The penetration rate of Arm architecture in servers will reach 22% in 2025
The need for digital transformation, including artificial intelligence and high-performance computing, has accelerated in recent years, leading to the increasing use of cloud computing. In order to improve the flexibility of services, major cloud service providers around the world have successively launched servers based on the Arm architecture. Recently, TrendForce released a new report predicting that by 2025, the penetration rate of Arm architecture in data center servers will reach 22%.
According to TrendForce, processors based on the Arm architecture have three major advantages, including: “First, they can support diverse and rapidly changing workloads and are more scalability and cost-effective. Second, ARM-based processors provide higher customization for different niche markets with a more flexible ecosystem. Third, physical footprint is relatively small which meets the needs of today’s micro data centers.”
At present, processors based on Arm architecture have gradually penetrated the server market. Among them, the Graviton chip independently designed by AWS is the most representative. In 2021, the deployment of Arm-based processors has reached 15% of its overall server construction, and it is expected to exceed 20% in 2020. In addition, companies such as Marvell are also launching new Arm architecture products, but it is still difficult to shake the dominance of x86 processors in the server market in a short time. However, the success of AWS will stimulate other cloud service providers to follow up this practice and introduce similar chip designs.
At this stage, the Arm architecture is still only purchased in small batches in data center servers and is dominated by ultra-large data centers, while the progress in the enterprise-led data center market is slow. TrendForce believes that even by 2025, it will still be difficult for Arm-based servers to compete with x86-based servers.
