Data Center Accelerator Market by Processor Type (CPU, GPU, FPGA, ASIC), Type (HPC Accelerator, Cloud Accelerator), Application (Deep Learning Training, Public Cloud Interface, Enterprise Interface), and Geography - Global Forecast to 2023

The data center accelerator market was valued at USD 1.60 billion in 2017 and is expected to reach USD 21.19 billion by 2023, at a CAGR of 49.47% during the forecast period. In this report, 2017 has been considered as the base year, and the forecast period is from 2018 to 2023.

Objective of Study:

• Define, describe, and forecast the data center accelerator market, in terms of value, on the basis of processor type, application, type, and geography
• Forecast the size of the market segments with respect to North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)  
• Provide detailed information regarding major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)

The research methodology used to estimate and forecast the data center accelerator market begins with obtaining data on revenues of key vendors through secondary research sources such as AFCOM, ASHRAE Technical Committee 9.9, BCS, British Institute of Facilities Management (BIFM), and Data Centre Alliance (DCA) and vendor offerings are considered to determine the market segmentation. Top-down approach has been employed to arrive at the overall market size of the global data center accelerator market, including integration of software across various applications and determining the average project cost in USD. After arriving at the overall market size, the overall market is split into several segments and subsegments. This is further verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives. Data triangulation and market breakdown procedures are employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments.

To know about the assumptions considered for the study, download the pdf brochure

This study also answers several questions, such as which market segments to focus on in the next 2–5 years for prioritizing efforts and investments for stakeholders. Major players operating in the data center accelerator market include NVIDIA (US), Intel (US), Alphabet (US), Advanced Micro Devices (US), Achronix Semiconductor (US), Oracle (US), Xilinx (US), IBM (US), HP (US), Dell (US), Lenovo (China), Fujitsu (Japan), and Cisco (US).

Target Audience:

• Software-as-a-service (SaaS) providers
• Platform-as-a-service (PaaS) providers
• Infrastructure-as-a-service (IaaS) providers
• System integrators
• Market research and consulting firms
• Head of IT and operations in organizations
• Investors and venture capitalists
• Business intelligence providers

Scope of Report:

The global data center accelerator market, in this research report, has been segmented on the basis of processor type, application, type, and geography.

Data center accelerator market, by processor type:

• CPU
• GPU
• FPGA
• ASIC

Data center accelerator market, by application:

• Deep learning training
• Public cloud interface
• Enterprise interface

Data center accelerator market, by type:

• Cloud data center
• HPC data center

Data center accelerator market, by region:

• North America
• Europe
• APAC
• RoW

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

• Comprehensive coverage of regulations followed in each region (North America, Europe, APAC, and RoW)

Company Information

• Detailed analysis and profiling of additional market players (up to 10)

Table of Contents

1 Introduction (Page No. - 13)
    1.1 Study Objectives
    1.2 Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Data Center Accelerator Market, By Geography
           1.3.3 Years Considered
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown & Data Triangulation
    2.4 Research Assumption

3 Executive Summary (Page No. - 26)

4 Premium Insight (Page No. - 32)
    4.1 Attractive Opportunities in Data Center Accelerator Market
    4.2 Data Center Accelerator Market, By Type
    4.3 Market for Cloud Data Center Accelerator, By Country
    4.4 Data Center Accelerator Market in APAC in 2018, By Country & Application
    4.5 Data Center Accelerator Market for Deep Learning Training, By Processor Type

5 Market Overview (Page No. - 35)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Growth of Cloud-Based Services
                    5.2.1.2 Growing Demand for AI in HPC Data Centers
                    5.2.1.3 Focus Toward Parallel Computing in AI Data Centers
           5.2.2 Restraints
                    5.2.2.1 Premium Pricing of Accelerators
                    5.2.2.2 Limited AI Hardware Experts
           5.2.3 Opportunities
                    5.2.3.1 Rising Market for FPGA-Based Accelerators
                    5.2.3.2 Rising Need of Coprocessors Due to Slowdown of Moore’s Law
           5.2.4 Challenge
                    5.2.4.1 Unreliability of AI Algorithms
                    5.2.4.2 Creating Models and Mechanisms of AI in Cloud

6 Data Center Accelerator Market, By Processor Type (Page No. - 40)
    6.1 Introduction
    6.2 CPU
    6.3 GPU
    6.4 FPGA
    6.5 ASIC

7 Data Center Accelerator Market, By Type (Page No. - 50)
    7.1 Introduction
    7.2 Cloud Data Center
    7.3 HPC Data Center

