Server Market Revenue Grew 91 Percent During 4Q24

According to IDC, the server market reached a record $77.3 billion in revenue during the last quarter of the year. This quarter showed the second-highest growth rate since 2019 with a year-over-year increase of 91% in vendor revenue.

Revenue generated from x86 servers increased 59.9% to $54.8 billion while Non-x86 servers increased 262.1% year over year to $22.5 billion. Q4 revenue for servers with an embedded GPU grew 192.6% year-over-year and for the full year 2024, more than half of the server market revenue came from servers with an embedded GPU.

Nvidia continues dominating the server GPU space with over 90% of the total shipments with an embedded GPU in 4Q24. The fast pace at which hyperscalers and cloud service providers have been adopting servers with embedded GPUs has fueled the server market growth which has more than doubled in size since 2020 with revenue of $235.7 billion for the full year 2024.

“IDC expects AI adoption to continue growing at a remarkable pace as hyperscalers, CSPs, private companies, and governments around the world are increasingly prioritizing those investments,” said Lidice Fernandez, group vice president of Worldwide Enterprise Infrastructure Trackers at IDC. “Growing concerns around energy consumption for server infrastructure will become a factor in datacenters looking for alternatives to optimize their architectures and minimize energy use.”

The United States is the second fastest growing region in the server market just behind Canada with an increase of 118.4% compared to the last quarter of 2023, but USA revenues represent 56% of the total revenue in 4Q24 while Canada accounts for only 1.1% of total revenue globally. China is also growing at a faster rate than other regions with 93.3% year-over-year growth in 4Q24 and accounting for almost a quarter of the quarterly revenue worldwide. Japan, APeJC, and EMEA had double-digit growth this quarter with 66.9%, 43.8%, and 28.2% respectively. Latin America's 4Q24 growth was 7%.

Dell and Supermicro ended 4Q24 in a statistical tie for the number one position with 7.2% and 6.5% revenue share, respectively. Both companies had double-digit growth in revenue with Dell increasing 20.6% year-over-year while Supermicro was up 55% year-over-year. The next three companies, HPE, IEIT Systems, and Lenovo, are statistically tied for the second position in the market, with shares between 5.5% and 4.9%. The ODM Direct group of vendors accounted for 47.3% of total revenue, an increase of 155.5% year over year to $36.57 billion.