server Appliance Market worth $3.1 Billion by 2018

According to the new market research report "Micro Server IC Market by Processor (Intel, ARM, AMD), IC’s (Analog, Digital), Applications (Media Storage, Data Center, Cloud Computing, Analytics) & by Geography (N.America, Europe, APAC, ROW) - Global Forecasts and Analysis to 2013 - 2018", the global Micro Server IC Market is projected to cross $3.1 Billion by 2018, growing at a very high CAGR from 2013 to 2018.

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The major lump of manufacturing companies such as Intel (U.S.), HP (U.S.), Dell (U.S.), AMD (U.S.), and others are located in the U.S. As media storage is one of the most prominent applications, the growth of media storage market in North America will affect the overall market of micro servers. The media storage market in North America is growing at a tremendous rate, taking into account the trends such as growing video-on-demand (VOD); content over cable, satellite, and telco networks; high-definition and 3D production by studios; and the exponential growth in web-based content.

This growth in media storage and data centers market creates opportunities for micro server industry players to develop micro servers that suit the requirements for the media storage industry. In fact, Marvell (U.S.) and SanDisk (U.S.) have developed a new generation of storage micro servers for this purpose only. Apart from media storage and data centers, North America is the market leader in big data analytics and hadoop software market. This makes it evident that micro servers are being deployed in these applications on a large scale in this region. Companies such as Sea Micro (U.S.) as well as Penguin Computing (U.S.) have developed micro servers especially to cater to these applications. In 2013, North Americas shared around 43.4% of the total micro servers market and will continue to do so.

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APAC poses a great potential for the micro servers industry due to the high growth of Internet datacenters in this region. Though in 2013, APAC accounted for only 20% of the total micro servers market, still, it is estimated that APAC will have the highest CAGR of around 70% from 2013 to 2020. The two countries that stand out among others in this region are Japan and China. Japan’s Internet datacenter market is growing at a steady rate, taking into account the rapid growth in disaster recovery demand after the Great Eastern Japan Earthquake that hit Japan in March 2011. This growth is also determined by the change in trends from ownership to utilization and by the growing usage of smart devices and social applications. China’s Internet datacenter services market is also booming presently because of the development of the Internet and the popularity of smart devices. As cloud computing is getting popular in this region, new players have been entering the Internet datacenter services market. These new players have brought more Internet datacenter resources to meet the end-users' fast-growing requirements. Thus, as the Internet datacenters market is growing, there is a huge need for setting up infrastructure to meet this demand. It is predicted that green field projects will be set up in the region to compensate for this growth and this would give a great opportunity for micro servers industry to install its solutions in these regions.

The media storage is currently leading in the micro server’s applications market and will continue to do so till 2020. In 2013, the media application shared around 38.4% of the total micro servers market. The reasons behind this growth are the phenomenal growth of digital content, proliferation of high-definition (HD) videos and various other interactive applications, growth of online business, and huge requirements of security, storage, resilience, and so on in the corporate world.

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Media storage devices are the ones that store digital information. The information is in the form of music, video, documents, or any other digital data that needs to be stored by the end-users. Some media storage devices are designed to be a part of another device, while others are standalone devices that are only connected to transfer data. The different types of media storage devices are magnetic storage devices, optical storage devices, solid state storage devices, and server storage devices.

The different trends that are driving the growth of the media storage application in the micro server application market are the extraordinary growth of digital content; the ever increasing popularity of video-on-demand (VOD) content; the propagation of high-definition (HD) videos and various other interactive applications; the explosive growth of delivery of videos over Web and mobile; and the multi-fold growth in user-generated content.

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