Global Data Center Accelerator Market Analysis 2021-2026 | Worth $65.3 Billion by 2026 | Rising Need for Co-Processors due to the Slowdown of Moore's Law

Dublin, Dec. 13, 2021 (GLOBE NEWSWIRE) -- The "Data Center Accelerator Market by Processor Type (CPU, GPU, FPGA, ASIC), Type (HPC Accelerator, Cloud Accelerator), Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface), and Geography - Global Forecast to 2026" report has been added to's offering.

The global data center accelerator market was valued at USD 13.7 billion in 2021 and is anticipated to reach USD 65.3 billion by 2026, growing at a CAGR of 36.7% between 2021 to 2026. The growing demand for data center accelerator in applications such as deep learning is driving the growth of data center accelerator market.

Deep learning services being made available over the cloud are reducing the initial costs associated with executing business operations and curtailing server maintenance tasks. A growing number of tech giants and startups have begun offering machine learning as a cloud service due to the burgeoning demand for AI-based computation. Most companies and startups do not develop their own specialized hardware or software to apply deep learning to their specific business needs. Cloud-based solutions are ideal for small and midsized businesses that find on-premises solutions costlier. Thus, the increasing adoption of cloud-based technology is necessitating the need for deep learning.

Artificial intelligence to drive the growth of cloud data center

Cloud data center is dominating the data center accelerator market owing to rise in demand for AI based solution. The growth of AI is leading to changes in cloud server configuration. The cloud computing market has witnessed significant growth owing to the surge in the volume of data being transferred to the cloud from consumers. The surge in AI-centric data has led to the growth of co-processors (accelerators) embedded in the servers. The accelerators optimize data processing at the servers by reducing the latency.

According to Intel, currently, ~7% of the servers are used in deep learning activities. There are ~12 million server units around the globe as of 2021. In the AI-capable servers for deep learning training, the typical CPU to GPU attach rate is 1-4 GPUs; in some cases, it is around 1-8 GPUs. Deep learning is expected to account for the majority of cloud workload during the forecast period, which, in turn, is likely to propel the demand for accelerators for cloud servers. More than one-third of servers to be shipped in 2026 are likely to run either deep learning training algorithms or deep learning inference algorithms. Accelerators are likely to be deployed in the cloud servers for both public and enterprise cloud inference applications. However, training applications are expected to account for the majority of the server applications by the end of 2026.

Asia Pacific is the fastest-growing region in the data center accelerator market

The data center accelerator market in APAC is anticipated to register the highest CAGR of 42.7% between 2021 and 2026. The organizations in APAC have more preference for deploying a hybrid cloud. The organizations are adopting a mix of on-premises, third-party, co-location, private cloud, hosted cloud, and public cloud - depending on the nature of workloads, legacy decisions made by the team, budgets, and technology maturity within the organization.

The 2 major players in the data center accelerator market are NVIDIA Corporation (US) and Intel Corporation (US). Intel mainly focuses on its Xeon Phi processors and FPGA co-processors; however, NVIDIA has nearly reached a monopoly in the data centers accelerator market with its GPU accelerators. Apart from NVIDIA and Intel, several start-ups are working on ASIC and FPGA accelerator architectures.

Research Coverage

The report segments the data center accelerator market and forecasts its size, by volume and value, based on region (North America, Europe, Asia Pacific, and RoW), Processor Type (CPU, GPU, FPGA, ASIC), Type (HPC Accelerator, Cloud Accelerator), Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface). The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the data center accelerator market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Market Dynamics

  • Drivers
    • Growth of Cloud-Based Services
    • Focus on Parallel Computing in AI Data Centers
    • Deep Learning Usage in Big Data Analytics
  • Restraints
    • Premium Pricing of Accelerators
    • Limited AI Hardware Experts
  • Opportunities
    • Demand in the Market for FPGA-based Accelerators
    • Rising Need for Co-Processors due to the Slowdown of Moore's Law
  • Challenges
    • Unreliability of AI Algorithms
    • Complex AI Mechanisms

Case Studies

  • Achieving Faster AI-Based Medical Diagnosis Support with Xilinx Alveo Accelerator Cards
  • Xilinx Provides Twitch with Plug and Play VP9 Transcoding Solution for Live Video Streaming
  • Xilinx Powers Alibaba Cloud FaaS with AI Acceleration Solution for e-Commerce Business
  • Artificial Intelligence Accelerates Dark Matter Search
  • CFD Acceleration with Xilinx Alveo FPGA

Other Use Cases

  • FPGA Use Cases; FPGAs as Offload Accelerators
  • Intel's Deep Learning Solutions Brings Touch to Somatic's Robots
  • AI Catalyzes Operational Improvements for Manufacturing and Smart Cities
  • Accelerate Adoption of AI in Diagnostic Radiology

Companies Profiled

  • Achronix Semiconductor
  • Advantech Co. Ltd.
  • AMD
  • Bittware
  • Enflame Technology
  • Fujitsu
  • Google
  • Graphcore
  • Gyrfalcon Technology Inc.
  • Huawei Technologies
  • IBM
  • Intel
  • Lattice Semiconductor
  • Leap Mind Inc.
  • Marvell
  • Microchip Technology
  • Micron
  • NEC
  • Nvidia
  • Qnap System Inc.
  • Qualcomm
  • Sambanova
  • Semptian
  • Wave Computing
  • Xilinx

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