Tuesday, December 15th 2020

Worldwide Server Market Revenue Grew 2.2% Year Over Year in the Third Quarter of 2020, According to IDC

According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, vendor revenue in the worldwide server market grew 2.2% year over year to $22.6 billion during the third quarter of 2020 (3Q20). Worldwide server shipments declined 0.2% year over year to nearly 3.1 million units in 3Q20. Volume server revenue was up 5.8% to $19.0 billion, while midrange server revenue declined 13.9% to $2.6 billion, and high-end servers declined by 12.6% to $937 million.

"Global demand for enterprise servers was a bit muted during the third quarter of 2020 although we did see areas of strong demand," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within China grew 14.2% year over year. And worldwide revenues for servers running AMD CPUs were up 112.4% year over year while ARM-based servers grew revenues 430.5% year over year, albeit on a very small base of revenue."
Overall Server Market Standings, by Company
Dell Technologies and HPE/New H3C Group were tied for the top position in the 3Q20 worldwide server market with 16.7% and 15.9% revenue share respectively. Inspur/Inspur Power Systems finished third with a 9.4% share of revenue. Lenovo was fourth with a 5.9% share and Huawei was fifth with a 4.9% share. The ODM Direct group of vendors accounted for 28.0% of total server revenue, up 8.4% year over year.
Top Server Market Findings
On a geographic basis, China was the fastest growing region at 14.2% year over year. Asia/Pacific (excluding China and Japan) increased 3.0%, while Latin America and North America grew 1.5% and 1.8% year over year, respectively (Canada at 13.1% and the United States at 1.5%). Both EMEA and Japan declined during the quarter at rates of 4.9% and 21.4%, respectively.

Revenue generated from x86 servers increased 1.6% in 3Q20 to just below $21.0 billion. Non-x86 server revenue grew 10.4% year over year to around $1.6 billion.
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