AWS data center (Image courtesy of AWS)
SEOUL, June 5 (Korea Bizwire) — South Korea’s server market expanded by a staggering 72.7% in 2024 from the previous year, fueled by a sharp rise in demand for GPU-powered systems amid the rapid adoption of generative artificial intelligence, according to a report released Wednesday by IT research and consulting firm IDC Korea.
The market reached ₩5.14 trillion (approximately $3.8 billion) in total revenue, with GPU servers accounting for a significant portion of the growth. Sales of high-performance 8-GPU servers — commonly used in deep learning and supercomputing — surged, lifting the GPU server segment’s market share from 26.2% in 2023 to 45% in 2024.
IDC Korea attributed the trend to the increasing deployment of large-scale AI models in enterprise and public sectors, accelerating the shift in server architecture from CPU-centric to GPU-based systems optimized for parallel computation.
While non-GPU servers also posted strong gains, rising 29.6% year-on-year, this was largely driven by post-pandemic hardware stabilization and renewed investment in rack servers by manufacturers and digital service providers.
South Korea’s 2024 server market surge, which highlights the dominant role of GPU servers and the rapid growth of x86-based systems. (Image supported by ChatGPT)
The x86 server segment, which dominates the market and is built on Intel’s processor architecture, grew 75.6% in 2024 to reach ₩4.72 trillion. Meanwhile, the non-x86 server market — which includes ARM-based systems — also expanded by 45.7% to ₩421 billion, reflecting increased adoption in sectors such as finance, government, and defense.
“While AI-focused budgets are understandably expanding, it’s equally important that organizations maintain a balanced investment approach — upgrading legacy systems and ensuring proper maintenance alongside AI infrastructure,” said Kim Min-cheol, senior research analyst at IDC Korea.
The report suggests that as generative AI reshapes enterprise IT strategies, South Korea’s server market is likely to remain a key battleground for innovation and infrastructure scaling through 2025 and into 2026.
Kevin Lee (kevinlee@koreabizwire.com)
