Data Center Accelerator Market Size - By Processor Type (CPU, GPU, FPGA, ASIC), Type (HPC Accelerator, Cloud Accelerator), Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface), End-Use, Regional Outlook & Forecast, 2024 – 2032

Data Center Accelerator Market Size

Data Center Accelerator Market size was valued at USD 8.1 billion in 2023 and is predicted to register at a CAGR of over 25% between 2024 and 2032. Rapid technological advancements in AI including deep learning and Machine Learning (ML) are driving the expansion of the market. The growing demand for accelerated computing power to handle complex AI workloads propels the development of specialized accelerators, enhancing processing capabilities. For instance, in December 2023, AMD unveiled its Instinct MI200 GPU, a high-performance AI accelerator designed to rival Nvidia's offerings. It features AMD's CDNA 2 architectures, offering advanced computing capabilities for AI workloads.
 

The increasing investments in the IT & telecom sector across Latin America and the Middle East & Africa (MEA) are propelling the data center accelerator market. The growing demand for high-performance computing and data processing capabilities fuels the adoption of accelerators, supporting the development of advanced data center infrastructure to meet the evolving needs of these regions. According to the International Trade Administration, the Brazilian Information Technology (IT) market was valued at USD 45.2 billion in 2022. Brazil ranks 12th in the global IT market and represents 36.5% of the Latin America market.

Data center accelerators require specialized infrastructure to accommodate high-performance computing needs. Building and maintaining such infrastructure involve substantial costs and expertise. Meeting the demand for specialized equipment, cooling systems, and power solutions poses a challenge, necessitating significant investments from organizations to deploy and manage the necessary resources. This is impacting the scalability and accessibility of advanced data center accelerators in the market.
 

COVID-19 Impact

The COVID-19 pandemic positively impacted the data center accelerator market as it accelerated digital transformation initiatives. The surge in remote work, increased demand for online services, and advancements in AI applications for healthcare and research led to a heightened need for powerful computing solutions. This drove investments in data center infrastructure including accelerators to meet the growing computational demands, fostering market expansion amid the global health crisis.
 

Data Center Accelerator Market Trends

The increasing adoption of Graphics Processing Units (GPUs) for their exceptional parallel processing capabilities is spurring the demand for GPU accelerators. GPUs excel in handling intricate computational tasks, making them pivotal in demanding applications such as AI and High-Performance Computing (HPC). Their parallel architecture enables simultaneous processing of multiple tasks, significantly enhancing performance and efficiency. As industries leverage AI and HPC for advanced data processing, GPU accelerators will gain traction in contemporary data center environments owing to their crucial role in meeting computational demands.
 

The expansion of cloud-based acceleration services is an emerging market trend. Cloud service providers offer specialized accelerators as part of their services, enabling organizations to remotely access high-performance computing resources. This eliminates the need for companies to manage and maintain their hardware, providing a scalable & cost-effective solution. As businesses increasingly turn to cloud-based models, these services offer a convenient and flexible way to leverage advanced acceleration technologies for various computational workloads and applications.
 

Data Center Accelerator Market Analysis

Based on the processor type, the CPU segment is poised to witness a CAGR of over 23% by 2032. As data centers increasingly prioritize versatile and high-performance computing solutions, Central Processing Units (CPUs) play a vital role. CPUs have the ability to handle diverse workloads efficiently. Their flexibility and compatibility make them a key component, contributing significantly to the anticipated market growth. For instance, in November 2023, Microsoft unveiled two in-house semiconductors: the Azure Cobalt CPU, designed for general workloads with a focus on energy-efficient performance, and the Azure Maia AI Accelerator, optimized for AI tasks and generative AI.
 

Based on the type, the data center accelerator market size from HPC accelerator segment dominated around USD 4.5 billion in 2023. As the demand for intensive computational tasks rises across industries, HPC accelerators, such as GPUs and FPGAs, gain prominence. These accelerators enhance processing speed and efficiency, making them crucial for scientific simulations, research, and data analytics. The increasing adoption of HPC solutions in data centers propels segment growth, addressing the evolving computational needs of modern applications.
 

North America region held approximately 35% share of the data center accelerator market in 2023, attributed to the increasing demand for advanced computing solutions. The region is characterized by a strong presence of key market players, substantial investments in technological advancements, and high adoption of data-intensive applications. The rising emphasis on AI, ML, and HPC further boosts the deployment of accelerators in data centers, contributing to the anticipated market growth in North America.
 

Data Center Accelerator Market Share

Advanced Micro Devices, Inc. and Dell Inc. are prominent players in the data center accelerator industry. These key companies in the market lead through innovation, offering cutting-edge solutions that enhance computational performance. Their advanced accelerator technologies, including GPUs and specialized processors, address the growing demand for high-performance computing, AI, and data-intensive applications. By consistently pushing the boundaries of hardware capabilities, these industry leaders contribute significantly to the evolution and advancement of data center infrastructure, catering to the complex and evolving computational needs of diverse industries.
 

Data Center Accelerator Market Companies

Major companies operating in the data center accelerator industry are:

• Advanced Micro Devices, Inc.
• Dell Inc.
• IBM Corporation
• Intel Corporation
• Lattice Semiconductor
• Lenovo Ltd.
• Marvell Technology Inc.
• Microchip Technology Inc.
• Micron Technology, Inc.
• NEC Corporation
• NVIDIA Corporation
• Qualcomm Incorporated
• Synopsys Inc.
   

Data Center Accelerator Industry News

• In December 2023, Intel introduced 5th Gen Xeon CPUs with a focus on AI applications. The launch included the Gaudi3 GPU accelerator, designed to enhance performance for AI workloads.
   
• In October 2023, NVIDIA unveiled its AI-focused roadmap with the announcement of the next-gen GB200 and GX200 GPU accelerators for data centers, scheduled for release in 2024 and 2025, respectively.
   

The data center accelerator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Processor Type

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

Market, By Type

• HPC accelerator
• Cloud accelerator

Market, By Application

• Deep learning training
• Public cloud interface
• Enterprise interface

Market, By End Use

• IT & telecom
• Healthcare
• BFSI
• Government
• Energy
• Manufacturing
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Benelux
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Singapore 
• Latin America
  • Brazil
  • Argentina
  • Chile 
• MEA
  • GCC
  • South Africa