Data Center Accelerator Market Share, Outlook, Future Growth and Opportunities by 2033

Market Overview

The global data center accelerator market size reached USD 25.0 Billion in 2024 and is projected to reach USD 172.6 Billion by 2033, representing a CAGR of 24% during the forecast period 2025-2033. Data center accelerators enhance computational capabilities, improve power efficiency, and accelerate workloads such as deep learning, machine learning, and high-performance computing. The market growth is driven by rising demand for network bandwidth and advanced analytics with rapid and optimal performance. The study provides a detailed analysis of the industry, including the data center accelerator market report, growth, size, and industry growth forecast.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Data Center Accelerator Market Key Takeaways

• Current Market Size: USD 25.0 Billion in 2024
• CAGR: 24% (2025-2033)
• Forecast Period: 2025-2033
• The rising need to increase networking bandwidth is propelling the use of data center accelerators for managing complex data sets and analytics workloads.
• Remote work and COVID-19 have accelerated adoption of AI workloads requiring data center accelerators.
• The growth in on-demand GPU cloud computing solutions is driving accelerated computing demand.
• Expansion of cloud gaming services using GPU virtualization supports market growth.
• Enterprises are increasingly offering machine learning as a cloud service to expand applications of data center accelerators.

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Rising Adoption of AI and High-Performance Computing

The explosive growth in the data center accelerator market continues to be driven by rising adoption of artificial intelligence, machine learning and high-performance computing to handle the growing data and compute workloads. Data center enterprise customers in the finance, healthcare, automotive and e-commerce industries are moving to GPU-, FPGA- and ASIC-based data center accelerators in 2025 to improve processing and reduce latency for real-time analytics. The volume of unstructured data generated by IoT devices and services, and enterprise digitization has exceeded the ability of a data center to add compute capacity. Accelerators are increasingly being deployed for compute-intensive applications, such as training deep learning models, 3D imaging, fraud detection, and natural language processing. Cloud service providers use accelerator chips to maximize asset utilization and offer high-value data center AI services, as real-time intelligence and experience for consumers and businesses alike is becoming increasingly important, and there is demand across many key verticals for highly efficient, scalable accelerator chips that are becoming a key part of data center design.

Growth of Cloud Computing and Edge Infrastructure

The growth of cloud computing and edge data centers are the key drivers of the data center accelerator market. In 2025, hyperscalers will invest heavily in accelerators to drive the growth of AI cloud applications, virtualized workloads, and large amounts of data being processed whilst lowering the overall power and cooling requirements. Edge computing enables data processing near the user, which drives the need for low power accelerators with real-time inference to enable fast decision making. Telecommunications, manufacturing, and autonomous sensor-based applications using data center infrastructure at the edge provide accelerators and support for low-latency and 5G-enabled solutions for various telecommunications and wireless industry use cases. Accelerators will likely play a large role in hybrid and multi-cloud computing as a performance enabler for decentralized computing. More flexible and scalable accelerator systems are made possible through advances in chip architecture and heterogeneous computing environments in accelerator systems. Thus, accelerators are essential components for improving performance, economic feasibility, and productivity in data ecosystems worldwide.

Data Center Accelerator Market Trends 2025

A growing trend is heterogeneous computing, which uses a combination of general-purpose CPUs, GPUs, FPGAs, and application-specific integrated circuits (ASICs) to match workloads to appropriate processors. Green data center initiatives are also impacting the adoption of accelerators as a way to improve performance per watt. Other possible future trends include deploying liquid cooling setups to power high density acceleration clusters in hyperscale environments, and the ability to run AI-native chip provisioning on a cloud, which would allow enterprises to make use of high-end machine learning capabilities without the burden of high-cost hardware. Meanwhile, edge optimized architectures are being used to support autonomous systems, smart cities, smart buildings and factories, industrial internet of things (IIoT) and other distributed computing use cases, providing further evidence of progress and evolution in data center computing.

Data Center Accelerator Market Drivers 2025

The growth of machine learning and deep learning applications in industries is leading to the data center industry requiring highly parallelized high-performance accelerators that can be used for training and inferencing. In particular, CSPs are expanding their cloud services using AI to enterprises around the world. 5G network deployments are driving the demand for more edge data centers and low latency accelerator solutions. Other drivers for this replacement include the need to reduce power consumption and increase efficiency. These drivers are causing companies to replace CPU-based architectures. Government digitalization initiatives and investments in AI research infrastructure further expand this market, resulting in substantial growth of accelerators in centralized and distributed data centers.

Market Segmentation

Accelerator Type:

• High-performance Computing: Focuses on boosting the computational power of data centers to handle demanding workloads.
• Cloud Accelerator: Supports acceleration of cloud-based computing and services.

Processor Type:

• Central Processing Unit (CPU): Traditional processors handling general-purpose tasks.
• Graphics Processing Unit (GPU): Specialized processors optimized for parallel processing tasks.
• Field-Programmable Gate Array (FPGA): Configurable hardware that can be programmed post-manufacture for specific functions.
• Application-specific Integrated Circuit (ASIC): Customized circuits designed for particular applications.

Application:

• Deep Learning Training: Accelerators used to train deep learning models efficiently.
• Public Cloud Interface: Facilitates acceleration in public cloud environments.
• Enterprise Interface: Supports acceleration for enterprise applications and operations.

Region:

• North America: United States, Canada
• Asia-Pacific: China, Japan, India, South Korea, Australia, Indonesia, Others
• Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Others
• Latin America: Brazil, Mexico, Others
• Middle East and Africa

Regional Insights

North America holds the largest share in the data center accelerator market and has the most deployments in the US and Canada. Nevertheless, the report identified region as an important regional market in the global market, without providing market share/CAGR data. The first-mover advantage and cloud infrastructure development are the key aspects that drive the growth of the region.

Key Players

• Achronix Semiconductor Corporation
• Advanced Micro Devices Inc.
• Cisco Systems Inc.
• Dell Technologies Inc.
• Gyrfalcon Technology Inc.
• Intel Corporation
• International Business Machines Corporation
• Marvell Technology Inc.
• Microsemi Corporation (Microchip Technology Inc.)
• Nvidia Corporation
• Qualcomm
• Xilinx Inc.

Customization Note

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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