Market Insights
“The global data center accelerator market is expected to grow from USD 110.24 billion in 2024 to USD 375.98 billion by 2030, at a healthy CAGR of 27.57% during 2024-2030.”
Market Dynamics
Introduction
A data center accelerator is a hardware device designed to improve the overall performance of computers by processing data more efficiently. These accelerators are specialised to handle specific tasks, such as data processing, artificial intelligence (AI) workloads, machine learning (ML), and big data analytics, more effectively than general-purpose CPUs. The proliferation of edge computing is significantly contributing to the growth of the data center industry. As the volume of data generated by IoT devices and real-time applications increases, there is a growing need for low-latency processing. This trend is particularly prominent in sectors such as autonomous vehicles, healthcare, and smart cities, where real-time data processing is critical. Increasing need for cloud-based services and mounting adoption of deep learning technology for big data analytics are credited to the rapidly growing need for data center accelerator systems industry.
Market Drivers
Increasing Digital Transformation among Enterprises
Digitalization is leading to a major boom in the data centers worldwide. The exponential development of the tech industry, rising dependency on online services, and higher big data consumption are propelling the digital economy. Furthermore, the applications of AI are expanding across nearly all industries, including finance, healthcare, telecommunications, retail & manufacturing, government, etc. Billions of dollars have been invested in AI over the last couple of years, which is driving demand for more powerful and efficient data center infrastructure, which in turn necessitates the demand for reliable data center accelerators to enhance the performance of computers by processing visual data and handling intensive computational tasks more efficiently.
Cloud Computing Aligned with 5G Technology
The expansion of cloud computing and the deployment of 5G networks demand next-generation data center solutions, focusing on accelerators that improve performance and power consumption. Hyperscale and edge data centers are coming to use accelerators to handle massive amounts of data near the source to support real-time applications such as Iot, AR, and VR. 5G's fast connectivity enables more sophisticated, data-hungry applications, necessitating efficient, scalable infrastructure. The next generation of applications is emerging with built-in 5G technology, which requires a good computing capacity and associated infrastructure for data centers for managing huge amounts of data. Advances from industry leaders are making data center accelerators more seamless, accessible, and affordable, particularly for SMEs, while meeting sustainability objectives through energy-efficient computing solutions. Thus, the widespread 5G technology and rapid expansion of cloud computing services necessitate the data centers, which drive the market for data center accelerators globally.
Market Challenges
High Cost of Deployment
One of the most critical challenges in the data center accelerator market is the prohibitively expensive cost of deployment. The cost of deploying data center accelerator solutions is prohibitive to many companies, especially small enterprises that do not have the money to invest in this technology. Moreover, hardware to deploy data center accelerator solutions can be rather complicated and demanding in terms of technical expertise for installation.
Integration and Compatibility Challenges
Integration and compatibility pose major challenges to the data center accelerator market. Several organisations run on existing infrastructure and struggle with integrating accelerators that need specific hardware and software. This makes it difficult and results in longer deployment times and higher costs. In addition, compatibility and standardization problems introduce another level of concern, as most businesses are reluctant to use accelerators due to the fear that they will not be compatible with existing systems. The absence of standards acceptable to everyone worsens this resistance to change, causing organizations to wait until more industry-wide consensus is reached before adopting. All these combine to impede mass deployment and can hinder the data center accelerators market expansion.
Market Opportunities
Machine Learning (ML) Adoption
Machine learning (ML), a fundamental subset of AI, is revolutionising data center operations by allowing automation, predictive maintenance, and smart data management. With deep learning and ML-based systems on the rise, data centers can optimise efficiency, maximise energy usage, and enhance overall performance. Effective ML operation requires substantial computational resources, making high-performance computing a crucial aspect of their adoption. Machine Learning as a Service (MLaaS), broadens the opportunity further by providing scalable cloud-based ML capabilities that ease development and deployment by assisting data scientists and data engineers in their everyday work. This progressive change makes ML an alluring opportunity for the data center accelerators market for their expansion.
Recent Developments:
- In June 2024, AMD launched next-gen "Zen 5" Ryzen processors, which fuel sophisticated AI experiences. The Ryzen AI 300 Series processors contain the world's strongest Neural Processing Unit (NPU) for next-generation AI PCs.
- In May 2024, NVIDIA Corporation partnered with Microsoft to enable developers to develop and deploy AI apps quickly by providing new optimisations and integrations to Windows developers.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Processor Analysis
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GPU, CPU, ASIC, FPGA
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GPU is expected to dominate the market segment due to an increase in internet penetration, big data, and IoT.
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Application Analysis
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Deep Public Cloud Inference, Enterprise Inference
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Enterprise Inference is expected to grow at the highest CAGR during the forecast period due to increased adoption of cloud computing and the integration of AI and ML data processing capabilities.
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Vertical Analysis
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IT & Telecom, Healthcare, BFSI, Government, Energy
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Healthcare End-of-line Segment is expected to grow with the highest CAGR during the forecast period due to exponential growth in healthcare data, driven by electronic health records.
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Type Analysis
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Cloud Data Centers, HPC Data Centers
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Cloud Data Centers account for the largest share in the market due to the economic expansion of emerging economies.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia Pacific region is anticipated to grow significantly during the forecast period due to vast investments in better and quicker IT infrastructure.
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By Application Type
“Enterprise Inference is expected to grow at the highest CAGR during the forecast period due to increased adoption of cloud computing and the integration of AI and ML data processing capabilities.”
The enterprise inference segment is anticipated to post the highest CAGR in the forecast period. The segment is driven by the inclusion of AI and ML data processing strengths, enabling enterprises to process large volumes of data in a more efficient and accurate manner. Cloud computing adoption also comes into play with a scalable and adaptive infrastructure for storing and analysing data. Also, advances in big data analytics software make it possible for more advanced and subtle interpretations of data.
By Vertical Type
“Healthcare Segment is expected to grow with the highest CAGR during the forecast period due to exponential growth in healthcare data, driven by electronic health records.”
The health care segment shall show the fastest-growing CAGR in the forecast period. The exponential growth of healthcare data by electronic health records (EHRs), medical imaging, genomic data, and wearable devices requires high-end computing power for faster processing and analytics. Additionally, the advent of artificial intelligence (AI) and machine learning (ML) in healthcare technologies like predictive analytics, personalized medicine, and imaging diagnostics demands high-performance computing infrastructure to train sophisticated models and provide real-time insights.
Regional Analysis
“Asia Pacific region is anticipated to grow significantly during the forecast period due to vast investments in better and quicker IT infrastructure.”
The Asia Pacific region is expected to capture the highest market share of the Data Center Accelerator market over the forecast period, The increasing adoption of cloud-based services like big data analytics and the Internet of Things are expected to drive the growth of the Asia Pacific region in the global data center accelerator market during the forecast period.
Key Players
Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the global data center accelerator market -
Here is the list of the Top Players
- NVIDIA Corporation (US)
- Advanced Micro Devices, Inc. (US)
- Intel Corporation (US)
- Alphabet Inc. (US)
- Qualcomm Technology, Inc. (US)
- Micron Technology, Inc. (US)
- IBM Corporation (US)
- Marvell (US)
- Achronix Semiconductor Corporation (US)
- Dell Inc. (US)
Note: The above list does not necessarily include all the top players in the market.
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global Data Center Accelerator Market is segmented into the following categories.
Global Data Center Accelerator Market, by Processor Type
- GPU (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- CPU (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- ASIC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- FPGA (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Data Center Accelerator Market, by Application Type
- Deep Learning Training (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Public Cloud Inference (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Enterprise Inference (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Data Center Accelerator Market, by Vertical Type
- IT & Telecom (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Healthcare (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- BFSI Regional Analysis: (North America, Europe, Asia-Pacific, and Rest of the World)
- Government (Regional Analysis: (North America, Europe, Asia-Pacific, and Rest of the World)
- Energy (Regional Analysis: (North America, Europe, Asia-Pacific, and Rest of the World)
Global Data Center Accelerator Market, by Type
- Cloud Data Centers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- HPC Data Centers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Data Center Accelerator Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center accelerator market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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