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Global Data Center Chip Market to Reach US$ 14.11 Billion by 2027, Impelled by Rapid Digitization in Corporate Sector

Published on Apr 25, 2022

According to the latest report by IMARC Group, titled "Data Center Chip Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global data center chip market reached a value of US$ 9.56 Billion in 2021. A data center refers to a facility that is generally utilized by multiple businesses for centralizing equipment and operations related to information technology (IT) while storing and disseminating information effectively. The data center chip is an essential component that is commonly helpful in enhancing the productivity and operations of an organization. It is usually equipped with capacitors, transistors and resistors. With a considerable increase in data generation due to the escalating adoption of private servers, there has been a considerable rise in the demand for data center chips across the globe.  

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 Chip Market Trends: 

The global market is primarily driven by the significant growth in the information technology (IT) industry. With rapid digitization across the corporate sector, several firms are heavily investing in the deployment of data centers, which, in turn, is propelling the demand for data center chips on the global level. In addition to this, the increasing adoption of data center and cloud computing in the banking, financial services and insurance (BFSI) industry for improved security and flexibility is acting as another major growth-inducing factor. Moreover, continual technological advancements, including the introduction of the five-nanometer process for semiconductor manufacturing, are creating a positive market outlook. Besides this, bespoke and circuitry chips that offer significant advantages in power consumption and performance are gaining widespread prominence across the globe. In line with this, numerous leading manufacturers are engaged in optimizing overall costs by simultaneously customizing the systems as per their business requirements, which is providing a boost to the product uptake. Other factors, including the penetration of high-speed internet connectivity and extensive research and development (R&D) technology conducted by key players, are also positively influencing the market growth. On account of the aforementioned factors, the market is anticipated to reach a value of US$ 14.11 Billion by 2027, exhibiting a CAGR of 6.40% during 2022-2027.

Market Summary:

  • On the basis of the chip type, the market has been segmented into GPU, ASIC, FPGA, CPU and others.
  • Based on the data center size, the market has been bifurcated into small and medium size and large size.
  • On the basis of the industry vertical, the market has been classified into BFSI, manufacturing, government, IT and telecom, retail, transportation, energy and utilities, and others.
  • Based on the region, the market has been divided 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 the Middle East and Africa.
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market. Some of these players include Achronix Semiconductor Corporation, Advanced Micro Devices Inc., Arm Limited, Broadcom Inc., Fujitsu Limited, GlobalFoundries Inc., Huawei Technologies Co. Ltd., Intel Corporation, Marvell Technology Inc., Nvidia Corporation and Taiwan Semiconductor Manufacturing Company Limited.

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