Data Center Accelerator Market Forecasts to 2030 – Global Analysis By Type (Cloud Accelerator, High Performance Computing Accelerator and Other Types), Processor Type (Central Processing Unit (CPU), Graphical Processing Unit (GPU), Field-programmable Gate

Data Center Accelerator Market Forecasts to 2030 – Global Analysis By Type (Cloud Accelerator, High Performance Computing Accelerator and Other Types), Processor Type (Central Processing Unit (CPU), Graphical Processing Unit (GPU), Field-programmable Gate Array (FPGA), Application-specific Integrated Circuit (ASIC) and Other Processor Types), Application, End User and By Geography

According to Stratistics MRC, the Global Data Center Accelerator Market is accounted for $31.98 billion in 2024 and is expected to reach $109.12 billion by 2030 growing at a CAGR of 22.7% during the forecast period. Data center accelerators are specialized hardware elements that accelerate and offload particular computational tasks to improve the performance and efficiency of data centers. These accelerators—which include GPUs, FPGAs, and ASICs—are designed to withstand the rigorous workloads of contemporary applications, which include big data analytics, artificial intelligence (AI), machine learning, and high-performance computing (HPC). Moreover, data center accelerators can greatly increase throughput and decrease latency by taking on demanding processing tasks from conventional CPUs.

According to the International Data Corporation (IDC), the global market for data center accelerators is projected to grow significantly over the next few years, driven by the increasing adoption of AI and machine learning technologies in various industries.

Market Dynamics:

Driver:

Growing needs for machine learning and AI

Natural language processing, image and speech recognition, autonomous cars, and other AI and machine learning applications are growing at a very fast pace, which makes them demand a lot of processing power in parallel. Rapid training times and more effective inference operations are made possible by data center accelerators, especially GPUs and specialized AI chips, which are built to handle the large datasets and intricate algorithms involved. Additionally, in order to improve decision-making, customer experience, and operational efficiency, businesses in the healthcare, finance, automotive, and retail sectors are driving this demand.

Restraint:

Complex maintenance and integration

Data center accelerator integration can be technically challenging and necessitate specialized knowledge. The requirement to guarantee compatibility with current hardware, software, and network architectures gives rise to this complexity. Furthermore, it takes advanced knowledge and resources to maintain and manage a heterogeneous computing environment with both conventional CPUs and specialized accelerators. Adoption may be hampered if organizations must spend money on expert hiring or training, which would raise operating expenses even more.

Opportunity:

Technological progress in hardware

There are a lot of opportunities due to ongoing advancements in accelerator hardware, such as the creation of GPUs, FPGAs, and customized ASICs that are more powerful and efficient. Accelerators are now more appealing for a variety of use cases due to their increased performance, energy efficiency, and application-specific optimization as a result of these developments. Moreover, newer technologies like neuromorphic computing and quantum computing may be able to work with conventional accelerators to give data centers new ways to handle tasks that are even more intricate and computationally demanding.

Threat:

Quick changes in technology

The rapid pace of technological progress in data center accelerators presents a noteworthy risk. To stay ahead of the curve, businesses must continually invest in research and development, which can require a lot of resources. There's also the chance that as newer, more sophisticated solutions appear, current technologies will quickly become outdated. Additionally, businesses may incur higher costs as a result of this rapid change since they must regularly upgrade their infrastructure to keep up with advancements in technology.

Covid-19 Impact:

The COVID-19 pandemic had a major effect on the market for data center accelerators, driving up demand for digital transformation, remote work options, and cloud services across various industries. Data center accelerators were adopted to improve performance and efficiency as a result of a surge in data generation and processing needs brought about by businesses and consumers relying more and more on digital platforms. However, the pandemic also resulted in production delays, shortages of components, and disruptions to the supply chain, which put manufacturers under pressure and slowed the adoption of new accelerator technologies.

