USD 12.5 billion
Report ID:
SQMIG45O2064 |
Region:
Global |
Published Date: July, 2025
Pages:
194
|Tables:
90
|Figures:
71
Global Data Center Accelerator Market size was valued at USD 12.5 billion in 2023 and is poised to grow from USD 15.51 billion in 2024 to USD 87.27 billion by 2032, growing at a CAGR of 24.1% during the forecast period (2025-2032).
The global data center accelerator market is experiencing strong growth due to rapid data generation, expansion of hyperscale data centers and growing high-performance computing (HPC) demand. As artificial intelligence (AI), machine learning (ML), and big data have become important to industries, data center accelerators such as GPUs, FPGAs, and ASICs are important elements of the computing workload optimization process. Accelerators improve data processing speeds, and latency and are therefore highly valuable to modern enterprise infrastructure.
The data center accelerator market is being influenced by a major trend of high efficiency accelerators being deployed into, cloud platforms as AI-based workloads are increasingly integrated into operations. Companies are acting by migrating to high-efficiency accelerators to maintain competitive parity as the migration impetus escalates. Digital transformation and rapid development in healthcare, finance and automotive fields have begun to drive the use of real-time analytics and simulation tools driving deeper penetration of accelerators. Boosted by government investments into digital infrastructures, increased focus on energy and efficient processing units will support the global data center accelerator market penetration.
How is Artificial Intelligence Catalysing the Evolution of Data Center Acceleration Technologies?
Artificial Intelligence (AI) is fundamentally shifting the data center accelerator market through improved compute efficiencies, workload distribution, and energy management. Further, as AI workloads (i.e. deep learning, natural language processing, and predictive analytics) become more complicated in model complexity, data centers are relying on accelerating technologies (i.e. GPUs, TPUs, and FPGAs) for those workloads to meet the necessary performance. AI-optimized processing can facilitate the field-continue, to an increasing dependency on data centers and acceleration technology in their processes.
In April 2024, NVIDIA announced their integration of next-generation AI inference models for their H100 Tensor Core GPUs to accelerate large-scale, AI workloads across hyperscale cloud. Their announcement is timely given the market trend of hybrid cloud and worker edge computing is accelerating, and AI-accelerators are becoming critical to any organization's ability to analyze data in real-time and optimize energy use in the data center stack. Organizations are prioritizing scalable, and intelligent infrastructure and AI continues to be critical to realizing the full value of data center acceleration technology.
Market snapshot - 2025-2032
Global Market Size
USD 12.5 billion
Largest Segment
GPU
Fastest Growth
FPGA
Growth Rate
24.1% CAGR
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Global Data Center Accelerator Market is segmented by Processor, Type, Application, Vertical and region. Based on Processor, the market is segmented into GPU, CPU, ASIC and FPGA. Based on Type, the market is segmented into Cloud Data Centers and HPC Data Centers. Based on Application, the market is segmented into Deep Learning Training, Public Cloud Inference and Enterprise Inference. Based on Vertical, the market is segmented into IT & Telecom, Healthcare, BFSI, Government, Energy and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
According to the global data center accelerator market forecast, GPU-based accelerators currently dominate the market due to the applicability of AI workloads, especially for deep learning training and high-performance computing (HPC). GPUs have parallel processing power to handle large volumes of data processing and complex neural network calculations. Increasingly, tech giants are incorporating GPU architectures into their data center infrastructure to reduce latencies and improve the ability to address real-time processing workloads. These trend shifts cement GPUs as the leading type in the accelerator ecosystem.
FPGAs (Field Programmable Gate Arrays) are predicted to be the fastest-growing segment of the data center accelerator market. The interest in FPGAs is related to their lower latency and energy efficiency characteristics. FPGAs are also gaining traction for their cloud interface environment. This trend is eking towards broader industry trends, including edge computing and real-time analytics, to favor adaptive hardware like FPGAs vs. previous preference of fixed-function accelerators.
Global data center accelerator market analyses show that CPU-based accelerators are currently the market share leader due to integration into most enterprise and cloud infrastructures. The CPU remains the foundation for general-purpose processing and continues to coordinate the resources of accelerators like FPGAs and GPUs. The CPU's omnipresence, compatibility with legacy hardware, and reliability in managing and orchestrating operations in the data center process ensures their continued leadership position even in mixed workload applications, especially in enterprise interfaces and public cloud infrastructures.
