Data Center Accelerator Market - Forecast(2024 - 2030)

Report Code: ESR 81633 Report Format: PDF + Excel

Data Center Accelerator Market Overview

Data Center Accelerator Market size is estimated to reach $31.6 billion by 2026 at a CAGR of 35.1% during the forecast period 2021-2026. With the increasing penetration of connected factories, smart cities, and related digital age technologies, such as big data, Artificial Intelligence, Machine learning, the demand for Data Center Accelerator is analyzed to gain huge traction. Growing adoption of Multi-cloud infrastructure, Edge Computing to move towards digital transformation and the growing demand for AI-centric data centers are anticipated to drive the Data Center Accelerator Market. The rising demand among enterprises to accelerate deep learning, artificial intelligence and high-performance computing workloads is boosting the need for acceleration of computing platform to fulfill the demand for increased bandwidth. The growth of next generation cloud data centers to control and optimize software defined networking, networking intelligence and analytics on massive scale with excellent cost and power efficiency is analyzed to significantly trigger the Data Center Accelerator Market growth during 2021-2026.

Report Coverage

The report: “Data Center Accelerator Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Data Center Accelerator market.
By Processor: Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC), others.
By Type: High Performance Computing (HPC) data center, Cloud data center.
By Application: Deep Learning Training, Public Cloud Interface, Enterprise Interface, others.
By Geography: North America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia, Rest of Europe), APAC(China, Japan India, South Korea, Australia, Rest of APAC), South America(Brazil, Argentina, Rest of South America),and RoW (Middle east and Africa).

Key Takeaways

  • FPGA is estimated to dominate the market during 2021-2026 due to advanced capabilities including high throughput, low latency and low power consumption.
  • Enterprise interface to hold the major market share during the forecast period 2021-2026 due to increasing development in hyperscale data centers.
  • North America is estimated to dominate the market with a share of 39% during 2021-2026 owing to increasing investments towards up-gradation of advanced technologies.
  • Increasing adoption of digital business strategy and exponential growth in complex computing workloads in data centers are analyzed to boost the market during the forecast period 2021-2026.
  • High costs and limited AI hardware experts are analyzed to be the factors impeding the growth of the market.

    Global Data Center Accelerator Market Value Share, By region, 2020 (%)

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Data Center Accelerator Segment analysis – By Processor

By processor, Data Center Accelerator has been segmented under Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC) and others. FPGA held the major market share of 32.1% in 2020 and is estimated to dominate the market during the forecast period 2021-2026 with the fastest growing CAGR 38.4%. FGPA increases real-time inference throughput while reducing latency in real-time inference applications and provides a low cost solution. Such advanced and beneficiary capabilities of FPGA have contributed to the growth of the market. For instance, in April 2021, Achronix Semiconductor Corporation and Napatech announced partnership to deliver a high speed programmable FPGA based SmartNICs to data center network operators to accelerate data processing offering high system performance and lower power. Such partnerships are analyzed to boost the market between 2021 and 2026.

Data Center Accelerator Segment analysis – By Application

By application, Data Center Accelerator has been segmented into Deep Learning Training, Public Cloud Interface, Enterprise Interface and Others. Enterprise Interface dominated the market in 2020 acquiring a share of 45.6% and is analyzed to account for the largest market share growing at CAGR of 30.9% during the forecast period 2021-2026 due to rapid developments in large-scale public cloud data centers. The drastic technology based changes in large organizations have led to massive and large volume of data generation and processing. Business organizations have adopted cloud storage techniques to simplify the transition from traditional system to new advanced process. With the increasing complexities of technological solutions the demand for outsourcing IT activities to alleviate the pressure of manage and monitoring IT infrastructure has gained a huge traction. For instance, in August 2019, Intel launched Nervana NNP-T and Nervana NNP-1, AI accelerator chips to fulfill the demand for complex computing workloads in data centers. Such developments are augmenting the market.

Data Center Accelerator Segment analysis – By Geography

North America dominated the market acquiring a share of 39% in 2020 and is estimated to hold the major market share with a CAGR 33.3% during 2021-2026 owing to increasing investment in IT infrastructure and shift towards upgraded technologies. APAC is estimated to be the fastest growing market during the forecast period 2021-2026 with a CAGR of 40.4% owing to the growing demand for digital business strategy and massive and quick adoption of cloud based applications. Indian Government initiatives for “Make in India” and “Digital India” movement is analysed to drive the market in this region during 2021-2026. For instance, in October 2020, Microsoft announced to develop its first data center in Taiwan, East Asia to augment the presence in this region enhancing the intelligent cloud and intelligent edge platform. Such developments are analysed to boost the market in this region between 2021 and 2026.

