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GPU as a Service Market

Pages: 210 | Base Year: 2024 | Release: May 2025 | Author: Sunanda G.

Market Definition

The market involves providing cloud-based access to graphics processing units (GPU) for high-performance computing tasks. It supports processes such as machine learning model training, scientific simulation, image rendering, and real-time data analytics. 

Key applications include autonomous driving systems, pharmaceutical modeling, video rendering, and financial forecasting. This model allows scalable computing power on demand for research institutions, enterprises, and developers. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

GPU as a Service Market Overview

The global GPU as a Service market size was valued at USD 8,193.6 million in 2024 and is projected to grow from USD 10,024.1 million in 2025 to USD 48,711.0 million by 2032, exhibiting a CAGR of 25.34% during the forecast period. 

The market is influenced by the rising adoption of cloud gaming platforms that require high-performance computing for real-time rendering and streaming. Additionally, growth in data center virtualization is creating demand for scalable GPU resources, enabling enterprises to run complex workloads efficiently without investing in physical infrastructure.

Major companies operating in the GPU as a Service industry are Amazon Web Services, Inc., Microsoft Corporation, NVIDIA, IBM, Oracle, Google LLC, Alibaba Cloud, CoreWeave, Inc., Vultr, Lambda Labs, Inc., Paperspace Co., Linode LLC, Advanced Micro Devices, Inc., Intel Corporation, and Qualcomm Technologies, Inc.

The rapid growth of artificial intelligence and machine learning applications has increased the demand for high-performance computing resources. Organizations are using GPU-accelerated cloud services to train deep learning models and process large volumes of data efficiently. This shift is driving market expansion by enabling scalable infrastructure without heavy capital investment in physical GPUs.

  • In March 2025, ORIX Rentec Corporation partnered with Cloud4C Services to launch a GPU cloud service aimed at supporting AI operations for companies. The service provides a comprehensive package, including GPUs and necessary IT infrastructure, to facilitate AI and machine learning workloads.

GPU as a Service Market Size & Share, By Revenue, 2025-2032

Key Highlights

  1. The GPU as a Service market size was valued at USD 8,193.6 million in 2024.
  2. The market is projected to grow at a CAGR of 25.34% from 2025 to 2032.
  3. North America held a market share of 36.44% in 2024, with a valuation of USD 2,985.7 million.
  4. The infrastructure as a service (IaaS) segment garnered USD 4,623.6 million in revenue in 2024.
  5. The public GPU cloud segment is expected to reach USD 18,740.1 million by 2032.
  6. The large enterprises segment secured the largest revenue share of 56.68% in 2024.
  7. The gaming segment is estimated to grow at a staggering CAGR of 28.64% through the forecast period.
  8. Asia Pacific is anticipated to grow at a CAGR of 26.02% over the forecast period.

Market Driver

Growth in Data Center Virtualization

With enterprises shifting toward virtualized data centers, the need for remote GPU access is rising. Virtual GPU technology is helping businesses run complex computations in virtual environments, reducing hardware dependency. 

This evolution in infrastructure is accelerating the growth of the market, enabling companies to deliver computing power across distributed networks with improved efficiency.

  • In September 2024, Drut Technologies introduced DX 3.0, a software system enabling virtual disaggregation for data center GPU servers. This solution allows for the creation of isolated GPU resource pools across distributed servers, optimizing GPU utilization for enterprise AI/ML applications.

Market Challenge

High Operational Costs of GPU Infrastructure

A significant challenge limiting the growth of the GPU as a Service market is the high operational cost of managing GPU-based cloud infrastructure. These costs include energy consumption, cooling systems, and ongoing hardware upgrades.

To address this challenge, key players are shifting toward energy-efficient GPU models, adopting workload-optimized resource allocation, and using containerized environments to improve GPU utilization. 

Some providers are also investing in renewable energy-powered data centers and using automation to reduce manual intervention and downtime. These approaches help reduce overall cost and improve service efficiency, making GPUaaS increasingly accessible to a broader range of users.

