Data Center Accelerator Market by Processor Type (Application-Specific Integrated Circuit, Central Processing Unit, Field-Programmable Gate Array), Data Center Type (Cloud Data Centers, Colocation Data Centers, Enterprise Data Centers), Application - Glob
Data Center Accelerator Market by Processor Type (Application-Specific Integrated Circuit, Central Processing Unit, Field-Programmable Gate Array), Data Center Type (Cloud Data Centers, Colocation Data Centers, Enterprise Data Centers), Application - Global Forecast 2024-2030
The Data Center Accelerator Market size was estimated at USD 31.68 billion in 2023 and expected to reach USD 37.21 billion in 2024, at a CAGR 18.02% to reach USD 101.04 billion by 2030.
Data center accelerators are a category of hardware devices or software mechanisms designed to improve the performance and efficiency of a data center's computational processes. Integrating accelerators into a data center infrastructure allows organizations to enhance overall performance, reduce processing time for specific tasks, and lower the energy consumption per workload, leading to operational and cost savings. As businesses continue to rely on data centers for critical operations, the demand for these accelerators is expected to grow. One of the primary drivers is the escalating demand for artificial intelligence (AI) and machine learning (ML) across various industries. These technologies require substantial computing power, which accelerators provide. Additionally, the increasing volume of complex data sets necessitates the use of accelerators to facilitate rapid analysis and insights derivation. However, technical limitations of using data center accelerators and issues related to data privacy and loss of data security raise concerns regarding the safety, accuracy, and reliability of data center accelerators. Major players are exploring integrating novel technological innovations to tackle challenges related to data privacy and ensure compliance with data protection regulations. Furthermore, investments in establishing edge and hyper-scale data centers worldwide provide new avenues of growth for the data center accelerators.
Regional Insights
The Americas, mainly the U.S. and Canada, observe significant adoption of data center accelerators due to the consistent expansion of data centers and new data center establishment activities. The presence of multinational corporations significantly elevates the data center accelerator market development in the Americas. These key players have data centers spread across regions, influencing the sectors' distribution and overall market share. Accelerating digitization in countries such as China, India, and Australia has fueled the demand for data center accelerators in the Asia-Pacific region. Rapid industrial growth and an increasing focus on data analysis, elevating the data traffic and creating the need for high-volume data centers, have led to a rise in the production of these accelerators in the region. Europe, with major tech hubs such as the UK, Germany, and France, exhibits significant use of data center accelerators. Europe presents a key opportunity for the expansion of market players as the region is backed with several investments for building new edge data centers. Although still emerging, the MEA region shows potential growth in the use of data center accelerators. The rise in data centers, particularly in the Gulf Cooperation Council (GCC) countries, is set to drive future demand for data center accelerators.
Market Insights
Market Dynamics
The market dynamics represent an ever-changing landscape of the Data Center Accelerator Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
Market Drivers
Need to manage massive generation of data among large enterprises worldwide
Shift to remote working and operational scenario and rise of cloud computing activities
Government initiatives to promote smart city development
Market Restraints
Complex maintenance issues and risk of vendor lock-in
Market Opportunities
Technological advancements in the design and performance of datacenter accelerators
Rising investments in the establishment of edge and hyper-scale data centers
Market Challenges
Technical limitations of data center accelerators
Market Segmentation Analysis
Data Center Type: Adoption of accelerators in cloud data centers to optimize overall operational efficiency
Processor Type: Advancements and investments to improve the capacities of central processing unit (CPU)
Application: Rising need for data center accelerators for enterprise interface to manage and analyze large volumes of data
Market Disruption Analysis
Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis
FPNV Positioning Matrix
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Accelerator Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Accelerator Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Recent Developments
Sapeon Launches X330 Neural Processor
Sapeon Inc. introduced its advanced X330 AI Accelerator Chip, employing TSMC's sophisticated 7nm fabrication process, boasting a claim of double the performance of rival 5nm technology-based products. The new chip signifies a fourfold enhancement over Sapeon's X220, gearing it, particularly towards handling extensive tasks such as large language models.
AMD Announces AMD Instinct MI300 Accelerator Launch Event Highlighting Rapidly Expanding Ecosystem of AI Customers and Partners
Advanced Micro Devices, Inc. launched its next-generation data center GPU accelerator family to highlight the company’s growing momentum with its business offerings. With this launch, the company planned to showcase its ability to transform the AI hardware and software industry with an innovative product portfolio.
Microsoft Announces In-House Arm CPU and AI Accelerator Chips, Custom Racks
Microsoft has unveiled two innovative semiconductors, the Azure Cobalt CPU and the Azure Maia AI Accelerator, tailor-made to enhance performance in its data centers. Designed with a performance-per-watt orientation, the Cobalt CPU is an Arm-based chip aimed at handling a variety of general workloads more efficiently.
