Hardware Technology_ Datacenter Market Insights, Part 1 – Overall Servers

Summary of Datacenter Market Insights Industry Overview - The report focuses on the Datacenter Market, specifically the server segment within the Asia Pacific region, highlighting trends and insights for 2024 and 2025 [1][8]. Key Insights 1. Server Shipment Growth: - Total server shipments increased by 17% in 2024, primarily driven by cloud demand. For 2025, cloud demand is expected to grow by an additional 5-10%, while enterprise demand is projected to rise by 0-5% [1][6]. 2. Quarterly Performance: - In 4Q24, global server shipments reached 4.0 million units, reflecting an 8% quarter-over-quarter (q/q) increase and a 25% year-over-year (y/y) increase. The growth was mainly attributed to cloud demand, with a notable acceleration from 1% q/q in 3Q24 to 8% q/q in 4Q24 [2][12]. 3. AI Server Shipments: - AI server shipments continued to rise in 4Q24, but at a slower pace compared to 3Q24 due to a transition in GPU platforms. Notably, Super Micro reported a 3% decline in shipments q/q, while Huawei's shipments surged by 93% q/q [3][4]. 4. ODM Direct Shipments: - Aggregate ODM direct shipments totaled 1,474k units in 4Q24, marking an 11% q/q increase and a 45% y/y increase. ODMs regained market share in general server markets from OEMs, with ODM direct server average selling price (ASP) rising by 15% q/q to US$24.9k [4][15]. 5. Regional Performance: - The USA outperformed other regions in 4Q24, with shipments up 42% y/y, followed by APxJ at 21% y/y, Japan at 7%, Western Europe at 2%, and Rest of World (RoW) at 1% [12][27]. 6. Segment Performance: - High-end server shipments grew by 310% y/y in 4Q24, mid-range servers increased by 109% y/y, and entry-level servers saw a 17% y/y growth. This trend aligns with the ongoing ramp of AI servers and general compute server demand [13][14]. 7. Vendor Market Share: - ODMs captured 37.3% of the market share in 4Q24, up 90 basis points q/q. Dell's market share decreased to 9.6%, while HP's share fell to 7.8%. Huawei's market share increased to 2.3%, reflecting a 100 basis point increase q/q [16][12]. Stock Implications - The report suggests a preference for component suppliers with content share gains over ODMs/OEMs. Notable companies mentioned include Delta, AVC, GCE, and Wistron, among others [7][8]. Additional Insights - The GB200 server racks began ramping production in late February 2025, with expectations to deliver 2k racks in 1Q25 and 5-8k racks in 2Q25. However, significant volumes for B300/GB300 will not be delivered until September at the earliest [5][6]. This summary encapsulates the critical insights and trends from the datacenter market, providing a comprehensive overview of the current state and future expectations within the server segment.