Data Center Chip Market is Estimated to Reach $15.64 billion by 2025
Innovations in chip technology, rise in adoption of cloud computing, and favorable government regulations regarding localization of data centers facilitate the growth in the market. However, very high costs of operation restrain the market growth. On the other hand, increase in number of smart computing devices is expected create numerous opportunities in the industry.
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Based on chip type, the GPU segment held the major market share, accounting for nearly one-third of the total share in 2017. This segment is estimated to continue its dominance throughout the forecast period. This is due to the increase in parallel processing capabilities along with rise in applications such as artificial intelligence (AI) for carrying out large scale data computations. On the other hand, the FPGA segment would register the highest CAGR of 11.2% from 2018 to 2025, owing to rise in adoption across various verticals for its excellent reprogramming functionality. The report also discusses chip types such as CPU, ASIC, and others.
Based on regions, North America contributed to nearly two-fifths of the total share in terms of revenue in 2017 and will maintain its dominance by 2025. This is due to rise in technological advancements and investments in research and development activities for data centers. On the other hand, LAMEA is expected to grow at the highest CAGR of 12.1% from during the forecast period, 2018–2025. This is due to increase in demand from emerging economies such as Brazil and Chile and developed economies including South Africa and UAE. The research also discusses Asia-Pacific and Europe.
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Key market players discussed in the report include Intel Corporation, GlobalFoundries, Advanced Micro Devices Inc., Taiwan Semiconductor Manufacturing Co. Ltd., Samsung Electronics Co. Ltd., Arm Limited (SoftBank Group Corp.), Broadcom, Xilinx, Inc., Huawei Technologies Co. Ltd., and Nvidia Corporation. They have adopted various strategies including expansion, mergers & acquisitions, collaborations, partnerships, and others to gain a strong position in the industry and make an international mark.
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