Global server market revenue nearly doubled in 2024 with Nvidia's continued dominance

Global server market revenue nearly doubled in 2024 with Nvidia's continued dominance

  • 20.03.2025 21:41
  • techspot.com
  • Keywords: AI

Global server market revenue nearly doubled in 2024, driven by AI adoption and Nvidia's dominance in GPU shipments. Nvidia accounted for 90% of embedded GPU sales, contributing more than half of the revenue growth, fueled by demand for its new server GPU lineups.

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Estimated market influence

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Nvidia's GPUs are critical for AI growth in the server market.

OpenAI

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Analyst rating: N/A

OpenAI is a key player in driving AI adoption, which benefits server manufacturers like Nvidia.

Context

Business Insights and Market Implications

Key Facts and Data Points

  • Global server market revenue: Nearly doubled in 2024, reaching $235.7 billion, up from $116.8 billion in 2020.
  • Q4 2024 revenue: $77.3 billion, a 91% year-over-year increase.
  • Nvidia's dominance:
    • Accounted for 90% of Q4 2024 embedded GPU shipments.
    • Announced new server GPU lineups: Blackwell Ultra, Very Rubin, and Feynman.
  • Non-x86 server revenue growth: Tripled in 2024, reaching $22.5 billion (up 262.1% year-over-year).
  • Embedded GPU servers:
    • Contributed over 50% of total market revenue growth.
    • Revenue increased by 192.6% in 2024.

Market Trends and Business Impact

  • AI Boom: Generative AI adoption, driven by companies like OpenAI and Microsoft, is the primary factor behind market growth.
  • Shift to non-x86 architectures: Likely dominated by Arm chips, with revenue tripling in Q4 2024.
  • Regional Growth:
    • Canada: Fastest annual growth at 118.4%.
    • US: Represented 56% of total revenue.
    • China: Grew by 93.3%, accounting for a quarter of revenue.
    • Other regions: Japan (66.9%), Asia-Pacific excluding Japan (43.8%), and EMEA (28.2%).

Competitive Dynamics

  • Vendor Performance:
    • Lenovo: Fastest growth at 70%, despite being in fifth place.
    • IEIT Systems: Revenue up by 66.2%.
    • HP and Super Micro: Both grew by ~55%.
    • Dell: Market share dropped from 11.3% to 7.2%, but retained top position with 20.6% revenue growth.

Strategic Considerations

  • Nvidia's leadership: Its dominance in embedded GPUs positions it as a key player, but potential competition (e.g., Apple entering the market) could impact long-term dynamics.
  • AI investment trends: Governments and hyperscalers are expected to continue investing heavily in AI infrastructure.
  • Regulatory impacts: Potential future regulations on data usage and antitrust issues may affect market dynamics.

Long-Term Effects

  • The AI boom is likely to sustain growth in the server market, but its longevity depends on continued innovation and investment.
  • The shift to non-x86 architectures (e.g., Arm chips) could disrupt traditional x86 dominance over time.