Enterprise

AI Server Market Growth 2024: GPU-Powered Systems Lead 91% YoY Surge

The International Data Corporation (IDC) has released its latest Worldwide Quarterly Server Tracker, highlighting strong growth in the global server market. According to the report, the market saw significant gains in the fourth quarter of 2024, with total revenue reaching $77.3 billion — a 91% increase from the same period in 2023, making it the second-highest growth rate since 2019.

Market Breakdown by Server Type

Revenue from x86 servers climbed 59.9% year-over-year, totaling $54.8 billion for the quarter. Non-x86 servers grew even more, increasing 262.1% to $22.5 billion.

Servers with embedded GPUs were a major driver of this growth, with revenue surging 192.6% year-over-year in Q4 2024. Over half of the total server market revenue for the entire year came from servers equipped with embedded GPUs. Nvidia maintained its dominant position in this segment, accounting for over 90% of shipments of servers with embedded GPUs. This increase reflects the growing adoption of GPU-equipped servers by hyperscalers and cloud service providers.

For 2024, total server market revenue reached $235.7 billion, doubling in size since 2020.

Company Performance in Q4 2024

Dell Technologies and Supermicro ended the quarter in a statistical tie for the top position in the server market, with Dell holding a 7.2% share and Supermicro close behind at 6.5%. Dell’s revenue rose 20.6% year-over-year to $5.54 billion, while Supermicro’s revenue climbed 55% to $5.01 billion.

Three companies—Hewlett Packard Enterprise, IEIT Systems, and Lenovo—were statistically tied for the second position, each holding between 5.5% and 4.9% of the market:

  • Hewlett Packard Enterprise generated $4.24 billion in revenue, up 54.2% year-over-year.
  • IEIT Systems posted revenue of $3.88 billion, marking a 66.2% increase from the previous year.
  • Lenovo’s revenue increased 70% to $3.78 billion.

The ODM Direct group of vendors, which supplies directly to hyperscalers and large-scale cloud providers, accounted for 47.3% of total market revenue, bringing in $36.57 billion—a 155.5% increase year over year.

Here’s a detailed look at the top five companies by revenue and growth:

Rank Company 4Q24 Revenue (Million $) 4Q24 Market Share (%) 4Q23 Revenue (Million $) 4Q23 Market Share (%) 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%

Regional Market Insights

Regionally, the United States posted the second-highest growth rate, rising 118.4% year-over-year and contributing 56% of total global server revenue in Q4 2024. Canada recorded the highest growth rate at 118.4% but accounted for just 1.1% of total revenue.

China also demonstrated strong growth, with revenue increasing 93.3% year-over-year and nearly 25% of global quarterly server revenue. Other key regions also showed positive growth:

  • Japan: 66.9% increase
  • Asia/Pacific excluding Japan and China (APeJC): 43.8% increase
  • Europe, Middle East, and Africa (EMEA): 28.2% increase
  • Latin America: 7% increase

Market Outlook

The global server market is poised for continued expansion as AI adoption accelerates across industries. Hyperscalers will remain the dominant force, driving demand for high-performance GPU-equipped servers to support large-scale model training and inference workloads.

Enterprises, meanwhile, are expected to ramp up investment in AI-ready infrastructure, pushing adoption beyond cloud providers. At the same time, efficiency concerns will shape the next wave of innovation, with liquid cooling, power-optimized processors, and advanced storage architectures playing a critical role in balancing performance with sustainability. While economic pressures and supply chain dynamics could introduce some variability, the broader trajectory remains clear: AI and hyperscale demand will fuel server market growth well into 2025.

Worldwide Quarterly Server Tracker

 

Lyle Smith

Lyle is a writer for StorageReview, covering a broad set of end user and enterprise IT topics.

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