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Data Center Accelerator Market by Processor Type (Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field-Programmable Gate Array (FPGA), Application-Specific Integrated Circuit (ASIC)) by Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface) by Deployment Type (On-premise, Cloud based): Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

Data Center Accelerator Market Analysis

A data center accelerator is devices that is designed and used to process visual data. It is a hardware device or software programme that improves the overall performance of a computer. These devices help to increase consumer-driven data consumption as well as the adoption of AI-based services, which drives the demand for AI-centric data centers. The data center accelerator market generated US$ 14.4 billion in revenue in 2021 and is expected to reach US$ 73.4 billion by 2027. Throughout the forecast period, the market is expected to grow at a CAGR of 31.2%.

The increasing emphasis on parallel computing in AI data centers is primarily responsible for the market growth for data center accelerators. Demand is also aided by rapid development in cloud-based services. Increased demand for artificial intelligence (AI) in high-performance computing (HPC) data centers, an increase in the number of companies offering machine learning (ML), increased demand for consumer-driven data, and increased demand for application performance enhancement are all factors driving the data center accelerator market growth.

COVID-19 Impact on Data Center Accelerator Market

This pandemic has had the greatest impact on some of the industries, while others have benefited. AI adoption, on the other hand, is on to the rise. Consider the scenario below: COVID-19 has had a positive impact on the Ed-tech sector, with ed-tech companies using AI technology to provide education during the lockdown. AI techniques have been used by ed-tech companies to improve online learning and virtual classroom experiences for students. Coursera Inc., a large open online course provider based in the United States, has created CourseMatch, an AI-powered tool that assists schools and institutions in selecting courses relevant to their curriculum from the site.

Interesting Facts about Data Center Accelerator Market

  • The increasing adoption of cloud-based services and construction of new hyperscale facilities of data centres lead to strong demand for data center accelerator
  • U.S. held the largest share of over 35% in 2020
  • Higher price of data center accelerator
  • With rapid advancement in technological landscape, the demand for data center accelerator will grow at a CAGR of over 30%
  • Central Processing Unit (CPU) to lead the growth of this industry 

Asia Pacific market grows with the highest CAGR for data center accelerators.

North America and Europe are leading the data center accelerator market in terms of revenue. However, Asia Pacific is expected to advance at a rapid pace over the forecast period. India, China, Japan, and Australia are among the major countries driving the data center accelerator market in this region. Increased cloud storage demand in the region is also expected to drive the demand for data center accelerator in the region.  Additionally, government initiatives such as "Make in India," "Digital India," "Made in China," and "Innovation Japan" have increased the use of IoT, big data analytics, and cloud-based services in the area, driving up demand for data centers.

Global Data Center Accelerator Market key Players:

Some of the key players operating in the global data center accelerator market are Advanced Micro Devices, Inc, Google. Inc, IBM Corporation, Intel Corporation, Marvell Technology, NVIDIA Corporation, Qualcomm Technology, Xilinx Inc. Key players are highly focused on to the development and offering of innovative products to gain the competitive advantage in rapidly changing dynamics of global data center accelerator market. For instance, Intel announced the release of a 3rd Generation Intel Xeon Scalable CPU in April 2021, featuring a balanced design, built-in AI, crypto acceleration, and improved security features.

In May 2020, NVIDIA introduced two powerful devices for its EGX Edge AI platform: the EGX A100 and EGX Jetson Xavier NX, both of which enable high-performance, secure AI computing. Hospitals, shops, farms, and factories may use the NVIDIA EGX Edge AI platform to do real-time processing and data protection on huge quantities of data coming from trillions of edge sensors. The technology enables remote deployment, management, and updating of server fleets in a safe manner.

Frequently asked questions about global data center accelerator market

The data center accelerators market is expected to grow from US$ 14.4 billion in 2021 to US$ 73.4 billion by 2027, with a CAGR of 31.2% from 2021 to 2027.

The increased demand for FPGA-based accelerators, as well as a rise in demand for coprocessors are major growth opportunities for the companies operating in data center accelerator industry

Rapidly growing usage of cloud-based services, focus on parallel computing in AI data centers, and application of deep learning to big data analytics are the key driving factor of the market.

During the forecast period, North America is expected to hold the largest market share.

Some of the key applications for data center accelerators include Deep Learning Training, Public Cloud Interface, Enterprise Interface

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Published Date:  Nov 2021
Category:  IT & Telecom
Report ID:   60435
Report Format:   PDF
Pages:   120
Rating:    4.2 (56)
Delivery Time: 24 Hours to 48 Hours   
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