LONDON, Dec. 18,
2024 /PRNewswire/ -- Fueled by soaring demand for
AI-optimized servers from major US cloud providers, Foxconn's
ODM direct business will achieve astronomical growth in 2024,
securing the top spot in Omdia's global server market analysis.
Foxconn will overtake Dell, which claimed the lead from HPE in
2018, marking the first time a non-US company tops the server
market rankings.
"The four largest cloud providers—Microsoft, Amazon, Google, and
Meta—will comprise nearly half of 2024's data center capex,
amplifying their influence on the competitive server market," said
Vlad Galabov, Omdia Senior Director.
"With AI application development and deployment dominating compute
priorities, vendors aligning with NVIDIA are thriving. These
dynamics have propelled Foxconn to the top spot."
Foxconn isn't the only vendor benefiting from the surge in
demand for AI-optimized servers. Quanta Cloud Technologies (QCT),
ZT Systems and Super Micro grew their server revenue more than 100%
in 2024. Dell won big strategic clients like CoreWeave and xAI. It
also developed a portfolio of professional services and reference
designs, including AI consulting services. "Despite ranking shifts,
all server vendors will see 2024 as a major success due to
significant market growth," said Manoj
Sukumaran, Senior Principal Analyst at Omdia.
The consolidated nature of investment made 2024 a unique year in
the server market. Omdia projects 10 companies will make up nearly
60% of the global server investment; 10 companies will fulfil over
70% of market demand.
Omdia accounts only for direct-to-user sales by ODMs like
Foxconn, Pegatron and Flex. Revenue from manufacturing servers for
OEMs like Dell, HPE and Cisco is excluded to prevent double
counting. ODMs are not credited for sales realized by OEMs.
"Foxconn has more growth ahead, having secured a close
partnership with NVIDIA to manufacture Blackwell GPU reference
designs. They will become the largest supplier of NVL36 and NVL72
racks to cloud service providers," added Sukumaran.
2025 is set to be another strong year for the data center
industry, particularly the server market, driven by the next phase
of AI infrastructure deployment at both cloud service providers and
enterprises. Omdia forecasts server capex to grow 22%, surpassing
$280 billion next year. This robust
growth is expected to continue throughout the decade with the
server market expected to reach $380
billion by 2028, approaching half a trillion dollars by
2030.
"We've only seen the tip of the iceberg of AI-specialized cloud
SP formation and spending. Their server capex is set to grow
significantly, with CoreWeave potentially outspending Oracle in
2025," said Galabov.
Highly regulated industries have shared with Omdia that 2024
won't see the regulatory frameworks needed to scale AI production.
Additionally, enterprise investment in 2024 was limited by GPU
availability which will improve in 2025.
ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a
technology research and advisory group. Our deep knowledge of tech
markets combined with our actionable insights empower organizations
to make smart growth decisions.
Contact
Fasiha Khan:
fasiha.khan@omdia.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/omdia-projects-foxconn-to-become-the-worlds-largest-server-vendor-302334019.html
SOURCE Omdia
