PUBLISHER: KBV Research | PRODUCT CODE: 1565199
PUBLISHER: KBV Research | PRODUCT CODE: 1565199
The Global ARM-Based Servers Market size is expected to reach $15.7 billion by 2031, rising at a market growth of 14.1% CAGR during the forecast period.
The European region's focus on sustainability, energy efficiency, and compliance with strict data privacy regulations has encouraged the adoption of these servers. Countries like Germany, the UK, and France have seen growing investments in cloud infrastructure, edge computing, and AI-driven technologies, all of which benefit from ARM's power-efficient architecture. Consequently, the Europe region would acquire nearly 31% of the total market share by 2031.
Cloud computing requires handling massive amounts of data and running complex workloads, and ARM's architecture offers a scalable, cost-effective solution to these demands. Major cloud providers such as Microsoft Azure, Google Cloud, and Oracle Cloud are integrating ARM-based processors into their offerings to capitalize on the performance and efficiency benefits of ARM's architecture. Hence, these factors will aid in the growth of the market.
Additionally, Edge computing revolutionizes the processing, analysis, and delivery of data by allowing computations to take place in close proximity to the data source rather than relying on centralized data centers. One of the key sectors driving this trend is telecommunications, particularly with the advent of 5G networks. Thus, the rise of edge computing, driven by the need for localized data processing in low-power environments, is a significant factor propelling the growth of these servers.
However, Over the years, many enterprises have built robust infrastructures around x86 servers, developing or purchasing software solutions specifically designed for this architecture. The challenge is particularly acute for large-scale enterprises with mission-critical applications that have been fine-tuned over decades to run optimally on x86 systems. Hence, such issues may hamper the growth of the market.
Core Type Outlook
Based on core type, the market is bifurcated into ARM cortex-A core based servers and ARM cortex-M core based servers. The ARM cortex-M core based servers segment procured 21% revenue share in the market in 2023. While the Cortex-M cores are generally optimized for lower power consumption and are often used in embedded systems and microcontrollers, their use in servers is increasingly recognized for specific applications that require power efficiency and real-time capabilities.
Processor Outlook
By processor, the market is divided into 32-bit and 64-bit. The 32-bit segment garnered 15% revenue share in the market in 2023. 32-bit architecture remains relevant in specific applications where lower processing power and memory requirements are sufficient.
OS Outlook
On the basis of OS, the market is classified into Android, iOS, and Windows. The iOS segment recorded 12% revenue share in the market in 2023. Although primarily associated with consumer devices, iOS has gained traction in enterprise environments, particularly in industries like healthcare, education, and finance, where data security and streamlined performance are paramount.
Vertical Outlook
On the basis of vertical, the market is segmented into automotive, healthcare, telecommunications, oil & gas extraction, bioscience, industrial automation, and others. The bioscience segment procured 9% revenue share in the market in 2023. ARM-based servers are increasingly utilized in bioscience for research, genomics, and big data analysis. They offer the computational power required to process large datasets efficiently while maintaining energy efficiency.
Application Outlook
Based on application, the ARM-based servers market is segmented into mobile computing, 3D graphics, internet of things (IoT), smart homes, wearables, sensors, enterprise & infrastructure networking, and wireless communications. The internet of things (IoT) segment acquired 21% revenue share in the ARM-based servers market in 2023. As the number of connected devices and smart ecosystems continues to grow, ARM-based servers are being utilized to manage the data and communication requirements of IoT networks.
Regional Outlook
Region-wise, the ARM-based servers market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 37% revenue share in the ARM-based servers market in 2023. The primary causes of the regional market's expansion are the region's robust technological infrastructure and the extensive adoption of advanced computing solutions across various industries.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global ARM-Based Servers Market Report Segmentation
By Core Type
By Processor
By OS
By Vertical
By Application
By Geography