The server market has reached a record $77.3 billion in revenue in the fourth-quarter of 2024, with a 91 percent increase in vendor revenue.
Revenue from x86 servers rose 59.9 percent to $54.8 billion, while non-x86 servers saw 262.1 percent increase to $22.5 billion.
Servers with embedded GPUs saw 192.6 percent growth in Q4 2024, making up over half of the total server market revenue for the full year.
“Concerns around energy consumption for server infrastructure will become a factor in datacenters looking for alternatives to optimize their architectures and minimize energy use,” Lidice Fernandez , group vice president, Worldwide Enterprise Infrastructure Trackers, said in its report.
Nvidia has dominated the server GPU space with over 90 percent of total shipments in Q4 2024.
The rapid adoption of servers with embedded GPUs by hyperscalers and cloud service providers has fueled market expansion, doubling its size since 2020, reaching $235.7 billion in 2024.
AI adoption is expected to continue rising as organizations prioritize investments, while energy consumption concerns will drive optimization in datacenter architectures.
The U.S. saw 118.4 percent growth in the server market, representing 56 percent of global Q4 revenue, while Canada had the highest growth rate but accounted for only 1.1 percent of total revenue.
China’s server market grew 93.3 percent year-over-year, contributing nearly a quarter of global quarterly revenue.
Japan, APeJC, and EMEA experienced double-digit growth of 66.9 percent, 43.8 percent, and 28.2 percent, respectively, while Latin America saw 7 percent growth in Q4 2024.
Server vendors in Q4 2024
Dell Technologies led the traditional server vendors with $5.54 billion in revenue, capturing 7.2 percent of the market in Q4 2024, up from $4.592 billion in Q4 2023 when it held an 11.3 percent share.
Super Micro followed closely with $5.005 billion in revenue and a 6.5 percent server market share, a significant increase from $3.23 billion and an 8.0 percent share the previous year.
Hewlett Packard Enterprise (HPE) generated $4.239 billion in revenue, securing a 5.5 percent server market share, compared to $2.749 billion and a 6.8 percent share in Q4 2023.
IEIT Systems recorded $3.87 billion in revenue, holding 5 percent of the server market, up from $2.333 billion and a 5.8 percent share a year earlier.
Lenovo reported $3.783 billion in revenue, accounting for 4.9 percent of the server market, increasing from $2.226 billion and a 5.5 percent share in Q4 2023.
ODM Direct dominated the server market with $36.57 billion in revenue, representing 47.3 percent of the total, significantly up from $14.313 billion and a 35.4 percent share in Q4 2023.
The rest of the market contributed $18.304 billion, making up 23.7 percent of total revenue, an increase from $11.035 billion and 27.3 percent share the previous year, IDC said.
Baburajan Kizhakedath
