Server Market Sees 91% Revenue Growth in Q4 2024, NVIDIA Maintains GPU Lead

Server Market Hits New Heights

Hold onto your hats, tech enthusiasts! The latest report from the International Data Corporation (IDC) reveals that the server market is on fire, raking in a staggering

$77.3 billion

in revenue during the last quarter of the year. That’s not just a number; it’s a testament to the explosive growth we’re seeing in this sector, marking the second highest growth rate since 2019. Can you believe it? We’re talking about a jaw-dropping

91%

year-over-year increase in vendor revenue!

What’s driving this surge? Well, the x86 servers are leading the charge, with a robust

59.9%

increase in revenue, totaling

$54.8 billion

. But here’s where it gets really interesting: Non-x86 servers have skyrocketed by an astonishing

262.1%

, bringing in

$22.5 billion

. If that doesn’t get your attention, consider this—servers equipped with embedded GPUs saw a mind-blowing

192.6%

growth year-over-year. In fact, more than half of the server market revenue in 2024 came from these GPU-enhanced machines. Talk about a game changer!

NVIDIA’s Unstoppable GPU Dominance

When it comes to the server GPU landscape, nVidia is practically untouchable, controlling over

90%

of the total shipments of embedded GPUs in the last quarter of 2024. It’s no wonder that hyperscalers and cloud service providers are racing to adopt these powerful servers. Since 2020, the server market has more than doubled in size, with total revenue hitting

$235.7 billion

for the entire year of 2024.

As Lidice Fernandez, IDC’s group vice president, puts it, “AI adoption is set to keep growing at a remarkable pace.” Whether it’s hyperscalers, cloud service providers, private companies, or governments, everyone seems to be prioritizing investments in AI. But don’t overlook the growing concerns about energy consumption. As data centers seek to optimize their architectures and minimize energy use, we may see a shift in how servers are designed and utilized.

Regional Market Insights

Now, let’s take a quick trip around the globe to see how different regions are faring in the server market. The United States has emerged as the second fastest-growing region, just behind Canada, with an impressive

118.4%

increase compared to the last quarter of 2023. Despite Canada’s rapid growth, the U.S. still represents a hefty

56%

of total revenue in 2024Q4, while Canada accounts for a mere

1.1%

.

China is also making waves with a

93.3%

year-over-year growth, capturing nearly a quarter of the quarterly revenue worldwide. Meanwhile, Japan, the Asia-Pacific region, and EMEA are all enjoying double-digit growth rates of

66.9%

,

43.8%

, and

28.2%

, respectively. Latin America, while trailing behind, still managed a respectable

7%

growth in 2024Q4.

Who’s Winning the Server Game?

So, who are the big players in this booming market? Dell Technologies and Supermicro have ended 2024Q4 in a statistical tie for the number one spot, with

7.2%

and

6.5%

revenue shares, respectively. Both companies enjoyed double-digit growth, with Dell Technologies up

20.6%

year-over-year and Supermicro soaring by

55%

.

Following closely are Hewlett Packard Enterprise, IEIT Systems, and Lenovo, all statistically tied for second place with shares ranging from

5.5%

to

4.9%

. Meanwhile, the ODM Direct group of vendors is making a significant impact, accounting for an impressive

47.3%

of total revenue in 2024Q4, thanks to a staggering

155.5%

year-over-year increase, totaling

$36.57 billion

.

As the server market continues to evolve, it’s clear that innovation and adoption of technologies are driving this growth. The question now is: how will these trends shape the future of computing? Only time will tell!

Background Information

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About Dell:

Dell is a globally technology leader providing comprehensive solutions in the field of hardware, software, and services. for its customizable computers and enterprise solutions, Dell offers a diverse range of laptops, desktops, servers, and networking equipment. With a commitment to innovation and customer satisfaction, Dell caters to a wide range of consumer and business needs, making it a important player in the tech industry.

  

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About IDC:

IDC, or International Data Corporation, is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. Established in 1964, IDC offers valuable insights into industry trends, market forecasts, and technology adoption through its research and analysis. Their expertise aids businesses, governments, and IT professionals in making informed decisions and strategies.

  

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About Lenovo:

Lenovo, formerly known as "Legend Holdings," is a important global technology company that offers an extensive portfolio of computers, smartphones, servers, and electronic devices. Notably, Lenovo acquired IBM's personal computer division, including the ThinkPad line of laptops, in 2005. With a strong presence in laptops and PCs, Lenovo's products cater to a wide range of consumer and business needs. Committed to innovation and quality, Lenovo delivers reliable and high-performance solutions, making it a significant player in the tech industry.

  

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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About Supermicro:

Supermicro is a reputable American technology company founded in 1993 and headquartered in San Jose, California. Specializing in high-performance server and storage solutions, Supermicro has become a trusted name in the data center industry. The company offers a wide range of innovative and customizable server hardware, including motherboards, servers, storage systems, and networking equipment, catering to the needs of enterprise clients, cloud service providers, and businesses seeking reliable infrastructure solutions.

  

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Technology Explained

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

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