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Global Data Center Accelerator Market to Reach US$ 55.7 Billion by 2027, Impelled by Rising Network Bandwidth

Published on Mar 02, 2022

The latest report by IMARC Group, titled "Data Center Accelerator Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," finds that the global data center accelerator market size reached US$ 11.8 Billion in 2021. Data center accelerators refer to software programs or hardware devices designed to process visual data and enhance the overall performance of data centers. They perform complex computational functions and help optimize and speed up machine learning (ML), deep learning, and high-performance computing (HPC) workloads of modern data centers. They also assist in reducing the overall costs and improving energy efficiency as they consume less power due to their resource-sharing capability with the main processor. In recent years, data center accelerators have gained immense traction as they solve customer problems and enable high-performance computing workloads with excellent cost and power efficiency. 

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.     

Global Data Center Accelerator Market Trends:

The increasing network bandwidth and the rising need to manage complex datasets and analytics workloads represent the primary factors driving the market growth. Additionally, the growing usage of artificial intelligence (AI) to streamline business operations has strengthened the need for data center accelerators for managing AI workloads. This can be attributed to the significant shift toward remote working due to the implementation of strict lockdowns and social distancing norms amid the recent coronavirus disease (COVID-19) outbreak. Besides this, the increasing machine learning (ML) applications, such as voice recognition, fraud detection, voice search, recommendation engines, sentiment analysis, image recognition, and motion detection, has catalyzed the demand for data center accelerators to handle ML workloads. Furthermore, there has been widespread adoption of on-demand graphics processing unit (GPU) cloud computing-based solutions on account of the escalating demand for accelerated computing. Along with this, the surging demand for cloud-based services and the rising usage of deep learning have propelled the market growth. Other factors, including the widespread adoption of Field Programmable Gate Arrays (FGPA) chips, shifting focus toward parallel computing AI data centers, growing data storage requirements, extensive research and development (R&D) activities, and product innovations, are also creating a favorable market outlook. Looking forward, the market value is expected to reach US$ 55.7 Billion by 2027, expanding at a CAGR of 31.62% during the forecast period (2022-2027). 

Market Summary:

  • Based on the accelerator type, the market has been bifurcated into high-performance computing and cloud accelerator. At present, high-performance computing dominates the market. 
  • On the basis of the processor type, the market has been divided into central processing unit (CPU), graphics processing unit (GPU), field-programmable gate array (FPGA), and application-specific integrated circuit (ASIC). Amongst these, CPU accounts for the majority of the market share.
  • The market has been classified based on the application into deep learning training, public cloud interface, and enterprise interface, wherein deep learning training exhibits a clear dominance in the market.
  • Region-wise, the market has been segmented into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa. Presently, North America holds the leading position in the market.
  • The competitive landscape of the market has also been analyzed, with some of the key players being Achronix Semiconductor Corporation, Advanced Micro Devices Inc., Cisco Systems Inc., Dell Technologies Inc., Gyrfalcon Technology Inc., Intel Corporation, International Business Machines Corporation, Marvell Technology Inc., Microsemi Corporation (Microchip Technology Inc.), Nvidia Corporation, Qualcomm Technologies Inc., and  Xilinx Inc.

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