Record Revenue Milestone in Q3 2025
The global server market achieved a historic milestone in the third quarter of 2025, generating an impressive $112.4 billion in revenue. According to the International Data Corporation (IDC), this latest period marked another round of high double-digit growth, with overall vendor revenue surging 61% year-over-year compared to the same quarter in 2024.
Robust Growth Across Server Architectures
Breaking down the figures by architecture, x86 servers recorded a strong 32.8% increase in revenue, reaching $76.3 billion. Notably, non-x86 servers experienced an even more dramatic expansion, posting a 192.7% increase to hit $36.2 billion. Servers equipped with embedded GPUs also played a pivotal role, with revenue climbing 49.4% and accounting for more than half of the total server market revenue.
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AI and Cloud Adoption Fueling Expansion
Hyperscalers and major cloud service providers have been quick to embrace servers featuring embedded GPUs, a trend that has significantly fueled market growth. Consequently, the cumulative server market revenue for the first three quarters of 2025 nearly doubled, reaching an astonishing $314.2 billion. Juan Seminara, Research Director at IDC Worldwide Enterprise Infrastructure Trackers, noted, “IDC expects AI adoption to keep growing at an outstanding pace as major vendors continue reporting record orders and showing strong backlogs. Hyperscalers and cloud providers are still ahead with new, large deployments that require much higher compute density.” He further added that emerging AI-based research and education initiatives are set to bolster the market further.
Regional Leaders and Sectoral Growth
Regionally, the United States led the charge with an impressive 79.1% growth compared to Q3 2024, driven by an extraordinary 105.5% increase in the accelerated server segment. Canada followed closely with 69.8% growth, also powered by accelerated server innovations. Meanwhile, the People’s Republic of China (PRC) experienced a 37.6% year-over-year increase, contributing nearly one-fifth to the global quarterly revenue. Other regions, including APeJC, EMEA, and Japan, registered healthy double-digit growth of 37.4%, 31.0%, and 28.1% respectively, whereas Latin America saw a modest 4.1% increase.
Competitive Landscape Among OEMs
In terms of corporate performance, Dell Technologies emerged as the leader in the OEM market with an 8.3% revenue share, significantly propelled by accelerated server growth. Supermicro secured the second spot with a 4.0% revenue share, even though it faced a 13.2% decline compared to Q3 2024. IEIT Systems and Lenovo closely contended for third place with 3.7% and 3.6% shares respectively, while Hewlett Packard Enterprise captured a 3.0% share, rounding out the top five players.
