Global Data Center Accelerator Market Grows at a Staggering CAGR of 14.98%

Introduction

A data center accelerator is a hardware device or software program that enhances computer performance by processing visual data. Data center accelerators help to improve data center performance by optimizing the usage of artificial intelligence (AI)-based services and increasing the demand for consumer-focused data to power AI-driven data centers.

Market Dynamics

Increasing Deployment of AI in HPC Data Centers Drives the Global Market

Despite the massive efforts made by chipmakers to build accelerators, high-performance computing (HPC) data centers owned by companies like HP and Dell EMC are placing a lot of attention on incorporating deep learning-based accelerators. This is primarily due to increased consumer data collection and the adoption of AI-based services, which have increased demand for AI-focused data centers. AI may provide tailored services by understanding customer behavior data from product reviews, CRM systems, and social media comments. By integrating AI and machine learning technology, HPC solutions have been instrumental in altering various industries, including financial services, manufacturing, healthcare, oil and gas, and research and educational institutions. These programs can process data at rates of up to quadrillions of times per second and execute intricate computations.

Growing Demand for FPGA Creates Tremendous Opportunities

Prefabricated silicon devices called FPGAs (Field Programmable Gate Arrays) can be electrically programmed to transform into nearly any digital system after production. They can be built and then reprogrammed to fulfill individual application needs. They are a collection of reconfigurable logic blocks (CLBs) coupled via programmable interconnects. In addition, FPGA chips are widely used across many industries because they combine the best qualities of processor-based systems and application-specific integrated circuits (ASICs). ASIC frequently requires a lot of resources (both in terms of time and money) to construct the first device for low-to-medium volume productions. In contrast, FPGAs offer more economical alternatives and a quicker time to market.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global data center accelerator market and is expected to grow at a CAGR of 20.24% during the forecast period. The market's players are attempting to boost their capacity for competition through various growth strategies, such as product innovation, new alliances, investments in manufacturing facilities, expanded R&D, and international market research. The rise of growth-related projects in a variety of industries, such as e-commerce and retail, manufacturing, IT/ITeS, BFSI (primarily non-critical workloads), and emerging verticals like education, healthcare, hospitality, and communications and media are all contributing to the rise of data centers in India. These government initiatives include Digital India, Make in India, and Smart Cities.

North America is expected to grow at a CAGR of 15.29% during the forecast period. The US Army Engineering and Support Center, Huntsville Information Technology Services High-Performance Computing (HPC) program supports the HPC Modernization Program (HPCMP) of the US Department of Defense by purchasing various HPC systems (supercomputers) with more than 5 PetaFLOPS of computing power and more than 50 PetaBytes of mass storage archives (DOD). In addition, the HPCMP project accelerates developing and converting ground-breaking defense technology into superior warfighting capabilities by leveraging and solidifying American leadership in supercomputing, communications, and computational modeling. In addition, Canada is growing and providing more data center infrastructure solutions due to initiatives for environmentally friendly data center solutions, an enormous increase in power density in the area, and a rise in demand for efficient data centers.

Key Highlights

• The global data center accelerator market was valued at USD 6.59 billion in 2022. It is projected to reach USD 23.15 billion by 2031, growing at a CAGR of 14.98% during the forecast period (2023-2031). 
• Based on type, the global data center accelerator market is bifurcated into CPU (central processing unit), GPU (graphics processing unit), FPGA (field-programmable gate array), and ASIC (application-specific integrated circuit). The CPU (central processing unit) segment is the highest contributor to the market and is estimated to grow at a CAGR of 8.08% during the forecast period.
• Based on application, the global data center accelerator market is bifurcated into high-performance computing, artificial intelligence, and other applications. The artificial intelligence segment owns the highest market share and is estimated to grow at a CAGR of 14.23% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global data center accelerator market and is expected to grow at a CAGR of 20.24% during the forecast period.

Competitive Players

Competitive Players

The global data center accelerator market’s major key players are Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc., Achronix Semiconductor Corporation, Xilinx Inc., NEC Corporation, Dell Technologies Inc., IBM Corporation, Cisco Systems Inc., Qualcomm Technologies, Inc.

Recent Developments

Market News

• In March 2023, MemryX Inc., a pioneering startup focused on accelerating artificial intelligence (AI) processing for edge devices, announced that it formed a partnership with Cachengo, a leading AI hardware and software provider, to be the exclusive provider of artificial intelligence processors for their modular compute and storage servers.

Segmentation

Global Data Center Accelerator Market: Segmentation

By Type

• CPU (Central Processing Unit)
• GPU (Graphics Processing Unit)
• FPGA (Field-Programmable Gate Array)
• ASIC (Application-specific Integrated Circuit)

By Applications

• High-performance Computing
• Artificial Intelligence
• Other Applications

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA