Data Center Accelerator Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Report ID: GMI4500

Summary Methodology

Data Center Accelerator Market size is projected to grow immensely between 2020 and 2026 owing to rising evolution of technologies such as AI and machine learning, generating the demand for cognitive computing technology across various industry verticals.

The demand to increase networking bandwidth and optimize AI workloads in High Performance Computing (HPC) data centers is propelling the data center accelerator market growth. The data center operators have to manage complex data sets & analytics workloads with optimal performance and rapid efficiency. The accelerators provide modern data centers the power to speed up deep learning, machine learning, and HPC workloads. They enable data center administrators to lower TCO and provide a significant increase in the performance of data centers. Moreover,  accelerators and processors in data centers consume less power due to their resource-sharing with the main processor, offering cost and power efficiency benefits.

The growing focus on parallel computing in AI data centers will further propel the market growth. The rise in the adoption of neural networks & machine learning has led to an increased demand for parallel computing in data centers to speed up AI algorithms. Parallel computing has proved to be beneficial for the implementation of AI and deep learning interfaces. Enterprises are increasing the adoption of customized & application-specific accelerators to scale the computational power of conventional systems in data centers. Moreover, the proliferation of sensors, rise in data loads, and the evolution of complex deep learning continues to increase computational demands, driving the data center accelerator market growth.

The Graphics Processing Units (GPUs) are witnessing high demand in the market, enabling data centers to handle more powerful AI applications. GPUs help to enhance performance for data center applications that require large data sets and complex math functions such as big data analysis, machine learning, image recognition, parallel processing, and SQL database calculation. It helps organizations to accelerate workflows and graphic-intensive applications. Several companies are innovating GPUs for servers to cope up with demanding HPC & hyperscale data center workloads. For instance, in September 2018, NVIDIA Corporation launched Tesla T4 GPUs, which enabled hyperscale data centers to scale its AI-based products & services.

The deep learning training is expected to hold the largest share of the data center accelerator market during the forecast period. The hyperscale cloud-based companies, such as Google, and Facebook, have developed a deep learning interface, which can be used to build, train, and deploy machine learning models for cloud and mobile apps. For instance, in October 2017, Microsoft Corporation and Amazon Web Services launched Gluon, a deep learning library for developers to learn machine learning. The interface offers built-in components that can be connected to form neural networks. With the increasing prominence of deep learning, manufacturers are offering specialized hardware units to accelerate these tasks. For instance, Intel Corporation is offering Deep Learning Interface Accelerator (DLIA) to accelerate workloads for computer vision & machine learning applications.

Increasing adoption of cloud-based business applications and workloads has forced enterprises to shift towards cloud accelerator service platform to optimize application performance and ensure end-user experience. Enterprises are experiencing concerns regarding the volatile performance of cloud workloads, which will impact business efficiency. The performance of cloud workloads depends on network latency as data takes a longer time to travel from distant locations. Also, inefficient bandwidth allocation may impact the performance of modern workloads. In such cases, cloud accelerator allows organizations to rapidly deliver content to end-users or consumers. It enables enterprises to build competencies and accelerate transition to cloud, increasing the time to market, delivering the maximum value to the business, and reducing latency & enhancing scalability.

The rising smartphone penetration and adoption of advanced technologies, such as big data and IoT, will increase the data center accelerator market demand in IT & telecom applications. Telecom service providers are implementing GPU-accelerated machine learning algorithms in data center servers to speed up model training times, predict the future, and detect anomalies. The rise in social media platforms and streamline video content trends in the telecom industry are resulting in increased data traffic, motivating the companies to adopt accelerated analytics and visualization platforms to minimize the loss of data and ensure business continuity & security. Various companies, such as CenturyLink, Inc. and Telecom Italia, are expanding their presence in several regions, driving the market growth.

The Asia Pacific data center accelerator market is expected to witness the highest CAGR during the forecast time. The growth is mainly attributed to the emerging markets, such as India and China, attracting large-scale service providers to deploy cloud-based data centers in the region. The increased adoption of cloud storage and the growing efforts for improving energy efficiency are also driving the r market growth. Moreover, the increasing government initiatives such as ‘Make in India’, Digital India, Made in China, and Innovation Japan for technological developments have led to the increased adoption of IoT, big data analytics, and cloud-based services in the region, increasing the demand for data centers

Some of the key players operating in the data center accelerator market include Achronix Semiconductor Corporation, Advanced Micro Devices Inc., Cisco Systems Inc., Dell Technologies Inc., Fujitsu Limited, Hewlett Packard Enterprise Company, IBM Corporation, Intel Corporation, Lenovo Group Ltd, NVIDIA Corporation, Oracle Corporation, and Xilinx Inc. These companies are investing huge amounts in R&D activities, which help them to offer innovative products in the market. For instance, in November 2018, Advanced Micro Devices Inc. announced the launch of Radeon Instinct MI60 and MI50 accelerators based on 7 nm GPU. They are designed to deliver the compute performance required for several next-generation applications such as cloud computing, HPC, and deep learning.

Data Center Accelerator Market by Processor Type

  • CPU
  • GPU
  • FPGA
  • ASIC

Market by Type

  • HPC Accelerator
  • Cloud Accelerator

Market by Application

  • Deep Learning Training
  • Public Cloud Interface
  • Enterprise Interface

Market by End Use

  • IT & Telecom
  • Healthcare
  • BFSI
  • Government
  • Energy
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa (MEA)
    • GCC
    • South Africa

What Information does this report contain?

Historical data coverage: 2015 to 2019; Growth Projections: 2020 to 2026.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.

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