Microserver Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Server Type:

Based on server type, the market is segmented into tower, rack, and blade.

Trends in the server type:

• The growth of edge computing is increasing the need for micro servers, which are well-suited for use in remote areas.
• Micro servers offer a budget-friendly option for small businesses and organizations with restricted IT resources.
• Micro servers are becoming denser, incorporating greater processing power and memory into a compact form. This is fuelled by advancements in processor and memory technologies, along with the need to minimize data center space.
• These factors, analysis, and advancements in server technology would further create the microserver market demand during the forecast period.

The rack segment accounted for the largest share of 42.78% in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• Rack servers are designed to accommodate a wide variety of needs and are installed individually in a rack, making their construction and design suitable for both high and low computing demands.
• The segmental growth is propelled by the increasing need for scalable data centers, high-density computing, and progressions in technologies including cloud computing, IoT, and edge computing, in turn presenting substantial prospects for market participants.
• Rack servers facilitate computing and data storage at a lower cost, enabling companies to set up servers for their private use.
• For instance, in June 2024, Supermicro launched X14 AI, multi-node, rack server, and edge server, based on Xeon 6 processors. The new Supermicro X14 servers are compatible with the new Intel Xeon 6 processors, offering a range of rackmount servers designed for enterprise use, cloud service providers, entry-level models and mid-range, including the WIO platforms Hyper and CloudDC.
• These advancements in rack server segment would further drive the microserver market size and industry during the forecast period.

By Component:

Based on component, the market is segmented into hardware, software, and services.

Trends in component:

• These servers are increasingly powerful, accommodating the latest processors, memory, and storage technologies to manage workloads.
• They provide a cost-effective option for small businesses and organizations with limited IT budgets, compared to traditional servers.
• Thus, based on the above factors and analysis, the growing need for effective processors would further drive the market during the forecast period.

The hardware segment accounted for the largest revenue in the year 2024.

• Micro servers employ different storage solutions, such as hard disk drives (HDDs), solid-state drives (SSDs), or a mix of both. The selection of storage is based on the specific application needs, focusing on capacity, performance, and reliability.
• These servers are more compact, incorporating increased processing power and memory in a smaller sizing. This enhances the efficiency of data center space utilization and lowers the total cost of ownership.
• These servers come with network interfaces to link with other devices and networks. This enables them to communicate with clients, retrieve data from other servers, and engage in distributed computing environments.
• Therefore, the need for high performance infrastructure is reinforcing the necessity for better hardware, in turn driving the microserver market growth.

The service segment is anticipated to register the fastest CAGR during the forecast period.

• The continuous digital transformation of businesses and industries is fuelling the need for server-based services.
• The rising volume of data produced by multiple sources necessitates efficient processing and storage solutions, which these servers can offer.
• Their flexibility, scalability, and cost-effectiveness makes them a valuable asset in the contemporary computing environment.
• As technology progresses, these servers are anticipated to provide innovative services and solutions.

By Processor:

Based on the processor, the market is segmented into Intel, AMD, and ARM.

Trends in the processor:

• ARM architecture has emerged as a significant player in server market. Its natural power efficiency and cost-effectiveness make it suitable for a variety of server workloads, especially in edge computing and scale-out deployments.
• SoCs combine multiple components onto the processor die, which further lowers power consumption, footprint, and cost, which is increasing in global market.
• Processors are increasingly embedding security features such as secure boot, memory encryption, and others to safeguard sensitive data.
• Thus, growing need for enhanced security features would further supplement the microserver market trends during the forecast period.

The Intel segment accounted for the largest revenue in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• Intel processors lead the market due to their established reputation for providing high-performance and reliable solutions. They are extensively used across diverse applications, ranging from enterprise servers to data centers, with their exceptional performance and robust support ecosystem.
• Ongoing innovation, exemplified by the release of new generations of Xeon processors, helps maintain their edge in processing power, energy efficiency, and integrated features. Intel's strong partnerships with major OEMs and its extensive product portfolio reinforce its dominant position in the market.
• For instance, in June 2024, Intel launched its next-generation server processors. Achieving the same computing power as its second-generation chips will require approximately 67% fewer server racks using the efficiency model, which is intended for media serving, website operations, and database calculations.
• These factors and developments would further drive the microserver market share during the forecast period.

By Number of Processors:

Based on the number of processors, the microserver market is segmented into 1-2, 2 or 4 and upto 8.

Trends in the number of processors:

• As edge computing becomes increasingly common, these servers are utilized in settings that need more sophisticated tasks such as AI inference, real-time data processing, and local storage. This frequently necessitates the use of multiple processors.
• Specific applications, including video transcoding, database processing, and AI training, gain considerable advantages from the parallel operation of multiple processors. These servers with a greater number of processors can be customized for these specialized tasks.
• Thus, growing edge computing needs would further supplement the global market during the forecast period.

The 2 to 4 segment accounted for the largest revenue in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• Dual-processor micro servers typically achieve an optimal balance between performance and power consumption. They offer a noticeable increase in processing power over single-processor systems while still achieving satisfactory energy efficiency.
• These dual-processor setups are ideal for various general-purpose tasks, such as web hosting, application serving, and database processing.
• Many edge applications, like industrial automation and autonomous vehicles, necessitate real-time data processing. These servers with multiple processors can fulfill these performance standards.
• For instance, Fujitsu’s PRIMERGY RX770 M7 server with 2 to 4 processors handles large data sets with up to 48 DDR5 DIMMs, supporting speeds of up to 4800 MT/s. Additionally, it is well-suited for business-critical workloads, extensive virtualization, and in-memory databases.
• As technology progresses, further innovations in micro servers processor configurations are expected to address the changing requirements of contemporary computing.

