USD 191.55 billion
Data Center Chip Market Size, Share, and Growth Analysis
Data Center Chip Market By Component (Processors, Memory), By Data Center Size (Small Data Centers, Medium-Sized Data Centers), By Application (Generative Ai, General-Purpose Computing), By End User, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45C2093 |
Region:
Global |
Published Date: January, 2025
Pages:
195
|Tables:
90
|Figures:
71
Format -
Data Center Chip Market Insights
Data Center Chip Market size was valued at USD 191.55 billion in 2023 and is poised to grow from USD 217.41 billion in 2024 to USD 598.75 billion by 2032, growing at a CAGR of 13.5% during the forecast period (2025-2032).
The increasing requirements of artificial intelligence (AI), machine learning (ML), and the cloud are now boosting the data center chip market. Any business that engages in AI or ML technologies must invest in even stronger and more effective datacenter chips that can handle workloads with high data input. Other trends in the data center chip market are those relating to cloud-based services. IT infrastructure is being moved to the cloud by organizations to reduce expenses and increase flexibility. The need for data center chips that can manage the high-performance computing and data processing requirements of cloud-based applications is therefore growing. Additionally, the datacenter chip market has seen a growing adoption of AI and ML.
Such technology would allow predicted learning of an efficient data center chip by interpreting and utilizing present information. With these developments, the applications of machine learning and artificial intelligence are expected to grow manifold into the future. The demand for data centers has skyrocketed due to data generation and consumption. Businesses and organizations want more robust and effective data centers as more data is generated. One of the most recent trends is the increase in the quantity of chips utilized in data centers. The use of cloud computing and big data analytics, which are gaining popularity among people all over the world, is one of the factors propelling this trend.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Non-AI Server
Fastest Growth
AI Server
Growth Rate
13.5% CAGR
Global Data Center Chip Market ($ Bn)
Country Share by North America (%)
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Data Center Chip Market Segments Analysis
Global Data Center Chip Market is segmented by Component, Data Center Size, Application, End User and region. Based on Component, the market is segmented into Processors, Memory, Network, Sensors, Power Management and Analog & Mixed-Signal ICS. Based on Data Center Size, the market is segmented into Small Data Centers, Medium-Sized Data Centers and Large Data Centers. Based on Application, the market is segmented into Generative Ai and General-Purpose Computing. Based on End User, the market is segmented into Cloud Service Providers, Enterprises and Government Organizations. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Component
As per categorization by material, the market is classified as AI server and non-AI server. Among these, non-AI servers earned the largest share and continue to hold the dominant global data center chip market share. Non-AI servers completely conquer the global data center chip market with their effective pricing, reliability, and versatility in general-purpose computing. Innovations in these servers aim at enhancing processing power, energy-power flexible scalability to accommodate the huge dealing with traffic. These servers run excellent in a broad range of applications-from cloud computing, storing, to enterprise workloads, making them indispensable in most data centers, especially industries that focus on better performance and lower operating costs instead of specific AI processing.
AI servers are poised to be the fastest-growing segment in the global data center chip market due to the rapid expansion of AI-driven applications and the increasing demand for high-performance computing. Such servers are tailor-made for machine learning, deep learning, and huge data analytics types of applications that require special chips like GPU or TPU for the augmented processing powers. Industries such as healthcare, finance, and retail are making their moves into AI-adoption automation, analytics, and decision-making, increasing the demand for such an integrated AI infrastructure. Due to this and the increasing emphasis on combining research and investment into AI, AI servers will become popular enough to require a place in data centers.
Analysis by Application
Machine learning (ML) is driving significant innovation in the global data center chip market by enhancing data processing capabilities and optimizing resource allocation. The application of machine learning algorithms in chips of data centers is ever-increasing. This is mostly to enhance functions such as predictive maintenance, workload balancing, and energy efficiency. Such chips-attached GPUs or TPUs-are primarily optimized to ingest massive volumes of data to learn complex models. The more extensive ML applications are now being pushed in almost all industries; healthcare, finance, and autonomous driving applications have all started using chips, growing in demand. This would cascade to future growth in data centers when innovation would completely explode as a result of ML.
Generative AI is set to become the fastest-growing segment in the global data center chip market due to its increasing adoption across industries for creating content, enhancing data analysis, and automating decision-making processes. These new age AI models consume a lot of computational power, generating demands for chips that handle complex generative tasks through their special architecture, such as GPUs or TPUs. For business applications focused on experimentation with generative AI in content creation, design, or personalized marketing, the need for performing chips will be multiplied, firmly establishing generative AI among the key growth engines for the data center chip market.
Global Data Center Chip Market By Component (%)
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Data Center Chip Market Regional Insights
North America dominates the global data center chip market due to its strong technological infrastructure, high levels of innovation, and the presence of major industry players like Intel, NVIDIA, and AMD. The requirement for high-end data center chips is pushed by the strong demand of the continents for cloud services, data processing, and AI-enabled applications. Another thing is that North America is a nest for data center and tech companies investing massively in next-generation infrastructure. Government initiatives along with heavy funding for AI, machine learning, and big data analytics thus further push growth to cement North America in its position as a global leader in data center chip markets.
Asia Pacific is the fastest-growing region due to rapid digital transformation, increasing internet penetration, and significant investments in cloud infrastructure. Currently, this region houses the biggest tech firms and data center operators in the countries such as China, Japan, and India, where demand for data processing, AI technology, and cloud services is rising rapidly. Emerging e-commerce, manufacturing and fintech within the Asia Pacific are also acting as catalysts for more progressive data center chips. Also, various government initiatives towards smart cities, 5G, and digital economies take the region a step further, making it one of the most important contributors to the data center chip market.
