The drive toward server-based computing infrastructures is a key trend behind the evolution of the ARM-based servers market. The increasing trend of ‘scaling out’ has generated market interest in ARM-based servers for low-power computing. Over the years, ARM-based servers have gained preference over x86-class processors, mainly due to great processing capability and the use of less energy that is typically required in cooling processors. However, they can’t just replace conventional x86-class servers. This is because for ARM servers to work effectively and efficiently, operating systems and applications have to be tailored to those, a impractical requirement by some industry standards.
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Demand for modern cloud data centers reinforcing business propositions
However, growing number of players who are unveiling chips that conform to or support ARM servers is adding momentum to the evolution of the ARM-based servers market. For instance, Ampere Altra in March 2020 launched AM-based server processors. The key motivation underlying such product developments is the need for high-end processors for modern datacentre chips. Growing demand for modern cloud and edge computing data centers has added a perceptible momentum to the utilization of ARM-based servers over the past few years.
The ARM-based servers market is garnering growth on the back of demand for data analytics. Rise in application of artificial intelligence has also boosted the market. Further, the demand for ARM servers will thrive on the back of growing enterprise prospects of edge computing, web hosting, and cloud-native applications.
Emerging demand for high-end processors among some of the topmost cloud providers in developed markets has spurred competition in the ARM-based servers market. The market is thus intensely competitive, with players engaged in constant product innovations. Such initiatives are backed by private equity investments.
Geographically, Asia Pacific is a market with large untapped avenues. The substantial demand for high-speed and security data centers in numerous economies of Asia has bolstered the growth of the overall ARM-based servers market.
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