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Microserver IC Market: Factory Price and Marginal Revenue Analysis by 2026

Micro servers are small equipment that are used in low power microprocessor chips and places where space is a major constraint. Most of the server motherboard functions are integrated on a single microchip, except DRAM, boot FLASH, and power circuits. A micro server Integrated Circuit (IC) consists of thousands or millions of transistors, resistors, or capacitors. To perform calculations, microserver ICs are used as a microprocessors. Transistors in microserver ICs are very small compared to other ICs and are measured in nanometers. Micro server is a small server appliance that works like a server.

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Increasing Popularity of Microserver ICs in Data Center Applications is Driving Growth of the Microserver ICs Market

Microserver ICs are gaining popularity in data center applications as these are less expensive, consume less power, and save physical space as compared to enterprise-class rack servers. Growing demand for data centers in various business domains such as IT & telecom, banking, healthcare, agricultural, and government among others is expected to aid in growth of the market. Number of internet users have increased over the previous year (2017), due to which internet traffic has increased and this creates a need for more data centers. For instance, according to Coherent Market Insights, there are 3.97 billion internet users in the world as of June 2018. This is compared to 3.9 billion internet user in 2017. Therefore, this has led to a high demand for microserver Ics.

Microserver ICs Market: Key Trends

Increasing demand for cloud-based services and solutions among enterprises globally, is one of the key trends observed in the market. For instance, according to CISCO, the cloud-data center workload in 2016 was 199.4 million and it has increased up to 262.4 in 2017, globally. These microserver ICs provides several advantages over conventional servers such as they are less expensive and use less processing power over conventional. Therefore, microserver ICs are used in cloud for storing data. Hence, these factors are expected to fuel demand for microserver ICs over the forecasted period.

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Global Microserver IC: Regional Insights

North America was the dominant region in the global microserver IC market in 2017, due to high presence of key players in the region. Microservers are increasingly being used across this region by various businesses as well as data centers and cloud companies such as Dell, HP, and IBM. These companies have directed their efforts in order to developed advanced microserver technology. This is therefore, expected to aid in the growth of the market in the region. The increasing usage of Big Data and Hadoop software in North American companies is also fueling the growth of the microserver IC market in the region as running these software requires datacenters in order to store large quantities of data.

Asia Pacific region is expected to showcase a significant growth in the microserver IC market during the forecast period (2018-2026). High presence of semiconductor manufacturing companies such as Toshiba, Mitsubishi and Sony in countries such as China, Japan, and South Korea is one of the major factors boosting growth of the microserver IC market in the region. According to World Semiconductor Trade Statistics, semiconductor market share was US$ 412.2 billion growing at a CAGR of 21.6% in 2017 and is expected to grow at a CAGR of 15. 6% and reach US$ 477 billion in 2018.

Global Microserver IC: Competitive Landscape

Some of the key players operating in global microserver IC market include Intel Corporation, ARM Holdings PLC, Hewlett Packard Enterprise, Quanta Computer Inc., Applied Micro Circuits Corporation, Marvell Technology Group Ltd., Cavium Inc., Dell Technologies, Penguin Computing, and Ambedded Technology among others.

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