ARM-Based Server Market Size, Share, Growth, and Industry Analysis, By Type (Single-Core ARM Servers, Multi-Core ARM Servers, Server-on-Chip Solutions, ARM Cloud Servers), By Application (Data Centers, Cloud Computing, Internet of Things (IoT), Edge Computing, High-Performance Computing), Regional Insights and Forecast to 2033

ARM‑Based Server Market Overview

The ARM‑Based Server Market size was valued at USD 2.73 million in 2025 and is expected to reach USD 6.62 million by 2033, growing at a CAGR of 10.34% from 2025 to 2033.

ARM‑based server units reached an installed base of approximately 1.2 million cores across data centers and cloud platforms by the end of 2023. Data centers now deploy more than 24,000 ARM‑based server nodes, accounting for nearly 8% of global server population. Multi‑core ARM solutions (16–128 cores per chip) dominate, making up 72% of all ARM server shipments in Q4 2023. These servers typically consume between 65 W and 180 W per socket, compared to 200–350 W for x86 alternatives. Remarkably, more than 65% of ARM servers are integrated into edge‑computing use cases, including IoT gateways—where over 270,000 units were deployed in smart factories and logistics centers. In cloud environments, ARM servers currently support 14% of compute instances in private AI/ML environments. Notably, Asia‑Pacific hosts 45% of ARM‑based edge deployments, while North America leads in data center integration, with 30% of all ARM‑based server shipments. OEMs shipped over 18,500 single‑socket ARM servers in 2023 due to their 2U rack form factor efficiency. With over 70 independent ARM server SKUs available from server OEMs, the ARM‑based server market is gaining traction in AI inferencing, web hosting, and microservices architectures.

Key Findings

Driver: Growing demand for energy-efficient compute—ARM servers consume 65–180 W per socket compared to 200–350 W for x86.

Region: Asia-Pacific leads with 45% of ARM-based edge deployments and 27% of cloud instance usage.

Segment: Multi-core ARM servers (16–128 cores) account for over 72% of ARM server shipments in Q4 2023.

ARM‑Based Server Market Trends

Energy efficiency remains a core trend in ARM‑based server adoption. In 2023, data centers shifted roughly 40,000 rack units to ARM servers, resulting in 22–28% lower energy usage at scale. Edge and IoT configurations amplified this shift: 270,000 ARM-based edge nodes operate in smart manufacturing, retail analytics, and logistics, each consuming under 150 W and producing under 50 GB of daily edge‑processed data. Cloud platforms are increasingly offering ARM-based instances: as of Q4 2023, ARM-powered virtual machines constituted 14% of total AI/ML workloads in public and private clouds. Batch inference workloads running on high-core-count ARM chips (64–128 cores) showed 22% faster processing time than comparable x86-based servers in real-world tests. Asia-Pacific’s momentum is notable: by the end of 2023, the region installed 45% of global ARM-based edge servers—approximately 120,000 units—for smart city and Industry 4.0 applications. Meanwhile, North American hyperscalers reported over 1.2 million vCPU hours running on ARM instances daily, reinforcing adoption in web hosting, microservices, and containerized environments. Consolidation in ARM server silicon design is emerging, with Tier-1 ARM vendors shipping around 300 new multi-core server SOC SKUs since 2022. Notably, FPGA-accelerated ARM platforms capable of offloading inferencing tasks shipping at an annual rate of 40,000 units, especially in AI edge and cloud inference use cases. Hybrid deployments—combining ARM nodes with x86 infrastructure—are gaining traction in high-performance computing (HPC). Research clusters in four national supercomputing centers in North America use mixed-node architectures integrating over 5,500 ARM nodes to optimize power distribution and compute efficiency. Server-on-chip (SoC) designs integrating CPU, memory, and networking on a single chip are also growing: these ARM SoC servers represented 18% of edge server shipments in 2023, popular in telco and micro data center environments. Lastly, security‑focused ARM server designs with TrustZone and secure boot saw uptake in 22% of shipments to regulated industries like finance, healthcare, and government, underlining the importance of embedded hardware security for sensitive workloads.

ARM-Based Server Market Dynamics

DRIVER

Rising demand for energy-efficient compute infrastructure

The ARM-based server market is primarily driven by the industry's push toward sustainable and power-efficient data infrastructure. ARM servers consume between 65 W and 180 W per socket, significantly lower than the 200–350 W power envelope seen in traditional x86 processors. This results in a 22% to 28% energy savings per unit in hyperscale deployments. With global data center electricity usage exceeding 200 TWh annually, the transition to ARM systems supports energy reduction goals. In 2023 alone, over 40,000 ARM server units were deployed in energy-constrained locations, including edge nodes and colocation facilities in Europe and Asia-Pacific. Their lower thermal output reduces cooling requirements, saving an additional 8–12% in operational costs per rack. The market also saw a surge in ARM adoption for Kubernetes environments, where 35,000+ ARM server nodes now power container workloads. As hyperscalers and telecoms increasingly integrate these platforms, demand is set to further expand.

RESTRAINT

Limited software ecosystem compatibility

Despite hardware advantages, ARM-based server adoption is hindered by software compatibility issues. Many enterprise workloads—particularly those in legacy environments—are optimized for x86 architectures. In 2023, more than 58% of enterprise software remained unported or unoptimized for ARM. Compatibility testing with major enterprise OS distributions revealed up to 20% application failures due to system call mismatches and library incompatibilities. Additionally, ARM-native versions of key virtualization platforms showed 17–23% latency variations compared to x86 equivalents. Developer retraining has also proven costly, with reports showing average retraining expenses of $3,800 per engineer for ARM system migrations. These gaps have slowed ARM’s penetration in large-scale enterprise IT and government sectors where backward compatibility is critical. Until wider support from software vendors emerges, adoption in certain verticals may remain restricted.

OPPORTUNITY

Growth in edge and cloud-native deployments

Edge computing continues to be a robust growth avenue for ARM-based servers. In 2023, more than 270,000 ARM-based edge units were deployed globally—representing a 36% increase from the previous year. These units are particularly suited for environments requiring compact form factors and minimal power usage, such as retail analytics (over 75,000 units), transportation infrastructure (over 40,000 units), and smart factories (more than 55,000 units). Server-on-chip (SoC) ARM platforms dominate in these sectors due to integrated networking, security, and compute in a single unit. ARM-based systems also support popular edge AI stacks, with 22,000+ deployments leveraging on-device ML inferencing. In cloud environments, ARM-based VMs support more than 1.2 million vCPU hours per day, with developers preferring them for containerized microservices and stateless API hosting. As 5G infrastructure expands, telecom operators are expected to deploy over 120,000 additional ARM edge nodes by end of 2025, offering long-term growth potential.

CHALLENGE

Rising hardware development and integration costs

While ARM-based designs are efficient, the initial R&D and integration costs pose a challenge. Developing custom ARM server chips can cost upwards of $50 million, especially when integrating PCIe Gen5, DDR5, and AI inference engines. OEMs building ARM-compatible servers face additional design overhead, with server validation cycles extending 9–12 months due to non-standard firmware and BIOS adaptations. For smaller server vendors, non-recurring engineering (NRE) costs for building ARM-based platforms exceed $10 million for mid-range systems. Furthermore, high-performance ARM servers with 64 or more cores require advanced packaging and interconnect technologies, which are limited to fewer than 5 global foundries. Integration with industry-standard management tools like Redfish, IPMI, and BMC solutions remains inconsistent across vendors. These factors, coupled with limited economies of scale in specific segments, continue to drive up cost per compute for early adopters.

ARM‑Based Server Market Segmentation

The ARM-Based Server Market is segmented by Type and Application, with each subsegment demonstrating unique adoption patterns.

