Data Center Accelerator Market Forecasts to 2028 – Global Analysis By Processor (Graphical Processing Unit (GPU), Application Specific Integrated Circuit (ASIC), Central Processing Unit (CPU), Field Programmable Gate Array (FPGA) and Other Processors), Type (Cloud Accelerator, High Performance Computing Accelerator and Other Types), Application, End User and By Geography
According to Stratistics MRC, the Global Data Center Accelerator Market is accounted for $21.2 billion in 2022 and is expected to reach $87.6 billion by 2028 growing at a CAGR of 26.67% during the forecast period. A data center accelerator is a software program or hardware device which enhances the overall performance of the computer by processing visual data. They generally help in increasing the consumer-centric data demand and enhancing the use of artificial intelligence (AI)-based services to propel the demand for AI-driven data centers, this, in turn, improves the performance of data center. It includes processing, storage, and communication resources. It offers solutions used for data management, development, governance and services. It provides comprehensive data capabilities to assist in making corporate data more flexible, resourceful, secure and consistent.
According to the International Energy Agency, the global data center electricity use was between 200 and 250 terawatt per hour that is up to around 1% of total electricity demand.
Market Dynamics:
Driver:
Increasing use of data driven technologies
Introduction of new technologies such as 5G, IoT, virtual & augmented reality, and AI & ML is propelling demand to meet massive data processing & low latency requirements. The increasing 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 is anticipating the market growth.
Restraint:
Need for specialized infrastructure
Date centers require highly specialized infrastructure. It requires networking equipment such as routers, switches, firewall, SAN, biometric system and storage applications. It must include complete listing of necessary components. This specialized equipment becomes restraining factor for the growth of the market.
Opportunity:
Soaring acceptance of cloud computing
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. Organizations are aiming to improve application performance and customer experience, through implementation of data center accelerators for propelling the growth of the market.
Threat:
High electricity consumption by data centers
Data storage increased the convenience of working online and this led to a rapid boom in data center investment. Increased use of cloud computing and creation of need to be processed paved the way for high power demand. The high power consumption will remain a challenge for the market growth.
Covid-19 Impact
The COVID-19 pandemic has posed additional stress on the overall economy across sectors. It has also shifted focus towards a digital economy. This made cloud computing providers to invest in billions in building next-generation data centers to support digital transformation needs in a “post-pandemic world. Pandemic created positive impact on this market.
The high performance computing accelerator segment is expected to be the largest during the forecast period
The high performance computing accelerator segment is estimated to have a lucrative growth, due to their high-density server racks. HPC consumes more electricity than standard computers due to more powerful processors and higher server density, as well as more cooling requirements. It includes industries such as automotive, energy, aerospace, and pharmaceuticals.
The field programmable gate arrays segment is expected to have the highest CAGR during the forecast period
The field programmable gate arrays segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the fact that they combine the best parts of processor-based systems and application-specific integrated circuits. They provide cheaper solutions and can be even reprogrammed to the desired application requirements after manufacturing as they are silicon devices that can be programmed electrically.
Region with highest share:
North America is projected to hold the largest market share during the forecast period owing to the strong deployment of hybrid cloud technology. This region has the highest number of data centers globally and is witnessing robust growth in terms of volume of big data and traffic due to the increase in the number of hyper scale data centers.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the growing demand for sophisticated services and infrastructure in this particular region. Rapid adoption of industrial automation especially in the manufacturing sector with increasing penetration of digitization, Industrial IoT (IIoT), and Industry 4.0 are leading to heavy consumption of data. And also rising number of SMEs are a few of the major factors driving revenue growth of the market in this region.
Key players in the market
Some of the key players profiled in the Data Center Accelerator Market include Alphabet (Google), Micron Technology, Inc, Advanced Micro Devices, Marvell Technology Inc, Nvidia Corporation, IBM Corporation, Achronix Semiconductor, Fujitsu, Intel Corporation, Dell Inc, Xilinx Inc, NEC Corporation, Qualcomm Technologies, Cisco Systems Inc, Advantech Co Ltd, Huawei Technologies Co. Ltd, Lattice Semiconductor, Lenovo Ltd, Microchip Technology Inc, Skyworks Solutions Inc, Synopsys Inc, Western Digital Corporation
Key Developments:
In January 2021, NVIDIA Corporation expands vGPU software to accelerate workstations, AI compute workloads. With the company’s virtual GPU (vGPU) technology, enterprises can provide their employees with more power and flexibility through GPU-accelerated virtual machines from the data center or cloud.
In November 2020, Advanced Micro Devices Inc. launched the new AMD Instinct MI100 accelerator with ROCm 4.0 open ecosystem support and showcased a growing list of AMD EPYC CPU and AMD Instinct accelerator-based deployments and highlighted its collaboration with Microsoft Azure for HPC in the cloud.
Processors Covered:
• Graphical Processing Unit (GPU)
• Application Specific Integrated Circuit (ASIC)
• Central Processing Unit (CPU)
• Field Programmable Gate Array (FPGA)
• Other Processors
Types Covered:
• Cloud Accelerator
• High Performance Computing Accelerator
• Other Types
Applications Covered:
• Enterprise Interface
• Public Cloud Interface
• Deep Learning Training
• Other Applications
End Users Covered:
• Manufacturing
• Government
• Healthcare
• Energy
• BFSI
• Telecom
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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