The global data center accelerator market size was valued at USD 10.78 billion in 2021 and is expected to expand at a CAGR of 23.5% from 2022 to 2030. Factors such as the growing deployment of data centers & cloud-based services are driving the growth of the data center accelerator market. Additionally, the increasing adoption of technologies such as artificial intelligence (AI), internet of things (IoT), & big data analytics is boosting the data center accelerator market growth.
The COVID-19 pandemic positively impacted the data center accelerator market as the pandemic shifted focus towards a digital transformation. Many colleges and institutions quickly shifted to operating and delivering courses online due to the widespread lockdown. The education sector is highly responsive of the cloud technologies to carry out and handle tuition, assessments, and admission exams. According to the World Economic Forum (WEF), approximately 730,000 K-12 students in Wuhan province attended classes online after the government instructed education institutes to carry out classes online in February 2020.
Adaptive acceleration for the modern data center is useful in high-performance computing (HPC), network acceleration, database & data analytics, computational storage, video & imaging, and financial technology. Data center acceleration handles various HPC workloads such as genomics, astrophysics, big data analysis, machine learning, modular dynamics, cyber security, oil & gas, and weather & climate.
There are some challenges associated with the programming and deployment of multiple FPGAs. The initial difficulty in programming a cluster of FPGAs determines how to abstract and utilize the communication links between the FPGAs, as well as how to connect the kernels on numerous FPGAs. The second issue with establishing an FPGA cluster is determining how to distribute, coordinate, and administer a multi-FPGA application once it has been constructed.
IoT is expected to produce significant amounts of data in industrial applications. For instance, according to Quicksilver Capital, a smart factory will produce 5 petabytes of data every week, while an offshore oil rig is estimated to generate 1 to 2 terabytes of data every day. Massive volumes of data are transformed into insights and value by new business models that use artificial intelligence, platforms, and algorithms. According to the World Economic Forum, digitally enabled platform business models will generate 70% of new economic value over the next decade.
The graphics processing unit (GPU) segment held the maximum revenue share of 46.1% in 2021 and is expected to grow at a CAGR of 22.3% over the forecast period. The growth of the segment can be attributed to the increasing usage of GPU in supercomputing, drug research, AI training and inference, medical imaging, and financial modeling. Moreover, GPUs are better suited to handle many of the calculations required by machine learning and AI in hyper-scale networks and enterprise data centers.
The FPGA segment is projected to attain the highest CAGR of 26.4% in the forecast period. Cloud service providers like Microsoft, Amazon, Alibaba, Baidu, and Tencent have been adopting the FPGAs as a reconfigurable heterogeneous processing asset. Moreover, improvements in architecture, programming paradigms, and security are expected to result in a wider variety of applications for FPGA-based cloud deployment.
The cloud data center segment accounted for the largest revenue share of 67.8% in 2021. This is attributed to the growing deployment of hybrid cloud and multi-cloud architecture by the businesses.
The HPC data center segment is projected to grow at the highest CAGR of 26.0% over the forecast period. The growth of this segment can be attributed to the rise of quantum computing and its use as an accelerator in HPC. Also, supercomputing labs, governments, and businesses have already started to study how quantum processing units, or QPUs, could fit into HPC environments.
The deep learning training segment accounted for the largest revenue share of 40.8% in 2021 and is expected to grow at a CAGR of 20.7% over the forecast period. The market growth is attributed to the increase use of deep learning for specific use cases. For instance, use of deep learning in automotive and self-driving cars, voice assistance, image recognition, texts classification, insurance claim cost estimation, etc.
The enterprise interface segment is projected to grow at a highest CAGR of 25.7%, over the forecast period. Hyper-scale cloud-based organizations like Amazon.com, Inc., Google, and Facebook are increasingly targeting digital transformation to create similar kinds of cloud-native applications likely to contribute to the growth of the segment. Also, many enterprises are adopting cloud migration and cloud-first policies by increasing their cloud spend and workload volumes.
North America dominated the market with a share of 40.1% in 2021. Factors such as the presence of prominent market players including Advanced Micro Devices, Inc., NVIDIA Corporation, Intel Corporation, Qualcomm Technologies, Inc., etc., and the presence of developed technology and data center infrastructure are the major contributor of regional market growth.
Asia-Pacific is expected to grow at the highest CAGR of 26.8% during the forecast period. The market growth across the region can be attributed to the growing adoption of cloud-based services such as IoT and big data analytics. Moreover, suitable government policies and the need for data center infrastructure upgradation in the Asia Pacific are driving the growth of the data center accelerator market in the region.
The competitive landscape of the data center accelerator market is fragmented, having numerous local and global data center accelerator companies. The key participants are adopting advanced technologies to offer better solutions to their customers. Moreover, companies are launching a new line of products and services for advanced applications such data analytics and AI. In November 2020, Advanced Micro Devices, Inc. launched AMD Instinct MI100 Accelerator and next-generation AMD EPYC processors dedicated to High-Performance Computing (HPC) workloads. Combining instinct accelerators and AMD EPYC processors with critical application software and development tools enables AMD to deliver redefine performance for HPC workloads. Some prominent players in the global data center accelerator market are:
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
Report Attribute |
Details |
Market size value in 2022 |
USD 13.11 billion |
Revenue forecast in 2030 |
USD 70.99 billion |
Growth Rate |
CAGR of 23.5% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2017 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD million and CAGR from 2022 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Processor, type, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; China; India; Japan; Australia; South Korea; Brazil; Mexico; UAE; and South Africa |
Key companies profiled |
Advanced Micro Devices, Inc; NVIDIA Corporation; Intel Corporation; Qualcomm Technologies, Inc.; Advantech Co., Ltd.; Achronix Semiconductor Corporation; Micron Technology, Inc.; Marvell; KIOXIA Holdings Corporation; and Western Digital Technologies |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global data center accelerator market report based on, processor, type, application, and region:
Processor Outlook (Revenue, USD Million, 2017 - 2030)
GPU
CPU
FPGA
ASIC
Type Outlook (Revenue, USD Million, 2017 - 2030)
HPC Data Center
Cloud Data Center
Application Outlook (Revenue, USD Million, 2017 - 2030)
Deep Learning Training
Public Cloud Interface
Enterprise Interface
Regional Outlook (Revenue, USD Million, 2017 - 2030)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Italy
Asia Pacific
China
India
Japan
Australia
South Korea
Latin America
Brazil
Mexico
Middle East & Africa
UAE
South Africa
b. The global data center accelerator market size was estimated at USD 10.78 billion in 2021 and is expected to reach USD 13.11 billion in 2022.
b. The global data center accelerator market is expected to grow at a compound annual growth rate of 23.5% from 2022 to 2030 to reach USD 70.99 billion by 2030.
b. North America dominated the data center accelerator market with a share of 40.1% in 2021. This is attributable to the presence of numerous data center accelerator market players in the region.
b. Some key players operating in the data center accelerator market include 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.
b. Key factors driving the data center accelerator market growth include the growing deployment of data centers & cloud-based services, and the increasing adoption of technologies such as AI, IoT, & big data analytics.
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