Server Market Revenue Increased 61 Percent in 3Q25

The server market reached a record $112.4 billion in revenue during the third quarter of the year, according to IDC. This quarter showed another high double-digit growth rate by reaching a year-over-year (YoY) increase of 61% in vendor revenue compared to the same quarter of 2024. Revenue generated from x86 servers increased 32.8% in 3Q25 to $76.3 billion, while Non-x86 servers increased 192.7% YoY to $36.2 billion.

Revenue for servers with an embedded GPU in the third quarter of 2025 grew 49.4% year-over-year, representing more than half of the server market revenue. The fast pace at which hyperscalers and cloud service providers have been adopting servers with embedded GPUs has fueled the server market growth, which almost doubled in size compared to 2024, with revenue of $314.2 billion dollars for the first three quarters of 2025.

“IDC expects AI adoption 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. Additionally, we started to see major AI-based research and Education projects that will help fuel further growth path in the market,” said Juan Seminara, research director, Worldwide Enterprise Infrastructure Trackers.

The United States is the fastest-growing region in the server market, with a 79.1% increase compared to 3Q24, driven by a 105.5% growth in the accelerated server segment. Canada grew 69.8%, pushed by the same reason. PRC is growing at 37.6% in 3Q25, accounting for almost a fifth of the quarterly revenue worldwide. APeJC, EMEA, and Japan also showed very healthy double-digit growth with 37,4%, 31.0%, and 28,1% respectively, while Latin America showed a low single-digit growth with 4.1% increase in the quarter.

Dell clearly leads the OEM market with 8.3% revenue share, thanks to outstanding growth on accelerated servers. Supermicro reached second place with a 4.0% revenue share, despite a 13.2% decline compared to 2024Q3. IEIT Systems and Lenovo statistically tied for the third position in the market with 3.7% and 3.6% share, respectively, while Hewlett Packard Enterprise finished in the fifth position in the market, with 3.0% share.