Strong Growth Ahead: Data Center Graphics Processing Unit (GPU) Market Size To Grow At Arecord 33.1% Cagr By 2029

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How Big Is the Data Center Graphics Processing Unit (GPU) Market Size Expected to Be by 2034?
The market size for graphics processing units (GPUs) in the data center sector has seen extraordinary growth recently. The projection is that it will expand from $19.68 billion in 2024 to a staggering $26.26 billion in 2025, representing a compound annual growth rate (CAGR) of 33.4%. The significant growth during the historical period is a result of increased demand for high-powered computing, the expansion of cloud computing services, a surge in big data analytics, growing requirements for effective virtualization, and the broadening of data centers to accommodate new technology trends.

In the coming years, the data center graphics processing unit (GPU) market is slated for significant expansion. Its size is projected to increase to $82.41 billion by 2029, with a compound annual growth rate (CAGR) of 33.1%. This expected surge within the forecast period is due to a variety of factors, including the embracing of edge computing, the spread of 5G technology, the increasing use of superior AI models, the growth of IoT devices needing better computational power, and mounting demands for energy-efficient and scalable computing solutions. Dominant trends within the forecast period constitute the use of multiple GPU configurations, the fitting together of GPUs with AI-dedicated structures, the movement towards GPU services based on the cloud, advancements in data analytics based on GPUs, and the adoption of GPUs in high-performance computing (HPC) scenarios.

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What Are the Emerging Segments Within the Data Center Graphics Processing Unit (GPU) Market?
The data center graphics processing unit (GPU) market covered in this report is segmented -

1) By Product: Discrete; Integrated
2) By Deployment Model: On-Premises; Cloud
3) By Function: Training; Inference
4) By End-User: Cloud Service Providers; Enterprises; Government

Subsegments:
1) Discrete: High-Performance Discrete GPUs; Data Center-Specific Discrete GPUs; Gaming And Rendering Discrete GPUs
2) Integrated: CPU with Integrated Graphics; Low-Power Integrated GPUs; Integrated GPUs For Virtual Desktops

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What Long-Term Drivers Are Shaping Data Center Graphics Processing Unit (GPU) Market Trends?
The escalating uptake of cloud services is set to stimulate the expansion of the data center graphics processing units (GPUs) market in the future. Cloud services denote the distribution of computing capabilities, including storage, computational power, and software applications, via the internet. This allows users to retrieve and administer these resources as per need, bypassing the requirement of owning or maintaining physical infrastructure. Cloud services are increasingly being embraced due to their cost-effectiveness, scalability, and user-friendly access, empowering businesses to swiftly adapt to evolving needs without pouring money into physical infrastructure. Data center graphics processing units (GPUs) enhance cloud services by expediting data-heavy tasks, facilitating quicker and more efficient processing of applications such as AI, machine learning, and real-time graphics. This consequently optimizes the overall performance and scalability of cloud-based solutions. For example, Eurostat, a Luxembourg-based government body responsible for European statistics and data, reported in December 2023, that 42.5% of EU enterprises had availed cloud computing services by 2023, primarily for email, file storage, and office software, marking a 4.2 percentage point rise from 2021. Thus, the increasing use of cloud services is fuelling the expansion of the data center graphics processing units (GPUs) market.

Who Are the Top Competitors in Key Data Center Graphics Processing Unit (GPU) Market Segments?
Major companies operating in the data center graphics processing unit (GPU) market are Google LLC, Samsung Electronics Co. Ltd., Dell Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Qualcomm Technologies Incorporated, Oracle Corporation, Broadcom Inc., Micron Technology Inc., Hewlett Packard Enterprise Company, Nvidia Corporation, NEC Corporation, Advanced Micro Devices Inc., ASML Holding N.V., ASUSTeK Computer Inc., Inventec Corporation, Super Micro Computer Inc., Gigabyte Technology Co. Ltd., Marvell Technology Inc., Arm Holdings plc, Advantech Co. Ltd., Zotac Technology Limited

What Actigraphy Devices Market Trends Are Gaining Traction Across Different Segments?
Prominent corporations in the data center GPUs market are concentrating on technological developments, including energy-efficient GPUs, to minimize operational expenditure, boost performance, and lessen the ecological footprint of extensive data centers. These energy-conserving GPUs are devised to provide high processing performance with reduced energy usage, thus decreasing power expenses and promoting sustainability in data centers. For example, in March 2024, Nvidia Corporation, a software firm based in the US, unveiled the NVIDIA Blackwell platform. The Blackwell GPU's architecture is underpinned by six revolutionary technologies intended to amplify accelerated computing. It aims to facilitate innovations in areas like data processing, engineering simulation, and generative AI, permitting real-time AI activities on trillion-parameter models at considerably lower costs and energy consumption, up to 25 times less than previous models.

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Which Regions Are Becoming Hubs for Data Center Graphics Processing Unit (GPU) Market Innovation?
North America was the largest region in the data center graphics processing unit (GPU) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center graphics processing unit (GPU) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Graphics Processing Unit (GPU) Market?
2. What is the CAGR expected in the Data Center Graphics Processing Unit (GPU) Market?
3. What Are the Key Innovations Transforming the Data Center Graphics Processing Unit (GPU) Industry?
4. Which Region Is Leading the Data Center Graphics Processing Unit (GPU) Market?

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