Data Center Accelerator Market Research Report By Accelerator Type (Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), Tensor Processing Units (TPUs), Application Specific Integrated Circuits (ASICs)), By Application (Artificial Intelligence (AI), Machine Learning (ML), Deep Learning (DL), High-Performance Computing (HPC), Data Analytics), By Form Factor (Add-in Cards, PCIe Cards, Blade Servers, Rack-Mounted Servers), By Interface (PCI Express, NVLink, Infinity Fabric, Compute Express Link (CXL)) and By Regional (Nort

Global Data Center Accelerator Market Overview:

Data Center Accelerator Market Size was estimated at 62.76 (USD Billion) in 2023. The Data Center Accelerator Market Industry is expected to grow from 85.37 (USD Billion) in 2024 to 374.76 (USD Billion) by 2032. The Data Center Accelerator Market CAGR (growth rate) is expected to be around 28.6% during the forecast period (2024 - 2032).

Key Data Center Accelerator Market Trends Highlighted

The rising demand for artificial intelligence (AI) and machine learning (ML) workloads is driving the growth of the data center accelerator market. These workloads require immense computational power, which traditional CPUs cannot efficiently provide. Data center accelerators, such as GPUs and FPGAs, offer superior performance for these applications, leading to their increased adoption.

Another key driver is the surging growth of cloud computing and data analytics. Cloud providers and enterprises alike are leveraging data center accelerators to accelerate data processing and improve application performance. Moreover, the increasing adoption of edge computing is also contributing to the market growth, as accelerators are essential for enabling real-time data processing and decision-making at the edge.

Recent trends in the data center accelerator market include the emergence of specialized accelerators optimized for specific workloads. For instance, AI-specific accelerators provide enhanced performance for AI/ML applications. Additionally, the integration of accelerators into server platforms is gaining traction, offering a more cost-effective and power-efficient solution.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Data Center Accelerator Market Drivers

Increasing Adoption of Artificial Intelligence (AI) and Machine Learning (ML)

The increasing adoption of artificial intelligence (AI) and machine learning (ML) is a major driver of the growth of the Data Center Accelerator Market Industry. AI and ML algorithms require significant computational resources, and data center accelerators can provide the necessary performance and efficiency to support these applications. As the use of AI and ML continues to grow, the demand for data center accelerators is expected to increase significantly.Data center accelerators are specialized hardware components that are designed to improve the performance of data center applications. They can be used to accelerate a variety of tasks, such as data processing, machine learning, and artificial intelligence. The increasing adoption of AI and ML is driving the demand for data center accelerators, as these applications require significant computational resources. AI and ML are used in a wide range of applications, including Natural language processing (NLP). AI and ML can be used to understand and generate human language.This technology is used in a variety of applications, such as chatbots, machine translation, and text summarization. Computer vision: AI and ML can be used to process and analyze images and videos. This technology is used in a variety of applications, such as object recognition, facial recognition, and medical imaging. Predictive analytics: AI and ML can be used to predict future events. This technology is used in a variety of applications, such as fraud detection, risk assessment, and customer churn prediction.Recommendation engines: AI and ML can be used to recommend products, services, and content to users. This technology is used in a variety of applications, such as e-commerce, streaming services, and social media. The demand for data center accelerators is also being driven by the increasing adoption of cloud computing. Cloud computing providers are increasingly offering AI and ML services, and these services require significant computational resources.Data center accelerators can help cloud providers to meet the demand for these services and improve the performance of their applications.

Growing Demand for High-Performance Computing (HPC)

Another major driver that is driving the growth of the Data Center Accelerator Market Industry is the increasing demand for HPC. High-performance computing applications are used in a wide variety of fields, including scientific research, engineering, and the development of financial models. These applications require a significant number of computational resources to operate reliably. At the same time, modern data center accelerators can provide the required performance and operational efficiency for these applications.The wide range of HPC applications includes Scientific research: HPC is used to simulate and analyze complex physical phenomena, including weather patterns, climate change, and earthquakes. It is also used to study complex biological phenomena, such as the diversification of species and the history of their evolution. In such simulations and studies, abnormally large volumes of data are analyzed, which would not be operable without HPC. Engineering: HPC is used to design and simulate complex products, such as cars, planes, and new types of wind turbines.It is also used to simulate the behavior of new manufacturing equipment and develop production schedules and plans. Financial modeling: HPC is used to develop and test financial models, which help make investment decisions and manage risk. As computational resources are required for a wider and wider number of applications, the demand for HPC is growing rapidly. This trend is expected to persist for a prolonged period of time, leading to an increase in the adoption of data center accelerators by the data center ecosystem.