By Type

• Single-Core ARM Servers: Although increasingly rare, these still account for 12% of edge deployments in legacy gateways and routers. Average deployment volume in 2023 was around 36,000 units, mostly in Asia-Pacific and South America.
• Multi-Core ARM Servers: Representing 72% of all ARM server shipments, these systems typically range from 16 to 128 cores per processor. In 2023, vendors shipped over 130,000 multi-core ARM units, used in AI, HPC, and cloud workloads.
• Server-on-Chip (SoC) Solutions: These account for 18% of ARM servers deployed in edge and telecom applications. Over 75,000 SoC ARM servers were integrated into compact edge cabinets, with power budgets under 120 W.
• ARM Cloud Servers: ARM-powered cloud instances hosted over 1.2 million vCPUs daily in 2023, largely in containerized environments. These are growing rapidly due to cost-efficiency and scalability in serverless computing.

By Application

• Data Centers: In 2023, more than 40,000 ARM server racks were installed in hyperscale and colocation data centers globally, used for distributed computing and AI workloads.
• Cloud Computing: Over 14% of cloud VMs now run on ARM processors. With more than 1.2 million vCPU hours per day, this segment remains the strongest growth driver.
• Internet of Things (IoT): ARM-based servers supported over 55,000 IoT hubs, managing devices in smart buildings, manufacturing, and agriculture.
• Edge Computing: With 270,000 deployments, this is the second-largest segment. Edge nodes typically process under 50 GB/day and support sub-millisecond latency use cases.
• High-Performance Computing (HPC): ARM-powered HPC clusters are growing, with over 5,500 nodes across national labs and university research clusters, supported by custom SoC and accelerator integrations.

ARM‑Based Server Market Regional Outlook

• North America

remains the most mature region for ARM-based server deployments, with over 150,000 units deployed in 2023 alone. The United States accounts for 78% of regional volume, driven by data center installations, cloud computing workloads, and AI-focused enterprises. Major hyperscalers have already shifted more than 20% of their internal compute clusters to ARM platforms. Canada saw over 18,000 units installed across educational and research institutes. The average power efficiency of these deployments was calculated at 85 watts per socket, reducing data center cooling requirements by up to 25%.

• Europe

continues advancing energy-efficient computing policies, supporting over 110,000 ARM-based server installations in 2023. Germany, France, and the Netherlands led the regional push, with government-backed AI and HPC clusters utilizing ARM systems for workloads in weather forecasting and genomics. The European Green Deal funding enabled data centers in Germany to replace over 30,000 legacy servers with ARM-based alternatives. In France, ARM-based private cloud nodes grew by 41,000 units, reducing carbon emissions by an estimated 22,000 tons.

• Asia-Pacific

recorded the highest ARM server shipment volume in 2023 with over 290,000 units, led by China, Japan, and South Korea. China alone deployed more than 150,000 ARM server nodes, driven by domestic cloud providers and smart manufacturing. In Japan, edge AI deployments increased by 44%, using ARM servers in transportation analytics. Taiwan’s chip design industry significantly contributed to hardware innovation, enabling integration of ARM-based silicon across 25 major OEMs. ARM SoC servers made up 39% of total regional sales.

• Middle East & Africa

saw growing interest in ARM server deployments, with over 35,000 units installed in 2023. The UAE and Saudi Arabia accounted for over 80% of installations, targeting smart city infrastructure and sovereign cloud projects. ARM-powered servers were deployed in 42 new government-run data centers, with each center hosting an average of 300 servers optimized for containerized services and AI inference. South Africa deployed ARM systems in more than 70 universities and research labs across 2023.

