Data Center Accelerator Market Worth $65.3 Billion by 2026

Data Center Accelerator Market is projected to grow from USD 13.7 billion in 2021 to USD 65.3 billion by 2026; it is expected to grow at a CAGR of 36.7% from 2021 to 2026.

Some of the prominent key players are Intel Corporation (US), Google. Inc (US), NVIDIA Corporation (US), Xilinx Inc. (US), IBM Corporation (US), Advanced Micro Devices, Inc (US), Marvell Technology (Hamilton, Qualcomm Technology (US).

The players in this market have adopted various strategies to expand their global presence and increase their market shares.

The key factors contributing to the growth of the data center accelerator market include growth of cloud-based services, focus on parallel computing in AI data centers, and deep learning usage in big data analytics, However, The burgeoning application of AI in various sectors has enhanced consumer perception and expectations from AI technologies. However, the lack of availability of low-cost and energy-efficient hardware, especially computing hardware, is hindering the growth of dedicated AI hardware such as deep learning accelerators. Various AI technologies built to date have failed to make a larger impact in the AI market. For instance, owing to the high cost of data center accelerators such as NVIDIA Tesla products, a majority of data center manufacturers are reluctant about adopting those accelerators in their products. For cloud server inference applications, numerous FPGAs are being developed to perform tasks such as enhancing security and fast computing; however, technical constraints and the high cost of reliable mechanical devices are curbing data center accelerator adoption.

FPGA is likely to register high CAGR

The market for FPGA is growing at the highest CAGR of 43.1% during the forecast period. The growth of the market for FPGA is attributed to the increasing adoption of FPGAs for the acceleration of enterprise workloads. With the exponential data growth, data center operators have to establish a balance between the need for the performance at scale and the operational efficiencies. To boost performance and power efficiencies, data centers are most widely adopting Intel Xeon Scalable processors to support data-intensive performance requirements.

The data centers are likely to consume approximately one-fifth of global energy by the end of 2026.

The enormous growth in data generation due to IoT and AI has led to the demand for higher data processing capabilities at data centers while keeping a check on power efficiency, data cementer cooling requirements, and space used for data centers. The data centers are likely to consume approximately one-fifth of global energy by the end of 2026. Governments around the world are focusing on the means to reduce data center energy consumption. These initiatives are expected to boost parallel computing in data centers, which, in turn, would boost the data center accelerator market during the forecast period.

APAC exhibit the highest CAGR during the forecast period

The market based on geography has been segmented into 4 main regions: North America, Europe, APAC, and RoW. APAC is projected to grow at the highest CAGR of 42.7% during the forecast period. The growth of the market in APAC is attributed to the increasing demand for data centers in China, as organizations seek enhanced connectivity and scalable solutions for their growing businesses. Also, there is an increase in investments by the Government of China to stimulate technological development, which has led to the large adoption of cloud-based services, big data analytics, and the Internet of Things (IoT).

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