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Data Center Accelerator Market Revenue to Boost at 25% Growth and Forecast by 2028

According to a recent report by GMI Inc., data center accelerator market value is expected to cross USD 25 billion by 2028. The rising capex of cloud service providers over the past few years has opened new opportunities for industry players across the data center accelerator industry.


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Abhishek Bajpai

10 months ago | 3 min read

According to a recent report by GMI Inc., data center accelerator market value is expected to cross USD 25 billion by 2028. The rising capex of cloud service providers over the past few years has opened new opportunities for industry players across the data center accelerator industry. The increased spending comes amid a growing demand for the incorporation of AI-tailored infrastructure. This is because accelerated compute servers have the capability of handling AI workloads in a more efficient manner as compared to general-purpose CPUs.

This has emerged as a major driver for the rising demand for data center accelerator cards, despite their higher costs. Such factors are expected to impel business expansion to a remarkable extent.

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Dell Inc., Intel Corporation, Advantech Co., Ltd., Microchip Technology Inc., Western Digital Corporation, Qualcomm Incorporated, Lattice Semiconductor, Achronix Semiconductor, NVIDIA Corporation, Skyworks Solutions Inc., and others are some of the major companies operating in the industry.

What are the steps taken up by leading market players to consolidate their position in the industry?

Major participants in the data center accelerator market are focusing on various collaborative strategies such as acquisitions, mergers, partnership agreements, and others. These steps are being taken in a bid to establish a strong market foothold.

A few instances have been enlisted below:

· In November 2021, Astera Labs announced its plans to launch Leo, a memory accelerator platform based on the CXL (Compute Express Link) standard. The solution has been designed for the interconnection of various data center devices and general-purpose CPU processors.

· In August 2021, IBM unveiled an on-chip AI accelerator for its mainframes. According to the company, the solution would enable big mainframe users to conduct AI inferencing on the same system. Furthermore, the accelerator would form part of the new IBM Telum chip for the company’s LinuxOne and Z mainframes.

Similar developments are expected to stimulate industry competition through the estimated period. In addition, several industry players are showing a keen interest in research activities for the enhancement of their product development capabilities.

Asia Pacific regional landscape: Increase in funding initiatives to drive the regional business expansion through 2028

Asia Pacific data center accelerator market size is expected to register appreciable gains over the forecast period of 2022–2028. This rise can be credited to an increase in capital infusion activities by numerous organizations in the region.

For instance, in February 2022, Japan’s NEDO (New Energy and Industrial Technology Development Organization) announced plans for funding projects for more efficient and greener data centers. The projects comprise cheaper silicon carbide semiconductors, power-saving CPUs, and optoelectronics technology. The agency’s Green Innovation Fund is aimed at supporting the development of next-generation green data center technology. According to NEDO, this would help in the creation of nearly 40% energy savings as compared to present data centers.

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The new ‘Building Next-Generation Digital Infrastructure’ initiative is aimed at the development of new optical smart NIC and accelerator technologies.

Such projects are expected to enhance product development activities, creating favorable ground for business expansion in the region.

All in all, the industry is witnessing a surging emphasis on the adoption of parallel computing in AI data centers. This is likely to bolster product demand, spurring data center accelerator market share across various regions.

Table of Contents (ToC) of the report:

Chapter 1 Methodology & Scope

1.1 Scope & definitions

1.2 Methodology & forecast parameters

1.3 COVID-19 impact

1.3.1 North America

1.3.2 Europe

1.3.3 Asia Pacific

1.3.4 Latin America

1.3.5 MEA

1.4 Data sources

1.4.1 Secondary

1.4.2 Primary

Chapter 2 Executive Summary

2.1 Data center accelerator market 360º synopsis, 2018–2028

2.1.1 Business trends

2.1.2 Regional trends

2.1.3 Processor type trends

2.1.4 Type trends

2.1.5 Application trends

2.1.6 End-user trends

About Global Market Insights:

Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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Corporate Sales, USA

Global Market Insights Inc.

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