Data Center Accelerator Market Drivers

Massive Transition Towards Digitalization Among Enterprises

Enterprises are integrating IIoT into their businesses at a high rate and most of them have positive responses in terms of business outcomes. Increasing penetration of Industry 4.0 promotes the convergence of Information Technology (IT) with Operational Technology (OT) to increase flexibility, agility and efficiency in the production process through connected systems and data sharing. Increasing shift towards digitalization to generate new business outcomes leveraging IIot, Edge computing, deep learning, data analytics, cloud platform is propelling the demand for Data center accelerators to increase the performance of data centers utilizing low power. Rising penetration of enterprise application integration (EAI) platforms to provide unisons among databases and workflows associated with business applications by offering a consistent software application interface is steering the Data Center Accelerator Market. For instance, in February 2021, Edgecortix Inc. announced partnership with PALTEK Corporation provide edge AI hardware accelerator solution enabling high throughput, low latency and low power applications including ADAS, autonomous driving, smart cities and many others. Such Strategic partnerships are anticipated to steer the market during 2021-2026.

Exponential Growth in Complex Computing Workloads in Data Centers

Transition of various enterprises towards digitalization to generate new business outcomes has resulted into deployment and development of large data centers and various cloud services to analyze, access and store large volume of data. The increasing migration towards cloud infrastructure to expand data storage facilities and provide smooth and faster access to their customers to fulfill the demand for complex computing workloads is analyzed to fuel the market growth during the forecast period 2021-2026. The ever increasing demands for data centers is exhausting the existing infrastructure and thus accelerating the demand for adaptable solutions to optimize and extend the lifecycle of infrastructure for high throughput and low latency. For instance, India Data Centers raised a fund of USD 396 Million for establishing large hyperscale data centers spanning over 16 million square foot. Such investments are estimated to propel the market growth during 2021-2026.

Data Center Accelerator Market Challenges

High Costs of AI hardware

The robustness and high throughput of AI chipsets require high deployment and maintenance costs. Furthermore, absence of skilled workforce lead to higher resolution time in case of technical glitches. However, these factors are anticipated to hamper the market growth during 2021-2026.

Data Center Accelerator Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Data Center Accelerator market. In 2020, the market of Data Center Accelerator industry outlook has been fragmented by several companies. Data Center Accelerator top 10 companies include Nvidia Corporation, Microsoft Corporation, Oracle Corporation, Hewlett Packard Enterprise Co., Dell Technologies Inc., IBM Corporation, Apple Inc., Fujitsu Limited, Lenevo Group Ltd., Archonix Semiconductor among others.

Acquisitions/Technology Launches

  • In November 2020, Advanced Micro Devices Inc. announced new AMD Instinct MI100 accelerator- the world’s fastest HPC accelerator with ROCm 4.0 open ecosystem support for scientific research to enhance high performance computing platform.
  • In October 2020, Marvell Technology Inc. launched native NVMe RAID 1 accelerator in partnership with Hewlett Packard Enterprise for cloud and enterprise data center to deliver optimized performance, reliability and efficiency.

Relevant Report Titles:

Report Code: ESR 0216

Report Code: ITR 0306

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1. Data Center Accelerator Market Overview
    1.1 Definitions and Scope
2. Data Center Accelerator Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Application
    2.3 Key trends segmented by Geography
3. Data Center Accelerator Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. Data Center Accelerator Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. Data Center Accelerator Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Data Center Accelerator Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Data Center Accelerator Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. Data Center Accelerator Market – By Processor (Market Size -$Million/Billion)
    8.1 CPU
    8.2 GPU
    8.3 FPGA
    8.4 ASIC
    8.5 Others
9. Data Center Accelerator Market – By Application (Market Size -$Million/Billion)
    9.1 Deep Learning Training
    9.2 Enterprise Interface
    9.3 Public Cloud Interface
    9.4 Others
10. Data Center Accelerator Market – By Type (Market Size -$Million/Billion)
    10.1 HPC Data Center
    10.2 Cloud Data Center
11. Data Center Accelerator Market - By Geography (Market Size -$Million/Billion)
    11.1 North America
        11.1.1 U.S
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 Germany
        11.2.2 France
        11.2.3 UK
        11.2.4 Italy
        11.2.5 Spain
        11.2.6 Russia
        11.2.7 Netherlands
        11.2.8 Others
    11.3 APAC
        11.3.1 China
        11.3.2 Japan
        11.3.3 South Korea
        11.3.4 India
        11.3.5 Australia
        11.3.6 Indonesia
        11.3.7 Malaysia
        11.3.8 Others
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Chile
        11.4.4 Colombia
        11.4.5 Others
    11.5 RoW
        11.5.1 Middle East
        11.5.2 Africa
12. Data Center Accelerator Market - Market Entropy
    12.1 New product launches
    12.2 M&A's, collaborations, JVs and partnerships
13. Data Center Accelerator Market – Industry Competitive Landscape (Premium)
    13.1 Market Share – Global
    13.2 Market Share by Region
    13.3 Market Share By Processor
14. Data Center Accelerator Market – Key Company List by Country Premium (Premium)
15. Data Center Accelerator Market - Company Analysis
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10

