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Can anyone explain whether lightning components are service side or client side component?

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The lightning component framework is a client-side framework, tightly coupled with the Salesforce server technology.

While components are of course created and compiled on the server side and use Apex as the language to define data access services, the runtime elements of lightning components are client-side and run on the browser, or web view of the client interacting with the server using its own bundled transport layer called the Action Service, the purpose of which is to optimize interactions with the server, even when those interactions are initiated by different independent components and developed by different developers (Salesforce R&D, the Salesforce customer IT team, or the AppExchange partner).

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Lightning Components provides you a Client-Server model where UI& Javascript on the client side and Apex (Aura handlers) on Server Side.

Please refer: https://developer.salesforce.com/docs/atlas.en-us.lightning.meta/lightning/

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