The global ARM-based servers market is projected to reach a revised size of USD 874.6 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.6% between 2024 and 2031. The market is witnessing a sharp rise in adoption across hyperscale data centers, cloud services, and edge computing applications.
Market Overview
ARM-based servers, known for their energy efficiency and scalability, are rapidly transforming data center infrastructure. Unlike traditional x86 servers, ARM processors offer lower power consumption and better cost-performance ratios, making them a strong choice for cloud providers and enterprises seeking sustainable operations. As organizations continue transitioning to cloud-native and microservice-based architectures, ARM's simplified design and licensing flexibility are making it an increasingly attractive server architecture.
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Over the last few years, key industry players like Amazon Web Services (AWS) with Graviton processors, and Ampere Computing, have accelerated market adoption. Hyperscalers and startups alike are showing strong confidence in ARM-based servers as viable alternatives for high-performance and high-density workloads.
Industry Forecast
From 2024 to 2031, the ARM-based servers market will expand steadily, reaching a valuation of USD 874.6 billion by the end of the forecast period. This growth is fueled by increasing cloud workloads, data center modernization, and demand for energy-efficient infrastructure.
Key forecast highlights:
- CAGR: 5.6% (2024–2031)
- Forecasted Revenue (2031): USD 874.6 Billion
- Base Year: 2023
Demand from Asia Pacific and North America will play a major role in driving revenues, while Europe and Latin America are expected to see steady adoption driven by edge computing and AI-related workloads.
Growth Drivers
Several underlying factors are fueling the momentum behind the ARM-based server ecosystem:
- Cloud Computing Expansion
Cloud service providers are the primary adopters of ARM-based servers due to cost-effective performance at scale. As SaaS and IaaS models grow, server optimization becomes a critical competitive edge—where ARM has a significant role.
- Energy Efficiency and Sustainability
ARM processors consume significantly less power compared to traditional architectures, aligning with global sustainability and green data center initiatives. As environmental regulations become stricter, organizations are turning to ARM to meet carbon-reduction goals.
- Vendor Ecosystem Maturity
With industry support from Microsoft (Windows on ARM), Red Hat, Ubuntu, and Docker, the software ecosystem for ARM servers has reached commercial readiness. This maturity encourages enterprises to migrate workloads without compromising compatibility or performance.
- AI and Edge Computing Integration
Emerging workloads like artificial intelligence (AI), machine learning (ML), and edge computing require decentralized processing. ARM’s power efficiency and customizability make it ideal for supporting these low-latency applications.
Revenue Analysis
The market value for ARM-based servers is expected to cross the USD 500 billion mark by 2028, with hyperscalers accounting for a significant portion of that share. As deployment scales up across small and medium enterprises, the revenue share from mid-tier companies will also grow.
Currently, hyperscale deployments contribute over 55% of total ARM server revenue. Enterprise adoption, particularly in sectors such as telecommunications, finance, and e-commerce, is accelerating.
Major Companies:
- Ampere Computing LLC.
- Amazon Web Services, Inc.
- Marvell
- Huawei Technologies Co., Ltd.
- NVIDIA Corporation
- Fujitsu
- TrendForce Corp
- Broadcom
- Arm Limited (or its affiliates).
- Samsung Electronics Co., Ltd
- Super Micro Computer, Inc.
- Hewlett Packard Enterprise Development LP
- Lenovo
- Dell Inc.
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Market Segmentation
The ARM-based servers market can be segmented based on component, deployment type, enterprise size, and end-use industry:
- By Component:
- Hardware (Processor, Memory, Storage)
- Software (Operating Systems, Virtualization Software)
- By Deployment Type:
- On-Premises
- Cloud-Based
- By Enterprise Size:
- Small and Medium Enterprises (SMEs)
- Large Enterprises
- By End-Use Industry:
- IT Telecom
- BFSI
- Healthcare
- Government
- Retail E-commerce
- Manufacturing
Hyperscale Deployment Leading Growth
Among all segments, hyperscale data centers stand out as the fastest-growing application area. Companies like Amazon, Microsoft, Google, and Oracle are investing heavily in ARM-powered servers to optimize their global infrastructure footprint. The ARM architecture enables these companies to customize silicon, control costs, and drive better server utilization—all critical for hyperscale operations.
As AI and machine learning models grow larger, hyperscalers are designing ARM-based chips optimized for such workloads, further reinforcing demand.
Regional Outlook
North America remains the dominant market, supported by investments from AWS, Google Cloud, and Microsoft Azure. The region benefits from advanced infrastructure and early adoption of ARM-powered cloud services.
Asia Pacific is expected to register the highest growth rate during the forecast period. The rise of cloud-native startups in countries like India, China, and South Korea, combined with strong government incentives for domestic semiconductor ecosystems, is accelerating regional demand.
Europe is steadily embracing ARM servers in the telecom and manufacturing sectors. As GDPR and carbon neutrality regulations become more stringent, European businesses are adopting ARM to reduce both energy usage and operational risks.
Latin America and the Middle East are in the early stages of adoption, with potential growth stemming from government digitization programs and telecom expansion.
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