8 Data Center Accelerator Market, By Application (Page No. - 56)
    8.1 Introduction
    8.2 Deep Learning Training
    8.3 Public Cloud Interface
    8.4 Enterprise Interface

9 Geographic Analysis (Page No. - 63)
    9.1 Introduction
    9.2 North America
           9.2.1 US
           9.2.2 Canada
           9.2.3 Mexico
    9.3 Europe
           9.3.1 UK
           9.3.2 Germany
           9.3.3 The Netherlands
           9.3.4 Rest of Europe
    9.4 APAC
           9.4.1 China
           9.4.2 Japan
           9.4.3 Singapore
           9.4.4 India
           9.4.5 Australia
           9.4.6 Rest of APAC
    9.5 RoW
           9.5.1 Brazil
           9.5.2 Others

10 Competitive Landscape (Page No. - 86)
     10.1 Market Ranking Analysis: Data Center Accelerator Market
     10.2 Competitive Situations and Trends
             10.2.1 Product/Solution Launches
             10.2.2 Partnerships/Collaborations
             10.2.3 Acquisitions
             10.2.4 Expansions

11 Company Profiles (Page No. - 90)
     11.1 Key Players
(Business Overview, Products & Solutuions, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
             11.1.1 Nvidia
             11.1.2 Intel
             11.1.3 Alphabet
             11.1.4 Advanced Micro Devices (AMD)
             11.1.5 Achronix Semiconductor
             11.1.6 Oracle
             11.1.7 Xilinx
             11.1.8 IBM
             11.1.9 HP
             11.1.10 Dell
             11.1.11 Lenovo
             11.1.12 Fujitsu
             11.1.13 Cisco
*Details on Business Overview, Products & Solutions, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.
     11.2 Key Innovators
             11.2.1 Leap Motion
             11.2.2 Algolux
             11.2.3 Clarifai
             11.2.4 Ditto Labs
             11.2.5 Mad Street Den

12 Appendix (Page No. - 119)
     12.1 Insights of Industry Experts
     12.2 Discussion Guide
     12.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.4 Available Customizations
     12.5 Related Reports
     12.6 Author Details

List of Tables (51 Tables)

