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Data Center Accelerator Market Size Estimated to Reach $31.6 Billion by 2026

(IT-NEWSWIRE.COM, October 19, 2021 ) Data Center Accelerator Market size is estimated to reach $31.6 billion by 2026 at a CAGR of 35.1% during the forecast period 2021-2026. With the increasing penetration of connected factories, smart cities, and related digital age technologies, such as big data, Artificial Intelligence, Machine learning, the demand for Data Center Accelerator is analyzed to gain huge traction. Growing adoption of Multi-cloud infrastructure, Edge Computing to move towards digital transformation and the growing demand for AI-centric data centers are anticipated to drive the Data Center Accelerator Market. The rising demand among enterprises to accelerate deep learning, artificial intelligence and high-performance computing workloads is boosting the need for acceleration of computing platform to fulfill the demand for increased bandwidth. The growth of next generation cloud data centers to control and optimize software defined networking, networking intelligence and analytics on massive scale with excellent cost and power efficiency is analyzed to significantly trigger the Data Center Accelerator Market growth during 2021-2026.

Data Center Accelerator Segment analysis – By Processor

By processor, Data Center Accelerator has been segmented under Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC) and others. FPGA held the major market share of 32.1% in 2020 and is estimated to dominate the market during the forecast period 2021-2026 with the fastest growing CAGR 38.4%. FGPA increases real-time inference throughput while reducing latency in real-time inference applications and provides a low cost solution. Such advanced and beneficiary capabilities of FPGA have contributed to the growth of the market. For instance, in April 2021, Achronix Semiconductor Corporation and Napatech announced partnership to deliver a high speed programmable FPGA based SmartNICs to data center network operators to accelerate data processing offering high system performance and lower power. Such partnerships are analyzed to boost the market between 2021 and 2026.

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Data Center Accelerator Segment analysis – By Application

By application, Data Center Accelerator has been segmented into Deep Learning Training, Public Cloud Interface, Enterprise Interface and Others. Enterprise Interface dominated the market in 2020 acquiring a share of 45.6% and is analyzed to account for the largest market share growing at CAGR of 30.9% during the forecast period 2021-2026 due to rapid developments in large-scale public cloud data centers. The drastic technology based changes in large organizations have led to massive and large volume of data generation and processing. Business organizations have adopted cloud storage techniques to simplify the transition from traditional system to new advanced process. With the increasing complexities of technological solutions the demand for outsourcing IT activities to alleviate the pressure of manage and monitoring IT infrastructure has gained a huge traction. For instance, in August 2019, Intel launched Nervana NNP-T and Nervana NNP-1, AI accelerator chips to fulfill the demand for complex computing workloads in data centers. Such developments are augmenting the market.

Data Center Accelerator Segment analysis – By Geography

North America dominated the market acquiring a share of 39% in 2020 and is estimated to hold the major market share with a CAGR 33.3% during 2021-2026 owing to increasing investment in IT infrastructure and shift towards upgraded technologies. APAC is estimated to be the fastest growing market during the forecast period 2021-2026 with a CAGR of 40.4% owing to the growing demand for digital business strategy and massive and quick adoption of cloud based applications. Indian Government initiatives for “Make in India” and “Digital India” movement is analysed to drive the market in this region during 2021-2026. For instance, in October 2020, Microsoft announced to develop its first data center in Taiwan, East Asia to augment the presence in this region enhancing the intelligent cloud and intelligent edge platform. Such developments are analysed to boost the market in this region between 2021 and 2026.

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Data Center Accelerator Market Drivers

Massive Transition Towards Digitalization Among Enterprises

Enterprises are integrating IIoT into their businesses at a high rate and most of them have positive responses in terms of business outcomes. Increasing penetration of Industry 4.0 promotes the convergence of Information Technology (IT) with Operational Technology (OT) to increase flexibility, agility and efficiency in the production process through connected systems and data sharing. Increasing shift towards digitalization to generate new business outcomes leveraging IIot, Edge computing, deep learning, data analytics, cloud platform is propelling the demand for Data center accelerators to increase the performance of data centers utilizing low power. Rising penetration of enterprise application integration (EAI) platforms to provide unisons among databases and workflows associated with business applications by offering a consistent software application interface is steering the Data Center Accelerator Market. For instance, in February 2021, Edgecortix Inc. announced partnership with PALTEK Corporation provide edge AI hardware accelerator solution enabling high throughput, low latency and low power applications including ADAS, autonomous driving, smart cities and many others. Such Strategic partnerships are anticipated to steer the market during 2021-2026.

Exponential Growth in Complex Computing Workloads in Data Centers

Transition of various enterprises towards digitalization to generate new business outcomes has resulted into deployment and development of large data centers and various cloud services to analyze, access and store large volume of data. The increasing migration towards cloud infrastructure to expand data storage facilities and provide smooth and faster access to their customers to fulfill the demand for complex computing workloads is analyzed to fuel the market growth during the forecast period 2021-2026. The ever increasing demands for data centers is exhausting the existing infrastructure and thus accelerating the demand for adaptable solutions to optimize and extend the lifecycle of infrastructure for high throughput and low latency. For instance, India Data Centers raised a fund of USD 396 Million for establishing large hyperscale data centers spanning over 16 million square foot. Such investments are estimated to propel the market growth during 2021-2026.

Data Center Accelerator Market Challenges

High Costs of AI hardware

The robustness and high throughput of AI chipsets require high deployment and maintenance costs. Furthermore, absence of skilled workforce lead to higher resolution time in case of technical glitches. However, these factors are anticipated to hamper the market growth during 2021-2026.

Data Center Accelerator Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Data Center Accelerator market. In 2020, the market of Data Center Accelerator industry outlook has been fragmented by several companies. Data Center Accelerator top 10 companies include Nvidia Corporation, Microsoft Corporation, Oracle Corporation, Hewlett Packard Enterprise Co., Dell Technologies Inc., IBM Corporation, Apple Inc., Fujitsu Limited, Lenevo Group Ltd., Archonix Semiconductor among others.

Acquisitions/Technology Launches

In November 2020, Advanced Micro Devices Inc. announced new AMD Instinct MI100 accelerator- the world’s fastest HPC accelerator with ROCm 4.0 open ecosystem support for scientific research to enhance high performance computing platform.

In October 2020, Marvell Technology Inc. launched native NVMe RAID 1 accelerator in partnership with Hewlett Packard Enterprise for cloud and enterprise data center to deliver optimized performance, reliability and efficiency.

Key Takeaways

FPGA is estimated to dominate the market during 2021-2026 due to advanced capabilities including high throughput, low latency and low power consumption.

Enterprise interface to hold the major market share during the forecast period 2021-2026 due to increasing development in hyperscale data centers.

North America is estimated to dominate the market with a share of 39% during 2021-2026 owing to increasing investments towards up-gradation of advanced technologies.

Increasing adoption of digital business strategy and exponential growth in complex computing workloads in data centers are analyzed to boost the market during the forecast period 2021-2026.

High costs and limited AI hardware experts are analyzed to be the factors impeding the growth of the market.

Related Reports:

A. Next Generation Data Center Market

B. On-Board High Performance Computing System Market

For more Electronics Market reports, please click here

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Venkat Reddy

(+1) 970-236-3677

Source: EmailWire.Com


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