GPU-based accelerators represent the fastest growing segment in the processor type category. The extreme parallel computing capabilities of GPUs lend themselves to AI/ML workloads, and real-time analytics. We are seeing increase in market growth of GPUs, as more industries scale-out AI based applications. Companies are protecting the investments in GPUs as those chips provide quicker training times in deep learning models, which enhances data center performance and agility.
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North America dominates the global data center accelerator market. The presence of prominent cloud service providers, investments in Artificial Intelligence (AI) and computing infrastructure, and leading-edge computing technology, support increased adoption and utilization of data center accelerators in the region. North America also has an extremely well-established data center network (especially in the United States), which promotes demand for high-performance computing solutions.
The United States dominates the North American data center accelerator market. The broad digital economy with a strong regulatory environment allows for better utilization and adaptation of data center accelerators in the United States. Strong demand from the finance, healthcare, and technology sectors increases the adoption of data center accelerators. The United States data center accelerator market, leads in terms of product variation and investments in new technologies, solidifying its position in the market.
The Canadian data center accelerator market is undergoing rapid growth due to increasing digital transformation and greater awareness of data-centric applications. The government is pushing for digital resilience from regulations and initiatives encouraging businesses, especially SMEs, to adopt more advanced computing resources and capabilities. The market is already benefiting from an increase in demand across industries such as finance and manufacturing. With building infrastructure and improved capabilities in the market Canada is strengthening its position in the data center accelerator market.
Asia Pacific's data center accelerator market is growing rapidly because of increased digital adoption, additional investments in cloud infrastructure, and government support with technology advancement. There are several countries in the region that are modernizing their IT eco-systems which is causing the advancement and adoption of more advanced accelerator technologies. These initiatives are rapidly changing the progress in technology in this region identifying it as a core growth market globally.
Japan dominates the Asian data center accelerator market. Japan's is accelerating significantly with a sophisticated technology eco-system. The country's government is encouraging digital innovation and competitiveness, and many companies are investing in a high-performance computing and artificial intelligence, which is feeding a demand for accelerators. The market is supported by a large manufacturing centering on semiconductors and IT hardware.
South Korea’s data center accelerator industry is rapidly growing, due to the strength of its digital infrastructure and its leadership in next-generation technology areas. Demand for data center accelerators is being fueled by government-backed programs and investments in areas such as AI and 5G technology. The adoption, mainly driven by key industries such as gaming and e-commerce, is solidifying South Korea’s regional data center accelerator market outlook.
Europe’s data center accelerator market is seeing growth because of increasing digital transformation across industries. Rigid data protection legislation and the growth of AI and machine learning solutions are key drivers to this growth. Primarily Germany, the UK and France are accelerating innovation surrounding this growth, and collectively, Europe is an important part of the global data center accelerator market.
Germany's data center accelerator market is well-established due to a strong industrial base, high-quality IT infrastructure, and attention to Industry 4.0. Data-intensive industries and smart manufacturing in Germany have contributed to increases in the adoption of accelerator technology. German firms are investing large amounts of funding into high performance computing, as they digitally transform and remain competitive.
The UK’s data center accelerator market is also undergoing rapid growth, with firms across sectors modernizing their IT infrastructure. Significant demand from cloud computing, artificial intelligence, and fintech continues to provide the UK market with opportunities for accelerator technology. In addition, strong support for digital adoption from the government along with the country’s thriving technology ecosystem will support continued growth in UK data center accelerators.
Italy’s data center accelerator market continues to develop as digital adoption increases, and investment in high performance computing increases from its industries. The government's work in support of digital infrastructure investments, as well as smart manufacturing, adds to the factors driving the Italian market. The finance and manufacturing industries in Italy are also, in search of accelerator solutions that will enhance their competitiveness in the region and help keep pace with regional digital trends.