The High Performance Computing Accelerator segment is expected to be the largest during the forecast period

The High Performance Computing (HPC) Accelerator segment holds the largest market share in the data center accelerator market. The computational power needed for demanding tasks like large-scale data analysis, intricate computations, and simulations—all essential in domains like scientific research, finance, engineering, and defense—is largely supplied by HPC accelerators. Moreover, the need for advanced modeling, artificial intelligence, and machine learning applications is driving an increasing demand for computational capabilities in these domains, which is why HPC accelerators are dominating the market.

The Graphical Processing Unit (GPU) segment is expected to have the highest CAGR during the forecast period

The Graphical Processing Unit (GPU) segment of the Data Center Accelerator Market has the highest CAGR. GPUs are becoming more and more popular because of their superior parallel processing capabilities, which make them perfect for managing the intricate computations needed by contemporary applications like machine learning, artificial intelligence (AI), and high-performance computing (HPC). Additionally, large data sets and complex algorithms can be processed quickly and efficiently thanks to their architecture, which offers a noticeable speed and performance boost over conventional CPUs.

Region with largest share:

Due to the presence of significant technology companies, a strong infrastructure, and a high demand for data processing capabilities across a variety of industries, including IT, healthcare, finance, and e-commerce, North America continues to hold the largest share of the global market for data center accelerators. Furthermore, early adoption of cutting-edge technologies such as big data analytics, machine learning, and artificial intelligence (AI) benefits the region. These technologies require strong accelerators to improve computational efficiency.

Region with highest CAGR:

The data center accelerator market's highest CAGR is seen in the Asia-Pacific region. Rapid urbanization, rising digitization in a number of industries, and the establishment of technology hubs in nations like China, India, Japan, and South Korea are the main drivers of this growth. Due to the region's growing population, widespread use of smart phones, Internet of Things (IOT) devices, and cloud computing services, there is a surge in the generation of data. Additionally, high-performance data center accelerators are becoming more and more necessary as companies in Asia-Pacific depend more and more on data-driven insights to obtain a competitive edge and manage enormous workloads effectively.

Key players in the market

Some of the key players in Data Center Accelerator market include NVIDIA Corporation, Google Inc., Cisco Systems, Inc., Qualcomm Technologies, Inc., Fujitsu, NEC Corporation, Intel Corporation, Advanced Micro Devices, Inc, Wave Computing, Meta Inc., SambaNova Systems, Inc., Leapmind Inc., Dell Inc., Micron Technology, Inc. and Huawei Technologies.

Key Developments:

In March 2024, Networking major Cisco has signed an agreement with the Karnataka government to train 40,000 people in cybersecurity skills and awareness. Women will represent half of the trained workforce to help meet the growing need for such skills as organisations bolster the cybersecurity.

In February 2024, Technology giant Google has signed its largest ever power purchase agreement (PPA) with offshore wind projects off the coast of the Netherlands as part of efforts to green its power supply and hit climate targets. Renewable power project developers are increasingly tying their electricity output to long-term PPAs to provide revenue security, while corporate buyers are keen to lock in supply and ensure they meet targets for sourcing clean power.

In September 2023, Qualcomm Technologies, Inc. announced that it has entered into an agreement with Apple Inc. to supply Snapdragon® 5G Modem?RF Systems for smartphone launches in 2024, 2025 and 2026. This agreement reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products

Types Covered:
• Cloud Accelerator
• High Performance Computing Accelerator
• Other Types

Processor Types Covered:
• Central Processing Unit (CPU)
• Graphical Processing Unit (GPU)
• Field-programmable Gate Array (FPGA)
• Application-specific Integrated Circuit (ASIC)
• Other Processor Types

Applications Covered:
• Deep Learning Training
• Public Cloud Inference
• Enterprise Inference
• Other Applications

End Users Covered:
• IT and Telecom
• Healthcare
• BFSI
• Government
• Energy
• Manufacturing
• 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 2022, 2023, 2024, 2026, and 2030
- 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