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 increase, the second-largest growth rate since 2019, highlighting a surge in investment, particularly in GPU-powered systems.
Explosive Growth in GPU-Accelerated Servers
Revenue from x86 servers climbed to $54.8 billion, reflecting a 59.9% increase compared to Q4 2023. Meanwhile, non-x86 servers saw an even more dramatic surge, growing 262.1% to $22.5 billion, signaling a diversification in computing architectures.
One of the most significant drivers of this growth was the demand for servers with embedded GPUs, which saw a staggering 192.6% year-over-year increase. This surge reflects the rising adoption of artificial intelligence (AI), machine learning, and high-performance computing workloads.
For the full year 2024, the server market totaled $235.7 billion, more than doubling in size since 2020. Servers with embedded GPUs accounted for over half of total revenue, reinforcing their critical role in modern computing. NVIDIA remained the dominant force in this sector, capturing over 90% of all GPU server shipments in Q4, solidifying its leadership as AI workloads become mainstream.
“The adoption of AI continues to grow at a remarkable pace,” said **Lidice Fernandez, Group Vice President of IDC’s Worldwide Enterprise Infrastructure Trackers**. “Hyperscalers, cloud service providers, enterprises, and governments worldwide are prioritizing these investments. At the same time, concerns about energy consumption in data centers are driving organizations to rethink their architectures for greater efficiency and sustainability.”
Regional Performance: North America and China Lead Growth
North America led the global server market, with Canada posting the highest year-over-year growth rate at the end of 2024, followed closely by the United States, which saw a 118.4% increase. The U.S. accounted for 56% of global server revenue in Q4, while Canada contributed 1.1%.
China also experienced impressive growth, rising 93.3% year-over-year, securing 25% of total quarterly revenue. Other regions saw strong double-digit growth, including:
– Japan: +66.9%
– Asia/Pacific (excluding Japan and China – APeJC): +43.8%
– Europe, Middle East, and Africa (EMEA): +28.2%
– Latin America: +7%
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 revenue shares of 7.2% and 6.5%, respectively.
– Supermicro recorded the highest growth among top vendors, increasing 55% year-over-year.
– Dell Technologies followed with a 20.6% increase.
– Hewlett Packard Enterprise (HPE), IEIT Systems, and Lenovo each held revenue shares between 4.9% and 5.5%, placing them in a statistical tie for the second tier.
The ODM Direct manufacturers, which build servers directly for hyperscale clients, dominated the market with 47.3% of total revenue. This segment grew 155.5% year-over-year, generating $36.57 billion in Q4, reflecting the increasing demand for custom server solutions designed for large-scale operators.
The Future of AI-Optimized Infrastructure
IDC’s latest data underscores the rapid shift toward GPU-powered, AI-optimized server infrastructure. As enterprises, cloud providers, and hyperscalers scale up their AI capabilities, the market is responding with strong investments in performance, efficiency, and sustainability.
With AI adoption accelerating across industries, the demand for high-performance, energy-efficient computing solutions is expected to remain a key driver of server market growth in the coming years.
