Press release
Global Data Center Accelerator Market Set to Skyrocket, projected to Reach US$ 89.8 Billion by 2031
The Global Data Center Accelerator Market is forecasted to experience an exponential growth trajectory, reaching a staggering US$ 89.8 billion by the end of 2031. According to the latest report, the market, valued at US$ 14.4 billion in 2022, is expected to advance at a remarkable Compound Annual Growth Rate (CAGR) of 22.5% from 2023 to 2031.The surge in demand for high-performance computing, fueled by the adoption of Artificial Intelligence (AI) and machine learning (ML) technologies, stands out as a primary driver for this unprecedented market growth. The rapid evolution of technology, particularly in AI, data analytics, and cloud computing, has led to significant transformations in data center design, management, and operation.
Specialized hardware, such as Graphics Processing Units (GPUs) and Tensor Processing Units (TPUs), are being increasingly incorporated into data centers to accelerate AI workloads. Major players in the industry are focusing on developing high-performance GPUs to cater to diverse workloads, ranging from gaming and graphics to AI and scientific computing.
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Key Market Trends and Drivers:
• Growth in Demand for High-performance Computing: The demand for high-performance computing (HPC) is witnessing a substantial uptick, driven by the need for powerful processors and accelerators, faster memory, and high-speed networking technologies. HPC applications, often involving large volumes of data, find support in large data centers equipped with storage solutions capable of handling significant data loads.
• Increase in Adoption of AI and ML Technologies: The complexity and computational demands of AI and ML algorithms are boosting the need for specialized hardware. The market is witnessing a rise in the adoption of AI and ML technologies across various sectors such as healthcare, manufacturing, transportation, and finance.
• Extensive Use of GPUs: Graphics Processing Units (GPUs) have emerged as the dominant accelerator type, owing to their parallel processing capabilities, which are particularly beneficial for AI and ML workloads. Major cloud providers like AWS, Google Cloud, and Azure leverage GPUs in their infrastructure to power AI and ML services.
Regional Outlook:
According to market forecasts, the Asia Pacific region is projected to hold the largest market share from 2023 to 2031, driven by the rise in digital content consumption and increased data usage in countries like China, India, Japan, and South Korea. North America, with its tech giants and significant investments in data management, is also a key market, with the U.S. playing a pivotal role in data center accelerator adoption.
Analysis of Key Players:
Major vendors, including Advanced Micro Devices, Cisco Systems, Google Inc., Intel Corporation, NVIDIA Corporation, and others, are actively developing robust and cost-effective accelerators to increase their market share. These companies are differentiating themselves by providing specialized ML services, AI frameworks, and tools, as well as developing energy-efficient data center accelerators.
Key Developments:
• In June 2023, Advanced Micro Devices (AMD) expanded its portfolio with the launch of new EPYC CPUs.
• In March 2023, NVIDIA unveiled its comprehensive Data Center Platform Play at GTC 2023, addressing diverse data center requirements.
• Meta Inc. introduced its latest chip, 'Meta Training and Inference Accelerator (MTIA),' designed to enhance the speed of AI training and inferencing tasks in 2023.
• Intel formulated a four-year blueprint for its data center strategy in 2023, focusing on Infrastructure Processing Unit (IPU) generations.
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