According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, the server market reached a record $77,3-billion dollars 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% in 2024Q4 to $54,8-billion while Non-x86 servers increased 262,1% year over year to $22,5-billion.
Revenue for servers with an embedded GPU in the fourth quarter of 2024 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 and embedded GPU in 2024Q4.
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 dollars 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 prioritising those investments,” says Lidice Fernandez , group vice-president: Worldwide Enterprise Infrastructure Trackers.
“Growing concerns around energy consumption for server infrastructure will become a factor in datacenters looking for alternatives to optimize their architectures and minimise energy use.”
The US 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 US revenues represent 56% of the total revenue in 2024Q4 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 2024Q4 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 2024Q4 growth was 7%.
Dell Technologies and Supermicro ended 2024Q4 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 Technologies increasing 20,6% year-over-year while Supermicro was up 55% year over year.
The next three companies – Hewlett Packard Enterprise, 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 in 2024Q4 an increase of 155,5% year over year to $36,57-billion dollars.
| Top 5 Companies, Worldwide Server Market, Fourth Quarter of 2024
(Vendor Revenue in US$ millions) |
|||||
| Company | 4Q24
Vendor Revenue |
4Q24 Market Share | 4Q23 Vendor Revenue | 4Q23 Market Share | 4Q24/4Q23 Revenue Growth |
| T1. Dell Technologies* | $5,540.4 | 7.2% | $4,592.6 | 11.3% | 20.6% |
| T1. Super Micro* | $5,005.1 | 6.5% | $3,230.1 | 8.0% | 55.0% |
| T2. Hewlett Packard Enterprise* | $4,239.1 | 5.5% | $2,749.2 | 6.8% | 54.2% |
| T2. IEIT Systems* | $3,878.1 | 5.0% | $2,333.6 | 5.8% | 66.2% |
| T2. Lenovo* | $3,783.7 | 4.9% | $2,226.1 | 5.5% | 70.0% |
| ODM Direct | $36,570.2 | 47.3% | $14,313.1 | 35.4% | 155.5% |
| Rest of Market | $18,304.6 | 23.7% | $11,035.9 | 27.3% | 65.9% |
| Total | $77,321.1 | 100.0% | $40,480.6 | 100.0% | 91.0% |
| Source: IDC Worldwide Quarterly Server Tracker, March 13, 2025. | |||||