The micro server IC market is estimated to be USD 1.2 billion in 2021 and is projected to reach USD 2.2 billion by 2026; it is expected to grow at a CAGR of 12.6% from 2021 to 2026. Increasing need for new data centers across emerging regions and rising importance of edge computing and micro data centers are projected to create lucrative opportunities for the players operating in the micro server IC market during the forecast period.

North America is projected to account for the largest size of the global micro server IC market from 2021 to 2026. The presence of key industrial players and the early adoption of new technological advancements, such as machine-to-machine learning and IoT-enabled devices, smart manufacturing, and connected vehicles, are expected to create the need for more edge computing applications in North America. North America has the largest number of data centers globally. North American countries have geographical advantages of a cool climate and large availability of space, which support the establishment of mega data centers in the region.

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X86 processors lead the micro server IC market. Intel has been operating in the micro server market for a long time. It has a wide range of partners and customers that deploy Intel-based ICs because of the availability of better software support. Micro servers based on X86 architecture from the Intel Xeon processor E3 v3 to the Intel Atom processor C2000 series provide extreme low power, high-density systems for the deployment of computing solutions that are particularly well suited to the needs of lightweight scale-out workloads, such as low-end dedicated hosting and static web serving. Micro servers can provide efficiency benefits by reducing system infrastructure such as fans and power supplies. The new improved server-class ICs launched by Intel attracts market players as they provide better performance at low power and low space utilization.

The web hosting and enterprise applications segment is expected to hold the highest market share during the forecast period. Modern-day internet users demand instant, secure, and reliable access to multimedia content. Meanwhile, security threats are constantly evolving, becoming increasingly advanced. To deliver value in the face of all these challenges, application hosting providers require proven solutions that can help deliver exceptional user experiences. Increasing internet connectivity and digitization are bringing phenomenal growth in digital content and multifold growth in user-generated content. New high-definition media content such as videos and audios would create ample opportunities for web hosting and enterprise applications by creating the need for vendors to install more energy-efficient micro servers.

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The data center segment of the micro server IC market is expected to hold the highest CAGR during the forecast period. Mobile computing, IoT, big data analytics, and cloud computing are driving significant demand in the data center industry. Technology is rapidly changing the economic landscape and creating new opportunities for more organizations to consider how they can expand their IT solutions to capitalize on emerging markets. Organizations are thinking of new data center strategies by making use of smaller edge data centers in growth markets rather than concentrating solely on larger markets. These dynamics are directly driving data center growth trends.