Data Center Accelerator Market Size & Growth Analysis to 2030

The global data center accelerator market size is anticipated to register a significant CAGR of around 24% during the forecast period from 2022 to 2028. The rising deployment of data centers and cloud-based services in enterprises is a major factor driving the market growth. Furthermore, the increasing penetration of the internet of things (IoT), artificial intelligence (AI), and big data analytics in various industries are further anticipated to fuel the market growth. Moreover, the increasing adoption of the product in various applications such as deep learning, public cloud, and enterprise interfaces is expected to fuel the market over the forecast period.

Market Drivers:

Increasing Demand for High-Performance Computing: The demand for high-performance computing (HPC) applications, such as artificial intelligence (AI), machine learning (ML), data analytics, and cloud computing, is growing rapidly. Data center accelerators, such as graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs), enhance the performance and efficiency of these HPC applications, driving the demand for accelerator technologies.

Rising Need for Energy Efficiency: Data centers consume significant amounts of energy, leading to high operating costs and environmental concerns. Accelerators offer improved energy efficiency by offloading computationally intensive tasks from general-purpose processors, reducing power consumption and operational expenses. The focus on energy-efficient data center operations drives the adoption of accelerator technologies.

Growing Big Data and IoT Applications: The proliferation of big data and the Internet of Things (IoT) has generated enormous amounts of data that require processing and analysis. Accelerators enable faster data processing, real-time analytics, and efficient handling of massive data sets, meeting the demands of big data and IoT applications. The increasing adoption of these applications fuels the demand for data center accelerators.

Advancements in AI and ML Technologies: AI and ML technologies are becoming integral to various industries, including healthcare, finance, retail, and manufacturing. Data center accelerators provide the computational power and parallel processing capabilities required for AI and ML workloads, enabling faster model training, inference, and real-time decision-making. The advancements in AI and ML technologies drive the need for accelerator solutions.

Demand for High-Speed Data Processing: With the growing volume and velocity of data transmission, data centers need to process data at higher speeds. Accelerators, such as network interface cards (NICs) and smart network interface controllers (SmartNICs), improve data processing speed, reduce latency, and enhance network performance in data centers. The demand for high-speed data processing capabilities propels the adoption of accelerator technologies.

Scalability and Flexibility Requirements: Data centers need to scale their computational capabilities quickly and adapt to changing workloads. Accelerators offer scalability and flexibility by providing dedicated hardware resources for specific tasks, allowing data centers to allocate resources based on workload demands. The ability to scale up or down and adapt to varying workload requirements drives the adoption of accelerator solutions.

Demand for Real-Time Analytics: Real-time analytics is crucial for time-sensitive applications, such as financial transactions, network monitoring, and fraud detection. Accelerators enable faster data processing, allowing data centers to perform real-time analytics and make immediate decisions. The increasing demand for real-time analytics capabilities fuels the adoption of accelerator technologies.

Focus on Data Center Efficiency and Performance: Data center operators strive to optimize efficiency and enhance performance to meet the growing demand for computing resources. Accelerators improve the performance per watt ratio by offloading compute-intensive tasks, reducing latency, and enhancing overall data center performance. The focus on data center efficiency and performance drives the adoption of accelerator solutions.

Increasing Cloud Computing Adoption: Cloud computing services are experiencing significant growth due to their scalability, cost-effectiveness, and accessibility. Data center accelerators play a crucial role in cloud infrastructure by accelerating virtualization, storage, and processing tasks. The increasing adoption of cloud computing services drives the demand for accelerator technologies in data centers.

Market Snapshot:

Market Insights:

By processor, the GPU segment dominated the global market in 2021

The global data center accelerator market is bifurcated into processor, type, application, and geography. On the basis of processor, the market is further segmented into Central Processing Unit (CPU), Graphic Processing Unit (GPU), Field Programmable Gate Array (FPGA), and Application Specific Integrated Circuit (ASIC). The GPU segment dominated the global market in 2021 and is expected to grow at the same trend over the forecast period. The increasing use of graphic processing units in supercomputers, drug research, and AI training is a major factor driving the segment growth. On the flip side, the FPGA segment is estimated to grow at the fastest growth rate over the forecast period due to the growing cloud service providers.

By application, the deep learning segment is anticipated to grow at a significant CAGR over the forecast period

On the basis of application, the market is segmented into deep learning training, public cloud interface, and enterprise interface. The deep learning training segment dominated the global data center accelerator market in 2021 and is expected to grow at a significant CAGR. On the other hand, the enterprise interface segment is expected to register the fastest growth rate over the forecast period. The increasing number of cloud-based service providers such as Google, Amazon, Facebook, etc, is a major factor to fuel the segment growth over the forecast period. Furthermore, the rising shift towards cloud-based platforms by various organizations is further anticipated to boost the segment growth.

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The data center accelerator comprehensive study analyzes industry trends, market size, competitive analysis, and market forecast – from 2022 to 2028. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The data center accelerator market research report presents the analysis of each segment from 2019 to 2028 considering 2021 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2022 to 2028.

Historical & Forecast Period

• 2019-20 – Historical Year
• 2021 – Base Year
• 2022-2028 – Forecast Period

Market Segmentation:

By Processor:

• GPU
• CPU
• FPGA
• ASIC

By Type:

• HPC Data Center
• Cloud Data Center

By Application:

• Deep Learning Training
• Public Cloud Interface
• Enterprise Interface

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

By region, North America dominated the global data center accelerator market in 2021

On the basis of region, North America dominated the global data center accelerator market in 2021 and is expected to hold the largest revenue share of over 1/3 market share by the end of the analysis period. The early adoption of advanced technology and the presence of some major market players such as Advance Micro Devices, NVIDIA, Intel, etc, are some major factors driving the market growth in the region. On the flip side, the Asia Pacific is estimated to grow at the fastest CAGR over the forecast period. The growing adoption of cloud-based solutions and the increasing penetration of AI and IoT devices are further anticipated to fuel the market growth in the Asia Pacific.

Geographically, the data center accelerator market report comprises dedicated sections centering on the regional market revenue and trends. The data center accelerator market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The data center accelerator market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Data center accelerator market estimates have also been provided for the historical years 2019 & 2020 along with forecasts for the period from 2022 – 2028.

Competitive Assessment:

Some of the major market players operating in the global data center accelerator market are Advanced Micro Devices, Inc., NVIDIA Corporation, Intel Corporation, Qualcomm Technologies, Inc., and Advantech Co., Ltd. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Advanced Micro Devices, Inc.
• NVIDIA Corporation
• Intel Corporation
• Qualcomm Technologies, Inc.
• Advantech Co., Ltd.
• Achronix Semiconductor Corporation
• Micron Technology, Inc.
• Marvell
• KIOXIA Holdings Corporation
• Western Digital Technologies

Key Questions Answered by Data Center Accelerator Market Report

• Global data center accelerator market forecasts from 2022-2028
• Regional market forecasts from 2022-2028 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2022-2028 covering 15 major countries from the regions as mentioned above
• Data center accelerator submarket forecasts from 2022-2028 covering the market by processor, type, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level data center accelerator markets from 2022-2028
• Competitive Landscape and market positioning of top 10 players operating in the market