Data Center Accelerator Market by Processor Type, Data Center Type, Application

Description

List of Tables

[185 Pages Report] The Data Center Accelerator Market size was estimated at USD 31.68 billion in 2023 and expected to reach USD 37.21 billion in 2024, at a CAGR 18.02% to reach USD 101.04 billion by 2030.

Data center accelerators are a category of hardware devices or software mechanisms designed to improve the performance and efficiency of a data center's computational processes. Integrating accelerators into a data center infrastructure allows organizations to enhance overall performance, reduce processing time for specific tasks, and lower the energy consumption per workload, leading to operational and cost savings. As businesses continue to rely on data centers for critical operations, the demand for these accelerators is expected to grow. One of the primary drivers is the escalating demand for artificial intelligence (AI) and machine learning (ML) across various industries. These technologies require substantial computing power, which accelerators provide. Additionally, the increasing volume of complex data sets necessitates the use of accelerators to facilitate rapid analysis and insights derivation. However, technical limitations of using data center accelerators and issues related to data privacy and loss of data security raise concerns regarding the safety, accuracy, and reliability of data center accelerators. Major players are exploring integrating novel technological innovations to tackle challenges related to data privacy and ensure compliance with data protection regulations. Furthermore, investments in establishing edge and hyper-scale data centers worldwide provide new avenues of growth for the data center accelerators.

KEY MARKET STATISTICS
Base Year [2023]	USD 31.68 billion
Estimated Year [2024]	USD 37.21 billion
Forecast Year [2030]	USD 101.04 billion
CAGR (%)	18.02%

Data Center Type: Adoption of accelerators in cloud data centers to optimize overall operational efficiency

The need for cloud data center accelerators lies in the rising demand for efficient, scalable, and cost-effective services. The massive data streams processed by modern hyperscale data centers led to the adoption of accelerators and enhanced the performance of tasks such as machine learning, data analysis, and critical application processing. Implementing accelerators can lead to higher throughput, low latency, and power efficiency, which makes it possible to process large data sets in shorter time spans. In colocation data centers, where multiple clients share physical infrastructure, performance and scalability considerations are of utmost importance. With the growing complexities of shared environments, data accelerators can offer the benefits of workload-specific performance tuning. Accelerators bring in capabilities to analyze large data sets at a rapid rate, mitigating the risk of data bottlenecks. They enable quick data processing that can lead to improved service levels for multi-tenant environments. In enterprise data centers, data accelerators are leaning towards becoming a necessity due to the increasing influx of data and the rise in sophistication of enterprise applications. Accelerators can support complex computational tasks, boosting data processing and analytics. Handled by third-party companies, managed services data centers face continuous pressure to deliver efficient and seamless services. Client demands range from high-speed data processing to rock-solid security measures. Datacenter accelerators can aid them by providing faster, more efficient processing and potentially reducing the need for larger server fleets. This could both improve performance and reduce operating costs.

Processor Type: Advancements and investments to improve the capacities of central processing unit (CPU)

An application-specific integrated circuit (ASIC) is a customized integrated circuit designed for a particular use or application rather than intended for general-purpose use. In data center operations, ASICs are implemented to accelerate specific workloads by optimizing the hardware to perform particular tasks with high efficiency and at high speeds. The central processing unit (CPU) is the crucial element of a computer that performs most of the processing inside a computer. In data centers, CPUs are responsible for executing instructions from computer programs involving arithmetic, logic, control, and input & output functions specified by the instructions. Field-programmable gate arrays (FPGAs) include semiconductor devices that are built around a matrix of configurable logic blocks (CLBs) connected using programmable interconnections. FPGAs can be reprogrammed to cater to the desired application or functionality requirements after manufacturing. The graphics processing unit (GPU) is a specialized electronic circuit designed to accelerate the generation of images.

Application: Rising need for data center accelerators for enterprise interface to manage and analyze large volumes of data

Deep learning is a subset of machine learning that involves neural networks with multiple layers that simulate the function of the human brain. The sophisticated algorithms, which require significant computational power, are used to train models capable of recognizing complex patterns and making data-driven decisions. Datacenter accelerators reduce training time and improve the efficiency of resource-intensive tasks. The enterprise interface refers to the integration of data center accelerators within a corporate environment to support diverse applications, including data analytics and machine learning. In this setting, the accelerator's role is to provide the computational power required to rapidly process large volumes of data. Data center accelerators have become a crucial element for public cloud services, driving the performance of virtualized environments where multiple clients access shared physical resources. The public cloud interface leverages accelerators to deliver scalable and cost-efficient computing power to a broader range of users. These accelerators are integrated into the cloud providers' infrastructure, furnishing clients with the capabilities needed for complex computations, such as real-time data processing and large-scale simulations.

