Data Center Accelerator Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 12.89 Billion |
| Market Size (2030) | USD 25.03 Billion |
| CAGR (2025 - 2030) | 14.19% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Data Center Accelerator Market Analysis
The Data Center Accelerator Market size is estimated at USD 12.89 billion in 2025, and is expected to reach USD 25.03 billion by 2030, at a CAGR of 14.19% during the forecast period (2025-2030).
The growing demand for artificial intelligence in HPC data centers and the increasing usage of cloud-based services likely drive the data center accelerator market over the coming years. As HPC applications evolve, the density of GPU clusters has increased significantly. For instance, large models like OpenAI's GPT-4 utilize thousands of GPU cards, necessitating advanced network management solutions to handle the complexity of interconnections while maintaining performance.
The growth of edge computing requires localized processing capabilities, further driving the need for efficient data center accelerators that can handle real-time tasks close to data sources. As per Red Hat, Inc., by 2025, it is expected that 75% of enterprise-generated data will be created and processed at the edge, a significant increase from just 10% in 2018. This shift reflects a growing trend towards decentralized computing, where data is processed closer to its generation point, leading to major demand for Data Center Accelerator trends.
Among application, Artificial Intelligence is expected to dominate the market share in the data center accelerator market. As per Digital Realty, the demand for AI-ready data center capacity is expected to rise at an average rate of 33% annually from 2023 to 2030. There is a growing trust in AI models for making operational decisions in data centers, with 57% of data center owners willing to trust AI models.
Among region, North America is likely to maintain its leadership position due to its strong tech industry, leading to substantial market share in data center accelerator market. North America, particularly the United States, dominates the data center accelerator market. It holds a significant share due to its well-developed data center infrastructure and strong technological hubs like Silicon Valley. In Canada, companies like Flowfinity Wireless Inc. and Consensus Core Inc. are expanding their data center infrastructure to support AI solutions, incorporating NVIDIA accelerators.
Intel Corporation and NVIDIA Corporation holds substantial market share in data center accelerator market. Intel DSA is a high-performance tool designed to accelerate data movement operations, allowing CPUs to focus on advanced analytics tasks. It integrates with Intel Xeon Scalable processors to enhance data movement efficiency without requiring specialized hardware. Intel offers Gaudi AI accelerators for training and deploying AI models at scale. These are designed to provide high performance and efficiency for deep learning task.
Further, most computing system growth would stem from higher demand for AI applications at cloud computing data centers. At these locations, GPUs are now used for almost all training applications. However, as ASICs enter the market, GPUs would likely become more customized to meet the demand for Deep Learning (DL). In addition to ASICs and GPUs, FPGAs would also have a crucial role in future AI training, primarily for specialized data center applications that must reach the market quickly or require customization, such as those for prototyping new DL applications.
However, the lack of feasibility of providing to small businesses, limiting its utilization scope to medium and large organizations, and the increased cost of these accelerators are expected to act as market restraints.
Data Center Accelerator Market Trends
FPGA Processor Type Segment is Expected to Hold Significant Market Share in Data Center Accelerator Market
The data center accelerator market for field-programmable gate arrays (FGPA)-based accelerators are expected to offer attractive growth opportunities for the market. FPGAs (field programmable gate arrays) are pre-fabricated silicon devices that can be programmed electrically (post-manufacturing) to become almost any digital system. They are an array of configurable logic blocks (CLBs) connected with programmable interconnects and can be reprogrammed to the desired application requirements after manufacturing. Such factor initiates major market share in data center accelerator market.
A case study explored the implementation of FPGAs as microservices (FaaM) for data compression tasks. This approach demonstrated that FPGA-based acceleration could sustain high performance with minimal communication overhead compared to traditional CPU implementations. The study highlighted the potential for integrating FPGAs into virtualized environments, addressing challenges related to deployment and resource management in large-scale data centers.
There is major focused on using FPGAs to accelerate next-generation DNA sequencing applications. By integrating FPGAs into the computing framework, researchers achieved a 2.6 times speedup in processing time while only increasing power consumption by 8%. This demonstrates the effectiveness of FPGAs in handling complex, time-sensitive computations in healthcare applications.
FPGAs combine the best parts of processor-based systems and application-specific integrated circuits (ASICs), which drives the adoption of FPGA chips across all industries. Additionally, for low-to-medium volume productions, FPGAs provide cheaper solutions and faster time to market, compared to ASIC, which usually requires a lot of time and capital resources to obtain the first device.
Another factor driving the growth of the FPGA market is the demand for extensive application computation, which gives a new direction to the FPGA industry. Moreover, cloud computing and data processing in data centers are significant application areas for FPGAs. FPGAs can improve the performance of large-scale data systems. FPGAs offer faster data processing by connecting network and storage systems with tailored high-bandwidth, low-latency connections. According to Cisco Systems, In the last year, the cloud data center IP traffic reached 19.5 zettabytes.
The rise in the demand for optimization in big data analytics is one of the primary drivers for the market. To execute operations in parallel for real-time performance, prominent tech companies like Google and Amazon, which derive consumer insights through big data analytics, increase their dependence on FPGAs to make business decisions.
Asia-Pacific is Expected to Hold Significant Market Growth
Asia-Pacific is anticipated to be the principal contributor of data center accelerator to global demand as the region undergoes vast investments for better and quicker IT infrastructure. For instance, according to Cisco Systems, Australia creates up to 4% of the global data center market. Big multinational players, like AirTrunk and Equinix, build hyper-scale data centers in Melbourne and Sydney. Such developments are anticipated to drive market size in data center accelerator market in this region.
