Worldwide Server Market Spending showed a record 64.1% growth in Q2 2024 while expected to continue with a CAGR of 16.0% in a Five-Year Period, according to IDC.
The server market grew by 64.1% in spending in the second quarter of 2024, driven by high ASPs due to an increase in GPU server shipments to hyperscalers and other large, mostly cloud, IT buyers. Non-accelerated server growth recovered, and overall unit growth was strong at 16.7% year over year. An aging installed base is primed for refresh, and the launch of new generation processors late in 2023 is contributing to this cycle within 2024, as the tech transition to new CPU platforms gradually moved forward but has picked up the pace in 2024Q2.
The market is expected to grow over the next five years at a 16.0% CAGR. The biggest impact and change to the forecast in this release is the addition of more expected demand for GPU servers, as well as a faster recovery in the short term of non-accelerated servers. While in 2023 large cloud service providers consumed most of these systems, it has become clear that these plans are not slowing down in 2024, and accelerated server adoption will continue growing at a high rate this year and beyond. This means that the server mix between very expensive accelerated servers and more moderately priced accelerated and non-accelerated servers will continue to shift towards the higher price points. As a result, IDC has increased the 2028 spending target to $292 billion. This additional spending assumes that there will be a net positive impact on GDP due to AI adoption and related services over the next several years, enabling and justifying the higher levels of investments in AI compute infrastructure spending.
Worldwide Server Market Forecast 2023 - 2025 Value (US$M)
Data table for "Worldwide Server Market Forecast 2023 - 2025 Value (US$M)" chart
