The global server market reached an all-time high in the third quarter of 2025, according to data from the International Data Corporation’s (IDC) Worldwide Quarterly Server Tracker. Total worldwide revenue climbed to $112.4 billion for the quarter, marking a 61% increase compared with the same period last year. The latest results extend a trend of strong double-digit growth that has defined the market throughout 2025, primarily fueled by rising investment in artificial intelligence infrastructure and high-density computing environments.
IDC says growth was uneven across server architectures, likely due to changes in how organizations build and scale data center capacity. Revenue from x86-based servers rose 32.8% year over year to $76.3 billion, continuing to account for the largest share of the market. At the same time, non-x86 systems posted a much sharper increase, with revenue surging 192.7% to $36.2 billion. This growth was driven by the increased deployment of specialized servers for AI training, inference, and other compute-intensive workloads.
Embedded GPUs Play a Significant Role
Servers equipped with embedded GPUs played a central role in the market’s expansion. Revenue from these systems grew 49.4% year over year in the third quarter and accounted for more than half of total server market revenue. Hyperscale operators and cloud service providers have been leading adopters, deploying GPU-accelerated servers to support generative AI, large language models, and advanced analytics. As a result, the server market has nearly doubled in size compared with 2024, reaching $314.2 billion in cumulative revenue for the first three quarters of 2025.
Overall Server Market Standings, by Company
(Vendor Revenue in US$ millions)
| Company | 3Q25 Vendor Revenue | 3Q25 Market Share | 3Q24 Vendor Revenue | 3Q24 Market Share | 3Q25/3Q24 Growth |
|---|---|---|---|---|---|
| Dell Technologies | $9,301.62 | 8.3% | $6,778.56 | 9.7% | 37.2% |
| Super Micro | $4,498.11 | 4.0% | $5,179.34 | 7.4% | -13.2% |
| IEIT Systems (Inspur) | $4,140.48 | 3.7% | $4,627.54 | 6.6% | -10.5% |
| Lenovo | $4,004.44 | 3.6% | $3,175.43 | 4.6% | 26.1% |
| Hewlett-Packard Enterprise | $3,398.15 | 3.0% | $3,477.92 | 5.0% | -2.3% |
| ODM Direct | $66,790.83 | 59.4% | $31,473.73 | 45.1% | 112.2% |
| Rest of Market | $20,310.95 | 18.1% | $15,073.77 | 21.6% | 34.7% |
| Total | $112,444.59 | 100.0% | $69,786.29 | 100.0% | 61.1% |
IDC added that analysts continue to see sustained AI adoption as a significant factor shaping the server market’s direction. Large vendors continue to report record order volumes and substantial backlogs, suggesting that demand remains well ahead of supply in some segments. Hyperscalers and cloud providers are rapidly scaling, requiring significantly higher compute density, while research and education institutions are beginning to launch major AI-focused projects of their own. Together, these trends are expected to support continued growth beyond 2025.
Regional Growth Rates
Regional results show just how widespread the expansion has become, though growth rates varied considerably by geography. The United States emerged as the fastest-growing market, posting a 79.1% increase compared with the third quarter of 2024. This performance was driven primarily by a 105.5% jump in the accelerated server segment. Canada followed a similar pattern, with revenue rising 69.8% on strong demand for GPU-enabled systems.
IDC also reports that China recorded solid gains, with server revenue increasing 37.6% year over year and accounting for nearly one-fifth of global quarterly revenue. Other regions also delivered double-digit growth. Asia-Pacific excluding Japan and China grew 37.4%, Europe, the Middle East, and Africa rose 31%, and Japan expanded 28.1%. Latin America was the exception, posting a more modest increase of 4.1% for the quarter.
Competition
Competitive dynamics among server vendors continued to evolve as the market expanded. Dell Technologies led the OEM segment in the 3rd quarter with an 8.3% revenue share, supported by strong growth in accelerated servers. Supermicro ranked second with a 4.0% market share, despite a 13.2% year-over-year decline in revenue. IEIT Systems and Lenovo were statistically tied for 3rd place, with 3.7% and 3.6% market share, respectively. Hewlett-Packard Enterprise completed the top five with a 3% share.
In addition to the traditional OEM rankings, ODM Direct vendors continued to dominate overall shipments and revenue, accounting for 59.4% of the global market share in the third quarter. Revenue for this segment more than doubled compared with a year earlier, with deployments mainly concentrated in hyperscale and cloud environments.
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