Global Data Center Chip Market By Geography
- Largest
- Fastest
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Data Center Chip Market Dynamics
Data Center Chip Market Drivers
Increase in Big Data Analytics
- Big data analytics is becoming a key driver in the global data center chip market growth. Industries create voluminous data; therefore, it has become a primary cause to the data center chip industry for the development of chips applicable for real-time processing and analyzing large datasets. It brings the demand for a powerful data center infrastructure.
Expansion of 5G Networks
- The newly rolled-out 5G networks require highly efficient data center chips. The increased number of connected devices enabled by 5G networks, along with its higher speed and low latency, makes it increasingly necessary for enhanced data processing capabilities. This expansion increases the requirement for specialized chips to manage the increased data traffic efficiently.
Data Center Chip Market Restraints
High Energy Consumption
- One of the major restraining factors for the global data center chip market is the high energy consumption of advanced chips. With the increasing demand that data centers face, they are forced to incur high costs, which generally leads to pressure on companies to develop energy-efficient solutions. This may hinder the mass adoption of chips.
Supply Chain Disruptions
- Ongoing global supply chain disruptions are hindering the production and distribution of data center chips. Some of the constraints of the chip market include shortages of critical semiconductor components, delays in manufacturing and logistics systems, and this may thus lead to project delays and higher spend by data centers.
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Data Center Chip Market Competitive Landscape
The global data center chip market is highly competitive, with key players striving to innovate and enhance chip performance for cloud computing, AI, and big data applications. Capitalizing on these developments, chip manufacturing moguls such as Intel, NVIDIA, AMD, and Qualcomm will remain steadfast in orienting their already high-performance chips to the data center. While continuing developing advanced technologies-as progress on GPUs, CPUs, and TPUs will have their respective applications-this will all be part of a continuing strategy to respond to a potentially growing demand for processing power requirements and energy efficiency.
Top Players in Data Center Chip Market
- Intel Corporation (United States)
- NVIDIA Corporation (United States)
- Advanced Micro Devices, Inc. (AMD) (United States)
- Broadcom Inc. (United States)
- Qualcomm Technologies Inc. (United States)
- Marvell Technology Inc. (United States)
- IBM Corporation (United States)
- Samsung Electronics Co., Ltd. (South Korea)
- Taiwan Semiconductor Manufacturing Company Limited (TSMC) (Taiwan)
- GlobalFoundries Inc. (United States)
- United Microelectronics Corporation (UMC) (Taiwan)
- Semiconductor Manufacturing International Corporation (SMIC) (China)
- Hua Hong Semiconductor Limited (China)
- Tower Semiconductor Ltd. (Israel)
- Achronix Semiconductor Corporation (United States)
- Fujitsu Limited (Japan)
- Lenovo Group Limited (China)
- Huawei Technologies Co., Ltd. (China)
- Micron Technology, Inc. (United States)
Recent Developments
- In November 2024, Intel is launching its new "Sapphire Rapids" processors, especially developed for high-performance computing and data center applications. These chips are expected to enhance even further AI workloads and increase power efficiency to help cloud service providers and enterprises meet the growing demands of data processing in today's data centers.
- In October 2024, A100 Tensor Core GPUs have been announced by NVIDIA for accelerating workloads in data centers for AI processing. They are designed to boost performance in deep learning training and inference, thus potentially allowing data centers to scale out their AI capabilities. The high-end capabilities of these A100 chips are poised to serve industries that require extensive data processing and real-time AI insights.
- In September 2024, AMD's next-generation EPYC processors are here. They are going to be used, especially addressing the demands in every scalable computing data center. Improving multithreading performance along with energy efficiency and security, these processors target such demanding industries as cloud computing, AI, big data processing, and related aspects, providing the ideal performance for modern data center infrastructures.
Data Center Chip Key Market Trends
- Increasing Demand for Al-Optimized Chips: The growing application of Al in different industries has spurred the requirement for application-specific data center chips, such as GPUs and TPUs. These chips are engineered to consider complex Al algorithms, further enhancing processing efficiencies, hence propelling their significant growth in the data center chip market.
- Shift Toward Energy-Efficient Chip Solutions: Data centers are becoming energy-efficient with chips is inevitable with the hike in running costs and interventions for the environment. Innovations in chip design focus on reducing power consumption without compromising performance, aligning with the global push toward sustainability and cost-effective infrastructure in the global data center chip market trends.
Data Center Chip Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, advancements in artificial intelligence, machine learning, cloud computing and big data analytics propel the global data center chip industry into high-speed growth. As businesses grow in data generation, the demand for performance-oriented chips to support the technologies keeps rising.
In addition, the increasing usage of cloud-based services and applications powered by AI also drives the market for specialized chips. Emerging shifts in regions such as the growth of North America and the explosive growth of Asia Pacific underscore the continuing modernization and digital transformation throughout industrial sectors. Despite the challenges posed by the energy budget and an enormous supply chain disruption, innovation and a growing rate of adoption of AI and cloud technologies will support the future of this market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 191.55 billion |
| Market size value in 2032 | USD 598.75 billion |
| Growth Rate | 13.5% |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Data Center Chip Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Data Center Chip Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Data Center Chip 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 Chip 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Chip Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Chip Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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