Data Center Accelerator Market is projected to advance at a CAGR of 22.5% from 2024 to 2031

According to Transparency Market Research, the global data center accelerator market was valued at US$ 14.4 billion in 2022 and is projected to experience significant growth, with a robust compound annual growth rate (CAGR) of 22.5% from 2024 to 2031. By 2031, the market is forecasted to reach US$ 89.8 billion.

In the realm of high-performance computing (HPC), intricate calculations demand rapid processing power and substantial memory resources, typically found in specialized, sizable data centers. HPC applications often involve vast amounts of data, necessitating extensive storage capacity, which is readily available in data centers.

The rising adoption of artificial intelligence (AI) and autonomous vehicles is driving the need for powerful processors, accelerators, faster memory, and high-speed networking technology. Consequently, this surge in demand is expected to fuel the growth of the data center accelerator market in the foreseeable future.

Efficient high-speed networking is another integral aspect of high-performance computing (HPC), facilitating rapid data transmission and communication among different nodes within an HPC system. Data centers play a crucial role in providing the necessary high-speed links for such operations.

Accelerators, specialized hardware components designed to enhance specific tasks such as scientific simulations or machine learning, are key to HPC performance. Examples of accelerators include GPUs and Field Programmable Gate Arrays (FPGAs).

The infrastructure of data centers is meticulously crafted to accommodate these accelerators, ensuring optimal speed and scalability for HPC endeavors. As demand for HPC continues to surge, the market value of data center accelerators is witnessing significant growth.

Key Findings of the Market Report

The GPU category is projected to dominate the industry over the forecast period.

The rise of the data center accelerator industry is being driven by an increase in the use of artificial intelligence and machine learning technologies.

The data center accelerator market is growing as more businesses across sectors depend on these services for operational needs.

Data center accelerators improve these AI services' capabilities by accelerating data processing, which enables companies to provide insights more quickly.

Market Trends for Data Center Accelerators

During the projected period, it is anticipated that the GPU type segment will dominate the market. GPUs have become the preferred accelerator in modern data centers due to their benefits in managing big data demands and complicated computations.

Contrary to CPUs, which can only manage a few threads quickly, graphics processing units (GPUs) are built to do several processes simultaneously. For AI and ML tasks, which frequently include analyzing massive data sets, this parallel processing is quite advantageous.

The majority of AI and ML frameworks, including TensorFlow and PyTorch, include strong GPU acceleration support. GPUs are a desirable choice for learning and inference because of this interoperability. GPUs are used in the infrastructure of major cloud providers like Amazon Web Services, Google Cloud, and Azure to power their AI and ML systems.

Data Center Accelerator Regional Market Outlook

Various reasons are propelling the growth of the data center accelerator market in different regions. The are:

From 2023 to 2031, Asia Pacific is anticipated to have the greatest share. The market dynamics of the area are being fueled by the rise in digital content consumption and the increase in data usage in China, Japan, India, and South Korea.

Market demographics in North America are significantly augmented by the presence of digital giants, considerable investments in data management, and the quick adoption of new technologies. A significant market in the area for data center accelerators is the United States.

Market Segmentations

By Type: CPU, GPU, ASIC, FPGA, Others

Application: Advance Data Analytics, AI/ML Training and Inference, Computing, Security and Encryption, Network Functions, Others

Region: North America, Europe, Asia Pacific, Middle East & Africa, South America

Competitive Analysis

Major manufacturers are creating powerful and affordable accelerators to expand their market share within the data center accelerator space. Companies that specialize in data center accelerators set themselves apart by offering specific ML services, AI applications, and tools. They are also creating accelerators for data centers that use less energy.

Leading companies in this sector include Advanced Micro Devices, Advantech Co., Ltd., Cisco Systems, Inc., Dell Inc., Enflame Technology, Fujitsu, Alphabet Inc., Graphcore, Gyrfalcon Technology Inc., Huawei Technologies, Intel Corporation, Lattice Semiconductor, Leapmind Inc., Marvell, Meta Inc., Microchip Technology Inc., NEC Corporation, NVIDIA Corporation, Qnap Systems, Inc., Qualcomm.

Recent Developments

NVIDIA unveiled its Data Center Platform Play during GTC 2023 in March of 2023. This launch offers cutting-edge technology and solutions to meet varied computing needs as part of a holistic plan to handle various data center requirements.

The newest chip from Meta Inc. was given the moniker "Meta Training and Inference Accelerator (MTIA)" in 2023. It is intended to increase the efficiency of AI inferencing and training activities.

A four-year plan for Intel's data center strategy, centered on a trilogy of Infrastructure Processing Unit (IPU) generations, was created in 2023. Each successive generation combines an ASIC with an FPGA.

These insights are based on a report on Data Center Accelerator Market by Transparency Market Research.

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