According to the latest market research study published by P&S Intelligence, the global data center accelerator market is on a high-growth trajectory, projected to more than double from USD 105.6 billion in 2024 to USD 232.2 billion by 2032, expanding at a CAGR of 10.5%. This surge is fueled by the exponential rise in data generation, rapid adoption of cloud computing, and accelerating demand for artificial intelligence (AI) and machine learning applications across industries.
Explosive Data Growth Driving Demand
With global data creation expected to reach a staggering 181
zettabytes annually by 2025—equivalent to 2.5 quintillion bytes per day—data
centers are under pressure to process, store, and analyze vast datasets at
lightning speeds. Advanced accelerators such as GPUs, FPGAs, and ASICs are
proving indispensable in enabling real-time AI processing, analytics, and
high-performance workloads.
Cloud Computing at the Core of Expansion
Cloud services remain a dominant growth driver:
- Global
cloud spending is set to climb from USD 882.5 billion in 2024 to USD 2.27
trillion by 2030.
- Over
90% of enterprises already rely on cloud platforms, with 80% adopting
hybrid cloud strategies.
- Roughly
60% of corporate data now resides in the cloud, up from just 30% in 2015.
This unprecedented cloud adoption is amplifying the need for
powerful, energy-efficient accelerators that can support AI, machine learning,
and big data applications at scale.
Emerging Opportunities and Challenges
- FPGA-Based
Accelerators: Offering flexibility, parallel processing, and
low-latency performance, FPGAs are becoming a game-changer for industries
like finance, healthcare, and telecommunications. Their customizable
design makes them ideal for high-performance, specialized workloads.
- Skills
Gap: A shortage of AI hardware experts—over 80,000 in the U.S.,
100,000 in India, and 200,000 in China—poses a challenge to scaling
advanced accelerator deployments.
Market Leaders and Innovations
The competitive landscape features both established tech
giants and innovative challengers. NVIDIA, Intel, AMD, Dell, IBM, and Lenovo
remain dominant players, particularly in GPUs and CPUs, while new entrants are
pushing advancements in FPGAs and ASICs.
Recent developments include:
- MTN
Nigeria & Dell Technologies inaugurating a USD 150M Dabengwa Data
Centre (July 2025).
- EnCharge
AI launching the EN100 AI accelerator chip for laptops and edge devices
(May 2025).
- AMD
introducing third-gen Ryzen AI PRO 300 Series processors with triple AI
performance (Oct 2024).
- Intel
unveiling Xeon 6 processors and Gaudi 3 AI accelerators with unprecedented
throughput (Sept 2024).
- NVIDIA
& Microsoft partnering to accelerate AI app development (May 2024).
Regional Growth Highlights
- North
America leads the market with 35% share in 2024, powered by cutting-edge
innovation and robust IT infrastructure.
- APAC
emerges as the fastest-growing region, backed by massive investments in
China, India, Japan, and South Korea—together fueling AI, 5G, and smart
manufacturing applications.
Looking Ahead
As digital transformation accelerates globally, the data
center accelerator market is poised for robust expansion, enabling
breakthroughs in AI, cloud, big data analytics, and beyond. The future belongs
to organizations that harness high-performance computing to unlock real-time
insights, drive innovation, and maintain a competitive edge.