Government Support for AI and HPC Initiatives

Government support for AI and HPC initiatives is another major driver of the growth of the Data Center Accelerator Market Industry. Governments around the world are investing in AI and HPC research and development, and they are also providing funding for the development of data center accelerators. This support is helping to accelerate the development and adoption of these technologies. Governments are supporting AI and HPC initiatives for a variety of reasons.AI is seen as a key technology for driving economic growth and improving productivity. HPC is seen as a key technology for solving complex problems and advancing scientific research. Government support for AI and HPC is taking a variety of forms, including Funding for research and development: Governments are providing funding for research and development of AI and HPC technologies. This funding is helping to accelerate the development of these technologies and make them more accessible to businesses and researchers.Investment in infrastructure: Governments are investing in infrastructure to support the development and adoption of AI and HPC. This infrastructure includes data centers, networks, and software tools. Policy support: Governments are developing policies to support the development and adoption of AI and HPC. These policies include tax incentives, regulatory frameworks, and standards. Government support for AI and HPC is helping to create a more favorable environment for the development and adoption of these technologies.This support is expected to continue in the coming years as governments increasingly recognize the importance of AI and HPC for economic growth and scientific advancement.

Data Center Accelerator Market Segment Insights:

Data Center Accelerator Market Accelerator Type Insights

The Data Center Accelerator Market is segmented by Accelerator Type into Graphics Processing Units, Field Programmable Gate Arrays, Tensor Processing Units, and Application Specific Integrated Circuits. Forecasts to 2028 In-depth research reports of the Data Center Accelerator Market have projected that in 2023, the GPU segment, as an accelerator type, accounted for over two-fifths of the market share. This is also projected to remain the case throughout the forecast period. GPUs are the most flexible accelerator type because they can be applied in the data centers of most industries.Also, AI and ML applications are gaining more prominence throughout the world, further proliferating the growth of the GPU segment. The growth of the FPGA segment is expected to increase as well. This is due to their deployment in specific applications that surround network acceleration, security, data analytics, and other processes that remain relevant to the data center’s roles and operations. The TPU segment is expected to have the highest growth rate because, over the forecast period, the implementation and development of deep learning applications are expected to continue expanding.Finally, the ASIC segment, the segment with the slowest growth rate, is expected to witness slow but stable growth. This is primarily because the data center is expected to generate more demand for specialized equipment and hardware in the coming decade.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Data Center Accelerator Market Application Insights

By application, the Data Center Accelerator Market has been segmented into Artificial Intelligence, Machine Learning, Deep Learning, High-Performance Computing, and Data Analytics. The AI and ML application segments are expected to dominate the market over the forecast period. This is due to the increasing adoption of these technologies across various industries, such as healthcare, retail, and manufacturing. In addition, the growing need for real-time data processing and analytics is fuelling the demand for AI and ML solutions. The growing adoption of AI and ML in the HPC application segment is also expected to drive the market over the next few years.The data analytics segment is also expected to register significant growth due to the increasing demand for faster and more efficient data analytics capabilities.

Data Center Accelerator Market Form Factor Insights

The Data Center Accelerator Market segmentation by Form Factor includes Add-in Cards, PCIe Cards, Blade Servers, and Rack-Mounted Servers. Among these, Add-in Cards held the largest revenue share in 2023 and are projected to maintain their dominance throughout the forecast period. This growth is primarily attributed to their versatility and compatibility with various server platforms. PCIe Cards are anticipated to register a significant CAGR during the forecast period owing to their high bandwidth and low latency capabilities. Blade Servers are gaining popularity due to their compact size and energy efficiency, making them suitable for high-density computing environments.Rack-Mounted Servers are widely adopted in large-scale data centers, offering high scalability and performance.

Data Center Accelerator Market Interface Insights

The Interface segment plays a crucial role in the Data Center Accelerator Market. In 2023, the PCI Express interface held the largest market share, accounting for nearly 60% of the revenue. This dominance is attributed to its widespread adoption in various data center applications, including high-performance computing and artificial intelligence. However, emerging interfaces like NVLink, Infinity Fabric, and Compute Express Link (CXL) are gaining traction due to their superior performance and scalability. By 2032, the CXL interface is projected to witness the highest growth rate, owing to its ability to support high-bandwidth and low-latency connections between processors, memory, and accelerators.This growth is expected to drive the overall Interface segment to reach a valuation of USD 1.2 billion by 2032, representing a CAGR of 12.5% during the forecast period.