India seems assured with the government's push to get global companies to store local user data. This is expected to provide a huge business opportunity to players offering chips to server makers in India. In addressing this high demand, Xilinx hires more engineers at its R&D facility in Hyderabad, in addition to Alveo. This data center accelerator card can increase performance in cloud and on-premise data centers and a broad range of applications, including AI inference.
China has poured over YUAN 43.5 billion (around USD 6.12 billion) into its ambitious "Eastern Data, Western Computing" initiative. This endeavor seeks to set up prominent data center hubs in western China, harnessing local energy to cater to the computing demands of coastal economic hotspots. Moreover, firms like China Mobile are supercharging their data centers with cutting-edge AI. A case in point: a fresh computing center in Beijing, outfitted with 4,000 AI accelerator cards, boasts an impressive AI computing performance surpassing 1,000 petaflops.
Market players bolster their edge through diverse strategies, including product innovations, forging new partnerships, investing in production facilities, ramping up R&D, and venturing into international markets. In a recent move, Fujitsu revealed its selection by Japan's NEDO (New Energy and Industrial Technology Development Organization) for the "Green Innovation Fund Project." This initiative focuses on pioneering "Next Generation Green Data Centers." Through this collaboration, Fujitsu aims to bolster the nation's push towards advanced computing and networking technologies.
Data Center Accelerator Industry Overview
The Data Center Accelerator Market could be more cohesive due to the presence of both global players and small and medium-sized enterprises. The major players in the market are Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc., Achronix Semiconductor Corporation, and Xilinx Inc. (Advanced Micro Devices Inc.), among others. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage. Overall, the market is in semi-consolidated nature.
The market is influenced by the transition to 5G networks and the rise of edge computing, which require efficient data processing close to the source. Additionally, the growing adoption of AI and machine learning technologies by hyperscale data centers and cloud service providers further fuels the demand for accelerators. Overall, the market's growth is supported by the increasing need for efficient data processing and energy-efficient solutions in data centers.
Data Center Accelerator Market Leaders
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Intel Corporation
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NVIDIA Corporation
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Advanced Micro Devices Inc.
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Achronix Semiconductor Corporation
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Xilinx Inc. (Advanced Micro Devices Inc.)
- *Disclaimer: Major Players sorted in no particular order
Data Center Accelerator Market News
- February 2025: G42’s digital infrastructure company Core42 deploys AMD Instinct Accelerator technology in Grenoble, France, to establish a powerful AI compute facility. Working to establish one of France’s most powerful AI compute facilities, the strategic partnership enables G42 to have immediate market access and the opportunity to optimise infrastructure.
- August 2024: IBM and Intel announced a collaboration to deploy Intel Gaudi 3 AI accelerators as a service on IBM Cloud. This offering, which is expected to be available in early 2025, aims to help more cost effectively scale enterprise AI and drive innovation underpinned with security and resiliency.
Data Center Accelerator Industry Segmentation
Datacenter accelerators are hardware designed and used to process visual data. It is a hardware device or software program that improves the overall performance of computers. Datacenter accelerators help increase consumer-driven data demand and use AI-based services to drive the demand for AI-centric data centers.
The Global Data Center Accelerator Market is segmented by processor type (CPU, GPU, FPGA, ASIC), application (high-performance computing, artificial intelligence), and geography (North America, Europe, Asia Pacific, Latin America, Middle East & Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Processor Type | CPU (Central Processing Unit) |
| GPU (Graphics Processing Unit) | |
| FPGA (Field-Programmable Gate Array) | |
| ASIC (Application-specific Integrated Circuit) | |
| By Application | High-performance Computing |
| Artificial Intelligence | |
| Other Applications | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Data Center Accelerator Market Research Faqs
How big is the Data Center Accelerator Market?
The Data Center Accelerator Market size is expected to reach USD 12.89 billion in 2025 and grow at a CAGR of 14.19% to reach USD 25.03 billion by 2030.
What is the current Data Center Accelerator Market size?
In 2025, the Data Center Accelerator Market size is expected to reach USD 12.89 billion.
Who are the key players in Data Center Accelerator Market?
Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc., Achronix Semiconductor Corporation and Xilinx Inc. (Advanced Micro Devices Inc.) are the major companies operating in the Data Center Accelerator Market.
Which is the fastest growing region in Data Center Accelerator Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Data Center Accelerator Market?
In 2025, the Europe accounts for the largest market share in Data Center Accelerator Market.
What years does this Data Center Accelerator Market cover, and what was the market size in 2024?
In 2024, the Data Center Accelerator Market size was estimated at USD 11.06 billion. The report covers the Data Center Accelerator Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Data Center Accelerator Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Data Center Accelerator Industry Report
The global data center accelerator card market is experiencing significant growth, driven by the increasing demand for high-performance computing and artificial intelligence applications. The market is segmented by processor type, including CPU, GPU, FPGA, and ASIC, as well as by geographical regions such as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Industry reports indicate that the market share and market size are expanding, with a positive market forecast outlook to 2029. The industry analysis reveals that market leaders are capitalizing on the growing demand for advanced data processing capabilities. Market research highlights key market trends and market growth factors that are influencing the industry landscape.
The market analysis provided in the report includes detailed market segmentation and market value assessments. Industry information and industry statistics are crucial for understanding the market dynamics and making informed business decisions. The report also includes industry outlook and industry trends, which are essential for anticipating future market developments.
Market data and market review sections offer insights into the current state of the market, while market predictions provide a glimpse into future possibilities. The report example and report pdf are available for further reference, offering comprehensive industry research and industry sales data.
In conclusion, the data center accelerator card market is poised for robust growth, supported by extensive industry research and market analysis. The industry size and market segmentation data are critical for stakeholders to navigate the evolving market landscape effectively.
