The global micro server IC market is expected to reach USD 1.35 Billion by 2022, at a CAGR of 44.0% between 2016 and 2022. In the present scenario, data traffic is continually rising, driving the demand for secure and reliable storage and processing of data.
To accommodate this large data, companies are deploying new data centers or upgrading their existing data centers and developing hyperscale or mega data centers.
Other major drivers for the growth of the market are low power consumption and space usage by micro servers, growing trend of cloud computing.
Download PDF Brochure:
Opportunity: Emerging Need for New Data Centers in Less Technologically Advanced Region
The efforts for construction of new data centers provides a huge market for micro server market in technically less advanced regions such as APAC, MEA, and LA in the coming years. The market for data centers is still in emerging phase in these regions and the shift in paradigm for data centers setups from technically advanced regions to less technically advance would take at least five years to show results. Thus, it would take some time before the market for micro server ICs starts showing better results in market share in these technologically advancing regions. According to the report of U.S. Department of Energy published in 2015, the data center space in China is increasing at a rate of 20% annually and 10% annually in the overall APAC region.
Challenge: Blade Servers May Limit The Scope Of Micro Server Usage
A blade server is a server chassis housing multiple slim, modular electronic circuit boards, known as server blades. Each blade is a server, often dedicated to a single application. Blade servers are currently the most efficient large computing devices and are often used by modern businesses as the backbone of the official computer infrastructure. Blade servers are gaining popularity over the rack-mounted servers in large office operations all over the world. Micro servers are limited to some applications such as web servers that do not require multi-CPU cores. The development of new hardware and software technology with increased computing power such as 64-bit processors by Intel (U.S.) and ARM (U.K.), 14-nm technology by Intel, and less power SoC’s by ARM (U.K.) would make micro servers a better competitor for blade servers. These developments would help micro servers to serve more technologies such as server clustering and cloud data centers so that they can run traditional business of high workload applications.
Micro Server IC Market for Medium Sized Organizations Held the Largest Market Share During the Forecasted Period
The medium sized organizations are adopting micro server IC’s owing to their lower buying and installing cost. In addition, it is easy to upgrade the system if the load increases by simply increasing the server nodes. Thus, medium scale enterprise segment holds the largest market for micro server IC’s. These organizations need to scale immediately whenever required to stay competitive in the market. Micro servers help such organizations to meet their IT requirements as they are easy to set up, use, and maintain without taking up a lot of space. They provide plenty of power, security, and expansion without requiring dedicated IT resources, which are imperative for medium enterprises.
Micro Server IC Market for Data Centers is Expected to Demonstrate the Fastest Growth in the Micro Server IC During the Forecast Period
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. Micro servers are less expensive and consume less power and space than traditional enterprise-class rack servers. They can easily be grouped into clusters and are well suited for tasks that do not require multiple CPUs. The growing need for data centers in various business domains such as IT& telecom, banking, healthcare, agriculture, and government, among others would drive the data center application to grow at the highest CAGR during the forecast period.
Request Free Sample Pages:
Micro Server IC Market in APAC Region Held the Largest Share of the Market in 2017
The micro server IC market is expected to grow at the highest CAGR in APAC as countries such as India and China are witnessing huge technological advancements and the region is expected to witness many startup’s and business expansions in the coming years. Currently, the demand for application specific servers is huge. The main reason for this is the increasing need for data centers and cloud computing in fast developing economies such as India and China that still have a huge potential for internet connectivity. The application specific customization capability of micro servers provides a better option for data centers and cloud computing companies to use the micro servers as per the workload need. Thus, such features of micro servers would create huge demand for micro servers in the APAC region.
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.