Fueled by hovering demand for AI-optimized servers from main US cloud suppliers, Foxconn’s ODM direct enterprise will obtain astronomical progress in 2024, securing the highest spot in Omdia’s global server market evaluation.
In response to the analytics and advisory agency, Foxconn will overtake Dell, which claimed the lead from HPE in 2018, marking the primary time a non-US firm tops the server market rankings.
“The 4 largest cloud suppliers – Microsoft, Amazon, Google, and Meta – will comprise practically half of 2024’s knowledge middle capex, amplifying their affect on the aggressive server market,” mentioned Vlad Galabov, Omdia Senior Director.
“With AI software growth and deployment dominating compute priorities, distributors aligning with NVIDIA are thriving. These dynamics have propelled Foxconn to the highest spot.”
Foxconn isn’t the one vendor benefiting from the surge in demand for AI-optimized servers. Quanta Cloud Applied sciences (QCT), ZT Techniques, and Tremendous Micro grew their server income greater than 100% in 2024.
Dell gained massive strategic purchasers like CoreWeave and xAI. It additionally developed a portfolio {of professional} companies and reference designs, together with AI consulting companies. “Regardless of rating shifts, all server distributors will see 2024 as a significant success because of important market progress,” mentioned Manoj Sukumaran, Senior Principal Analyst at Omdia.”
The consolidated nature of funding made 2024 a singular yr within the server market. Omdia initiatives 10 corporations will make up practically 60% of the worldwide server funding; 10 corporations will fulfill over 70% of market demand.
Server market 10 high compute distributors and customers (Picture: Omdia)
Sturdy progress is anticipated to proceed all through the last decade with the server market anticipated to achieve $380 billion by 2028, approaching half a trillion {dollars} by 2030.
“We’ve solely seen the tip of the iceberg of AI-specialized cloud SP formation and spending. Their server capex is about to develop considerably, with CoreWeave probably outspending Oracle in 2025,” mentioned Galabov.
Extremely regulated industries have shared with Omdia that 2024 gained’t see the regulatory frameworks wanted to scale AI manufacturing. Moreover, enterprise funding in 2024 was restricted by GPU availability which is able to enhance in 2025.
