Q1 server market up 134% y-o-y

The market forecast  for the year is $366 billion dollars for 2025 up 44.6% y-o-y.

The x86 server market value is projected to increase 39.9% in 2025 to $283.9 billion while non-x86 servers will increase 63.7% y-o-y to $82.0 billion.

Servers with an embedded GPU are projected to grow 46.7% year-over-year representing almost 50% of the total market value in the year.

The fast pace at which hyperscalers and cloud service providers continue adopting servers with embedded GPUs has fueled the server market growth which will be tripling in size in only three years.

Thanks mainly to the launch of large rackscale configurations Arm-based servers are rapidly gaining traction in the market by growing at 70.0% and representing 21.1% of the total shipments of the year.

“The evolution from simple chatbots to reasoning models to agentic AI will require several orders of magnitude more processing capacity, especially for inferencing,” says IDC’s Kuba Stolarski.