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Industry Trends
Data Center Accelerator Market size surpassed USD 5 billion in 2021 and is projected to grow at over 25% CAGR from 2022 to 2028. Rise in construction of cloud-based infrastructures is boosting the industry growth.
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Compute intensive technologies such as cloud computing and AI require high performance data center accelerator solutions for the seamless execution of advanced technologies. The innovations in AI technology are enhancing and improvising cloud server setups. The cloud computing has grown significantly as a result of an increase in the data volume sent to the cloud from customers.
The increase in AI-centric data has resulted in the proliferation of accelerators built in servers. Accelerators offered by industry players improve data processing at servers by lowering latency. The increased use of cloud-based technology is augmenting the need for deep learning, which is driving the data center accelerator market expansion.
However, the relaxations in lockdowns in the second half of 2020, helped in the gradual streamlining of global supply chains, in turn fueling the industry outlook. The increasing adoption of digital technologies such as video conferencing and video on-demand during the lockdowns has encouraged market players to focus on R&D associated with solutions that enhance data center operations. Data center operators are incorporating advanced technologies to improve operational efficiency and ensure fast and real time data transfer.
Report Coverage | Details |
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Base Year: | 2021 |
Market Size in 2021: | 5.5 Billion (USD) |
Forecast Period: | 2022 to 2028 |
Forecast Period 2022 to 2028 CAGR: | 26% |
2028 Value Projection: | 25 Billion (USD) |
Historical Data for: | 2018 to 2021 |
No. of Pages: | 300 |
Tables, Charts & Figures: | 329 |
Segments covered: | Processor Type, Type, Application, End-Use, Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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Rise in penetration of IoT devices in the United States
The U.S. Field Programmable Gate Arrays (FPGA) segment in the data center accelerator market is expected to witness 25% growth rate through 2028. Market leaders are offering FPGA that meets the high efficiency and low power operational requirements of a specific application, resulting in a high-performance-to-cost ratio. FPGA flexible protocol switching/bridging and secure remote in-field updates support a wide range of constantly developing IoT gateway needs.
Growing importance of data center accelerators usage in enterprise interface
The data center accelerator market demand in enterprise interfaces is increasing globally owing to need for hardware & software streamline monitoring and maintenance through an efficient OpEx model. The end-to-end accelerated computing platform, which is integrated in the hardware and software provides organizations with a blueprint for a robust & secure infrastructure.
Leading data center accelerator market participants are offering solutions used for data management, development, governance, and services. Data center accelerators in enterprise interface provide comprehensive data capabilities to assist in making corporate data more flexible, efficient, reliable, and secure.
The exponential rise in autonomous vehicles in Germany
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The data center accelerator market in Germany is estimated to attain 20% gains from 2022 to 2028 led by the growing number of autonomous vehicles that use cloud technology. By using the cloud technology, autonomous cars can communicate with one another to prevent accidents and update traffic information & maps. Increasing government initiatives to stimulate digitalization in the automotive sector will aid the regional growth.
Automotive manufacturers are using computer-aided engineering (CAE) HPC data centers to enable the seamless implementation of autonomous technologies. This factor will influence the data center accelerator market, enabling the development of technologically advanced vehicles and compute capabilities.
Increasing use of data driven technologies
Introduction of new technologies such as 5G, IoT, virtual & augmented reality, and AI & ML is propelling the data center accelerator market demand to meet massive data processing & low latency requirements. Several telecommunication service providers are extensively using GPU machine learning algorithms in data center servers to reduce model training durations, forecasting, and detecting anomalies. The growing number of social media platforms and video content services in the telecom industry is influencing data traffic prompting organizations to develop accelerated analytics and visualization tools to prevent data losses and improve business operations & integrity.
Soaring acceptance of cloud computing in APAC
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Asia Pacific data center accelerator market is poised to account for 30% of revenue share through 2028 due to the rising number of cloud data centers in the region. Hybrid cloud is being increasingly used by regulated industries as it allows them to keep their data in a private cloud while building, running, and testing workloads on a public cloud. The APAC industry is perceiving a boost in cloud computing usage owing to the increased availability of trained labor and focused attention offered by SMEs and major organizations to enter & expand in this region. Organizations are aiming to improve application performance and customer experience, through implementation of data center accelerators.
New product launches with high computation capacity and innovative features form a key strategy amongst the players
Key companies operating in the market include Achronix Semiconductor, Advanced Micro Devices, Inc., Advantech Co., Ltd., Fujitsu Ltd., Dell Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lattice Semiconductor, Lenovo Ltd., Marvell Technology Inc., Microchip Technology Inc., Micron Technology, Inc., NEC Corporation, NVIDIA Corporation, Qualcomm Incorporated, Skyworks Solutions Inc., Synopsys Inc., Western Digital Corporation, and Xilinx Inc. Industry leaders are focusing on expanding their product offerings by introducing new data center accelerator solutions to enhance compute density.
This market research report on data center accelerator includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2028 for the following segments:
Market, By Processor Type
- Central Processing Unit (CPU)
- Graphic Processing Unit (GPU)
- Field Programmable Gate Array (FPGA)
- Application Specific Integrated Circuit (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
- Manufacturing
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Poland
- Benelux
- Nordics
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Singapore
- Latin America
- Brazil
- Mexico
- MEA
- GCC
- South Africa
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