Table 1 Data Center Accelerator Market, By Processor Type, 2016–2023 (USD Million)
Table 2 Data Center Accelerator Market for CPU, By Application, 2016–2023 (USD Million)
Table 3 Data Center Accelerator Market for CPU, By Type, 2016–2023 (USD Million)
Table 4 Data Center Accelerator Market for CPU, By Region, 2016–2023 (USD Million)
Table 5 Data Center Accelerator Market for GPU, By Application, 2016–2023 (USD Million)
Table 6 Data Center Accelerator Market for GPU, By Type, 2016–2023 (USD Million)
Table 7 Data Center Accelerator Market for GPU, By Region, 2016–2023 (USD Million)
Table 8 Data Center Accelerator Market for FPGA, By Application, 2016–2023 (USD Million)
Table 9 Data Center Accelerator Market for FPGA, By Type, 2016–2023 (USD Million)
Table 10 Data Center Accelerator Market for FPGA, By Region, 2016–2023 (USD Million)
Table 11 Data Center Accelerator Market for ASIC, By Application, 2016–2023 (USD Million)
Table 12 Data Center Accelerator Market for ASIC, By Type, 2016–2023 (USD Million)
Table 13 Data Center Accelerator Market for ASIC, By Region, 2016–2023 (USD Million)
Table 14 Data Center Accelerator Market, By Type, 2016–2023 (USD Million)
Table 15 Cloud Data Center Accelerator Market, By Processor Type, 2016–2023 (USD Million)
Table 16 Cloud Data Center Accelerator Market, By Region, 2016–2023 (USD Million)
Table 17 HPC Data Center Accelerator Market, By Processor Type, 2016–2023 (USD Million)
Table 18 HPC Data Center Accelerator Market, By Region, 2016–2023 (USD Million)
Table 19 Data Center Accelerator Market, By Application, 2016–2023 (USD Million)
Table 20 Data Center Accelerator Market for Deep Learning Training, By Region, 2016–2023 (USD Million)
Table 21 Data Center Accelerator Market for Deep Learning Training, By Processors Type, 2016–2023 (USD Million)
Table 22 Data Center Accelerator Market for Public Cloud Interface, By Region, 2016–2023 (USD Million)
Table 23 Data Center Accelerator Market for Public Cloud Interface, By Processors Type, 2016–2023 (USD Million)
Table 24 Data Center Accelerator Market for Enterprise Interface, By Region, 2016–2023 (USD Million)
Table 25 Data Center Accelerator Market for Enterprise Interface, By Processors Type, 2016–2023 (USD Million)
Table 26 Data Center Accelerator Market, By Region, 2016–2023 (USD Million)
Table 27 Data Center Accelerator Market for HPC in North America, By Country, 2016–2023 (USD Million)
Table 28 Data Center Accelerator Market for Cloud in North America, By Country, 2016–2023 (USD Million)
Table 29 Data Center Accelerator Market in North America, By Processors Type, 2016–2023 (USD Million)
Table 30 Data Center Accelerator Market in North America, By Application, 2016–2023 (USD Million)
Table 31 Data Center Accelerator Market in North America, By Type, 2016–2023 (USD Million)
Table 32 Data Center Accelerator Market for HPC in Europe, By Country, 2016–2023 (USD Million)
Table 33 Data Center Accelerator Market for Cloud in Europe, By Country, 2016–2023 (USD Million)
Table 34 Data Center Accelerator Market in Europe, By Processors Type, 2016–2023 (USD Million)
Table 35 Data Center Accelerator Market in Europe, By Application, 2016–2023 (USD Million)
Table 36 Data Center Accelerator Market in Europe, By Type, 2016–2023 (USD Million)
Table 37 Data Center Accelerator Market for HPC in APAC, By Country, 2016–2023 (USD Million)
Table 38 Data Center Accelerator Market for Cloud in APAC, By Country, 2016–2023 (USD Million)
Table 39 Data Center Accelerator Market in APAC, By Processor Type, 2016–2023 (USD Million)
Table 40 Data Center Accelerator Market in North America, By Application, 2016–2023 (USD Million)
Table 41 Data Center Accelerator Market in APAC, By Type, 2016–2023 (USD Million)
Table 42 Data Center Accelerator Market for HPC in RoW, By Country, 2016–2023 (USD Million)
Table 43 Data Center Accelerator Market for Cloud in RoW, By Country, 2016–2023 (USD Million)
Table 44 Data Center Accelerator Market in RoW, By Processors Type, 2016–2023 (USD Million)
Table 45 Data Center Accelerator Market in RoW, By Application, 2016–2023 (USD Million)
Table 46 Data Center Accelerator Market in RoW, By Type, 2016–2023 (USD Million)
Table 47 Ranking of the Top 5 Players in Data Center Accelerator Market, (2017)
Table 48 Product / Solution Launches, 2017–2018
Table 49 Partnerships/Collaborations, 2017–2018
Table 50 Acquisitions, 2018
Table 51 Expansions, 2016–2018

List of Figures (48 Figures)

Figure 1 Segmentation of Data Center Accelerator Market
Figure 2 Research Design
Figure 3 Process Flow of Market Size Estimation
Figure 4 Data Triangulation
Figure 5 GPU to Hold Largest Size of Data Center Accelerator Market During Forecast Period
Figure 6 Data Center Accelerator Market for Enterprise Interface to Grow at Highest CAGR Between 2018 and 2023
Figure 7 Market for HPC Data Center Accelerator in APAC to Grow at Highest CAGR During 2018–2023
Figure 8 Market for Cloud Data Center Accelerator in APAC to Grow at Highest CAGR During Forecast Period
Figure 9 Data Center Accelerator Market in APAC Expected to Grow at Highest CAGR During 2018–2023
Figure 10 Rising Need of Coprocessors in Data Centers Due to Slow Down in Moore’s Law as Potential Opportunity for Market
Figure 11 Market for HPC Data Center Accelerator to Grow at Higher CAGR During Forecast Period
Figure 12 Cloud Data Center Accelerator Market in Canada to Grow at Highest CAGR During Forecast Period
Figure 13 Deep Learning Training to Hold Largest Share of Data Center Accelerator Market in APAC in 2018
Figure 14 Market for ASIC in Deep Learning Training to Grow at Higher CAGR Between 2018 and 2023
Figure 15 Data Center Accelerator Market: Drivers, Restraints, Opportunities, and Challenges
Figure 16 Slow Down in Moore’s Law
Figure 17 Data Center Accelerator Market, By Processor Type
Figure 18 Data Center Accelerator Market for CPU in APAC to Grow at the Highest CAGR During Forecast Period
Figure 19 Cloud Data Center to Hold Largest Size of Data Center Accelerator Market for GPU During Forecast Period
Figure 20 FPGA Market for Public Cloud Interface to Grow at Highest CAGR During Forecast Period
Figure 21 ASIC Market for Enterprise Interface to Grow at Highest CAGR During Forecast Period
Figure 22 Data Center Accelerator Market, By Type
Figure 23 Cloud Data Center Accelerator Market in APAC Expected to Grow at Highest CAGR During Forecast Period
Figure 24 GPU to Hold Largest Size of HPC Data Center Accelerator Market During Forecast Period
Figure 25 Data Center Accelerator Market, By Application
Figure 26 Deep Learning Training: Market for ASIC to Grow at Highest CAGR During Forecast Period
Figure 27 North America to Hold Largest Size of Data Center Accelerator Market for Public Cloud Interface During Forecast Period
Figure 28 Enterprise Interface: Market for FPGA to Grow at Highest CAGR During Forecast Period
Figure 29 Data Center Accelerator Market Segmentation, By Geography
Figure 30 Geographic Snapshot: Data Center Accelerator Market in APAC Expected to Grow at Highest CAGR During Forecast Period
Figure 31 Data Center Accelerator Market in India Estimated to Grow at Highest CAGR From 2018 to 2023
Figure 32 Segmentation: North America, By Country
Figure 33 North America: Data Center Accelerator Market Snapshot
Figure 34 Segmentation: Europe, By Country
Figure 35 Europe: Data Center Accelerator Market Snapshot
Figure 36 Market Segmentation: APAC, By Country
Figure 37 APAC: Data Center Accelerator Market Snapshot
Figure 38 Segmentation: RoW, By Country
Figure 39 Key Growth Strategies Adopted By Top Companies, 2015–2017
Figure 40 Nvidia: Company Snapshot
Figure 41 Intel: Company Snapshot
Figure 42 Alphabet: Company Snapshot
Figure 43 Advanced Micro Devices (AMD): Company Snapshot
Figure 44 Oracle: Company Snapshot
Figure 45 Xilinx: Company Snapshot
Figure 46 IBM: Company Snapshot
Figure 47 HP: Company Snapshot
Figure 48 Dell: Company Snapshot