LIST OF TABLES

1.Global Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
1.1 FPGA Market 2023-2030 ($M) - Global Industry Research
1.2 ASIC Market 2023-2030 ($M) - Global Industry Research
2.Global Data Center Accelerator Market By Type Market 2023-2030 ($M)
2.1 Cloud Data Center Market 2023-2030 ($M) - Global Industry Research
2.2 HPC Data Center Market 2023-2030 ($M) - Global Industry Research
3.Global Data Center Accelerator Market By Processor Type Market 2023-2030 (Volume/Units)
3.1 FPGA Market 2023-2030 (Volume/Units) - Global Industry Research
3.2 ASIC Market 2023-2030 (Volume/Units) - Global Industry Research
4.Global Data Center Accelerator Market By Type Market 2023-2030 (Volume/Units)
4.1 Cloud Data Center Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 HPC Data Center Market 2023-2030 (Volume/Units) - Global Industry Research
5.North America Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
5.1 FPGA Market 2023-2030 ($M) - Regional Industry Research
5.2 ASIC Market 2023-2030 ($M) - Regional Industry Research
6.North America Data Center Accelerator Market By Type Market 2023-2030 ($M)
6.1 Cloud Data Center Market 2023-2030 ($M) - Regional Industry Research
6.2 HPC Data Center Market 2023-2030 ($M) - Regional Industry Research
7.South America Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
7.1 FPGA Market 2023-2030 ($M) - Regional Industry Research
7.2 ASIC Market 2023-2030 ($M) - Regional Industry Research
8.South America Data Center Accelerator Market By Type Market 2023-2030 ($M)
8.1 Cloud Data Center Market 2023-2030 ($M) - Regional Industry Research
8.2 HPC Data Center Market 2023-2030 ($M) - Regional Industry Research
9.Europe Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
9.1 FPGA Market 2023-2030 ($M) - Regional Industry Research
9.2 ASIC Market 2023-2030 ($M) - Regional Industry Research
10.Europe Data Center Accelerator Market By Type Market 2023-2030 ($M)
10.1 Cloud Data Center Market 2023-2030 ($M) - Regional Industry Research
10.2 HPC Data Center Market 2023-2030 ($M) - Regional Industry Research
11.APAC Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
11.1 FPGA Market 2023-2030 ($M) - Regional Industry Research
11.2 ASIC Market 2023-2030 ($M) - Regional Industry Research
12.APAC Data Center Accelerator Market By Type Market 2023-2030 ($M)
12.1 Cloud Data Center Market 2023-2030 ($M) - Regional Industry Research
12.2 HPC Data Center Market 2023-2030 ($M) - Regional Industry Research
13.MENA Data Center Accelerator Market By Processor Type Market 2023-2030 ($M)
13.1 FPGA Market 2023-2030 ($M) - Regional Industry Research
13.2 ASIC Market 2023-2030 ($M) - Regional Industry Research
14.MENA Data Center Accelerator Market By Type Market 2023-2030 ($M)
14.1 Cloud Data Center Market 2023-2030 ($M) - Regional Industry Research
14.2 HPC Data Center Market 2023-2030 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Data Center Accelerator Market Revenue, 2023-2030 ($M)
2.Canada Data Center Accelerator Market Revenue, 2023-2030 ($M)
3.Mexico Data Center Accelerator Market Revenue, 2023-2030 ($M)
4.Brazil Data Center Accelerator Market Revenue, 2023-2030 ($M)
5.Argentina Data Center Accelerator Market Revenue, 2023-2030 ($M)
6.Peru Data Center Accelerator Market Revenue, 2023-2030 ($M)
7.Colombia Data Center Accelerator Market Revenue, 2023-2030 ($M)
8.Chile Data Center Accelerator Market Revenue, 2023-2030 ($M)
9.Rest of South America Data Center Accelerator Market Revenue, 2023-2030 ($M)
10.UK Data Center Accelerator Market Revenue, 2023-2030 ($M)
11.Germany Data Center Accelerator Market Revenue, 2023-2030 ($M)
12.France Data Center Accelerator Market Revenue, 2023-2030 ($M)
13.Italy Data Center Accelerator Market Revenue, 2023-2030 ($M)
14.Spain Data Center Accelerator Market Revenue, 2023-2030 ($M)
15.Rest of Europe Data Center Accelerator Market Revenue, 2023-2030 ($M)
16.China Data Center Accelerator Market Revenue, 2023-2030 ($M)
17.India Data Center Accelerator Market Revenue, 2023-2030 ($M)
18.Japan Data Center Accelerator Market Revenue, 2023-2030 ($M)
19.South Korea Data Center Accelerator Market Revenue, 2023-2030 ($M)
20.South Africa Data Center Accelerator Market Revenue, 2023-2030 ($M)
21.North America Data Center Accelerator By Application
22.South America Data Center Accelerator By Application
23.Europe Data Center Accelerator By Application
24.APAC Data Center Accelerator By Application
25.MENA Data Center Accelerator By Application
26.Key Players, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Key Innovators, Sales /Revenue, 2015-2018 ($Mn/$Bn)