Strategy Analysis & Recommendation
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Accelerator Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the Data Center Accelerator Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Achronix Semiconductor Corporation, Advanced Micro Devices, Inc., Advantech Co., Ltd., Analog Devices, Inc., Cisco Systems, Inc., Dell Technologies Inc., Devoteam Group, Fujitsu Limited, Google LLC by Alphabet Inc., Hailo Technologies Ltd., Infineon Technologies AG, Intel Corporation, International Business Machines Corporation, Lattice Semiconductor Corporation, Lenovo Group Limited, Marvell Technology, Inc., Meta Platforms, Inc, Microchip Technology Incorporated, Micron Technology, Inc., Microsoft Corporation, Murata Manufacturing Co., Ltd., NEC Corporation, NTT Corporation, NVIDIA Corporation, NXP Corporation, Oracle Corporation, QUALCOMM Incorporated, Samsung Electronics Co., Ltd., Sapeon Inc., Skyworks Solutions, Inc., Taiwan Semiconductor Manufacturing Company Limited, and Zenlayer Inc..
Market Segmentation & Coverage
This research report categorizes the Data Center Accelerator Market to forecast the revenues and analyze trends in each of the following sub-markets:
Processor Type
Application-Specific Integrated Circuit
Central Processing Unit
Field-Programmable Gate Array
Graphics Processing Unit
Data Center Type
Cloud Data Centers
Colocation Data Centers
Enterprise Data Centers
Managed Services Data Centers
Application
Deep Learning Training
Enterprise Interface
Public Cloud Interface
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Georgia
Illinois
Kentucky
Michigan
Mississippi
New Jersey
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom
Please Note: PDF & Excel + Online Access - 1 Year
1. Preface
1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders
2. Research Methodology
2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update
3. Executive Summary
4. Market Overview
5. Market Insights
5.1. Market Dynamics
5.1.1. Drivers
5.1.1.1. Need to manage massive generation of data among large enterprises worldwide
5.1.1.2. Shift to remote working and operational scenario and rise of cloud computing activities
5.1.1.3. Government initiatives to promote smart city development
5.1.2. Restraints
5.1.2.1. Complex maintenance issues and risk of vendor lock-in
5.1.3. Opportunities
5.1.3.1. Technological advancements in the design and performance of datacenter accelerators
5.1.3.2. Rising investments in the establishment of edge and hyper-scale data centers
5.1.4. Challenges
5.1.4.1. Technical limitations of data center accelerators
5.2. Market Segmentation Analysis
5.2.1. Data Center Type: Adoption of accelerators in cloud data centers to optimize overall operational efficiency
5.2.2. Processor Type: Advancements and investments to improve the capacities of central processing unit (CPU)
5.2.3. Application: Rising need for data center accelerators for enterprise interface to manage and analyze large volumes of data
5.3. Market Trend Analysis
5.3.1. Large number of data centers, their ever-increasing demand, driven by the existence of major technology companies in the Americas
5.3.2. Development of advanced data centers coupled with increasing government initiatives to expand Industry 4.0 in the APAC region
5.3.3. Growing number of data centers with rising adoption of cloud technologies in EMEA region
5.4. Cumulative Impact of High Inflation
5.5. Porter’s Five Forces Analysis
5.5.1. Threat of New Entrants
5.5.2. Threat of Substitutes
5.5.3. Bargaining Power of Customers
5.5.4. Bargaining Power of Suppliers
5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis
6. Data Center Accelerator Market, by Processor Type
6.1. Introduction
6.2. Application-Specific Integrated Circuit
6.3. Central Processing Unit
6.4. Field-Programmable Gate Array
6.5. Graphics Processing Unit
7. Data Center Accelerator Market, by Data Center Type
7.1. Introduction
7.2. Cloud Data Centers
7.3. Colocation Data Centers
7.4. Enterprise Data Centers
7.5. Managed Services Data Centers
8. Data Center Accelerator Market, by Application
8.1. Introduction
8.2. Deep Learning Training
8.3. Enterprise Interface
8.4. Public Cloud Interface
9. Americas Data Center Accelerator Market
9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States
10. Asia-Pacific Data Center Accelerator Market
10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam
11. Europe, Middle East & Africa Data Center Accelerator Market
11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom
12. Competitive Landscape
12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
12.3.1. Sapeon Launches X330 Neural Processor
12.3.2. AMD Announces AMD Instinct MI300 Accelerator Launch Event Highlighting Rapidly Expanding Ecosystem of AI Customers and Partners
12.3.3. Microsoft Announces In-House Arm CPU and AI Accelerator Chips, Custom Racks
12.3.4. Schneider Electric and Compass Datacenters Expand Partnership with USD 3 Billion Multi-Year Data Center Technology Agreement
12.3.5. Google Announces Expansion of AI Partnership with Anthropic