Expanding number of cloud servers is the key factor drives the growth of global server microprocessor market. Server microprocessor is the central processing unit (CPU) of a server, which processing data, perform tasks, and execute instructions. The speed of the processer depends on the number of cores and clock speed. Expanding work load and increasing operating cost are the major concern of datacentre operators, processor thermal design power (TDP) and processor performance per watt influences the purchase decisions of data centre operators. Based on the types of workloads, the processers are available with various number threads, cores and cash memory size. Intel and AMD are the two main key players, and development of workload-specific server microprocessor designs is the growing trend in the global server microprocessor market.
Server Microprocessor Market: Market Dynamics
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Expanding cloud infrastructure coupled with increasing adoption of cloud based solutions by organizations across various industries is the prominent factor drives the growth of global server microprocessor market. Increasing interest on hyper cloud solutions due to dynamic workload of organizations, emerging 5G networks and expanding internet of things (IoT) applications, accelerates the growth of global server microprocessor market. Also rising focus on exploring wide range of chip technologies by top internet giants such as Facebook, Google, Amazon, with the objective to enhance their artificial intelligence capabilities, fuels the growth of global server microprocessor market. Increasing focus on reducing data centre volume coupled with increasing investment in commercializing quantum computing, and complexity in upgrading server processors, are the factors identified as restraints likely to deter the progression of global server microprocessor market.
Server Microprocessor Market: Market Segmentation
The global server microprocessor market is segmented on the basis of number of cores, operating frequency, and by region.
On the basis of number of cores, the global server microprocessor market is segmented into
- Six-core & less
- Above six-core
On the basis of operating frequency, the global server microprocessor market is segmented into
- 1.5GHz – 1.99GHz
- 2.0GHz – 2.49GHz
- 2.5GHz – 2.99GHz
- 3.0GHz and higher
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Regionally, the global server microprocessor market is segmented into
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia-Pacific excluding Japan
- Japan
- Middle East & Africa
In terms of revenue, the above six-core segment is expected to dominate the global server microprocessor market, due to expanding cloud infrastructure.
Server Microprocessor Market: Regional Outlook
Among all regions, server microprocessor market in North America is expected to dominate the market, due to increasing enterprise cloud data volumes. In terms of revenue, Asia Pacific is identified as the fastest growing server microprocessor market, due to adoption to software as a service (SaaS) based business models.
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Server Microprocessor Market: Competition Landscape
In July 2017, Intel Corporation – a U.S. based multinational technological company, launched Xeon Scalable – an energy efficient server processor, with the objective to expand its portfolio.
In June 2017, Advanced Micro Devices, Inc.- a U.S. based multinational semiconductor company, launched EPYC 7000 series – a high performance processor for datacentre, with the objective to cater the increasing demand for lower energy high computing efficiency server processor.
Prominent players in the global server microprocessor market includes Intel Corporation, Advanced Micro Devices (AMD), Inc., Cavium, Qualcomm Technologies, Inc., Applied Micro Circuits Corporation., and Marvell.