According to a new report published by Introspective Market Research, titled, Data Center Accelerator Market by Type, Processor Type, and Application, The Global Data Center Accelerator Market Size Was Valued at USD 86.06 Billion in 2023 and is Projected to Reach USD 786.54 Billion by 2032, Growing at a CAGR of 27.87%.
The global Data Center Accelerator Market is witnessing exponential growth, driven by the rising demand for high-performance computing and artificial intelligence (AI) applications across industries. Data center accelerators—comprising GPUs, FPGAs, and ASICs—enhance computational speed, reduce latency, and improve energy efficiency in large-scale data centers. They enable faster data processing and analytics for cloud service providers, enterprises, and government organizations.
With the expansion of cloud computing, the Internet of Things (IoT), and 5G networks, the need for advanced processing units to handle massive data workloads has become critical. Data center accelerators are rapidly replacing traditional CPUs in handling AI, deep learning, and machine learning tasks, offering superior parallel processing power. The market’s growth is further supported by increasing investments in hyperscale data centers and growing adoption of AI-driven solutions across sectors like healthcare, BFSI, and automotive.
One of the primary growth drivers for the Data Center Accelerator Market is the increasing adoption of AI and machine learning applications. As enterprises and research institutions rely on AI-driven analytics for insights, traditional CPUs fail to meet performance expectations. Accelerators such as GPUs and FPGAs provide faster parallel computing capabilities, enabling organizations to process complex algorithms efficiently. This growing reliance on AI technologies in industries like finance, healthcare, and autonomous vehicles is significantly boosting demand for data center accelerators.
A major market opportunity lies in the rising deployment of hyperscale data centers by cloud giants such as Amazon Web Services, Microsoft, and Google. These data centers demand powerful computing infrastructure capable of handling large-scale workloads efficiently. With the surge in data-intensive applications like real-time analytics and generative AI models, the need for energy-efficient and high-speed accelerators presents a massive growth potential for both established and emerging players in the market.
Detailed Segmentation
Data Center Accelerator Market, Segmentation
The Data Center Accelerator Market is segmented on the basis of Type, Processor Type, and Application.
Type
- The Type segment is further classified into Cloud Data Center and HPC Data Center. Among these, the Cloud Data Center segment accounted for the highest market share in 2023. The rising adoption of cloud-based services and SaaS platforms has led to a surge in data center construction worldwide. Cloud providers are investing heavily in AI-ready infrastructure to meet growing demand for scalable computing power, driving rapid growth of this segment.
Processor Type
- The Processor Type segment is further classified into GPU, CPU, FPGA, and ASIC. Among these, the GPU sub-segment accounted for the highest market share in 2023. GPUs are widely used for AI model training and inference, offering superior parallel computing performance compared to CPUs. Their extensive use in hyperscale data centers and cloud-based AI workloads continues to accelerate their market dominance.
Some of the Leading/Active Market Players Are
• Intel Corporation (U.S.)
• NVIDIA Corporation (U.S.)
• Advanced Micro Devices, Inc. (U.S.)
• Xilinx, Inc. (U.S.)
• Broadcom Inc. (U.S.)
• IBM Corporation (U.S.)
• Marvell Technology Group (Bermuda)
• Cisco Systems, Inc. (U.S.)
• Alphabet Inc. (Google) (U.S.)
• Microsoft Corporation (U.S.)
• Amazon Web Services, Inc. (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Samsung Electronics Co., Ltd. (South Korea)
• Fujitsu Limited (Japan)
• Tencent Holdings Ltd. (China)
and other active players.
Key Industry Developments
-
In March 2024, NVIDIA announced the launch of its next-generation Blackwell GPU architecture designed for AI and data center workloads.This innovation enhances processing speeds by over 2x compared to previous versions, enabling hyperscale data centers to train and deploy AI models faster and more efficiently.
- In July 2024, AMD introduced its Instinct MI300X accelerator, optimized for large AI model training and HPC applications.The new chip integrates advanced memory technology and improved energy efficiency, offering cloud providers enhanced computational performance with reduced power consumption.
Key Findings of the Study
• GPU segment dominated the market in 2023, driven by AI and deep learning demand.
• Cloud Data Centers held the largest share due to rapid digital transformation.
• North America led the global market with significant hyperscale deployments.
• Rising AI adoption and cloud computing are key growth drivers.
• Partnerships and new chip launches define the current market landscape.
