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Data Center Accelerator Market Size By Processor Type (Central Processing Unit (CPU), Graphic Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC)), By Type (High Performance Computing (HPC) Accelerator, Cloud Accelerator), By Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface), By End-Use (IT & Telecom, Healthcare, BFSI, Government, Energy, Manufacturing), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI5190
  • Published Date: Jan 2022
  • Report Format: PDF

Industry Trends

Data Center Accelerator Market size exceeded USD 5 billion in 2021 and is projected to grow at over 25% CAGR from 2022 to 2028. Rise in construction of cloud-based infrastructures is boosting the market growth.
 

Data Center Accelerator Market Overview

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Compute intensive technologies such as cloud computing and AI require high performance data center accelerator solutions for the seamless execution of advanced technologies. The advancements in AI technology are enhancing and improvising cloud server setups. The cloud computing has grown significantly as a result of an increase in the data volume sent to the cloud from customers.
 

The increase in AI-centric data has resulted in the proliferation of accelerators built in servers. Accelerators offered by market players improve data processing at servers by lowering latency. The increased use of cloud-based technology is augmenting the need for deep learning, which is driving the industry growth.
 

The outbreak of COVID-19 adversely affected the global economy in 2020. Governments across the globe imposed stringent lockdowns, resulting in travel restrictions. Manufacturing plants were shut down, resulting in lower production rates. Global trade tensions, financial disruptions, and sharp downturns in major economies impacted the global economy. This factor hampered the overall data center market in the first half of 2020.
 

However, the relaxations in lockdowns in the second half of 2020, helped in the gradual streamlining of global supply chains, in turn fueling the market expansion. The increasing adoption of digital technologies such as video conferencing and video on-demand during the lockdowns has encouraged market players to focus on R&D associated with solutions that enhance data center operations. Data center operators are incorporating advanced technologies to improve operational efficiency and ensure fast and real time data transfer.
 

Rise in penetration of IoT devices in the U.S. is offering strong growth opportunities to the FPGA segment

The U.S. Field Programmable Gate Arrays (FPGA) segment in the data center accelerator market is expected to witness 25% growth rate through 2028. FPGAs provide data, task & pipeline parallelisms, resulting in quicker data process executions. These are deployed in conjunction with general-purpose CPUs to accelerate throughput for targeted functions in data and compute-intensive workloads. Market leaders are offering FPGA that meets the high efficiency and low power operational requirements of a specific application, resulting in a high-performance-to-cost ratio. FPGA flexible protocol switching/bridging and secure remote in-field updates support a wide range of constantly developing IoT gateway needs.
 

Increasing importance of using data center accelerators in enterprise interface will support the market progression

Demand for data center accelerators in enterprise interfaces is increasing globally owing to need for hardware & software streamline monitoring and maintenance through an efficient OpEx model. The end-to-end accelerated computing platform, which is integrated across hardware and software provides organizations with a blueprint for a robust & secure infrastructure. This helps enable develop-to-deploy implementations in all current workloads.
 

Market participants are offering solutions used for data management, development, governance, and services. Data center accelerators in enterprise interface provide comprehensive data capabilities to assist in making corporate data more flexible, efficient, reliable, and secure. They are compatible with existing infrastructures & tools and a variety of enterprise workloads.
 

The exponential rise in autonomous vehicles in Germany to spur the cloud accelerator market demand

Data Center Accelerator Market Size

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Germany data center accelerator market is estimated to attain a CAGR of 20% till 2028 led by the growing number of autonomous vehicles that use cloud technology. By using the cloud technology, autonomous cars can communicate with one another to prevent accidents and update traffic information & maps. Increasing government initiatives to stimulate digitalization in the automotive industry will aid the regional growth.
 

Automotive manufacturers are using computer-aided engineering (CAE) HPC data centers to enable the seamless implementation of autonomous technologies. This factor will influence the implementation of accelerators that enhance data center compute capabilities and enable the development of technologically advanced vehicles.
 

Growing usage of data driven technologies will support the market value

Introduction of new technologies such as 5G, IoT, virtual & augmented reality, and AI & ML is propelling the demand for accelerators to meet massive data processing & low latency requirements. Several telecommunication service providers are extensively using GPU machine learning algorithms in data center servers to reduce model training durations, forecasting, and detecting anomalies. The growing number of social media platforms and video content services in the telecom industry is propelling data traffic prompting organizations to develop accelerated analytics and visualization tools to prevent data losses and improve business operations & integrity.
 

Rising acceptance of cloud computing in APAC to impel the market revenue

APAC Data Center Accelerator Market

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Asia Pacific data center accelerator market is poised to account for 30% of revenue share by 2028 due to the rising number of cloud data centers in the region. Hybrid cloud is being increasingly used by regulated industries as it allows them to keep their data in a private cloud while building, running, and testing workloads on a public cloud. The APAC market is witnessing a boost in cloud computing usage owing to the increased availability of trained labor and focused attention offered by SMEs and major organizations to enter & expand in this region. As organizations seek to improve their digital activities, public cloud services have gained popularity in the region. Organizations are aiming to improve application performance and customer experience, through usage of data center accelerators.
 

New product launches with high computation capacity and innovative features form a key strategy amongst market players

Key companies operating in the market include Achronix Semiconductor, Advanced Micro Devices, Inc., Advantech Co., Ltd., Fujitsu Ltd., Dell Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lattice Semiconductor, Lenovo Ltd., Marvell Technology Inc., Microchip Technology Inc., Micron Technology, Inc., NEC Corporation, NVIDIA Corporation, Qualcomm Incorporated, Skyworks Solutions Inc., Synopsys Inc., Western Digital Corporation, and Xilinx Inc. Industry leaders are focusing on expanding their product offerings by introducing new data center accelerator solutions to enhance compute density.
 

The data center accelerator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2028 for the following segments:

Market, By Processor Type

  • Central Processing Unit (CPU)
  • Graphic Processing Unit (GPU)
  • Field Programmable Gate Array (FPGA)
  • Application Specific Integrated Circuit (ASIC)

Market, By Type

  • HPC accelerator
  • Cloud accelerator

Market, By Application

  • Deep learning training
  • Public cloud interface
  • Enterprise interface

Market, By End-use

  • IT & telecom
  • Healthcare
  • BFSI
  • Government
  • Energy
  • Manufacturing
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Poland
    • Benelux
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Singapore
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • GCC
    • South Africa

 

Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

The market size of data center accelerator was valued at over $5 billion in 2021 and is predicted to register more than 25% CAGR during the forecast period of 2022-2028.

The U.S. Field Programmable Gate Array (FPGA) segment is projected to observe 25% CAGR through 2028 as the processors offer data, task & discipline parallelisms.

Germany data center accelerator industry size may record a robust CAGR of 20% through 2028 as cloud technologies are being increasingly used in autonomous cars, which can help them seamlessly communicate with other systems to prevent accidents.

Leading companies, including Achronix Semiconductor, Advantech Co., Ltd., Advanced Micro Devices, Inc., Fujitsu Ltd., Dell Inc., IBM Corporation, and Intel Corporation, among several others, are positively influencing the global industry outlook.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 20
  • Tables & Figures: 329
  • Countries covered: 20
  • Pages: 300

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