Worldwide Server Market Revenue Increased 91% During the Fourth Quarter of 2024, according to IDC - Nvidia continues dominating the GPU server space

Published: 2025-03-19 06:26:14 ET DELL

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 prioritizing those investments,' said 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 minimize energy use.'

Server Regional Market Results

The United States 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 USA 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%.

Overall Server Market Standings, by Company

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.

Notes:

IDC declares a statistical tie in the worldwide server market when there is a difference of one percent or less in the share of revenues among two or more vendors.

IDC's Worldwide Quarterly Server Tracker greatly enhances clients' ability to respond quickly and effectively to today's dynamic server market. This product provides insight into customer trends by delivering geography-specific market size, market share, and market forecast details across all server segments. This IDC tracker product delivers a quarterly web database that details the performance of the market's individual players, and it answers important product-planning and product-positioning questions. This Tracker is part of the Worldwide Quarterly Enterprise Infrastructure Tracker, which provides a holistic total addressable market view of the four key enabling infrastructure technologies for the datacenter (servers, external enterprise storage systems, and purpose-built appliances: HCI and PBBA).

Taxonomy Notes

IDC defines a server system as a multiuser computing device that accesses and delivers services via a network. The server and the applications that run on it are typically shared by multiple users. Unlike a client device, a server does not usually have a user interface that is intended for human-machine interaction. A typical server system entails one or more processors, a motherboard, memory, internal disk or flash storage, a bundled operating system (OS), power supply units, and network interfaces.

Accelerator Type Definitions

Non-accelerated: These servers do not have an embedded accelerator. Servers where the accelerator is added by end users that have purchased the acceleration technology directly from an acceleration vendor and have installed it themselves are considered non-accelerated in IDC's Server Tracker. Servers with an integrated graphics processor (IGP) (i.e., fused to the motherboard) are also considered non-accelerated in IDC's Server Tracker.

GPU (Graphics processing units): A GPU is a processor specialized for rendering images, animations, or video to a computer display. In the context of server-based accelerated computing, a GPU is typically a programmable discrete (removable) graphics card but may also be an integrated graphics processor (i.e., fused to the motherboard). In addition to its graphical applications, a GPU may also be used to perform operations traditionally handled by a central processing unit, a concept known as a general-purpose graphics processing unit (GPGPU).

Other accelerated: This category combines servers with a discrete embedded accelerator FPGA or ASIC. In detail:

o A field-programmable gate array is an integrated circuit designed to be configured by a customer after manufacture. FPGAs are made up of an array of programmable logic blocks, interconnects, and input/output (I/O) blocks.

o An application-specific integrated circuit is a purpose-built integrated circuit that cannot be reconfigured after manufacture.

For more information about IDC's Quarterly Server Tracker, please contact Lidice Fernandez at [email protected] or Juan Pablo Seminara at [email protected]

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.