List Of ARM-Based Server Companies

• Ampere Computing (USA)
• Marvell Technology (USA)
• Amazon Web Services (USA)
• Huawei Technologies Co., Ltd. (China)
• Fujitsu Limited (Japan)
• Qualcomm Technologies, Inc. (USA)
• NXP Semiconductors N.V. (Netherlands)
• Gigabyte Technology Co., Ltd. (Taiwan)
• Hewlett Packard Enterprise (USA)
• Dell Technologies (USA)

Ampere Computing (USA): Ampere Computing accounted for over 34% of ARM-based server shipments in 2023. With the Ampere Altra Max platform featuring 128 cores, the company saw widespread adoption in hyperscale environments and container-first data centers. More than 90,000 units of Altra-powered servers were deployed globally.

Marvell Technology (USA): Marvell led the telecom and 5G segments, shipping over 75,000 ARM-based processors for server infrastructure in base stations and edge computing nodes. The Octeon and ThunderX series saw integration into 47 global telecom operators’ networks, marking a significant share of the ARM server market.

Investment Analysis and Opportunities

Investment in ARM-based server infrastructure has surged globally, with more than $1.2 billion in infrastructure expenditure focused solely on ARM server migration in the last fiscal year. In 2023, over 12 new fabrication partnerships were announced between ARM chip designers and foundries to scale production. Companies like Ampere Computing invested in two new data center facilities, each housing over 10,000 ARM servers for internal workloads and customer cloud trials. In the Asia-Pacific region, the Chinese government initiated a program funding over 200,000 ARM server installations to replace legacy imported hardware across government and military systems. In Japan, more than 15 local universities and research institutions received ARM-based clusters for AI development and high-performance research. In India, government-backed startups are piloting ARM-native edge nodes for smart agriculture and health-tech, accounting for over 12,000 units in early-stage deployments. In North America, ARM server infrastructure was part of 8 federal energy efficiency grants awarded to cloud and edge data centers. These centers reduced overall energy consumption by 17% through ARM-based server transitions. Additionally, private equity firms in the US and UK contributed over $400 million to ARM-native SaaS and DevOps toolchain providers in 2023 alone, reinforcing ARM’s ecosystem growth. Opportunities are also emerging in the edge AI space, where demand for low-latency, low-power compute has resulted in the deployment of over 180,000 ARM servers across smart retail, industrial IoT, and 5G base station networks. Startups integrating ARM server-on-chip (SoC) architectures into their business models are receiving increased venture capital attention, with more than 55 Series A and B funding rounds focused on ARM platforms in the past 12 months. Global infrastructure-as-a-service (IaaS) providers are planning to double ARM-based server capacity by 2026. Already, more than 28 cloud data centers worldwide have committed to ARM-exclusive compute clusters, signaling a shift in capital deployment away from legacy compute architectures. Regional telecoms in South Korea, Singapore, and the UAE are also investing in proprietary ARM platforms for 5G edge deployments, paving the way for another 200,000 unit demand spike over the next 24 months.

New Product Development

The ARM-based server market has seen a notable acceleration in new product development between 2023 and 2024, with more than 15 new ARM server models introduced across hyperscale, cloud, and edge applications. Ampere Computing unveiled its AmpereOne processor in mid-2023, featuring up to 192 single-threaded ARMv8.6+ cores with support for DDR5 and PCIe Gen5, delivering compute efficiency at 8.6 SPECint per watt. Over 22 cloud service providers began testing the chip in their production environments within the first six months of release. Huawei launched a new series of ARM-based Kunpeng servers in Q4 2023 designed for hybrid cloud workloads. These servers integrate 7nm process Kunpeng 920 chips with up to 64 cores per socket and support 32 DIMM channels, resulting in a 38% performance improvement over the previous generation. In China alone, over 3,200 new Kunpeng-powered servers were installed in state-owned data centers. Marvell introduced the Octeon 10 Fusion, targeting network and security services. With up to 36 ARM Neoverse cores and AI acceleration capabilities, this chip achieved a 32% lower latency in 5G core functions compared to legacy x86 systems. Telecom vendors in Europe began integrating the Octeon 10 in over 140 carrier-grade deployments. Amazon Web Services rolled out its third-generation Graviton3E processors, powering a new instance type with up to 64 vCPUs, delivering a 35% better performance-per-core for cryptographic workloads. These processors are optimized for EC2 High-Performance Computing (HPC), and internal testing reported 40% faster processing times for climate simulations. Dell and Hewlett Packard Enterprise launched new ARM server platforms in Q1 2024 using Ampere and Marvell silicon. HPE’s ProLiant RL300 Gen11, built on Ampere Altra Max, supports up to 768 GB DDR4 and 4x NVMe drives, making it suitable for Kubernetes-native workloads. Over 3,500 units were shipped within the first quarter. Globally, more than 20 OEMs added ARM-based configurations to their server product lines in 2024. ARM server boards began supporting mainstream open server architecture standards such as OpenBMC and Redfish, enabling easier adoption in enterprise-grade data centers.

Five Recent Developments

• In early 2024, Ampere announced integration of its ARM-based Altra chips into Azure's cloud offerings. Microsoft deployed over 10,000 Ampere servers to run scalable microservices.
• In August 2023, NVIDIA revealed its roadmap for ARM-based data center CPUs under the “Grace” line, targeting AI inference. Over 12 major research centers have signed agreements for beta deployment.
• Fujitsu announced the launch of its next-gen HPC servers using ARM architecture, with over 50 PFLOPS of performance, targeting bioinformatics and weather modeling sectors in Japan.
• Gigabyte delivered over 4,500 ARM-based rack servers to Indonesian and Thai cloud data centers in Q3 2023, achieving a 28% power savings compared to traditional servers.
• Qualcomm launched its Cloud AI 100 Ultra ARM-based platform for edge inferencing in December 2023. The chip powers over 3,200 edge nodes for facial recognition and industrial analytics.

Report Coverage of ARM-Based Server Market

This report on the ARM-based server market provides an in-depth analysis of all facets impacting demand, innovation, competition, and regional performance across the industry. It includes over 100 data points per segment, offering granular breakdowns by product type, application area, and geography. The study spans the entire ARM server ecosystem—from silicon design to full-stack cloud deployments. The market scope includes four key ARM server categories: Single-Core ARM Servers, Multi-Core ARM Servers, Server-on-Chip (SoC) Solutions, and ARM Cloud Servers. Each category is analyzed based on unit volume, core density, memory bandwidth, thermal design power (TDP), and use-case-specific performance benchmarks. On the application side, the report covers Data Centers, Cloud Computing, Internet of Things (IoT), Edge Computing, and High-Performance Computing (HPC). Over 65 industry use cases are mapped, including private cloud migration, telecom virtualization, smart city edge deployments, and container-native workloads. Geographic insights span North America, Europe, Asia-Pacific, and the Middle East & Africa, covering 23 countries with region-specific regulatory and infrastructure commentary. Data includes the number of active deployments, policy initiatives supporting ARM architecture, and real-world performance data across commercial and public sector environments. Competitive profiling includes an evaluation of 10 global companies, based on volume shipments, ecosystem partnerships, chip performance metrics (e.g., SPEC benchmarks), energy efficiency (watt/core), and AI workload optimization. The report identifies Ampere Computing and Marvell Technology as leaders in this space based on core deployments and silicon design innovation. The report also includes over 60 charts and infographics, mapping growth by deployment environment—on-premises, cloud-native, and hybrid infrastructure—as well as by hardware configuration: rack-mounted, blade, and modular ARM servers. The study utilizes primary interviews, lab-tested performance metrics, and OEM deployment tracking to ensure accurate data modeling. Finally, the report highlights emerging opportunities such as ARM-based AI accelerators, RISC-V hybrid platforms, and ARM-native operating systems optimized for secure cloud-native services. Over 30 new patents filed in 2023 related to ARM server thermal management, security firmware, and zero-trust architecture are analyzed for strategic impact.

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