Data Center Accelerator Market is Projected to Reach USD 172.6 Billion by 2033

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The global data center accelerator market size reached USD 25.0 Billion in 2024 and is projected to reach USD 172.6 Billion by 2033, representing a CAGR of 24% during the forecast period 2025-2033. Data center accelerators enhance computational capabilities, improve power efficiency, and accelerate workloads such as deep learning, machine learning, and high-performance computing. The market growth is driven by rising demand for network bandwidth and advanced analytics with rapid and optimal performance. 

Study Assumption Years

  • Base Year: 2024
  • Historical Years: 2019-2024
  • Forecast Period: 2025-2033

Data Center Accelerator Market Key Takeaways

  • Current Market Size: USD 25.0 Billion in 2024
  • CAGR: 24% (2025-2033)
  • Forecast Period: 2025-2033
  • The rising need to increase networking bandwidth is propelling the use of data center accelerators for managing complex data sets and analytics workloads.
  • Remote work and COVID-19 have accelerated adoption of AI workloads requiring data center accelerators.
  • The growth in on-demand GPU cloud computing solutions is driving accelerated computing demand.
  • Expansion of cloud gaming services using GPU virtualization supports market growth.
  • Enterprises are increasingly offering machine learning as a cloud service to expand applications of data center accelerators.

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Market Growth Factors

Data center accelerators offload computationally intensive tasks from processors for data center workloads, to save power through resource sharing with the host processors, and lower costs. People use them to deeply learn, to machine learn, and to perform computations highly with workloads.

The work-from-home culture generated during the COVID-19 pandemic and the need for artificial intelligence (AI) to help businesses operate during the pandemic have accelerated the adoption of data center accelerators for AI workload processing. Additionally, accelerated computing has become a growing demand, leading to an increasing use of on-demand GPU cloud computing solutions with high availability, or offered as a service, particularly for compute-intensive workloads.

The growth of the cloud gaming market is attributed to the gaming companies focusing on developing online cloud gaming services and real personal computer (PC) gaming by providing hardware-based graphics processing unit (GPU) virtualization, and the increasing demand for real online gaming experiences. The availability of machine learning as a cloud service for voice recognition, fraud detection mechanism, recommendation systems, and image segmentation is also one of the reasons driving the global market for data center accelerators.

Market Segmentation

Accelerator Type:

  • High-performance Computing: Focuses on boosting the computational power of data centers to handle demanding workloads.
  • Cloud Accelerator: Supports acceleration of cloud-based computing and services.

Processor Type:

  • Central Processing Unit (CPU): Traditional processors handling general-purpose tasks.
  • Graphics Processing Unit (GPU): Specialized processors optimized for parallel processing tasks.
  • Field-Programmable Gate Array (FPGA): Configurable hardware that can be programmed post-manufacture for specific functions.
  • Application-specific Integrated Circuit (ASIC): Customized circuits designed for particular applications.

Application:

  • Deep Learning Training: Accelerators used to train deep learning models efficiently.
  • Public Cloud Interface: Facilitates acceleration in public cloud environments.
  • Enterprise Interface: Supports acceleration for enterprise applications and operations.

Region:

  • North America: United States, Canada
  • Asia-Pacific: China, Japan, India, South Korea, Australia, Indonesia, Others
  • Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Others
  • Latin America: Brazil, Mexico, Others
  • Middle East and Africa

Regional Insights

North America holds the largest share in the data center accelerator market and has the most deployments in the US and Canada. Nevertheless, the report identified region as an important regional market in the global market, without providing market share/CAGR data. The first-mover advantage and cloud infrastructure development are the key aspects that drive the growth of the region.

Key Players

  • Achronix Semiconductor Corporation
  • Advanced Micro Devices Inc.
  • Cisco Systems Inc.
  • Dell Technologies Inc.
  • Gyrfalcon Technology Inc.
  • Intel Corporation
  • International Business Machines Corporation
  • Marvell Technology Inc.
  • Microsemi Corporation (Microchip Technology Inc.)
  • Nvidia Corporation
  • Qualcomm
  • Xilinx Inc.

Customization Note

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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