Data Center Accelerator Market
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Data Center Accelerator Market size was valued at USD 8.1 billion in 2023 and is predicted to register at a CAGR of over 25% between 2024 and 2032. Rapid technological advancements in AI including deep learning and Machine Learning (ML) are driving the expansion of the market. The growing demand for accelerated computing power to handle complex AI workloads propels the development of specialized accelerators, enhancing processing capabilities. For instance, in December 2023, AMD unveiled its Instinct MI200 GPU, a high-performance AI accelerator designed to rival Nvidia's offerings. It features AMD's CDNA 2 architectures, offering advanced computing capabilities for AI workloads.
The increasing investments in the IT & telecom sector across Latin America and the Middle East & Africa (MEA) are propelling the data center accelerator market. The growing demand for high-performance computing and data processing capabilities fuels the adoption of accelerators, supporting the development of advanced data center infrastructure to meet the evolving needs of these regions. According to the International Trade Administration, the Brazilian Information Technology (IT) market was valued at USD 45.2 billion in 2022. Brazil ranks 12th in the global IT market and represents 36.5% of the Latin America market.
Report Attribute | Details |
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Base Year: | 2023 |
Data Center Accelerator Market Size in 2023: | USD 8.1 Billion |
Forecast Period: | 2024 to 2032 |
Forecast Period 2023 - 2032 CAGR: | 25 |
2023 Value Projection: | USD 65.4 Billion |
Historical Data for: | 2018 - 2023 |
No of Pages: | 284 |
Tables, Charts & Figures: | 358 |
Segments Covered: | Processor Type, Type, Application, End Use |
Growth Drivers: |
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Pitfalls Challenges: |
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Data center accelerators require specialized infrastructure to accommodate high-performance computing needs. Building and maintaining such infrastructure involve substantial costs and expertise. Meeting the demand for specialized equipment, cooling systems, and power solutions poses a challenge, necessitating significant investments from organizations to deploy and manage the necessary resources. This is impacting the scalability and accessibility of advanced data center accelerators in the market.
The COVID-19 pandemic positively impacted the data center accelerator market as it accelerated digital transformation initiatives. The surge in remote work, increased demand for online services, and advancements in AI applications for healthcare and research led to a heightened need for powerful computing solutions. This drove investments in data center infrastructure including accelerators to meet the growing computational demands, fostering market expansion amid the global health crisis.
The increasing adoption of Graphics Processing Units (GPUs) for their exceptional parallel processing capabilities is spurring the demand for GPU accelerators. GPUs excel in handling intricate computational tasks, making them pivotal in demanding applications such as AI and High-Performance Computing (HPC). Their parallel architecture enables simultaneous processing of multiple tasks, significantly enhancing performance and efficiency. As industries leverage AI and HPC for advanced data processing, GPU accelerators will gain traction in contemporary data center environments owing to their crucial role in meeting computational demands.
The expansion of cloud-based acceleration services is an emerging market trend. Cloud service providers offer specialized accelerators as part of their services, enabling organizations to remotely access high-performance computing resources. This eliminates the need for companies to manage and maintain their hardware, providing a scalable & cost-effective solution. As businesses increasingly turn to cloud-based models, these services offer a convenient and flexible way to leverage advanced acceleration technologies for various computational workloads and applications.
Based on the processor type, the CPU segment is poised to witness a CAGR of over 23% by 2032. As data centers increasingly prioritize versatile and high-performance computing solutions, Central Processing Units (CPUs) play a vital role. CPUs have the ability to handle diverse workloads efficiently. Their flexibility and compatibility make them a key component, contributing significantly to the anticipated market growth. For instance, in November 2023, Microsoft unveiled two in-house semiconductors: the Azure Cobalt CPU, designed for general workloads with a focus on energy-efficient performance, and the Azure Maia AI Accelerator, optimized for AI tasks and generative AI.
Based on the type, the data center accelerator market size from HPC accelerator segment dominated around USD 4.5 billion in 2023. As the demand for intensive computational tasks rises across industries, HPC accelerators, such as GPUs and FPGAs, gain prominence. These accelerators enhance processing speed and efficiency, making them crucial for scientific simulations, research, and data analytics. The increasing adoption of HPC solutions in data centers propels segment growth, addressing the evolving computational needs of modern applications.
North America region held approximately 35% share of the data center accelerator market in 2023, attributed to the increasing demand for advanced computing solutions. The region is characterized by a strong presence of key market players, substantial investments in technological advancements, and high adoption of data-intensive applications. The rising emphasis on AI, ML, and HPC further boosts the deployment of accelerators in data centers, contributing to the anticipated market growth in North America.
Advanced Micro Devices, Inc. and Dell Inc. are prominent players in the data center accelerator industry. These key companies in the market lead through innovation, offering cutting-edge solutions that enhance computational performance. Their advanced accelerator technologies, including GPUs and specialized processors, address the growing demand for high-performance computing, AI, and data-intensive applications. By consistently pushing the boundaries of hardware capabilities, these industry leaders contribute significantly to the evolution and advancement of data center infrastructure, catering to the complex and evolving computational needs of diverse industries.
Major companies operating in the data center accelerator industry are:
Market, By Processor Type
Market, By Type
Market, By Application
Market, By End Use
The above information has been provided for the following regions and countries:
Some do the leading data center accelerator companies are Advanced Micro Devices, Inc., Dell Inc., IBM Corporation, Intel Corporation, Lattice Semiconductor, Lenovo Ltd., Marvell Technology Inc., Microchip Technology Inc., NEC Corporation, NVIDIA Corporation, Qualcomm Incorporated, and Synopsys Inc.
The market size of data center accelerator reached USD 8.1 billion in 2023 and is set to depict over 25% CAGR from 2024 to 2032, owing to the rapid technological advancements in AI, including deep learning and ML.
North America held around 35% of the market share in 2023, attributed to the growing demand for advanced computing solutions coupled with the substantial investments for technological advancements.
The HPC accelerator segment generated more than USD 4.5 billion in 2023, due to the growing demand for intensive computational tasks across industries.