News Overview
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Record Growth: The global server market reached $77.3 billion in Q4 2024, marking a 91% year-over-year increase, primarily fueled by AI and hyperscale demand.
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GPU-Embedded Servers: Servers equipped with embedded GPUs saw a 192.6% revenue surge, with NVIDIA maintaining over 90% market share in this segment.
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Regional Performance: The United States led with a 118.4% revenue increase, accounting for 56% of global server revenue in Q4 2024.
Original article link: AI Server Market Growth 2024: GPU-Powered Systems Lead 91% YoY Surge
In-Depth Analysis
Market Segmentation
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x86 Servers: Revenue grew by 59.9% year-over-year, totaling $54.8 billion in Q4 2024.
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Non-x86 Servers: Experienced a remarkable 262.1% revenue increase, reaching $22.5 billion, indicating a shift towards alternative architectures.
Vendor Performance
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ODM Direct Vendors: Companies supplying directly to hyperscalers and large-scale cloud providers accounted for 47.3% of total market revenue, with a 155.5% year-over-year increase to $36.57 billion.
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Top Traditional Vendors:
- Dell Technologies: Achieved $5.54 billion in revenue, a 20.6% increase, securing a 7.2% market share.
- Supermicro: Reported $5.01 billion in revenue, up 55%, holding a 6.5% market share.
- Hewlett Packard Enterprise (HPE): Saw a 54.2% revenue increase to $4.24 billion, with a 5.5% market share.
- IEIT Systems: Reported $3.88 billion in revenue, a 66.2% increase, capturing a 5% market share.
- Lenovo: Achieved a 70% revenue increase to $3.78 billion, holding a 4.9% market share.
Regional Insights
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China: Recorded a 93.3% revenue increase, contributing nearly 25% to global quarterly server revenue.
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Other Regions:
- Japan: Experienced a 66.9% revenue increase.
- Asia/Pacific excluding Japan and China (APeJC): Saw a 43.8% revenue increase.
- Europe, Middle East, and Africa (EMEA): Reported a 28.2% revenue increase.
- Latin America: Experienced a 7% revenue increase.
Commentary
The substantial growth in the AI server market underscores the escalating demand for high-performance computing solutions, particularly those powered by GPUs. NVIDIA’s dominance in the GPU-embedded server segment highlights its critical role in advancing AI infrastructure. The significant revenue increases among Original Design Manufacturers (ODMs) reflect a trend towards customized solutions tailored for hyperscale data centers. Regionally, the United States and China continue to lead in server investments, indicating robust expansion in AI and cloud services. As AI applications become more pervasive, the emphasis on scalable and efficient server architectures will be paramount in meeting future computational demands.