Data Center Accelerator Market Regional Insights

The Data Center Accelerator Market is segmented by region and includes North America, Europe, APAC, South America, and MEA. The North American region is expected to hold the largest market share in 2023, owing to the presence of major data center operators and cloud service providers. The APAC region is expected to witness the highest growth rate during the forecast period due to the increasing demand for data center services in emerging economies such as China and India. The European region is expected to hold a significant market share, owing to the presence of a large number of data centers in countries such as Germany, the United Kingdom, and France.The South American region is expected to witness moderate growth due to the increasing demand for data center services in countries such as Brazil and Argentina. The MEA region is expected to witness the lowest growth rate due to the limited presence of data centers in this region.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Data Center Accelerator Market Key Players and Competitive Insights:

Key players in the industry are focusing on various strategies, including mergers and acquisitions, partnerships, and new product development. The leading Data Center Accelerator Market players are adopting innovative technologies to develop highly efficient and reliable solutions to improve their customer base. The market development is driven by the increasing demand for cloud computing, artificial intelligence, and machine learning applications, which require high-performance computing.

Moreover, increasing investment in research and development by key market players is also one of the key factors influencing the Data Center Accelerator Market growth. The competitive landscape of the industry is expected to be highly competitive, dominated by the major players using a mix of technology capability, geographical reach, and aggressive marketing campaigns.

NVIDIA is the major player in the Data Center Accelerator Market. The company offers a wide range of graphics processing units optimized for data center applications. NVIDIA’s GPUs are used for deep learning, artificial intelligence, and other applications that require high-performance computing. The company is also one of the largest players in the cloud computing market, with its GPUs being used by major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, and others. NVIDIA is also investing heavily in developing new technologies, such as its Tensor Core technology, which is designed to accelerate AI workloads. Intel Corporation is one of the major competitors, which offers a wide range of Xeon processors optimized for data center applications. Intel’s processors are used for high-performance computing, virtualization, and other enterprise applications. The company is also investing in new technologies such as Optane memory, which is designed to improve the performance of data-intensive applications.

Key Companies in the Data Center Accelerator Market Include:

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  Huawei Technologies

  
  


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  Qualcomm

  
  


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  Xilinx

  
  


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  Mellanox Technologies

  
  


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  AMD

  
  


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  Hewlett Packard Enterprise (HPE)

  
  


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  Dell Technologies

  
  


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  Ciena Corporation

  
  


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  Intel

  
  


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  IBM

  
  


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  NVIDIA

  
  


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  Cisco Systems

  
  


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  Broadcom

  
  


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  Marvell

  
  

Data Center Accelerator Industry Developments

The Data Center Accelerator Market is anticipated to grow exponentially, reaching a valuation of USD 5.7 billion by 2032, expanding at a CAGR of 11.4% from 2024 to 2032. This growth is attributed to the increasing demand for data-intensive applications, such as artificial intelligence (AI), machine learning (ML), and big data analytics.

Additionally, the growing adoption of cloud computing and edge computing is further driving the market expansion. Recent advancements in chip technology, such as the introduction of specialized AI accelerators and GPUs, are also contributing to the market's growth. Key players in the market include NVIDIA, Intel, AMD, Xilinx, and Habana Labs, who are continuously innovating and developing new accelerator solutions to meet the evolving demands of data centers.

Data Center Accelerator Market Segmentation Insights

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  Data Center Accelerator Market Accelerator Type Outlook

  
  
  
  
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    Graphics Processing Units (GPUs)

    
    
  
  
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    Field Programmable Gate Arrays (FPGAs)

    
    
  
  
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    Tensor Processing Units (TPUs)

    
    
  
  
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    Application Specific Integrated Circuits (ASICs)

    
    
  
  
  
  

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  Data Center Accelerator Market Application Outlook

  
  
  
  
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    Artificial Intelligence (AI)

    
    
  
  
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    Machine Learning (ML)

    
    
  
  
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    Deep Learning (DL)

    
    
  
  
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    High-Performance Computing (HPC)

    
    
  
  
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    Data Analytics

    
    
  
  
  
  


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  Data Center Accelerator Market Form Factor Outlook

  
  
  
  
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    Add-in Cards

    
    
  
  
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    PCIe Cards

    
    
  
  
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    Blade Servers

    
    
  
  
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    Rack-Mounted Servers

    
    
  
  
  
  


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  Data Center Accelerator Market Interface Outlook

  
  
  
  
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    PCI Express

    
    
  
  
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    NVLink

    
    
  
  
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    Infinity Fabric

    
    
  
  
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    Compute Express Link (CXL)

    
    
  
  
  
  


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  Data Center Accelerator Market Regional Outlook

  
  
  
  
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    North America

    
    
  
  
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    Europe

    
    
  
  
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    South America

    
    
  
  
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    Asia Pacific

    
    
  
  
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    Middle East and Africa