Micro server IC market is projected to reach USD 2.2 billion by 2026, growing at a CAGR of 12.6% during the forecast period. Some of the key driving factors of the Micro server IC market are low power consumption and low space utilization of micro servers, growth in the trend of cloud computing and web hosting, and emergence of hyperscale data center architecture.

The micro server IC market includes major Tier I and II players like Intel Corporation (US), Advanced Micro Devices, Inc. (US), Hewlett Packard Enterprise Development LP (US), Quanta Computer Inc. (Taiwan), NVIDIA Corporation (US), and others.

Driver: Low power consumption and low space utilization of micro servers:

The power consumption and space usage of micro servers is lower than traditional high-end servers. Micro servers use low-power ICs that are normally used in commercial personal computers. In addition, the power consumption of micro servers' stripped-back silicon is far below the 90-W-plus thermal design power (TDP) of processors inside high-end servers, with micro server chips typically having a TDP of below 45 W and dropping to sub-10-W levels. Lower power consumption equals lower running costs, making them more useful for computing work per dollar. The advantage of low power and space usage by micro servers enables enterprises to install more computing power into a given amount of space while consuming less power than traditional server solutions. This helps in reducing electricity bills, thus reducing the operating costs of a data center significantly.

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pportunity: Increasing need for new data centers across emerging regions:

Micro server ICs are gaining popularity in data center applications as these are less expensive, consume less power, and save physical space as compared to enterprise-class rack servers. Growing demand for data centers in various business domains such as IT & telecom, banking, healthcare, agricultural, and government is expected to aid in the growth of the market. The number of internet users have increased over the previous year (2018), due to which internet traffic has increased, thereby creating a need for more data centers. For instance, according to International Telecommunication Union (ITU), there were 4.1 billion internet users in the world as of 2019. The rising number of data centers would provide growth opportunities for micro server IC industry.

Challenge: Blade servers may limit 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 official computer infrastructure. Blade servers are gaining popularity over rack-mounted servers in large office operations all across 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 (US) and ARM (UK) and low-power SoCs by ARM (UK) 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 businesses of high workload applications.

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