Market forecast projects data center accelerator market reaching 46.6 billion dollars by 2026 with GPU dominance and FPGA emergence.
The global Data Center Accelerators market, estimated at US$4.8 Billion in 2020, is projected to reach a revised size of US$46.6 Billion by 2026, growing at a CAGR of 44.9% over the analysis period. Accelerators aid in increasing consumer-driven data demand and pave the way for enhanced use of artificial intelligence-based services. Various applications of data center accelerators include voice recognition, voice search, fraud detection, sentiment analysis, recommendation engines, motion detection, and image recognition, among others. Growth in the global market is being fueled by rising demand for enhancing application performance, increasing storage requirements, growing mobile data usage, and increasing Internet usage. Globally, more enterprises are switching to cloud data storage, thus increasing demand for data center accelerators. Another important market growth driving factor has been the increased emphasis on parallel computing in AI-data centers, with increased ML and neural networks use significantly contributing to market growth.
GPU is one of the segments analyzed in the report, projected to grow at a 43.5% CAGR to reach US$26.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the CPU segment is readjusted to a revised 45.5% CAGR for the next 7-year period, with this segment currently accounting for a 27.2% share of the global Data Center Accelerators market. GPUs help improve data center application performance, with companies offering innovative GPUs for servers to meet high demand for hyperscale and HPC data center workloads. NVIDIA's Tesla T4 GPU, launched in 2018, is an example that allows hyperscale data centers to scale their AI-based products and services.
Geographically, the Data Center Accelerators market in the U.S. is estimated at US$4 Billion in 2021, with the country currently accounting for a 54.39% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$4.2 Billion by 2026, trailing a CAGR of 55.6% through the analysis period. Among other noteworthy geographic markets are Japan and Canada, each forecast to grow at 39.8% and 45.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 41.1% CAGR while the Rest of European market will reach US$6.3 Billion by the end of the analysis period. The market witnesses strong growth in big data traffic and volume because of hyperscale data centers that are fast emerging, with the US in particular having the highest data center numbers worldwide.
Growth in the Asia Pacific market is attributed mainly to the Chinese and Indian markets, which are attracting several major service providers to install cloud-based data centers. In these countries, the Digital India, Make in India, and Made in China governmental initiatives are leading to increased big data analytics, cloud-based services, and IoT adoption, thus increasing data center demand and presenting a favorable outlook for data accelerators. The FPGA segment, which comprises pre-built silicon devices that are electrically programmed after manufacture to transform into any digital system, is forecast to reach US$10.2 Billion by 2026. FPGAs have been adopted by many industries due to the numerous benefits they offer, integrating the best aspects of ASICs and processor-based systems while offering faster time-to-market and cheaper solutions for low and medium volume productions compared to ASIC.