The global Data Center Accelerator Market size is projected to reach USD 69440 Million by 2027, from USD 6960.5 Million in 2020, at a CAGR of 38.7% during 2021-2027, according to Valuates Reports.
Major factors driving the growth of the data center accelerator market:
Factors such as growing demand for deep learning and surge in demand for cloud-based services are driving the growth of the data center accelerator market during the forecast period.
The need to manage increased networking bandwidth, optimize workloads and lower total cost of ownership and lower power is expected to drive the growth of the data center accelerator market. Data centers accelerators help achieve high-performance and hardware-based acceleration with excellent cost and power efficiency.
The rise in parallel computing in artificial intelligence (AI) data centers is fueling the expansion of the data center accelerator market. The rapid development of cloud-based services is also assisting the market’s expansion.
Furthermore, rising demand for AI in High-Performance Computing (HPC) data centers, an increase in the number of companies offering machine learning around the world, as well as rising demand for application performance enhancement and increased consumer-driven data demand, are all contributing to the data center accelerator market’s growth.
The growth of cloud-based services is expected to drive the data center accelerator market. Because of the growing demand for AI-based solutions, cloud data centers are dominating the data center accelerator market. Changes in cloud server setup are being driven by the growth of AI. The spike in the volume of data being transmitted to the cloud from customers has fueled tremendous growth in the cloud computing sector. The proliferation of co-processors (accelerators) installed in servers has been fueled by the spike of AI-centric data. By lowering latency, the accelerators improve data processing on the servers.
Because of the massive increase in data generation as a result of IoT and AI, data centers now need to be able to process more data while maintaining power efficiency, data center cooling requirements, and data center space. By the end of 2026, data centers are expected to consume roughly one-fifth of worldwide energy. Governments all across the world are concentrating their efforts on lowering data center energy consumption. These initiatives are projected to increase parallel computing in data centers, boosting the data center accelerator market over the forecast period.
Based on type, in 2018, GPU accounted for a major share of 85% in the global Data Center Accelerator market. And this product segment is poised to reach 29819 M USD by 2025 from 2983 M USD in 2018.
Based on application, the Deep Learning Training segment holds an important share in terms of application, and it is expected to reach 23381 M USD by 2025, at a CAGR of 40.16% during 2018 and 2025. It means that the Data Center Accelerator will be promising in the Deep Learning Training field in the next couple of years.
Based on region, the Asia-Pacific region is expected to be the most lucrative market. The increasing demand for data centers in China, as firms seek enhanced connectivity and scalable solutions for their growing businesses, is attributable to the market’s expansion in APAC. Furthermore, the Chinese government is increasing its investments in order to drive technology growth, which has resulted in the widespread use of cloud-based services, big data analytics, and the Internet of Things (IoT).