Data Center GPU Market Size - By Deployment Model (On-Premises, Cloud), Function (Training, Inference), End User (Cloud Service Providers, Enterprises, Government), Growth Prospects, Regional Outlook & Global Forecast, 2024 - 2032

Data Center GPU Market Size

Data Center GPU Market size was valued at USD 13.1 billion in 2023 and is anticipated to register a CAGR of over 28.5% between 2024 and 2032. The escalating need for processing large datasets and complex algorithms in artificial intelligence (AI) and machine learning (ML) applications has driven the demand for high-performance computing solutions. GPUs are well-suited for parallel processing tasks, making them essential for accelerating AI and ML workloads in data centers.
 

In a recent turn of events, Yotta Data Services unveiled its plan to deploy over 20,400 NVIDIA GPU-based supercomputers by June 2024. In partnership with NVIDIA, the company is set to deliver cutting-edge GPU computing infrastructure for its Shakti Cloud platform, making it the nation's fastest supercomputer with 16 Exaflops of AI computing power. Having already ordered a substantial quantity of NVIDIA H100 Tensor Core GPUs, Yotta plans to initiate operations with 4,096 GPUs by January 2024, scaling up to 16,384 GPUs by June 2024.
 

GPUs, especially high-performance ones, tend to have high power consumption, resulting in increased electricity costs for data centers. Additionally, the heat generated by GPUs needs to be efficiently dissipated to prevent overheating and ensure optimal performance. Addressing power consumption and heat dissipation challenges can be a complex and costly task, potentially limiting the scalability of GPU deployments in data centers.
 

COVID-19 Impact

With the accelerated adoption of digital transformation and remote work trends, there was an increased demand for high-performance computing and GPU-accelerated applications. Industries such as healthcare, research, and entertainment experienced heightened GPU requirements for tasks like medical simulations, content creation, and data analytics. The pandemic highlighted the critical role of robust data center infrastructure, stimulating investments in GPU technologies to support evolving computational needs, albeit with some disruptions in the global supply chain and uncertainties in certain sectors.
 

Data Center GPU Market Trends

The rise of edge computing, where data processing occurs closer to the source of data generation, is expected to influence the market. GPUs can play a crucial role in accelerating processing at the edge, enabling faster insights and reducing latency. This trend aligns with the growing demand for real-time data analysis in applications such as IoT (Internet of Things) and autonomous systems.
 

In October 2023, StackPath, a leading edge-computing platform, unveiled the inclusion of NVIDIA GPU-Accelerated Instances in its array of Virtual Machine (VM) and Container product offerings. These newly introduced instances leverage the power of NVIDIA A2 Tensor Core and NVIDIA A16 GPUs, providing the necessary computational strength for tasks like deep learning algorithms and high-performance graphical processing. Such capabilities are essential for cutting-edge technologies, spanning artificial intelligence (AI), machine learning (ML), augmented reality (AR), and virtual reality (VR).
 

Data Center GPU Market Analysis

Based on the deployment model, the on-premises segment held over 58% of the market share in 2023, driven by the escalating demand for high-performance computing (HPC) solutions, particularly in fields such as artificial intelligence (AI), machine learning (ML), and data-intensive workloads. On-premises GPUs offer organizations greater control over their computing resources, enhanced security, and the ability to customize infrastructure to meet specific requirements. The growing need for processing vast datasets, complex simulations, and graphic-intensive applications fuels the preference for on-premises GPU deployments, ensuring optimal performance and responsiveness for critical applications.
 

Based on function, the training segment recorded around 65% of the data center GPU market share in 2023, propelled by the burgeoning applications of artificial intelligence (AI) and machine learning (ML). Training complex neural networks and models requires immense computational power, and GPUs excel in parallel processing, significantly accelerating training times. As organizations increasingly integrate AI and ML into their operations for data analysis, pattern recognition, and predictive modeling, the need for robust GPU infrastructure grows. The versatility of GPUs in handling diverse workloads, from deep learning algorithms to intensive data processing, positions them as a critical component in meeting the escalating demands of training tasks.
 

North America data center GPU market accounted for 35% of the revenue share in 2023. The region boasts a robust technology ecosystem, housing major players in artificial intelligence (AI), high-performance computing, and data-intensive industries. The growing adoption of AI, machine learning, and advanced analytics in sectors like finance, healthcare, and research drives the demand for powerful GPU solutions. North America's strong investment in cloud infrastructure and data centers, in line with a supportive regulatory environment and skilled workforce, further propels the industry's growth. The continent's emphasis on innovation and technological advancements positions it at the forefront of the market.
 

Data Center GPU Market Share

NVIDIA Corporation, Intel Corporation and Advanced Micro Devices, Inc hold a dominant position in the market. NVIDIA is known for continuous innovation in GPU architectures. They introduce new GPU models with enhanced performance, energy efficiency, and specialized capabilities for AI and HPC workloads. Intel has strategically acquired companies to strengthen its position in the GPU market. AMD collaborates with major cloud providers to integrate its GPUs into their infrastructure. This strategy enhances AMD's presence in cloud-based GPU services.
 

Data Center GPU Market Companies

Major companies operating in the data center GPU industry are:

• Advanced Micro Devices, Inc
• Advantech Co., Ltd.
• Google Inc.
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Imagination Technologies
• Intel Corporation
• NVIDIA Corporation
• Qualcomm Technologies, Inc.
• Samsung Electronics Co., Ltd.
   

Data Center GPU Industry News

• In October 2023, Nvidia and Foxconn joined forces to create data center modules designed for AI-driven factories, utilizing Nvidia's Grace Hopper chips. Through the collaboration, Hon Hai Technology Group (Foxconn) aims to integrate Nvidia's technology to establish innovative data centers. These centers will play a pivotal role in various factory applications, encompassing the digitization of manufacturing and inspection processes, the advancement of AI-based electric vehicle and robotics platforms, and the expansion of language-based generative AI services. The partnership seeks to pioneer a new era of data centers tailored to support diverse AI applications in manufacturing and beyond.
   

The data center GPU 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 Deployment Model

• On-premises
• Cloud

Market, By Function

• Training
• Inference

Market, By End User

• Cloud Service Providers
• Enterprises
• Government

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

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