Market Trend

Rising Adoption of Cloud Gaming Platforms

Cloud gaming services depend heavily on powerful GPUs to deliver seamless gaming experiences without local hardware limitations. Service providers are deploying GPUaaS to stream high-quality games across devices, including smartphones, laptops, and TVs. 

This demand is significantly contributing to the growth of the market, particularly among gaming companies looking to expand user access without hardware constraints.

  • In January 2025, Aethir introduced its decentralized GPU cloud platform designed to support AAA gaming. The platform utilizes a globally distributed network of GPUs to deliver ultra-low latency and high-quality visuals, enabling seamless gaming on low-end devices without the need for downloads or installations.

GPU as a Service Market Report Snapshot

Segmentation

Details

By Service Model

Infrastructure as a Service (IaaS), Platform as a Service (PaaS)

By Service Mode

Public GPU Cloud, Private GPU Cloud, Hybrid GPU Cloud

By Enterprise Size

Small and Medium-sized Enterprises (SMEs), Large Enterprises

By Industry Vertical

IT & Telecom, BFSI, Media and Entertainment, Gaming, Automotive, Others

By Region

North America: U.S., Canada, Mexico

Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe

Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific

Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa

South America: Brazil, Argentina, Rest of South America

Market Segmentation

  • By Service Model (Infrastructure as a Service (IaaS) and Platform as a Service (PaaS)): The infrastructure as a service (IaaS) segment earned USD 4,623.6 million in 2024 due to its cost-effective scalability and on-demand access to high-performance GPU resources on demand without the need for physical infrastructure.
  • By Service Mode (Public GPU Cloud, Private GPU Cloud, and Hybrid GPU Cloud): The public GPU cloud segment held a share of 47.33% in 2024, propelled by its cost-efficiency, easy scalability, and broad accessibility for enterprises and developers requiring on-demand high-performance computing.
  • By Enterprise Size (Small and Medium-sized Enterprises (SMEs) and Large Enterprises): The large enterprises segment is projected to reach USD 26,485.7 million by 2032, fueled by their higher demand for scalable computing power to support advanced workloads in AI, big data analytics, and enterprise-grade applications.
  • By Industry Vertical (IT & Telecom, BFSI, Media and Entertainment, Gaming, Automotive, and Others): The gaming segment is estimated to grow at a staggering CAGR of 28.64% through the forecast period, largely attributed to its consistent demand for high-performance graphics processing, real-time rendering, and scalable cloud infrastructure to support immersive gaming experiences across devices.

GPU as a Service Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

GPU as a Service Market Size & Share, By Region, 2025-2032

The North America GPU as a Service market share stood at around 36.44% in 2024, valued at USD 2,985.7 million. North America's mature cloud computing landscape, led by providers such as AWS, Google Cloud, and Microsoft Azure, is bolstering regional market expansion. 

These companies are expanding their GPU-powered offerings to support AI, data science, and enterprise workloads. The availability of robust cloud platforms with integrated GPU services is aiding regional market progress.

  • In May 2025, NVIDIA unveiled NVLink Fusion, a semicustom system initiative enabling integration of CPUs and AI chips from  partners such as Fujitsu and Qualcomm. This move aims to offer enhanced flexibility in AI infrastructure development. Additionally, the company introduced DGX Cloud Lepton, a software platform designed to create a centralized marketplace for cloud-based AI chip rentals, facilitating easier access to GPU resources for developers and cloud providers.

Moreover, North American tech companies and universities invest heavily in artificial intelligence research. GPUaaS is a critical component in running training models and data pipelines. The ongoing demand for advanced computing resources by AI labs, startups, and enterprise R&D teams is contributing significantly to domestic market expansion.

The Asia Pacific GPU as a Service industry is set to grow at a robust CAGR of 26.02% over the forecast period. This rapid growth is fueled by the expansion of the cloud gaming industry, supported by a large mobile-first gaming population. Game developers and platform providers are turning to GPUaaS to deliver high-quality graphics and low-latency gameplay on cloud platforms.

