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Data Center Accelerator Market Analysis

The Data Center Accelerator Market size is estimated at USD 11.29 billion in 2024, and is expected to reach USD 21.92 billion by 2029, growing at a CAGR of 14.19% during the forecast period (2024-2029).

The growing demand for artificial intelligence in HPC data centers and the increasing usage of cloud-based services likely drive the data center accelerator market over the coming years.

• From scientific discoveries to artificial intelligence (AI), modern data centers are crucial to solving some of the world's most critical challenges. These advanced data centers are transforming to increase networking bandwidth and optimize workloads like artificial intelligence. Datacenter administrators also expect a lower total cost of ownership, lower power, and new services.
• The ever-increasing demands on the data center are pushing existing infrastructure to its limit, driving the need for adaptable solutions that can optimize performance across a broad range of workloads and extend the lifecycle of existing infrastructure, thus, ultimately reducing TCO. Players have been actively expanding their product portfolio to capture this demand and gain market recognition.
• Further, most computing system growth would stem from higher demand for AI applications at cloud computing data centers. At these locations, GPUs are now used for almost all training applications. However, as ASICs enter the market, GPUs would likely become more customized to meet the demand for Deep Learning (DL). In addition to ASICs and GPUs, FPGAs would also have a crucial role in future AI training, primarily for specialized data center applications that must reach the market quickly or require customization, such as those for prototyping new DL applications.
• The lack of feasibility of providing to small businesses, limiting its utilization scope to medium and large organizations, and the increased cost of these accelerators are expected to act as market restraints.
• The COVID-19 pandemic has posed additional stress on the overall economy across sectors. It has also shifted focus towards a digital economy. One of China's top cloud computing providers, Alibaba Cloud, is investing billions in building next-generation data centers to support digital transformation needs in a 'post-pandemic world. In April last year, Alibaba Cloud announced it would invest RMB 200 billion (USD 28.99 billion) in core technologies and future-oriented data centers over the next three years.

Data Center Accelerator Industry Segmentation

Datacenter accelerators are hardware designed and used to process visual data. It is a hardware device or software program that improves the overall performance of computers. Datacenter accelerators help increase consumer-driven data demand and use AI-based services to drive the demand for AI-centric data centers.

The scope of the study covers revenues accrued by companies offering the critical types of processors, such as CPU, GPU, FPGA, and ASIC, across various applications, namely high-performance computing, artificial intelligence, and others. The study also covers key regions, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The market sizes and forecasts are provided in terms of value in USD million for all the above segments.