Microserver Market

According to Stratistics MRC, the Global Microserver Market is accounted for $39.82 billion in 2024 and is expected to reach $105.35 billion by 2030 growing at a CAGR of 17.6% during the forecast period. A microserver is a tiny, inexpensive, low-power server made for light computing applications. It is perfect for cloud computing, web hosting, and edge computing applications because of its small form factor, low power consumption, and straightforward design. Microservers often offer scalable, high-density installations and are powered by energy-efficient CPUs like the Intel Atom or ARM. They are appropriate for data centres needing high efficiency, low operating costs, and little physical area since they are designed to handle dispersed workloads.

According to World Bank statistics, SMEs represent about 90% of businesses and more than 50% of employment worldwide.

Market Dynamics: 

Driver: 

Energy efficiency & low power consumption

Microservers generate less heat and use a lot less electricity than standard servers since they use a lot less power. Data centres may reduce cooling costs and increase sustainability thanks to this efficiency. Microservers are perfect for cloud and edge applications because they provide businesses higher density computing with smaller energy footprints. The need for energy-efficient microservers is further increased by laws supporting green computing. The market for low-power microservers is still growing quickly as more companies place a higher priority on sustainability.

Restraint:

Competition from traditional servers

Microserver usage in data centres is constrained by the superior support that traditional servers offer for virtualisation and sophisticated applications. Microservers face a significant market barrier due to their well-established presence and wide-ranging ecosystem of hardware and software providers. In addition, compared to microservers, conventional servers have lower prices per performance unit due to economies of scale. Because of worries about interoperability, security, and long-term maintenance, many companies are hesitant to switch to microservers. Because of this, microservers find it difficult to become widely used outside of specialised applications like edge computing and lightweight web hosting.

Opportunity:

Growing adoption in emerging markets

Microservers are being quickly adopted by small and medium-sized businesses (SMEs) in these areas to support data centre, cloud, and edge computing applications. Microserver implementation is further accelerated by the emergence of digital transformation, which is driven by government efforts and growing internet penetration. Furthermore, the demand for scalable and effective server solutions is increased by the expanding use of AI, IoT, and big data analytics in emerging economies. Microservers are a desirable option for companies on a tight budget because of their reduced infrastructure expenses and increased power efficiency. Because of this, the market for microservers is expanding significantly in these emerging nations.

Threat:

Slow adoption in large enterprises

Large businesses are reluctant to switch to microservers since they frequently rely on conventional server infrastructures. Their shift is slowed significantly by issues with compatibility, performance, and dependability. Large businesses also have intricate IT ecosystems that need thorough testing prior to implementing new technologies. Investment in microservers is further deterred by the absence of immediate cost benefits. Consequently, the market finds it difficult to grow outside specialised applications.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the microserver market, causing disruptions in the supply chain and delays in production due to lockdowns and restrictions. However, the surge in remote work, cloud computing, and data center expansion drove increased demand for microservers. Many enterprises accelerated digital transformation efforts, boosting investments in energy-efficient and cost-effective server solutions. Despite initial setbacks, the market adapted with improved logistics and strategic partnerships to meet growing needs. Post-pandemic, the microserver market continues to expand, driven by advancements in AI, edge computing, and IoT applications.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is expected to account for the largest market share during the forecast period, due to cost-effective solutions for data centers and cloud computing. Advancements in processors, storage, and networking components enhance performance while maintaining a compact form factor. Increasing demand for edge computing and hyperscale data centers accelerates the adoption of microservers. Customization options in hardware configurations cater to diverse industry needs, boosting market growth. Additionally, innovations in ARM and x86 architectures improve efficiency, further propelling the microserver market.

The government & defense segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the government & defense segment is predicted to witness the highest growth rate by demanding high-performance and mission-critical applications. Increased cybersecurity threats and real-time intelligence analysis necessitate compact, scalable, and low-power microservers. Government agencies leverage these servers for cloud-based storage, surveillance, and AI-driven defense strategies. Budget constraints push defense organizations toward cost-effective, high-density microserver architectures. Additionally, advancements in edge computing and 5G integration enhance battlefield communication and operational efficiency, further fuelling market growth.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to increasing demand for energy-efficient solutions in data centers and edge computing applications. Countries like China, India, and Japan are leading the adoption due to expanding cloud services, AI-driven workloads, and the rise of IoT deployments. The market is also benefiting from advancements in ARM-based and x86 microserver architectures, which offer cost-effective and scalable solutions for enterprises and hyperscale data centers. With strong investments from key players and rising local manufacturing capabilities, the Asia Pacific microserver market is poised for sustained expansion in the coming years.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to the increased demand for energy-efficient, high-density computing solutions. Companies are adopting microservers for cloud computing, edge computing, and data center applications due to their cost-effectiveness and lower power consumption. Key players such as Dell, HPE, and Intel are investing in advanced microserver architectures to enhance performance while reducing operational costs. Additionally, ongoing advancements in ARM-based and x86-based microserver technologies are shaping the competitive landscape, offering enterprises greater flexibility in deployment.

Key players in the market

Some of the key players profiled in the Microserver Market include Hewlett Packard Enterprise (HPE), Dell Technologies, Supermicro, Penguin Computing, IBM, Acer, MiTAC, AMD, ARM, Intel, Lenovo, Cisco Systems, Quanta Computer, Wiwynn, Inventec Corporation, ASRock Rack, Gigabyte Technology and Inspur.

Key Developments:

In June 2024, Dell Technologies announced a new agreement with Broadcom Inc. to continue offering solutions that combine Dell’s infrastructure portfolio with VMware cloud infrastructure software. This collaboration aims to deliver co-engineered solutions that help organizations embrace modern applications at cloud scale and optimize their data centers.

In September 2023, Cisco completed the acquisition of DeepFactor, Inc., a company specializing in security observability for cloud-native applications. This acquisition enhances Cisco's capabilities in securing microservices and containerized environments, aligning with the growing demand for robust security solutions in the microserver market.

In August 2023, Cisco and Nutanix formed a global strategic partnership to simplify hybrid multicloud deployments. The collaboration combines Cisco's SaaS-managed compute and networking infrastructure with Nutanix's cloud platform software, offering a complete hyperconverged solution for IT modernization and business transformation.

Components Covered:
• Hardware
• Software

Processor Types Covered:
• ARM-based Microservers
• x86-based Microservers          

Functions Covered:
• Integrated Electronics
• Advanced Micro Devices
• Other Functions          

Organizations Covered:
• Large Enterprise
• Small and Medium Sized Enterprise

Applications Covered:
• Cloud Computing
• Data Centers
• Web Hosting & Enterprise Applications
• Edge Computing
• Big Data & Analytics
• Media Storage & Content Delivery
• Other Applications

End Users Covered:
• IT & Telecom
• Banking, Financial Services & Insurance (BFSI)
• Healthcare & Life Sciences
• Government & Defense
• Retail & E-commerce
• Manufacturing
• Energy & Utilities
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances