ARM-based Servers - Global Strategic Business Report

The global market for ARM-based Servers was valued at US$6.2 Billion in 2024 and is projected to reach US$13.7 Billion by 2030, growing at a CAGR of 14.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the ARM-based Servers market.

Global ARM-Based Servers Market - Key Trends & Drivers Summarized

Why Are ARM-Based Servers Gaining Strategic Traction in Cloud, Edge, and Hyperscale Computing Environments?

ARM-based servers are rapidly emerging as a competitive alternative to traditional x86 architectures, offering a compelling mix of high energy efficiency, lower total cost of ownership (TCO), and architectural flexibility. Originally designed for mobile and embedded systems, ARM architecture has evolved significantly with server-grade cores capable of supporting scalable workloads in data centers, edge nodes, and high-performance computing (HPC) environments. This shift is fueled by hyperscale cloud providers, data-centric enterprises, and infrastructure operators seeking alternatives to diversify silicon supply chains, reduce power consumption, and optimize compute performance per watt.

One of the core advantages of ARM-based servers lies in their reduced instruction set computing (RISC) architecture, which enables simplified processing logic and better thermal efficiency. This makes them particularly attractive for workloads that benefit from high concurrency and low power consumption - such as web hosting, content delivery, microservices, and scale-out storage. Additionally, as ARM server designs become more mature, they are now capable of supporting general-purpose workloads, containerized applications, and even certain AI inference tasks at the edge.

The growing adoption of ARM by leading hyperscalers like Amazon Web Services (with its custom Graviton processors), Alibaba Cloud, and Microsoft Azure is validating the commercial viability of ARM-based server deployments at scale. These cloud-native implementations are demonstrating not just cost savings but also competitive performance in real-world use cases. As open-source software ecosystems, development toolchains, and enterprise workloads become increasingly architecture-agnostic, ARM-based servers are positioned to challenge the x86 incumbency in several high-growth infrastructure segments.

How Are Custom Silicon, Software Portability, and Energy Efficiency Enhancing the Value Proposition of ARM Servers?

The rise of custom ARM silicon - designed by hyperscalers and semiconductor innovators - is redefining the server landscape. Companies like AWS (Graviton), Ampere Computing, and NVIDIA (via its acquisition of ARM) are developing server-grade processors tailored for specific cloud and enterprise workloads. These processors integrate high core counts, hardware accelerators, and system-on-chip (SoC) designs that reduce interconnect bottlenecks and improve latency-sensitive performance - particularly beneficial in edge and AI inference scenarios.

Software compatibility and ecosystem maturity are no longer major barriers to ARM adoption. Popular operating systems (Linux distributions, BSD, Windows Server for ARM), hypervisors, and container orchestration platforms (e.g., Kubernetes, Docker) now offer robust ARM support. Open-source communities and cloud-native development frameworks have made it easier for enterprises to recompile, test, and optimize their applications for ARM architectures. Additionally, server management interfaces, BIOS/UEFI firmware, and BMC tools have evolved to support ARM-based infrastructure with the same level of maturity expected in x86 systems.

ARM’s superior energy efficiency is a critical differentiator, especially for data centers and edge facilities under pressure to meet ESG targets and carbon-neutral mandates. With lower power draw and reduced cooling requirements, ARM-based servers can help reduce operational costs while maintaining high density compute throughput. As power efficiency becomes a board-level metric in IT procurement decisions, ARM’s performance-per-watt advantage is increasingly influencing infrastructure modernization strategies - especially in geographies with high energy costs or regulatory pressure on emissions.

Which Deployment Models and Global Markets Are Accelerating Adoption of ARM-Based Servers?

Cloud service providers (CSPs) are currently the largest adopters of ARM-based servers, integrating them into their infrastructure for internal workloads, multi-tenant hosting, and specialized services such as container orchestration, caching, and web front ends. Public cloud offerings such as AWS Graviton and Oracle’s Ampere Altra-based instances are demonstrating substantial cost-performance gains, encouraging cloud-native developers and SaaS providers to migrate certain workloads to ARM platforms.

Telecommunications and edge computing environments represent another strong growth frontier. As 5G rollouts accelerate and network operators deploy virtualized RAN, MEC (multi-access edge computing), and CDN nodes, ARM-based servers are being selected for their small footprint, low power requirements, and ability to run disaggregated network functions. In industrial, retail, and smart city applications, ARM servers are supporting edge AI, real-time analytics, and device orchestration at localized compute nodes, reducing latency and bandwidth consumption.

Regionally, North America and Asia-Pacific lead the ARM server market, driven by innovation hubs, cloud investments, and strong semiconductor manufacturing ecosystems. China is investing heavily in ARM architecture as part of its broader push for domestic silicon independence, with local vendors developing ARM-compatible chips for cloud, AI, and HPC use. Europe is advancing its own ecosystem through sovereign cloud initiatives and energy-efficient computing mandates. As geopolitical dynamics and semiconductor strategy increasingly shape digital infrastructure choices, ARM’s open licensing model and local design flexibility offer a viable path for regional hardware independence.

How Are Licensing Strategies, Vendor Differentiation, and Data Center Architectures Influencing Competitive Positioning?

ARM Holdings’ flexible licensing model allows chipmakers to license either the architecture or full IP cores, fostering a diverse ecosystem of server chip developers that can tailor performance profiles to specific workload categories. This licensing structure has enabled cloud providers and OEMs to differentiate themselves through vertically integrated ARM-based silicon solutions - combining compute, memory, I/O, and accelerators on a single die for reduced latency and power consumption.

Vendor differentiation is intensifying, with players like Ampere Computing targeting hyperscale cloud deployments through single-socket, high-core-count CPUs, while Marvell and Fujitsu focus on telecom, HPC, and edge deployments with domain-specific enhancements. ARM-based server suppliers are increasingly offering full-stack reference designs - including motherboards, memory configurations, and management interfaces - to accelerate adoption among OEMs and systems integrators. These turnkey platforms reduce development time and align with evolving data center form factors, such as liquid-cooled racks and modular compute nodes.

The rise of disaggregated and composable infrastructure is also influencing ARM’s competitive trajectory. As enterprises move toward software-defined data centers, where compute, storage, and networking are independently scaled and orchestrated, ARM servers are being evaluated for their modularity and compatibility with emerging orchestration frameworks. As more workloads become stateless, containerized, and distributed, ARM’s strengths in parallel processing, low latency, and energy efficiency are aligning well with the architectural needs of next-generation data centers.

What Are the Factors Driving Growth in the ARM-Based Servers Market?

The ARM-based servers market is experiencing robust growth, driven by rising energy efficiency demands, cloud-scale adoption, and increasing architectural diversification in the global compute landscape. ARM’s ability to deliver high-core-count, low-power processing in scalable, cost-effective formats is resonating with hyperscalers, edge operators, and forward-leaning enterprises seeking alternatives to x86-dominated architectures. Broader software ecosystem support and the maturing of enterprise-grade ARM solutions are removing historical barriers to adoption.

Strategic investment in ARM-compatible chipsets, the proliferation of open-source development tools, and the industry’s shift toward customized silicon are accelerating ARM’s penetration into high-density compute, telco, and AI inference workloads. Market growth is also reinforced by geopolitical shifts favoring regional semiconductor sovereignty and demand for alternatives that reduce vendor lock-in. As ARM-based designs scale in performance and ecosystem support, the technology is becoming a credible, even preferred, option in next-generation server deployments.

Looking ahead, the trajectory of the ARM-based server market will depend on how effectively vendors scale production, enable cross-architecture application performance, and align with sustainability-driven procurement strategies. As digital infrastructure becomes more disaggregated, agile, and energy-conscious, could ARM-based servers redefine the global compute backbone for cloud and edge workloads?

Report Scope

The report analyzes the ARM-based Servers market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Core Type (ARM Cortex-A Core Based Servers, ARM Cortex-M Core Based Servers); Processor (64-bit, 32-bit); OS (Android, iOS, Windows); Application (Mobile Computing, 3D Graphics, Internet of Things, Smart Homes, Wearables, Sensors, Enterprise & Infrastructure Networking, Wireless Communications); Vertical (Telecommunications, Automotive, Healthcare, Oil & Gas Extraction, Bioscience, Industrial Automation, Other Verticals).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the ARM Cortex-A Core Based Servers segment, which is expected to reach US$9.2 Billion by 2030 with a CAGR of a 16.2%. The ARM Cortex-M Core Based Servers segment is also set to grow at 10.4% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $1.7 Billion in 2024, and China, forecasted to grow at an impressive 19.2% CAGR to reach $3.0 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global ARM-based Servers Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global ARM-based Servers Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global ARM-based Servers Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Amazon Web Services, Ampere Computing, Applied Micro Circuits Corporation, Arm Holdings plc, ASRock Rack Inc. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 32 companies featured in this ARM-based Servers market report include:

• Amazon Web Services
• Ampere Computing
• Applied Micro Circuits Corporation
• Arm Holdings plc
• ASRock Rack Inc.
• Atos SE
• Baidu, Inc.
• Broadcom Inc.
• Bull SAS
• Cavium (Marvell Technology Group)
• Cavium Networks
• Dell Technologies
• E4 Computer Engineering
• Fujitsu Limited
• Gigabyte Technology Co., Ltd.
• Hewlett Packard Enterprise
• Huawei Technologies Co., Ltd.
• Inspur Group
• Lenovo Group Limited
• Linaro Ltd.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What's Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry