GPU As A Service Market Size, Share & Trends Analysis Report By Component, By Pricing Model, By Organization Size, By Industry Vertical, By Region, and Segment Forecasts, 2024 - 2030

GPU As A Service Market Size & Trends

The global GPU as a service market size was estimated at USD 3,353.9 million in 2023 and is projected to grow at a CAGR of 21.6% from 2024 to 2030. The increasing volume of data and the demand for advanced data analytics have been major drivers behind the growing demand for graphics processing unit (GPU) acceleration, especially in GPU as a Service (GPUaaS). GPUs excel at parallel processing, making them highly efficient at handling the computational demands of large-scale data processing and analysis tasks. Data-driven businesses often need to perform complex data analytics, such as running machine learning algorithms, deep learning models, and statistical analyses. GPUs can accelerate these computations, reducing the time required to derive meaningful insights.

Cloud gaming platforms have become increasingly popular. GPU as a Service is crucial in delivering high-quality gaming experiences to players without powerful gaming hardware.The powerful GPUs in the cloud can handle resource-intensive gaming tasks and render high-quality graphics, ensuring that players enjoy immersive and visually stunning gaming experiences. For instance, NVIDIA GeForce NOW is a cloud gaming platform developed by NVIDIA Corporation, a U.S.-based GPU manufacturer. GeForce NOW allows users to stream and play games from the cloud on various devices, including laptops, desktops, smartphones, and NVIDIA SHIELD devices.

GPU as a Service is extensively utilized in artificial intelligence (AI) and machine learning (ML) applications due to its ability to accelerate computations and handle the complex processing demands of AI/ML algorithms. GPUaaS is important in the AI and ML landscape, expediting the development, training, and deployment of intricate models and facilitating the integration of AI-driven solutions in diverse industries. For instance, Amazon SageMaker, a service provided by Amazon Web Services (AWS), is a fully managed platform for building, training, and deploying machine learning models. SageMaker leverages GPUaaS to deliver high-performance and scalable ML solutions to businesses and developers.

Market Concentration & Characteristics

The GPU as a service market thrives on continuous innovation. From advancements in AI and machine learning frameworks to support for next-generation technologies like VR and AR, cloud providers are constantly developing solutions that unlock GPUs' true potential for a wider range of applications.

The M&A landscape in the market is expected to heat up as the market matures. Consolidation through mergers and acquisitions can lead to stronger players emerging, offering a wider range of services, expertise, and resources. Collaborations between cloud providers and GPU manufacturers can further accelerate innovation by creating optimized hardware and software solutions specifically designed for the cloud environment.

While regulations do not directly impact GPUaaS's core functionality, data privacy is an important consideration. As data security and privacy regulations evolve, cloud providers will need to ensure their GPUaaS offerings comply with them, potentially influencing data storage practices and access controls within the platform.

Traditional on-premise GPUs remain an alternative, but their high upfront costs and scalability limitations make them less accessible for many businesses. Specialized AI accelerators are emerging as a potential future substitute, but they are still in their early stages of development.

Currently, the market is driven by a few key industries like AI research, healthcare, and media & entertainment. However, as GPUaaS becomes more affordable and user-friendly, we can expect to see user concentration diversify. New industries like engineering, finance, and even small and medium-sized businesses are likely to adopt this technology for tasks requiring high-performance computing capabilities.

Component Insights

The solution segment dominated the market with a revenue share of 56.5% in 2023. GPUaaS is sought after for edge computing and IoT applications, where real-time data processing and AI inferencing are required at the network's edge. The efficiency of GPUs allows businesses to implement AI-driven solutions on edge devices with constrained resources. Businesses seek GPUaaS to enable real-time processing of data and models, supporting critical decision-making processes in dynamic environments like finance, logistics, and supply chain management. The segment's growth is driven by the need for faster and more powerful computing capabilities.

The services segment is expected to grow with the fastest CAGR from 2024 to 2030. By leveraging GPUaaS services, IT and Telecom companies can optimize their operations, deliver more advanced and innovative services to their customers, and gain a competitive edge in the rapidly evolving digital landscape. The flexibility and scalability of GPUaaS make it a valuable resource for handling the growing computational demands of these industries. The GPUaaS services allow users to provision virtual machines or instances equipped with powerful GPUs. These instances can be selected based on specific GPU types, memory, and computational power requirements.

Pricing Model Insights

The subscription-based plans segment is estimated to dominate the market throughout the forecast period. Subscription-based plans often provide cost savings compared to pay-as-you-go models, especially for users who require GPU resources regularly and predictably. By committing to a subscription plan, users can secure access to GPUs at a lower cost per hour compared to on-demand pricing. Users involved in long-term projects or ongoing workloads find subscription-based plans more convenient and suitable. Instead of managing payments per hour, they can maintain consistent and uninterrupted access to GPU resources throughout their project.

The pay-per-use segment is expected to witness prominent growth over the forecast period. Pay-per-use pricing eliminates the need for upfront commitments or long-term contracts. It allows businesses and developers to access GPU resources without any initial investments, making GPUaaS more accessible to a wider audience. Major cloud service providers offering GPUaaS often compete on pay-per-use pricing, driving the growth of this segment. Competitive pricing helps attract users and encourages them to choose GPUaaS for their computing needs. Users with sporadic or on-demand workloads benefit from pay-per-use pricing, as they can avoid paying for idle GPU resources when they are not actively using them.

Organization Size Insights

The large-size organization segment leads the market with a revenue share in 2023. GPUaaS offers scalability to accommodate varying computational demands. Large organizations often have fluctuating workloads, and GPUaaS allows them to scale GPU resources up or down based on their needs, ensuring optimal performance and resource utilization. GPUaaS can be quickly provisioned and deployed, allowing large organizations to access GPU resources without the time-consuming process of acquiring and setting up dedicated hardware. This speed of deployment facilitates faster development and testing of applications.

GPUaaS operates on a pay-as-you-go model, allowing SMEs to access powerful GPU resources without significant upfront investments in dedicated hardware. This cost-effective approach enables SMEs to leverage advanced computing capabilities within budget constraints. By deploying GPUaaS, SMEs gain access to cutting-edge GPU technology without the burden of managing hardware upgrades. This access to advanced technology empowers them to remain competitive and innovative in their industries. SMEs often have varying computational needs, and GPUaaS provides the flexibility to scale GPU resources up or down based on demand.

Industry Vertical Insights

The gaming segment held the leading market share in 2023. Cloud gaming platforms are built on GPUaaS, enabling users to stream and play games directly from the cloud without needing powerful gaming hardware. Players can access high-quality games on various devices, including laptops, smartphones, and smart TVs. With the help of GPUaaS, game designers can create visually stunning and realistic game environments. Players enjoy an immersive gaming experience because the powerful GPU resources support advanced rendering techniques, high-resolution textures, and complex visual effects.

GPU as a Service is experiencing significant growth in the IT and Telecom industries due to its transformative impact on computing capabilities. As data-driven technologies, AI and high-performance computing continue to play pivotal roles in these sectors, thus fueling the demand for powerful GPU resources. GPUaaS caters to this demand by providing on-demand access to high-performance GPUs without large upfront investments in hardware. Moreover, the rapid rise of cloud-based services has contributed to the proliferation of GPUaaS. Cloud service providers are integrating GPU resources into their offerings, enabling businesses to harness GPUs' full potential while enjoying cloud computing's flexibility and scalability.

Regional Insights

North America GPU as a Service market dominated globally in terms of revenue in 2023. The North America market has been experiencing significant growth and prominence as cloud computing, artificial intelligence (AI), and high-performance computing (HPC) have become integral to various industries. The increasing demand for AI and ML applications that require substantial computational power has fueled the adoption of GPUaaS.

U.S. GPU as a Service Market Trends

The GPU as a Service market in the U.S. is anticipated to grow at a significant CAGR over the forecast period. There is a strong emphasis on innovation and technological advancements, especially in emerging technologies, such as AI, IoT, and robotics, in the U.S. Furthermore, businesses in the U.S. have taken the lead in developing cutting-edge technology products that utilize GPU resources to enhance performance and efficiency. A strong focus on innovation is particularly fueling the demand for GPU resources for resource-intensive tasks, such as design, simulation, and data processing, in a trend highlighting the dedication of companies in integrating GPU computing for diverse applications to drive innovation, deliver impactful technological advancements, and boost productivity.

Europe GPU As A Service Market Trends

The GPU as a Service market in Europe is anticipated to grow at a significant CAGR over the forecast period. The demand for accelerated computing powered by GPUs is rising rapidly across Europe, driven by the continued implementation of applications based on AI, ML, and data analytics, among other modern technologies. Cost-effective, pay-as-you-go pricing models for resource-intensive workloads, such as GPU computing, are becoming more appealing as businesses look to optimize their IT budgets. The adoption of hybrid cloud architectures that combine public cloud resources with on-premises or edge deployments has been gaining traction.

The UK GPU as a service market is witnessing significant growth, driven by the increasing demand for high-performance computing resources and the growing adoption of cloud-based GPU resources across diverse industries. Driven by the evolving dynamics surrounding the continued technological advancements, the need for scalable, cost-effective GPU resources is rising.Key trends in the UK market include the growing preference for hybrid cloud solutions, the growing GPUaaS adoption across diverse industries, and a strong focus on delivering SaaS-based GPUaaS.

Asia Pacific GPU As A Service Market Trends

The GPU as a Service market in Asia Pacific is anticipated to grow at a significant CAGR over the forecast period. The convergence of increasing computational demands and the proliferation of GPU-intensive applications have contributed to the remarkable growth of GPUaaS in Asia-Pacific, empowering organizations to innovate, analyze data, and deliver exceptional user experiences. Major cloud service providers in the region, including Alibaba Cloud and Tencent Cloud, have been at the forefront of offering GPU instances as part of their cloud computing services, making GPUaaS readily accessible to businesses and developers. The rise of cloud gaming platforms and the ever-expanding applications of AI further propel the growth of GPUaaS in the region.

The China GPU as a service market holds the leading share in the regional market in 2023. China has been at the forefront of technological advancements and innovation, actively investing in advancing cutting-edge technologies, such as AI and HPC. The demand for GPU-accelerated computing power is gaining significant traction across China. GPUaaS is enabling enterprises to leverage state-of-the-art GPU capabilities without requiring substantial upfront investments in hardware infrastructure, fostering innovation and rapid prototyping. In addition, the flexibility and scalability offered by GPUaaS is allowing Chinese organizations to seamlessly adapt to the evolving technological landscape and stay ahead of the competition.

Key GPU As A Service Company Insights

The market is characterized by strong competition, with a few major worldwide competitors owning a significant market share. The major focus is developing new products and collaborating among the key players. For instance, in March 2023, NVIDIA Corporation, a U.S.-based software company, partnered with Oracle Cloud, Google Cloud, and Microsoft Azure to unveil NVIDIA DGX Cloud, an advanced computing platform. This service gives enterprises swift and direct access to the essential infrastructure and software required to train advanced models in generative AI and other advanced applications.

Recent Developments

• In May 2024, IBM Turbonomic, an AI-driven performance optimization platform developed by IBM, introduced GPU optimization capabilities for public cloud, on-premises, and containers. It enhances performance efficiency without compromising performance, particularly addressing concerns over cost management and resource provisioning. By optimizing GPU instances based on workload demands, Turbonomic helps users scale efficiently, potentially reducing cloud expenditure while ensuring optimal performance.

• In March 2024, Microsoft announced the availability of Azure NC H100 v5 virtual machines, providing robust computational power for AI and HPC tasks, including Generative AI applications and scientific simulations like Computational Fluid Dynamics and Quantum Chemistry, all accelerated by advanced GPUs. This initiative aims to highlight the availability of Azure NC H100 v5 VMs and emphasize their robust computational capabilities tailored for various HPC and AI workloads.

• In March 2024, Amazon Web Services, Inc. and NVIDIA Corporation collaborated to advance generative AI innovation by combining NVIDIA's powerful GPU technology with AWS's infrastructure and services. This partnership aims to provide customers with secure and advanced solutions for unlocking new AI capabilities, including real-time inference on large language models.

• In March 2024, NVIDIA Corporation announced a collaboration with Hyperscale cloud providers, including Oracle, Amazon.com, Inc., Microsoft, and Google LLC, to offer access to the latest Blackwell line of GPUs, enhancing their GPU-as-a-Service (GPUaaS) offerings. This collaborative effort extends to niche and emerging GPU-cloud providers like Lambda and NexGen, who are also gearing up to deploy the latest hardware.

• In February 2024, IBM Corporation company introduced GX3, a suite of NVIDIA L4 Tensor Core GPU options that enhance performance for AI and graphics workloads on IBM Cloud Kubernetes Service and Red Hat OpenShift on IBM Cloud. With NVIDIA L4 GPUs, users experience significant performance boosts, enabling smoother graphics rendering and accelerated AI processing.

• In November 2023, Google Cloud partnered with NVIDIA Corporation to integrate NVIDIA's GPUs into cloud infrastructure seamlessly. This transformative merger democratizes access to AI infrastructure-as-a-service, streamlining development and deployment processes to foster wider adoption of AI solutions while simultaneously boosting performance and scalability across industries.

GPU As A Service Market Report Scope

Global GPU as a Service Market Report Segmentation

This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global GPU as a service market report on the basis of component, pricing model, organization size, industry vertical, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

• Pricing Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Pay-per-use

  • Subscription-based Plans

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Size Organization

  • Small & Medium Size Organizations

• Industry Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Media and Entertainment

  • IT & Telecommunication

  • Healthcare

  • Gaming

  • Automotive Industry

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • KSA

    • UAE

    • South Africa