PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1503316
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1503316
According to Stratistics MRC, the Global Data Center Accelerator Market is accounted for $31.98 billion in 2024 and is expected to reach $109.12 billion by 2030 growing at a CAGR of 22.7% during the forecast period. Data center accelerators are specialized hardware elements that accelerate and offload particular computational tasks to improve the performance and efficiency of data centers. These accelerators-which include GPUs, FPGAs, and ASICs-are designed to withstand the rigorous workloads of contemporary applications, which include big data analytics, artificial intelligence (AI), machine learning, and high-performance computing (HPC). Moreover, data center accelerators can greatly increase throughput and decrease latency by taking on demanding processing tasks from conventional CPUs.
According to the International Data Corporation (IDC), the global market for data center accelerators is projected to grow significantly over the next few years, driven by the increasing adoption of AI and machine learning technologies in various industries.
Growing needs for machine learning and AI
Natural language processing, image and speech recognition, autonomous cars, and other AI and machine learning applications are growing at a very fast pace, which makes them demand a lot of processing power in parallel. Rapid training times and more effective inference operations are made possible by data center accelerators, especially GPUs and specialized AI chips, which are built to handle the large datasets and intricate algorithms involved. Additionally, in order to improve decision-making, customer experience, and operational efficiency, businesses in the healthcare, finance, automotive, and retail sectors are driving this demand.
Complex maintenance and integration
Data center accelerator integration can be technically challenging and necessitate specialized knowledge. The requirement to guarantee compatibility with current hardware, software, and network architectures gives rise to this complexity. Furthermore, it takes advanced knowledge and resources to maintain and manage a heterogeneous computing environment with both conventional CPUs and specialized accelerators. Adoption may be hampered if organizations must spend money on expert hiring or training, which would raise operating expenses even more.
Technological progress in hardware
There are a lot of opportunities due to ongoing advancements in accelerator hardware, such as the creation of GPUs, FPGAs, and customized ASICs that are more powerful and efficient. Accelerators are now more appealing for a variety of use cases due to their increased performance, energy efficiency, and application-specific optimization as a result of these developments. Moreover, newer technologies like neuromorphic computing and quantum computing may be able to work with conventional accelerators to give data centers new ways to handle tasks that are even more intricate and computationally demanding.
Quick changes in technology
The rapid pace of technological progress in data center accelerators presents a noteworthy risk. To stay ahead of the curve, businesses must continually invest in research and development, which can require a lot of resources. There's also the chance that as newer, more sophisticated solutions appear, current technologies will quickly become outdated. Additionally, businesses may incur higher costs as a result of this rapid change since they must regularly upgrade their infrastructure to keep up with advancements in technology.
The COVID-19 pandemic had a major effect on the market for data center accelerators, driving up demand for digital transformation, remote work options, and cloud services across various industries. Data center accelerators were adopted to improve performance and efficiency as a result of a surge in data generation and processing needs brought about by businesses and consumers relying more and more on digital platforms. However, the pandemic also resulted in production delays, shortages of components, and disruptions to the supply chain, which put manufacturers under pressure and slowed the adoption of new accelerator technologies.
The High Performance Computing Accelerator segment is expected to be the largest during the forecast period
The High Performance Computing (HPC) Accelerator segment holds the largest market share in the data center accelerator market. The computational power needed for demanding tasks like large-scale data analysis, intricate computations, and simulations-all essential in domains like scientific research, finance, engineering, and defense-is largely supplied by HPC accelerators. Moreover, the need for advanced modeling, artificial intelligence, and machine learning applications is driving an increasing demand for computational capabilities in these domains, which is why HPC accelerators are dominating the market.
The Graphical Processing Unit (GPU) segment is expected to have the highest CAGR during the forecast period
The Graphical Processing Unit (GPU) segment of the Data Center Accelerator Market has the highest CAGR. GPUs are becoming more and more popular because of their superior parallel processing capabilities, which make them perfect for managing the intricate computations needed by contemporary applications like machine learning, artificial intelligence (AI), and high-performance computing (HPC). Additionally, large data sets and complex algorithms can be processed quickly and efficiently thanks to their architecture, which offers a noticeable speed and performance boost over conventional CPUs.
Due to the presence of significant technology companies, a strong infrastructure, and a high demand for data processing capabilities across a variety of industries, including IT, healthcare, finance, and e-commerce, North America continues to hold the largest share of the global market for data center accelerators. Furthermore, early adoption of cutting-edge technologies such as big data analytics, machine learning, and artificial intelligence (AI) benefits the region. These technologies require strong accelerators to improve computational efficiency.
The data center accelerator market's highest CAGR is seen in the Asia-Pacific region. Rapid urbanization, rising digitization in a number of industries, and the establishment of technology hubs in nations like China, India, Japan, and South Korea are the main drivers of this growth. Due to the region's growing population, widespread use of smart phones, Internet of Things (IOT) devices, and cloud computing services, there is a surge in the generation of data. Additionally, high-performance data center accelerators are becoming more and more necessary as companies in Asia-Pacific depend more and more on data-driven insights to obtain a competitive edge and manage enormous workloads effectively.
Key players in the market
Some of the key players in Data Center Accelerator market include NVIDIA Corporation, Google Inc., Cisco Systems, Inc., Qualcomm Technologies, Inc., Fujitsu, NEC Corporation, Intel Corporation, Advanced Micro Devices, Inc, Wave Computing, Meta Inc., SambaNova Systems, Inc., Leapmind Inc., Dell Inc., Micron Technology, Inc. and Huawei Technologies.
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