Server market revenue declining 2.5% YOY in 2Q21

Worldwide server market revenue declined 2.5% year over year to $23.6 billion during the second quarter of 2021 (2Q21), according to the International Data Corporation (IDC).

server market revenue 2Q21

Worldwide server shipments surpassed 3.2 million during the quarter, an increase of just 0.1% over the previous year.

Volume server revenue was up 5.6% to nearly $20.0 billion. Midrange server revenue declined 30.0% to $2.4 billion, and high-end servers declined by 32.7% to $1.3 billion.

“Broadly speaking, server market performance was muted in the second quarter as the market shifted slightly towards single socket server configurations,” said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC.

“While servers purchased directly from ODMs declined year over year, some past backlog recovery within the hyperscale datacenter community contributed to a large jump in this segment when compared to the first quarter of this year.”

Overall server market standings, by company

HPE/H3C ended the quarter in a statistical tie with Dell Technologies for the top position in the worldwide server market. The revenue shares for the two companies were 15.7% and 15.6% respectively.

Inspur/Inspur Power Systems ranked third with 9.4% revenue share. Lenovo was in fourth place while IBM came in at fifth, with 7.0% share and 5.0% share respectively. The ODM Direct group of vendors accounted for 26.7% of total server revenue and declined 8.8% year over year to $6.3 billion while accounting for 32.2% of all units shipped during the quarter.

server market revenue 2Q21

Top server market revenue findings for 2Q21

On a geographic basis, Asia/Pacific (excluding China and Japan) revenue was up 8.6% year over year. Server revenue in China grew 3.4% over the previous year, while Japan declined 21.2% year over year.

Latin America revenue grew 4.6%, North America revenue declined 5.7%, and Europe, the Middle East, and Africa (EMEA) revenue declined 2.3% year over year.

Revenue generated from x86 servers decreased 2.2% in 2Q21 to $21.4 billion. Non-x86 server revenue declined 4.5% year over year to around $2.3 billion.




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