Micro Server IC Market : An Objective Assessment Of The Trajectory Of The Market

A micro server IC (Integrated circuit) includes thousands or millions of transistors, resistors, or capacitors. Micro Server ICs are used as microprocessors to perform calculation. Transistors in micro server ICs are very small and are measured in nanometers. Some of the recent micro server ICs have transistors as small as 12 nm. IBM is in the process of developing 5 nm transistor-based micro server ICs. Small transistor size-based micro server ICs are energy-efficient and also produce less heat as compared to the comparatively large-sized transistor based micro server ICs. Transistors on micro server ICs are used to perform calculations; hence, micro server ICs with more number of transistors are capable of conducting more calculations per second, as compared to micro sever ICs with less number of transistors. Micro servers are small as compared to traditional full-fledged enterprise servers.

Increased demand for data centers across the developed and developing countries is a key driver for the global micro server IC market. Data centers require multiple micro server ICs and in software for micro server ICs. The size of various application software, multimedia files has increased significantly over the last few years. Number of internet users also has increased over the last few years. Increased internet traffic creates a need for more data centers. Increased demand for data centers is expected to boost the global micro server IC market in the near future.

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Advancements in micro server IC technology is another key driver for the global micro server IC market. The size of transistors used in micro server ICs has decreased over the last few years, making them smaller and more energy-efficient. Several micro server IC users replace their current micro server ICs to increase energy-efficiency, computation capacity, and to reduce heat generated by micro server ICs. Companies are producing more energy-efficient micro server ICs at a lower cost as compared to earlier micro server IC architectures of the same company due to advancements in micro server IC technology.

Increased demand for cloud computing and web hosting is another key factor propeling the micro server IC market. Demand for web hosting and cloud computing has increased, as the cost of online web hosting and cloud storage has declined over the last few years. Cloud computing creates a need for additional data processing, storage, and security for cloud service providers. Multiple cloud computing services providers are competing with each other to provide cloud computing services at a reasonable price. Several small- and medium-sized enterprises are likely to opt for micro server ICs instead of traditional full-fledged enterprise-class servers, as micro server ICs require less initial investment.

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Limited storage capacity is a key restraint for the micro server IC market. Most large enterprises have significant volume of data to be stored and processed. Micro server ICs are not suitable to handle large volumes of data due to their small data storage capacities. Many large enterprises are likely to opt for traditional enterprise class servers instead of micro server ICs, as using they are more suitable to handle large volumes of data.

The global micro server IC market can be segmented based on processor type, offering, consumer type, and geography. Based on processor type, the global micro server IC market can be divided into Intel processors and ARM processors. In terms of offering, the global micro server IC market can be segmented into hardware offerings and software offerings. Based on consumer type, the global micro server IC market can be segregated into large enterprise consumers and small and medium size enterprise consumers. In terms of geography, the micro server IC market can be segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA) and South America.

Prominent players operating in the micro server IC market include Intel Corporation, ARM Holdings plc, Cavium Inc., Applied Micro Circuits Corporation, and Marvell Technology Group, Ltd.

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