What Has Been the Growth Trajectory for the Data Center Accelerator Market in Recent Years?
The data center accelerator market has seen considerable growth due to a variety of factors.
• The size of the data center accelerator market has seen a significant surge in recent times. Its growth is expected to continue, rising from $26.38 billion in 2024 to an estimated value of $36.22 billion in 2025, with a compound annual growth rate (CAGR) of 37.3%.
The increase observed during the historical period can be linked to the amplified demands for data processing, the need for improved energy efficiency, the adoption of deep learning, as well as data center consolidation.
How Does the Forecast Look for the Data Center Accelerator Market?
The data center accelerator market is expected to maintain its strong growth trajectory in upcoming years.
• Experts predict that the data center accelerator market will experience substantial growth in the forthcoming years, with its value projected to reach $143.45 billion by 2029, reflecting a compound annual growth rate (CAGR) of 41.1%.
Factors contributing to this growth are anticipated to be customization and scalability, increased security necessities, demand for low-power accelerators, needs for real-time analytics, and security acceleration solutions. The forecast period is expected to see key trends such as the rising utilization of graphic processing units (GPUs), the proliferation of high-performance computing (HPC) applications, integration with cloud-based services, collaboration towards standardization, and acceleration of edge computing.
What Are The Leading Drivers Of Growth In The Data Center Accelerator Market?
An upsurge in the need for cloud-based solutions is likely to drive the expansion of the data center accelerator market in the foreseeable future. Services over the internet or via exclusive networks, known as cloud-based services, assist in offering on-demand facilities and are handy in facilitating payments. These services tend to enhance operational competence, leading several firms to adopt cloud infrastructure to enhance their operation efficiency. By leveraging cloud servers, substantial data storage can be achieved providing effortless access to this data. Consequently, due to the escalating demand for these services, data center accelerator market is set to grow. For instance, as per Forbes, an American business magazine, IBM's stocks have seen an uptick of over 17% from the beginning of the year, outperforming the Nasdaq-100. This rise is propelled by increased traction toward artificial intelligence and expected recovery of IT expenditure by 2024. IBM's Q4 2023 results beat estimations, recording a 4% annual increase in revenue to $17.4 billion and earnings around $3.87 a share. This signifies that the increased demand for cloud-based services is acting as a catalyst for the data center accelerator market expansion.
How Are The Segments Defined Within The Global Data Center Accelerator Market?
The data center accelerator market covered in this report is segmented –
1) By Processor Type: CPU (Central Processing Unit), GPU (Graphics Processing Unit), FPGA (Field-Programmable Gate Array), ASIC (Application-specific Integrated Circuit)
2) By Type: HPC Accelerator, Cloud Accelerator
3) By Application: Deep Learning, Public Cloud Interface, Enterprise Interface
4) By End-User: Telecommunication &IT, Healthcare, BFSI, Government, Energy, Other End Users
Subsegments:
1) By CPU (Central Processing Unit): Server CPUs, Workstation CPUs
2) By GPU (Graphics Processing Unit): General-Purpose GPUs, Deep Learning GPUs, Gaming GPUs
3) By FPGA (Field-Programmable Gate Array): High-Performance FPGAs, Low-Power FPGAs
4) By ASIC (Application-Specific Integrated Circuit): Mining ASICs, AI And Machine Learning ASIC
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How Are New Trends Expected To Influence The Growth Of The Data Center Accelerator Market?
Key players in the data center accelerator market are employing strategic alliances to co-create data center accelerator chips to augment their market profit. Such partnerships are leveraged to initiate superior solutions, like co-engineered chips, aimed at bolstering data center productivity. For instance, in October 2022, Intel Corporation, an American semiconductor entity, collaborated with Google LLC, a US-based tech firm, to collectively introduce the E2000 chip, a mutually engineered chip aimed at enhancing data center productivity. The E2000 is an infrastructure processing unit (IPU) that allows the CPU to perform computations by taking over network processing tasks. It also introduces an extra layer of security for various cloud service consumers by encrypting their data. This chip is part of Google's newest virtual machine offering, the C3 VM, which is powered by Intel's 4th-generation Xeon CPUs.
Who Are the Key Players in the Data Center Accelerator Market?
Major companies operating in the data center accelerator market include:
• Intel Corporation
• Fujitsu Limited
• Advanced Micro Devices Inc.
• Achronix Semiconductor Corporation
• Google LLC
• International Business Machines Corporation
• Micron Technology Inc.
• Advantech Co. Ltd.
• Hewlett-Packard Development Company
• Cisco Systems Inc.
• NEC Corporation
• Lenovo Group Limited
• NVIDIA Corporation
• Mellanox Technologies
• SambaNova Systems Inc
• Habana Labs Ltd.
• Groq Inc.
• Cerebras Systems Inc.
• Graphcore Ltd.
• BrainChip Holdings Ltd.
• Flex Logix Technologies Inc.
• Ampere Computing LLC
• Hailo Technologies Ltd.
• Lightmatter Inc.
• Esperanto Technologies Inc.
• Blaize Inc.
• Quadric Inc
• GreenWaves Technologies SAS
• Xelera Technologies GmbH
• Mythic Inc.
• Silexica GmbH
• Tensor Networks Inc.
What Is The Most Dominant Region In The Data Center Accelerator Market?
North America was the largest region in the data center accelerator market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center accelerator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
