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Server Processor Market Size Forecast to Reach $52.4 Billion by 2026

(IT-NEWSWIRE.COM, January 18, 2022 ) 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.



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.



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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.



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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.



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.



Related Reports



A.Server Processor/Server Chipset Market



https://www.industryarc.com/Report/19452/server-processor-server-chipset-market.html



B.Server Storage Area Network (San) Market



https://www.industryarc.com/Research/Server-Storage-Area-Network-Market-Research-500636



For more Electronics Market reports, please click here



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IndustryARC

Venkat Reddy

(+1) 970-236-3677

venkat@industryarc.com

Source: EmailWire.Com

Source: EmailWire.com

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