Market for Data Center Accelerators to Reach $168 Billion by 2032
Jun 30, 2023 | Posted by Abdul-Rahman Oladimeji
The Data Center Accelerator Market is anticipated to reach $168 Billion by 2032, up from $18.2 Billion in 2022, at a CAGR of 25.6% between 2022 and 2032. In recent years, the market for data center accelerators has expanded rapidly due to the increasing demand for high-performance computation and data-intensive applications. Data centers play a crucial role in contemporary tech settings by providing the infrastructure required for preserving, analyzing, and managing vast quantities of data. Organizations are turning to data center accelerators to improve the efficacy and functionality of their data centers.
Accelerators for data centers are niche pieces of hardware or software designed to expedite data center functions. By offloading duties such as compression of data, encryption, and extraction from conventional CPUs to accelerators, data centers can achieve increased performance, decreased power use, and greater cost efficiency. Graphics processing units (GPUs), field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and neural processing units (NPUs) are examples of available data center accelerators. GPUs were originally designed for gaming and rendering graphics, but their parallel processing capabilities have made them popular in data centers. FPGAs offer increased flexibility and reconfigurability, making them applicable to a broader range of applications. ASICs, on the other hand, are purpose-built and offer high performance and energy efficiency. NPUs were designed to accelerate workloads involving artificial intelligence and machine learning, which have become increasingly important in data centers.
In industries such as IT/telecommunications, medical services, manufacturing, finance, and automotive, the market for data center accelerators has seen widespread adoption. Due to advancements in artificial intelligence, big data analytics, and the Internet of Things (IoT), it is anticipated that demand for data center accelerators will continue to rise.