By Enterprise Size:

Based on enterprise size, the market is segmented into large and small & medium.

Trends in enterprise size:

• Enterprises are utilizing these servers for targeted tasks such as video transcoding, AI inference, or data analytics, often alongside larger server systems.
• The transition to edge computing is a significant factor driving the market. Enterprises require data to be processed nearer to its source, and these servers provide the essential computing power and connectivity needed for this.
• As companies embrace hybrid cloud strategies, these servers can be pivotal in linking on-premises infrastructure with cloud resources, facilitating smooth data flow and application delivery.
• Thus, based on the above factors and analysis, the growing digital transformation initiatives and increasing data volumes would further drive the market during the forecast period.

The large enterprise segment accounted for the largest revenue share in the year 2024.

• Large enterprises are increasingly prioritizing hosted application servers due to their ability to manage workloads from multiple locations, often utilizing the same database.
• The deployment of hosted application servers is easier than that of traditional application servers, as it eliminates the need for initial installations and minimizes system integrations, thereby lowering operational and maintenance expenses. A hosted application server is entirely managed by a service provider who routinely updates the system and provides ongoing technical and customer support.
• Market players are concentrating on introducing industry-specific solutions to appeal to potential business clients and boost their market revenue.
• For instance, in May 2022, Nokia Corporation launched the Nokia Cloud Native Communication Suite, specifically created for 4G, 5G, and Wi-Fi deployments. The solution includes a Media Resource Function (MRF), Telephony Application Server (TAS), and Cloud Native Network Function (CNF), among others.
• These factors and developments in large enterprise segment would further drive the global market during the forecast period.

The small & medium segment is anticipated to register the fastest CAGR during the forecast period.

• The rising need for servers among medium enterprises is driven by the increasing adoption of cloud services, the necessity for environmentally friendly data centers, and the integration of complex business tools like big data and data analytics.
• Additionally, private cloud server solutions can improve business processes for medium enterprises. A private cloud server provides advantages such as reduced operational costs, pay-per-use options, and customized offerings to meet specific business needs.
• Various market players offer scalable infrastructure and cost-effective services that are well-suited for medium enterprises, which is likely to promote the adoption of private cloud deployment.
• Moreover, private cloud server solutions allow medium enterprises to benefit from 24/7 support while eliminating the need for dedicated IT staff.
• These advantages are anticipated to further drive the need for servers in small and medium enterprises throughout the forecast period.

By Application:

Based on the application, the market is segmented into data center, cloud computing, media storage, data analytics, content delivery, others.

Trends in the application:

• The growing dependence on cloud services is fuelling the need for affordable and scalable infrastructure, making micro servers a desirable choice.
• As energy costs rise and environmental concerns increase, the energy efficiency of these servers significantly contributes to their adoption.
• Thus, increasing need for energy efficiency and development of cloud computing would further supplement the microserver market trends during the forecast period.

The cloud computing segment accounted for the largest revenue share in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• Cloud computing requires the capability to scale resources easily based on requirements. These servers with their modular design, facilitate fine-tuned scaling, optimizing both resource allocation and cost efficiency.
• The growing dependence on cloud-based applications, storage, and services significantly drives the adoption of such type of servers. Cloud providers need affordable and scalable infrastructure to accommodate increasing need and meet this need effectively.
• These servers are particularly well-suited for edge computing environments due to their compact dimension, energy efficiency, and sufficient processing power.
• Sectors such as healthcare, automotive, and smart cities are increasingly integrating edge computing to improve operational efficiency and support advanced applications like autonomous driving and real-time analytics.
• For instance, in February 2025, Google announced the investment of USD 75 billion to expand its AI and cloud capacity. Google will allocate most of its increasing capital expenditures to alleviating capacity constraints by upgrading its infrastructure, such as cloud servers and data centers.
• Thus, on the factors and analysis, it would further drive the market during the forecast period.

By End Use:

Based on end use, the microserver market is segmented into IT & telecom, BFSI, government & defense, healthcare, retail, and others.

Trends in the end use:

• Micro servers are ideal for particular tasks and workloads, including web serving, caching, and data analytics. This characteristic appeals to organizations with varied computing requirements, enabling them to optimize their infrastructure for multiple applications.
• These servers find use in several areas, such as data storage, network management, and application hosting. The scalability of these servers enables enterprises to grow their IT infrastructure to meet increasing business needs without significant expenses.
• As companies increasingly digitalize and utilize big data, their dependence on effective server solutions ensures the large IT & telecom organizations market dominance.

The IT & telecom segment accounted for the largest revenue share in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The growing amount of data generated by applications, devices, and users is creating a strong need for scalable and efficient computing infrastructure. Micro servers present a cost-effective solution for managing this data surge.
• The necessity of processing data closer to its origin is propelling the development of edge computing in both IT and telecom industries. The compact dimension and low power consumption of these servers make them well-suited for deployment in edge environments.
• Organizations in various sectors are embracing digital transformation, increasingly depending on IT and telecom infrastructure to support their operations. Micro servers offer a flexible and scalable solution to address the changing needs of digital businesses.
• For instance, in November 2023, Hewlett Packard Enterprise (HPE) announced partnership with NVIDIA to launch a robust GenAI solution for businesses. This partnership seeks to combine NVIDIA's cutting-edge GPU technology with HPE's infrastructure knowledge and microservers, providing high-performance computing solutions tailored for AI tasks.
• These advancements in IT & telecom segment would further drive the market during the forecast period.