The global ARM-based servers market was valued at USD 5.84 billion in 2023 and is projected to reach USD 14.51 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.3% from 2024 to 2030. ARM processors are particularly well-suited for Internet of Things (IoT) applications due to their scalability, flexibility, and energy efficiency. ARM processors are renowned for their energy efficiency and low power consumption, which are crucial for server operations. The increasing demand for energy-efficient computing solutions, particularly in data centers and cloud environments, is driving the adoption of ARM-based servers.

 

The rapid growth of cloud computing and the rising adoption of hyperscale data centers are significant factors propelling the ARM-based server market. Cloud service providers like Amazon Web Services (AWS) and Microsoft Azure are continuously expanding their infrastructure to accommodate the growing demand for on-demand computing resources. ARM-based servers offer a scalable and cost-effective solution, enabling these providers to efficiently manage vast volumes of data and support large-scale workloads.

 

Hyperscale data centers, designed to meet the requirements of major cloud providers, benefit from the modular architecture and scalability of ARM processors. ARM servers excel at handling parallel processing and distributed computing tasks, making them ideal for workloads such as data analytics, artificial intelligence (AI), machine learning, and content delivery networks (CDNs). This trend is further accelerated by the rising use of containers and microservices, which ARM-based servers are well-equipped to manage due to their energy-efficient and scalable design.

 

Key Market Trends & Insights

  • Regional Performance: The ARM-based servers market in North America accounted for 36.3% of the market share in 2023. This growth is driven by the increasing adoption of emerging technologies such as artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC).
  • Operating System Segment: The Android segment captured the largest market share of 52.4% in 2023, fueled by the rise of mobile and edge computing environments where Android systems are becoming more prominent. The power-efficient architecture of ARM aligns well with Android’s focus on mobile devices, leading to increased demand for ARM-based servers to support these applications.
  • Processor Segment: The 64-bit operating system ARM-based servers segment represented the largest market share at 87.8% in 2023. The competitive landscape is evolving, with major players investing in advanced 64-bit architectures. Innovations like the ARM Neoverse platform and specialized processors such as the Ampere Altra are enhancing the performance and scalability of ARM-based solutions.
  • Application Segment: The mobile computing segment held the largest market share of 28.8% in 2023. Ongoing advancements in 5G networks have spurred growth in this segment. With 5G enabling faster data transmission and improved connectivity, mobile applications are becoming increasingly sophisticated, necessitating robust server infrastructures for real-time processing, low latency, and high throughput.
  • Vertical Segment: The telecommunications sector accounted for the largest market share of 20.3% in 2023, driven by the rising adoption of edge computing within the industry. Edge computing requires smaller, decentralized data centers situated closer to data generation sources.

 

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Market Size & Forecast

  • 2023 Market Size: USD 5.84 Billion
  • 2030 Projected Market Size: USD 14.51 Billion
  • CAGR (2024-2030): 14.3%
  • North America: Largest market in 2023

 

Key Companies & Market Share Insights

Key players in the ARM-based servers market include Ampere Computing LLC, Marvell, Advanced Micro Devices, Inc., ARM Limited, Huawei Technologies Co., Ltd., and Linaro Limited. These companies are focusing on various strategic initiatives, including new product development, partnerships, collaborations, and agreements to gain a competitive edge.

Key Players

  • Advanced Micro Devices, Inc
  • Ampere Computing LLC
  • ARM Limited
  • Cloud Software Group, Inc.
  • Huawei Technologies Co., Ltd.
  • Linaro Limited
  • Marvell
  • Red Hat, Inc.
  • SUSE
  • Texas Instruments Incorporated

 

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Conclusion

The ARM-based servers market is on a significant growth trajectory, driven by the demand for energy-efficient computing solutions and the rapid expansion of cloud computing and hyperscale data centers. With their scalability and cost-effectiveness, ARM-based servers are well-positioned to meet the evolving needs of modern computing environments. The ongoing advancements in technologies like 5G and the increasing adoption of edge computing further enhance the market's potential. As major players continue to innovate and invest in ARM architectures, the market is set for continued expansion and transformation in the coming years.