Furthermore, the rise of video streaming, surveillance, and short-form content platforms that depend on GPU computing for encoding, decoding, and analysis propels regional market growth. Media, telecom, and security companies are using GPUaaS to process large volumes of visual data with speed and accuracy, contributing significantly to this expansion.

  • In January 2025, SK Telecom launched SKT GPUaaS at its AI Data Center in Gasan, Seoul, South Korea. Powered by NVIDIA H100 GPUs, this service enables businesses to select GPU resources based on their AI service needs. SK Telecom plans to introduce NVIDIA H200 GPUs in the first quarter of 2025, aiming to enhance AI infrastructure capabilities.

Regulatory Frameworks

  • The U.S. regulates GPU as a Service through data privacy laws such as the Health Insurance Portability and Accountability Act and the Gramm-Leach-Bliley Act, which govern healthcare and financial data. The Federal Trade Commission oversees consumer protection in cloud services. Export controls under the Export Administration Regulations restrict the sharing of advanced GPU technology with certain countries. Federal Risk and Authorization Management Program standards ensure secure cloud environments for government data.
  • In the European Union, the General Data Protection Regulation strictly controls personal data use. Providers must ensure data privacy, consent management, and secure data transfers. The Network and Information Systems Directive mandates cybersecurity risk management and incident reporting for essential services,  fostering secure and interoperable GPU cloud computing environments.
  • China’s Cybersecurity Law, Data Security Law, and Personal Information Protection Law impose strict rules on data localization and privacy for GPUaaS, limiting cross-border data transfers. Additionally, the Export Control Law governs the export of advanced computing technologies to ensure national securitycompliance.
  • Japan regulates GPU as a Service under the Act on the Protection of Personal Information, which sets strict rules on handling personal data. The Cybersecurity Basic Act promotes secure cloud infrastructure, and cloud providers often follow the Cloud Security Alliance’s Security, Trust & Assurance Registry certification. These frameworks guide the safe use of GPU cloud services and protect users’ information in compliance with national standards.

Competitive Landscape

Major players in the GPU as a Service market are adopting strategies such as expanding their GPU offerings through advanced hardware integration, enhancing security features, and optimizing infrastructure for large-scale AI workloads. These efforts are helping providers meet rising demand for performance, scalability, and data protection across enterprise applications.

  • In March 2024, AWS expanded its GPU offerings by integrating NVIDIA's Grace Blackwell GPUs into its EC2 instances. This integration aims to accelerate the performance of building and running inference on multi-trillion-parameter large language models (LLMs). The deployment includes enhanced security features through the integration of AWS Nitro System and Elastic Fabric Adapter encryption,  ensuring customers maintain full control over their training data and model weights.

List of Key Companies in GPU as a Service Market:

  • Amazon Web Services, Inc.
  • Microsoft Corporation
  • NVIDIA
  • IBM
  • Oracle
  • Google LLC
  • Alibaba Cloud
  • CoreWeave, Inc.
  • Vultr 
  • Lambda Labs, Inc.
  • Paperspace Co.
  • Linode LLC
  • Advanced Micro Devices, Inc.
  • Intel Corporation
  • Qualcomm Technologies, Inc.

Recent Developments (Partnerships/Product Launches)

  • In November 2024, Rackspace Technology launched an on-demand GPU-as-a-Service platform powered by NVIDIA accelerated computing. This service provides customers with flexible access to powerful GPU resources optimized for AI, machine learning, data analytics, and graphics rendering workloads. The platform includes Spot GPUaaS, allowing users to leverage high-performance GPUs without substantial upfront investments in hardware.
  • In August 2024, CoreWeave became the first cloud provider to deploy NVIDIA H200 Tensor Core GPUs.These GPUs are designed to enhance performance for AI workloads, including training and inference of large language models.CoreWeave's infrastructure delivers scalable and efficient GPU resources tailored for AI applications.
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