Regional Insights

The Americas, mainly the U.S. and Canada, observe significant adoption of data center accelerators due to the consistent expansion of data centers and new data center establishment activities. The presence of multinational corporations significantly elevates the data center accelerator market development in the Americas. These key players have data centers spread across regions, influencing the sectors' distribution and overall market share. Accelerating digitization in countries such as China, India, and Australia has fueled the demand for data center accelerators in the Asia-Pacific region. Rapid industrial growth and an increasing focus on data analysis, elevating the data traffic and creating the need for high-volume data centers, have led to a rise in the production of these accelerators in the region. Europe, with major tech hubs such as the UK, Germany, and France, exhibits significant use of data center accelerators. Europe presents a key opportunity for the expansion of market players as the region is backed with several investments for building new edge data centers. Although still emerging, the MEA region shows potential growth in the use of data center accelerators. The rise in data centers, particularly in the Gulf Cooperation Council (GCC) countries, is set to drive future demand for data center accelerators.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Data Center Accelerator Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Data Center Accelerator Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Data Center Accelerator Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Achronix Semiconductor Corporation, Advanced Micro Devices, Inc., Advantech Co., Ltd., Analog Devices, Inc., Cisco Systems, Inc., Dell Technologies Inc., Devoteam Group, Fujitsu Limited, Google LLC by Alphabet Inc., Hailo Technologies Ltd., Infineon Technologies AG, Intel Corporation, International Business Machines Corporation, Lattice Semiconductor Corporation, Lenovo Group Limited, Marvell Technology, Inc., Meta Platforms, Inc, Microchip Technology Incorporated, Micron Technology, Inc., Microsoft Corporation, Murata Manufacturing Co., Ltd., NEC Corporation, NTT Corporation, NVIDIA Corporation, NXP Corporation, Oracle Corporation, QUALCOMM Incorporated, Samsung Electronics Co., Ltd., Sapeon Inc., Skyworks Solutions, Inc., Taiwan Semiconductor Manufacturing Company Limited, and Zenlayer Inc..

Market Segmentation & Coverage

This research report categorizes the Data Center Accelerator Market to forecast the revenues and analyze trends in each of the following sub-markets:

Processor Type
- Application-Specific Integrated Circuit
- Central Processing Unit
- Field-Programmable Gate Array
- Graphics Processing Unit

Data Center Type
- Cloud Data Centers
- Colocation Data Centers
- Enterprise Data Centers
- Managed Services Data Centers

Application
- Deep Learning Training
- Enterprise Interface
- Public Cloud Interface

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Georgia
    - Illinois
    - Kentucky
    - Michigan
    - Mississippi
    - New Jersey
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Data Center Accelerator Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Data Center Accelerator Market?

3. What are the technology trends and regulatory frameworks in the Data Center Accelerator Market?

4. What is the market share of the leading vendors in the Data Center Accelerator Market?

5. Which modes and strategic moves are suitable for entering the Data Center Accelerator Market?

Product Code: MRR-BB6269D1419A

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Need to manage massive generation of data among large enterprises worldwide
  - 5.1.1.2. Shift to remote working and operational scenario and rise of cloud computing activities
  - 5.1.1.3. Government initiatives to promote smart city development
- 5.1.2. Restraints
  - 5.1.2.1. Complex maintenance issues and risk of vendor lock-in
- 5.1.3. Opportunities
  - 5.1.3.1. Technological advancements in the design and performance of datacenter accelerators
  - 5.1.3.2. Rising investments in the establishment of edge and hyper-scale data centers
- 5.1.4. Challenges
  - 5.1.4.1. Technical limitations of data center accelerators
5.2. Market Segmentation Analysis
- 5.2.1. Data Center Type: Adoption of accelerators in cloud data centers to optimize overall operational efficiency
- 5.2.2. Processor Type: Advancements and investments to improve the capacities of central processing unit (CPU)
- 5.2.3. Application: Rising need for data center accelerators for enterprise interface to manage and analyze large volumes of data
5.3. Market Trend Analysis
- 5.3.1. Large number of data centers, their ever-increasing demand, driven by the existence of major technology companies in the Americas
- 5.3.2. Development of advanced data centers coupled with increasing government initiatives to expand Industry 4.0 in the APAC region
- 5.3.3. Growing number of data centers with rising adoption of cloud technologies in EMEA region
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Data Center Accelerator Market, by Processor Type

6.1. Introduction
6.2. Application-Specific Integrated Circuit
6.3. Central Processing Unit
6.4. Field-Programmable Gate Array
6.5. Graphics Processing Unit

7. Data Center Accelerator Market, by Data Center Type

7.1. Introduction
7.2. Cloud Data Centers
7.3. Colocation Data Centers
7.4. Enterprise Data Centers
7.5. Managed Services Data Centers

8. Data Center Accelerator Market, by Application

8.1. Introduction
8.2. Deep Learning Training
8.3. Enterprise Interface
8.4. Public Cloud Interface

9. Americas Data Center Accelerator Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Data Center Accelerator Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Data Center Accelerator Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. Sapeon Launches X330 Neural Processor
- 12.3.2. AMD Announces AMD Instinct MI300 Accelerator Launch Event Highlighting Rapidly Expanding Ecosystem of AI Customers and Partners
- 12.3.3. Microsoft Announces In-House Arm CPU and AI Accelerator Chips, Custom Racks
- 12.3.4. Schneider Electric and Compass Datacenters Expand Partnership with USD 3 Billion Multi-Year Data Center Technology Agreement
- 12.3.5. Google Announces Expansion of AI Partnership with Anthropic
- 12.3.6. AMD to Acquire AI Software Company Nod.ai
- 12.3.7. Achronix Announces FPGA-Powered Accelerated Automatic Speech Recognition Solution
- 12.3.8. NVIDIA Pairs with NTT Docomo to Launch GPU-Accelerated 5G Network
- 12.3.9. Bridge Data Centres Expands Data Center at Malaysia's MRANTI Park
- 12.3.10. AMD Debuts new Data Center Accelerator Optimized for Video Processing

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio