Global Data Center Accelerator Market By Type (HPC Data Center and Cloud Data Center), By Processor Type (GPU, CPU, FPGA, and ASIC), By Application, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Data Center Accelerator Market was valued at USD 16.0 Billion and is expected to reach USD 130.3 billion in 2032. This market is estimated to register the highest CAGR of 24% between 2023 to 2032.

The data center accelerator is the hardware device or software program that is used to boost the performance of computer systems to process high-level visual data. Moreover, the data center accelerators also support increasing the consumer demand for the data and improving the use of artificial intelligence-based services to fuel the demand for AI-based data centers. It also helps to enhance the performance of the data center. The increasing demand for high-performance applications, growing artificial intelligence use in HPC data centers, and developing cloud-based services are increasing the demand for data center accelerators in the market.

Note: Actual Numbers Might Vary In The Final Report

The increasing adoption of artificial intelligence, machine learning, the Internet of Things, and big data analytics is increasing the demand for data center accelerators in the market. With the increasing volume of data with each passing day, the data centers have started to overflow.

To tackle this problem, the operators are working on the exploration of advanced solutions to optimize data management and massive data-driven tasks. This is helping the data center accelerator market to grow. The increasing applications of the data center accelerators in public cloud interface, deep learning interface, and enterprise interface are boosting the growth of the data center accelerator market over the last few years.

Key Takeaways

• Market Size Projection: The Data Center Accelerator Market is anticipated to reach a substantial value of USD 130.3 billion by 2032.
• Projected CAGR: The market is estimated to exhibit a high Compound Annual Growth Rate (CAGR) of 24% during the period from 2023 to 2032.
• Restraining Factors: The high costs and energy consumption associated with data center accelerators are hindering their widespread adoption, especially in developing and underdeveloped countries.
• Market Segmentation by Type: The market is divided into two main segments – HPC Data Center and Cloud Data Center. The Cloud Data Center segment dominates the market, primarily due to the increasing adoption of multi-cloud and hybrid cloud architecture by industries.
• Processor Types and Market Share: The market includes several processor types such as GPU, CPU, FPGA, and ASIC. Among these, CPU holds the leading position due to its widespread use and benefits across various industries.
• Application Segmentation and Market Leadership: The applications of data center accelerators are categorized into public cloud interface, deep learning interface, and enterprise interface. The deep learning interface holds the largest share, driven by its increasing utilization in the automotive sector for applications such as voice assistance and image recognition.
• Regional Analysis and Market Dominance: North America leads the market, accounting for a major revenue share of 38.4%, followed by the Asia Pacific region, which is expected to exhibit the highest CAGR during the forecast period.
• Key Players: Major companies operating in the Data Center Accelerator Market include NVIDIA Corporation, Intel Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, and more. These key players are focusing on various strategies such as collaboration, partnerships, and acquisitions to strengthen their position in the market.

Driving Factors

Increasing Cloud-Based Services Driving the Growth of the Global Data Center Accelerator Market

The increasing customer-centric demand for improved performance in applications and growing cloud-based services are driving the growth of the data center accelerator market. Many enterprises across the world have started to adopt data center accelerators in order to reduce the workload on the data centers and boost performance.

Enterprises are shifting their work from on-premise services to cloud-based services. This has significantly increased the demand for the data center accelerator in the market. The increasing data storage demand due to the huge amount of data generation across the world has forced businesses to optimize their workload and improve their services. Moreover, the increasing penetration of the internet across the world has made businesses adopt data center accelerators for a seamless and improved experience.

Restraining Factors

High Costs and High Energy Consumption Obstructing the Growth of the Data Center Accelerators Market

The data center accelerators require a modified and developed infrastructure for seamless working. Many developing and underdeveloped countries across the world lack the infrastructure for data centers. This is restraining the growth of the data center accelerators market. The accelerators offer many benefits to the data centers, like offloading the processing of the data centers. But the high cost of the accelerators restricts the data centers from adopting their accelerators.

Moreover, the high energy consumption from the accelerators is a big problem for businesses. The accelerators process huge amounts of data, which requires a lot of energy to work. Also, the high processing by the accelerators makes it essential for businesses to arrange the proper cooling system for the accelerators. All these factors are restraining the growth of the data center accelerator market.

By Type Analysis

High Costs of HPC and Increasing Cloud Based services are Driving the Growth of Cloud Data Centers in the Market

The global data center accelerator market is divided into HPC data centers and cloud data centers on the basis of type. From these types, the cloud data center dominates the type segment in the global data center accelerator market. The growth of the cloud data center is attributed to the increasing adoption of the multi-cloud and hybrid cloud architecture by the industries.

Many businesses are switching to cloud-based data centers due to problems of high computing and increasing HPC workload. The HPC needs a huge initial investment and has more repair and maintenance costs than the cloud data centers. Therefore, businesses are moving towards cloud data centers to avoid the problems of HPC data centers.

Note: Actual Numbers Might Vary In The Final Report

By Processor Type Analysis

The Widespread Use of CPU Across Various Industries to Aid in the Market Growth

Based on the processor, the data center accelerator market is classified into CPU, GPU, FPGA, and ASIC. Among these processor types, the CPU leads the processor segment of the data center accelerator market. The growth of the CPU in the processor type segment is due to the widespread use of the CPU and the benefits offered by it. The CPU accelerators in data centers are mainly used in healthcare, retail, manufacturing, and many other industries for their benefits. This widespread use of CPUs is boosting the growth of the CPU in the processor-type segment of the data center accelerator market.

After CPU, the FPGA segment is anticipated to grow at the highest CAGR over the forecast period. Major players in the cloud service providers are highly adopting the FPGA for processing assets. This will significantly boost the growth of the FPGA segment during the forecast period.

By Application Analysis

The Increasing Use of Deep Learning Interfaces in the Automotive Industry is Driving the Growth of the Data Center Accelerator Market

The data center accelerator market is classified into public cloud interface, deep learning interface, and enterprise interface. Out of these applications, the deep learning interface leads the market with a major share of the account. The growth of the deep learning interface segment is owing to the increasing use of deep learning interfaces across various industries for its benefits. The deep learning interface is widely used in the automotive sector for voice assistance, image recognition, self-driving cars, and many such applications. All these key factors are driving the growth of the deep learning interface in the application segment of the data center accelerator market.

Market Key Segments

By Type

• HPC Data Center
• Cloud Data Center

By Processor Type

• GPU
• CPU
• FPGA
• ASIC

By Application

• Public Cloud Interface
• Deep Learning Interface
• Enterprise Interface

Growing Opportunities

Increasing Adoption of Machine Learning in the Data Centers is Expected to Create Many Opportunities in the Market

The increasing demand for artificial intelligence in systems across various industries is creating many opportunities in the market. Many new companies are entering the market to offer machine learning for cloud services. The use of machine learning in the data center accelerators contributes to the predictive and preventive maintenance of the data centers. It can also be used to monitor network congestion, disk utilization, and server performance. Due to all these uses and benefits of machine learning, it is anticipated to create many opportunities in the data center accelerator market over the forecast period.

Latest Trends

The Rising Adoption of FPGAs Across Various Industries is Boosting the Growth of the Market

The ongoing trend of adopting field programmable gate arrays (FPGA) across industries is boosting the growth of the data center accelerator market. The FPGAs are pre-fabricated silicone devices that can be transformed electrically into any type of digital system. Additionally, the FPGAs provide cheaper solutions and faster time as compared to application-specific integrated circuits (ASIC). Therefore, businesses prefer the FPGAs over others in the competition. This trend of FPGA is boosting the growth of the data center accelerator market.

Regional Analysis

North America Leads the Market with Major Revenue Share in Account.

North America dominates the data center accelerator market by accounting for a major revenue share of 38.4%. This growth in North America is owing to the presence of major key players in countries like the United States and Canada. The presence of developed technology and infrastructure in the region is the leverage for the North American region to dominate over the other regions in the market. All these factors are boosting the growth of the data center accelerators market in North America.

After North America, the Asia Pacific region is anticipated to grow at the highest CAGR over the forecast period. The increasing adoption of cloud-based services like big data analytics and the Internet of Things is expected to drive the growth of the Asia Pacific region in the global data center accelerator market during the forecast period.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Market Share & Key Players Analysis:

The global data center accelerator market is fragmented between many companies offering data center accelerators. Major players in the market are focusing on the implementation of different strategies like collaboration, partnership, mergers, and acquisition to expand their share in the global market and strengthen their position in the market. Some of the key players in the data center accelerator market are NVIDIA Corporation, Intel Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, Advantech Co. Ltd., Western Digital Technologies, Micron Technology Inc., Marvell, Achronix Semiconductor Corporation, Dell Inc., other key players.

Key Players in Data Center Accelerator Market:

• NVIDIA Corporation
• Intel Corporation
• Qualcomm Technologies Inc.
• Advanced Micro Devices Inc
• Advantech Co. Ltd.
• Micron Technology Inc.
• Western Digital Technologies
• Marvell
• Achronix Semiconductor Corporation
• Dell Inc.
• Other Key Players

Recent Developments

• In October 2020, NVIDIA Corporation announced their new GPU software, which enhances the performance with the help of NVIDIA ampere architecture. This newly introduced software has the features to support the NVIDIA A100 Tensor Core GPU with NVIDIA Virtual Computer Server software.
• In March 2022, Advanced Micro Devices Inc acquired Pensando Systems. Pensando’s distributed service platform would add the DPU to AMD’s data center product range.

Report Scope