The data center accelerator market is expected to grow from 2.84 billion by 2018 to USD 21.19 billion by 2023, at a CAGR of 49.47% from 2018 to 2023. The growing demand for AI in HPC data centers is driving the market growth. The growth in consumer-generated data and increasing use of AI-based services have propelled the demand for AI-centric data centers.

The market has been segmented on the bases of processor type, application, type, and geography. The data center accelerator market, by processor type, has been segmented into CPU, GPU, FPGA, and ASIC. The market for FPGA is expected to grow at the highest CAGR during the forecast period. The growth can be attributed to the increasing adoption of FPGAs for the acceleration of enterprise workloads.

The data centers accelerators facilitate a significant increase in the performance of these data centers. Moreover, due to resource-sharing with the main processor, accelerators and general-purpose processors in data centers consume less power. Over the years, the slowdown in “Moore’s law” has led to the increased demand for coprocessors to reduce cost, space requirements, and power consumption in data centers.

By application, the market has been segmented into deep learning training, public cloud interface, and enterprise interface. The market for enterprise interface is expected to grow at the highest CAGR during the forecast period. Amazon Web Services (US) has partnered with the on-premises platform providers such as Intel (US), Microsoft (US), and VMware (US) to develop hybrid capabilities across storage, networking, security, and management tools; and to deploy the applications to make the integration of cloud services easy.

The market for cloud data center is expected to witness the fastest growth during the forecast period. The emerging markets such as India and China are attracting more businesses; hence, the large-scale cloud service providers are aggressively supporting the deployment of cloud-based data centers.

The data center accelerator market in APAC is expected to grow at the highest CAGR during the forecast period owing to the growth in China, which can be attributed to the increasing demand for data centers in China, as organizations seek enhanced connectivity and scalable solutions for their growing businesses. Also, there is an increase in the investments by the Government of China to stimulate technological development, which has led to the large adoption of cloud-based services, big data analytics, and the Internet of Things (IoT).

The major restraint for the data center accelerator market is the limited AI hardware experts. Integrating AI solutions with existing systems is a difficult task that requires well-funded in-house R&D and patent filing. Additionally, professional services of data scientists and developers are needed to customize existing machine learning-enabled (ML-enabled) AI processors. AI being a technology that is still in its early stage of life cycle, a workforce possessing in-depth knowledge of this technology is limited.

Key players in this market focus on strategic partnerships and collaborations, acquisitions, and product launches to increase revenue. NVIDIA (US) is a leading player in the data center accelerator market, followed by Intel (US) and Alphabet (US). In May 2017, NVIDIA (US) launched Tesla V100 data center GPU, its first Volta-based processor to bring high-end scalability and speed for AI advancement.

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