Global Server Market Hits Record $77.3 Billion in Q4 2024, Fueled by AI and GPU Demand
The global server market reached an all-time high in the fourth quarter of 2024, generating $77.3 billion in revenue, according to IDC’s Worldwide Quarterly Server Tracker. This marks a 91% year-over-year growth, the second-highest increase since 2019, signaling a surge in server infrastructure investments, particularly in GPU-powered systems.
Soaring Demand for GPU-Powered Servers
Revenue from x86 servers climbed to $54.8 billion, up 59.9% from Q4 2023. Meanwhile, non-x86 servers saw an even more dramatic rise, surging 262.1% to $22.5 billion, reflecting a growing shift towards diversified computing architectures.
One of the most significant trends was the explosion in demand for servers with embedded GPUs, which saw a 192.6% year-over-year increase. This surge was driven by the rising adoption of artificial intelligence (AI), machine learning, and high-performance computing workloads.
For the full year 2024, the server market reached $235.7 billion, more than doubling in size since 2020. Embedded GPUs played a crucial role, contributing to more than half of the total revenue. NVIDIA maintained its dominance, accounting for over 90% of GPU-powered server shipments in Q4, reinforcing its leadership as AI workloads become mainstream across industries.
**“The adoption of AI is accelerating at an unprecedented pace,”** said **Lidice Fernandez, Group Vice President of IDC’s Worldwide Enterprise Infrastructure Trackers**. **“Hyperscalers, cloud providers, enterprises, and governments are prioritizing these investments. At the same time, concerns over data center energy consumption are pushing organizations to optimize architectures for efficiency and sustainability.”**
Regional Market Performance
North America led the global server market, with Canada posting the highest year-over-year growth rate by the end of 2024. The United States followed closely, experiencing a 118.4% increase, and accounted for 56% of global server revenue in Q4, while Canada contributed 1.1%.
China also saw strong growth, rising 93.3% year-over-year and capturing 25% of global revenue for the quarter. Other key regions also experienced significant expansion:
– Japan: 66.9% growth
– Asia/Pacific (excluding Japan and China – APeJC): 43.8% growth
– EMEA (Europe, Middle East, and Africa): 28.2% growth
– Latin America: 7% growth
Top Server Vendors: Dell, Supermicro, HPE, Lenovo
Among server vendors, Dell Technologies and Supermicro ended Q4 in a statistical tie for the top spot, with market shares of 7.2% and 6.5%, respectively. Supermicro saw the highest growth among leading vendors, posting a 55% year-over-year increase, while Dell grew 20.6%.
Other notable vendors included:
– Hewlett Packard Enterprise (HPE)
– IEIT Systems
– Lenovo
Each of these companies held revenue shares between 4.9% and 5.5%, putting them in a statistical tie for the second tier.
ODM Direct Manufacturers Lead the Market
The ODM Direct group, which supplies custom-built servers for hyperscale customers, accounted for a dominant 47.3% of total server revenue. This segment saw a 155.5% year-over-year increase, generating $36.57 billion in Q4. The numbers highlight the growing reliance on custom server solutions tailored for large-scale cloud and enterprise operations.
Conclusion: AI and GPU-Powered Infrastructure Driving Growth
IDC’s latest data underscores the rapid shift toward GPU-accelerated, AI-optimized infrastructure. As organizations prioritize scalability, performance, and sustainability, the market is responding with record-breaking investments in next-generation server technologies.
With AI adoption accelerating globally, the demand for high-performance computing solutions is expected to continue its upward trajectory, reshaping the future of server infrastructure.
