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Data Center Accelerator Market Size, Share, Growth & Industry Analysis, By Deployment Mode (On-premise, Cloud-based, Hybrid), By Processor Type (GPU, FPGA, ASIC, CPU), By Application [Training, Inference, High-Performance Computing, Cloud and Enterprise Data Centers], By End-use Industry, and Regional Analysis, 2024-2031
Pages: 150 | Base Year: 2023 | Release: April 2025 | Author: Sharmishtha M.
The market refers to the industry focused on hardware devices, like GPUs, FPGAs, and ASICs, designed to enhance the processing power and efficiency of data centers.
These accelerators optimize workloads such as AI, machine learning, and big data analytics, enabling faster processing and reduced energy consumption. The report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth over the forecast period.
Global data center accelerator market size was valued at USD 14.09 billion in 2023, which is estimated to reach USD 16.92 billion in 2024 and USD 70.95 billion by 2031, growing at a CAGR of 22.72% from 2024 to 2031.
The demand for more storage and processing power in data centers is rising. This is fueled by the increasing complexity of workloads due to the adoption of AI, machine learning, and big data. This expansion is driving the need for more efficient and scalable data center solutions.
Major companies operating in the data center accelerator industry are NVIDIA Corporation, IBM, Dell Inc., Advanced Micro Devices, Inc., Qualcomm Technologies, Inc., Marvell, Intel Corporation, Micron Technology, Inc., Achronix Semiconductor Incorporated, Lattice Semiconductor, Lenovo, Microchip Technology Inc., NEC Corporation, Synopsys, Inc., and Voltron Data, among others.
The market is experiencing significant growth due to the increasing demand for more power-efficient solutions. Advances in processor technology are driving substantial improvements in energy efficiency, offering businesses the opportunity to reduce operating costs through server consolidation and performance optimization.
These innovations enable data centers to handle more demanding workloads while minimizing energy consumption, leading to reduced total cost of ownership (TCO). With more organizations modernizing their infrastructure, the market is poised for continued expansion to meet efficiency-driven needs.
Market Driver
The Expansion of Data Centers
The market is growing rapidly due to the rising need for enhanced processing capabilities in modern data centers. Accelerators like GPUs, FPGAs, and AI chips help optimize machine learning, real-time data analysis, and high-performance computing (HPC).
These technologies significantly improve processing speeds and efficiency, making them essential for businesses that rely on large-scale data processing. As enterprises continue to scale up their operations and handle more complex workloads, the demand for these accelerators will keep expanding across healthcare, finance, retail, telecommunications, and manufacturing industries.
Market Challenge
Heat Generated by High-performance Accelerators
In the data center accelerator market, cooling requirements pose a significant challenge due to the intense heat generated by high-performance accelerators like GPUs and FPGAs. Implementing advanced cooling solutions, such as liquid or immersion cooling, is complex and costly, which increases operational expenses.
A viable solution is adopting energy-efficient cooling technologies, optimizing airflow, and leveraging AI-driven systems to dynamically adjust cooling based on real-time data, thus enhancing efficiency and reducing energy consumption in data centers while meeting performance needs.
Market Trend
Increased Customization
In the market, there is a growing trend of customization. More vendors are offering application-specific accelerators optimized for targeted markets like AI and networking. These specialized accelerators are designed to meet the unique computational needs of specific workloads, improving efficiency and reducing processing times.
By customizing hardware for particular applications, such as AI model training or network traffic management, vendors are enhancing performance, enabling faster deployment, and addressing the evolving demands of industry-specific use cases.
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Segmentation |
Details |
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By Deployment Mode |
On-premise, Cloud-based, Hybrid |
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By Processor Type |
GPU, FPGA, ASIC, CPU |
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By Application |
Training, Inference, High-Performance Computing (HPC), Cloud and Enterprise Data Centers |
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By End-use Industry |
IT & Telecom, BFSI, Healthcare, Government & Defense, Retail & E-commerce, Others |
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By Region |
North America: U.S., Canada, Mexico |
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Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
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Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
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Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa |
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South America: Brazil, Argentina, Rest of South America |
Market Segmentation:
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
North America data center accelerator market share stood at around 37.09% in 2023 in the global market, with a valuation of USD 5.23 billion. North America dominates the market due to its advanced technological infrastructure, strong presence of key players, and rapid adoption of AI, machine learning, and cloud computing technologies.
The region benefits from significant investments in data centers, coupled with the increasing demand for high-performance computing across industries such as finance, healthcare, and technology. Additionally, North America's well-developed research and development ecosystem, along with favorable government policies, contribute to its leadership in the market.
Asia Pacific is poised for significant growth at a robust CAGR of 24.58% over the forecast period. Asia Pacific is poised to be the fastest-growing region in the data center accelerator industry, driven by rapid digital transformation, increasing adoption of cloud services, and strong investments in AI and machine learning technologies.
Countries like China, India, and Japan are witnessing infrastructure expansion, with businesses embracing advanced computing solutions to support data-intensive applications. The region's large consumer base, growing e-commerce industry, and technological advancements in sectors like fintech and healthcare further propel the demand for high-performance accelerators.
In the data center accelerator market, companies are focusing on developing specialized hardware designed to enhance computational efficiency and speed. These accelerators are increasingly integrated with AI, machine learning, and high-performance computing workloads, providing faster processing power and optimized energy consumption.
The market is evolving with innovations in custom-designed chips, GPUs, and other co-processors to meet the growing demand for scalable, high-performance infrastructure in data centers.
Recent Developments (Product Launch)
