The Global Data Center Accelerator Market size is expected to reach $75.2 billion by 2027, rising at a market growth of 34% CAGR during the forecast period. A software program or hardware device, which improves the entire computer performance by processing visual data, is known as a data center accelerator. Additionally, data center accelerators enable companies to boost the consumer-centric data demand and improve the usage of artificial intelligence (AI)-based services to surge the demand for AI-driven data centers, which would enhance the performance of data centers.
Modern data centers are among the important scientific discoveries, which help in solving numerous vital challenges. These advanced data centers are helping in boosting the networking bandwidth and making the best use of the workloads such as artificial intelligence. In addition, data center administrators also can get the benefits like lower power, less overall cost of ownership, and the latest services.
The growing penetration of smartphones along with the high adoption of improved and latest technologies like IoT, AI, and big data is anticipated to augment the demand for data center accelerators in the IT and telecom industry. Several telecom service providers are highly deploying GPU machine learning algorithms in data center servers to accelerate the model training times, forecast the future, and identify abnormalities.
The increasing number of social media platforms and streamline video content trends in the telecom sector are leading to the higher data traffic, which is encouraging organizations to implement accelerated analytics and visualization platforms to reduce the loss of data and facilitate business continuity & security. Many enterprises like CenturyLink, and Telecom Italia, are improving their presence in various regions, which would propel the growth of the data center accelerator market.
The global outbreak of the COVID-19 pandemic has impacted almost all sectors of business. As things will start getting normalized, the manufacturing sector is estimated to accelerate smart manufacturing processes by utilizing IoT, AI, and blockchain technologies. Through the implementation of these technologies, enterprises can reduce costs, fuel process efficiency, and significantly decrease human contact. At present, AI is majorly utilized for predictive maintenance and is expected to be deployed to predict demand and revenues in the supply chain.
Due to the pandemic, educational industries have witnessed a positive impact as ed-tech organizations have increasingly adopted AI technology to carry out education during the lockdown. Ed-tech companies have implemented AI tools to improve online learning & virtual classroom experience for students. This high usage of artificial intelligence in numerous industries is fueling the demand for data center accelerators in the market.
Designers, gamers, creative professionals, and video enthusiasts need deep learning accelerators with parallel processing offerings, which could facilitate the provisioning of on-demand machine learning for virtual reality, augmented reality, and numerous other application areas. These technologies are creating more demand for data centers and thus, fueling the demand for data center accelerators in the market.
FPGA refers to an integrated circuit, that can be configured by a customer or designer after it is manufactured. In addition, FPGAs are encoded with the help of utilizing hardware description languages like VHSIC hardware description language (VHDL) or Verilog. These FPGAs provide benefits like a short time to market, fast prototyping, reprogrammable in the area for debugging, and a long product life cycle.
The low availability of AI hardware experts is one of the factors restraining the growth of the data center accelerator market. The complexity of AI makes it difficult for the company’s personnel for managing, developing and deploying AI systems as they require specific skills to operate. Furthermore, the integration of AI solutions with current systems is one of the hard tasks, which need well-funded in-house R&D and patent filling.
Based on Type, the market is segmented into HPC Data Center and Cloud Data Center. High-Performance Computing (HPC) refers to a specialized field to computers focused on performing a huge amount of calculation within a short span. At present, HPC customers are generally research organisms and large industrial groups that are usually concentrated in simulation-intensive industries like the automotive, aerospace energy, and pharmaceuticals sectors.
Based on Processor Type, the market is segmented into CPU, FPGA, GPU and ASIC. FPGA stands for Field programmable gate arrays that refer to the pre-fabricated silicon devices, which could be programmed electrically to become any type of digital system. These devices are a collection of configurable logic blocks (CLBs) linked with programmable interconnects and could be reprogrammed to the preferred application needs after manufacturing.
Based on Application, the market is segmented into Deep Learning Training, Public Cloud Interface and Enterprise Interface. The enterprise interface segment is estimated to register the highest growth rate during the forecast period because of the hyper-scale cloud-based organizations like Google, Amazon.com, Facebook, which are increasingly aiming at the digital transformation to create similar kinds of cloud-native applications.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 8.9 Billion |
| Market size forecast in 2027 | USD 75.2 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 34% from 2021 to 2027 |
| Number of Pages | 243 |
| Number of Tables | 353 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Industry Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The increasing number of data centers in various nations like the US and Canada is creating lucrative opportunities for the key players of the market. In addition, the high adoption rate of various latest technologies would also augment the demand for data center accelerators in this region over the forecast period. The presence of big giants and key market players is pushing the data center accelerator market forward in this region.
Free Valuable Insights: Global Data Center Accelerator Market size to reach USD 75.2 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Google, Inc. is the major forerunners in the Data Center Accelerator Market. Companies such as NEC Corporation, IBM Corporation, and Micron Technology, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Intel Corporation, NEC Corporation, Google, Inc., IBM Corporation, Micron Technology, Inc., Advanced Micro Devices, Inc., Marvell Technology Group Ltd., NVIDIA Corporation, Xilinx, Inc. and Qualcomm, Inc.
By Type
By Processor Type
By Application
By Geography
The data center accelerator market size is projected to reach USD 75.2 billion by 2027.
Intel Corporation, NEC Corporation, Google, Inc., IBM Corporation, Micron Technology, Inc., Advanced Micro Devices, Inc., Marvell Technology Group Ltd., NVIDIA Corporation, Xilinx, Inc. and Qualcomm, Inc.
Yes, Ed-tech companies have implemented AI tools to improve online learning & virtual classroom experience for students. This high usage of artificial intelligence in numerous industries is fueling the demand for data center accelerators in the market.
The CPU market dominated the Global Data Center Accelerator Market by Processor Type 2020, growing at a CAGR of 33.5 % during the forecast period.
Based on the processor, FPGA is projected to witness a high growth rate over the forecast period. It is due to the high adoption of FPGAs for boosting enterprise workloads.
Region-wise, Asia Pacific is among the leading regions in the data center accelerator market over the forecast period. This growth is owing to the increasing demand for data center accelerators in China.
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