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Which Emerging Trends Are Transforming the Micro Server IC Market in 2025?
The micro server IC market is advancing through product innovation. In June 2024, US-based Intel Corporation introduced Xeon 6 server processors, improving performance and energy efficiency by up to 2.6 times. The processors are optimized for AI workloads and cloud-native applications and are compatible with Intel's Gaudi AI accelerators.
What Are the Key Segments in the Micro Server IC Market?
The micro server IC market covered in this report is segmented -
1) By Component: Hardware, Software
2) By Processor Type: X86, ARM
3) By Application: Web Hosting And Enterprise Application, Analytics And Cloud Computing, Edge Computing
4) By End User: Enterprises, Data Center
Subsegments:
1) By Hardware: Microprocessors, Memory Chips, Storage Devices, Networking Components, Power Management ICs, Other Hardware Components
2) By Software: Operating Systems, Middleware, Virtualization Software, Management Software, Application Software, Other Software Solutions
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Who Are the Key Players Shaping the Micro Server IC Market's Competitive Landscape?
Major companies operating in the micro server IC market include Intel Corporation, Advanced Micro Devices Inc., Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Fujitsu Limited, Super Micro Computer Inc., Huawei Technologies Co. Ltd., Quanta Computer Inc., Qualcomm Technologies Inc., Tyan Computer Corporation, MiTAC Holdings Corp., Penguin Computing Inc., NEC Corporation, Inspur Group Co. Ltd., Lenovo Group Limited, ASUSTeK Computer Inc., Cisco Systems Inc., Inventec Corporation, Foxconn Technology Group, ZT Systems Company, Aaeon Technology Inc., Arm Holdings plc, Ampere Computing LLC, Marvell Technology Group Ltd.
What Geographic Markets Are Powering Growth in the Micro Server IC Market?
North America was the largest region in the micro server IC market in 2024. The regions covered in the micro server IC market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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