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Growing Demand for AI and ML Workloads
Rising Data Traffic and Cloud Adoption
High Initial Investment Costs
Complex Integration and Compatibility Issues
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The competitive landscape of the global data center accelerator market encompasses technological advancements and partnerships. The leading players in the global data center accelerator market consist of NVIDIA Corporation, Intel Corporation, Advanced Micro Devices (AMD), and Xilinx Inc. For instance, NVIDIA dominates the market largely due to its A100 and H100 GPU architectures. In contrast, Intel is now concentrating on expanding its Gaudi and Habana Labs accelerator ranges. These range approaches have proven to improve latency and accommodate evolving workloads that are data intensive.
The global data center accelerator market is seeing tremendous amounts of innovation from agile start-ups that are leveraging their capabilities to build custom silicon and software ecosystems that are cloud-native and AI-first infrastructures. These companies are innovating in the edge acceleration, energy-efficient chipsets, and application-specific processors. By adopting, design patterns that support AI co-processors, and providing scalable and cost-effective PCIe devices in conjunction with supplier solutions, and FPGA-based algorithmic inference, there is differentiated value. These startups create pressure for traditional suppliers to optimize their new entrants' performance and cost. In turn, making change happen faster than ever before and contributing to global data center accelerator market growth.
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As per SkyQuest analysis, the global data center accelerator market is witnessing transformative growth due to the rising demand for AI and ML workloads, increasing cloud adoption, and rapid digital transformation. Businesses are beginning to invest in high-performance computing and energy-efficient, to create demand for GPU, FPGA and ASIC-based accelerators. The market players are investing in innovation on architecture, chips designed for specific workloads, and hybrid cloud capabilities to provide scalable architecture.
When looking at geographic regions, North America is leading the charge with a strong digital foundation, with Asia-Pacific being the fastest growing tech ecosystem and Europe seeing exciting industrial transformation. The competitive landscape is made up of established players such as NVIDIA, Intel, and AMD, with the technology commercialization of AI-native and low latency accelerators by nimble-startups (e.g. Groq and Tenstorrent) disrupting the market. An exciting convergence of innovation and infrastructure modernization is transforming data centre operations on a global scale.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 12.5 billion |
Market size value in 2032 | USD 87.27 billion |
Growth Rate | 24.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Accelerator Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Accelerator Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Global Data Center Accelerator Market size was valued at USD 86.06 billion in 2023 poised to grow from USD 109.9 billion in 2024 to USD 777.18 billion by 2032, growing at a CAGR of 11.4% during the forecast period (2025-2032).
The competitive landscape of the global data center accelerator market encompasses technological advancements and partnerships. The leading players in the global data center accelerator market consist of NVIDIA Corporation, Intel Corporation, Advanced Micro Devices (AMD), and Xilinx Inc. For instance, NVIDIA dominates the market largely due to its A100 and H100 GPU architectures. In contrast, Intel is now concentrating on expanding its Gaudi and Habana Labs accelerator ranges. These range approaches have proven to improve latency and accommodate evolving workloads that are data intensive. 'NVIDIA Corporation (USA)', 'Intel Corporation (USA)', 'Advanced Micro Devices, Inc. (USA)', 'Qualcomm Technologies, Inc. (USA)', 'Xilinx, Inc. (USA)', 'IBM Corporation (USA)', 'Marvell Technology Group Ltd. (USA)', 'Graphcore Ltd. (United Kingdom)', 'SambaNova Systems (USA)', 'Tesla, Inc. (USA)', 'Google LLC (USA)', 'Amazon Web Services, Inc. (USA)', 'Baidu, Inc. (China)', 'Fujitsu Limited (Japan)', 'Tencent Holdings Ltd. (China)'
The surge in the utilization of artificial intelligence (AI) and machine learning (ML) across multiple industries, such as healthcare, automotive, and finance, has accelerated the global data center accelerator industry growth. Data center accelerators, including GPUs, FPGAs, and ASICs, are specifically designed to fulfill these performance requirements, and continue to drive market development and technological advancements on a worldwide level.
Heterogeneous Computing Architectures: The data center accelerator market has quickly moved to higher marketplace demand for heterogeneous computing architecture where CPUs, GPUs, FPGAs and/or custom ASICs are used together in an integrated system to optimise workloads in a data centre using these different prototypes of accelerators where the appropriate accelerators can provide improvements in performance, energy efficiency and workload specific acceleration.
How does North America’s Advanced Digital Infrastructure Contribute to its Dominance in the Market?
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