The micro server IC market is estimated to be USD 1.2 billion in 2021 and is projected to reach USD 2.2 billion by 2026; it is expected to grow at a CAGR of 12.6% from 2021 to 2026.

The Micro server IC market is dominated by players such as Intel Corporation (US), Advanced Micro Devices, Inc. (US), Hewlett Packard Enterprise Development LP (US), Quanta Computer Inc. (Taiwan), and NVIDIA Corporation (US).

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Key Dynamics:

- Driver: Low power consumption and low space utilization of micro servers
- Restraint: Application-specific nature of micro server demands additional servers for separate applications
- Opportunity: Increasing need for new data centers across emerging regions
- Challenge: Blade servers may limit scope of micro server usage

APAC is expected to grow at the fastest rate for the micro server IC market owing to the presence of countries with large populations and rising adoption of micro servers across small and medium enterprises. The increasing penetration of internet services, along with the adoption of smart devices, has been fueling data generation. This further fuels the expansion of data centers in the APAC region. Rising importance of micro servers due to low power consumption and cost-effective solutions can be used for light load applications in data centers, which also drives the growth of the market.

Hardware is expected to constitute the largest market share of micro server ICs during the forecast year. Since hardware constitutes the main part of an SoC, companies such as Intel and ARM are working toward increasing the capability of their ICs by making the architecture denser and more efficient. Rising adoption of micro servers for dedicated hosting, front-end web, big data workloads, content delivery network, computing applications, and low space and application-specific functionality drive market growth.