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The Data Center GPU market size is projected to increase by USD 40.20 billion, at a CAGR of 32.48% between 2023 and 2028.
The growth rate of the market depends on several factors, including a rise in the adoption of multi-cloud and network upgrades to support 5G, increasing demand for artificial intelligence and growing PC gaming and gaming console industries.Graphic processing units (Gown PUs) are used in data centers due to their high parallel processing power, making them suitable for a variety of applications, such as scientific calculations, machine learning, and big data processing. GPUs do more complex math than a central processing unit (CPU) because they use parallel processing, where multiple processors work on the same problem at the same time. Each GPU has its memory that stores the data it works with.
Page Number | 160 |
Forecast period | 2024-2028 |
Historic period | 2018-2022 |
List of Exhibits | 182 |
Growth momentum & CAGR | Accelerate at a CAGR of 32.48% |
Market Growth 2024-2028 | USD 40.20 billion |
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The rise in adoption of multi-cloud and network upgrades to support 5G is notably driving market growth. Multi-cloud refers to the use of two or more cloud computing services to individually deploy specific application services. Enterprises are embracing multi-cloud architecture to prevent information loss or downtime due to the failure of localized components, ensure compliance with security regulations, and meet workload requirements. This strategy helps avoid vendor lock-in by cloud service providers. Investments in communication network infrastructure upgrades are growing to facilitate a smooth transition from 3G and 4G to 5G.
Further, with the implementation of 5G technologies and the consequent increase in speed, the rate at which information is generated, transmitted, and consumed will rise substantially. This will drive the need to upgrade the existing network infrastructure and increase new centers constructed closer to the origin of the information to reduce latency. Adopting a multi-cloud strategy and the advent of 5G technology will drive the demand for data center GPUs, which, in turn, will spur the growth of the market during the forecast period.
Advancements in server technology to support ML and DL is an emerging trend shaping market growth. Information is the most important aspect of an enterprise's decision-making process, and the success of the enterprise depends on how effectively it can analyze the data. Enterprises are increasingly implementing new analysis models using advanced technologies such as big data, ML, and DL on huge volumes of datasets. However, information center graphics processing unit (GPU) market companies are introducing servers embedded with field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and GPUs to match the computing requirements of HPC workloads.
For instance, in March 2021, Dell Technologies refreshed the Dell EMC PowerEdge portfolio with 17 next-generation servers, enabling companies to analyze and take action on information wherever it resides. The new Dell EMC PowerEdge portfolio delivers optimized systems for the demanding workloads of businesses and accelerates the path to autonomous computing. Considering the current advancements in server designs by different companies, the market trends is expected to witness growth during the forecast period.
High initial costs and lead times for data center construction a significant challenges hindering market growth. Data centers are highly capital-intensive business facilities, with investments upward of a billion dollars. All stakeholders in the information center building and construction industry face immense pressure to adhere to timelines and start operations as soon as possible. Time to data center graphics processing unit (GPU) market and costs per megawatt are the key indicators considered for the design and construction process of a data center facility. Meeting contractual schedules and performance requirements are major challenges for the growth of the market.
However, a shortage in the supply of server components from the supplier side makes it difficult for vendors to meet the demand. The shortage of server components also creates an issue with regard to lead times (the period between server order booking and server delivery) for some of the server companies' channel partners, which could range from 30 days to three months. Such issues can delay the launch of servers in the data center GPU market, resulting in information center operators incurring additional costs, which may hamper the growth of the market during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. An on-premises data center GPU is a collection of servers that the end-user owns and manages. In the traditional cloud computing GPU model (as opposed to a hybrid or private cloud model), data center resources are leased from a third-party service provider.
The on-premises segment was the largest and was valued at USD 2.17 billion in 2018. On-premises GPUs are more suitable for machine learning applications that require high performance or access to high-end technologies, which are not available on the public cloud, such as deep learning applications with high memory bandwidth requirements and low latency. However, as these centers become smaller and move to platform-based colocation providers, as well as new as-a-service models for physical infrastructure, the on-premises infrastructure for these center GPUs can be brought into the cloud as a service-centric and cost-effective model. All these factors are estimated to slightly decrease the growth of the on-premises segment of the market during the forecast period.
A GPU or other accelerator is recommended for deep learning training with multiple neural network layers or for training on large sets of specific nformation, such as 2D images. In recent years, there has been tremendous growth in research and development and applications related to AI in many areas, such as medical diagnostics, robotics, etc. GPUs are used in the fields of Artificial Intelligence (AI), Deep Learning (DL), and Machine Learning (ML). They are used to train, optimize, and control complex algorithms that allow machines to function well. Increasing investments in AI and DL are leading to the increasing need to train personnel to help AI-based companies develop efficient AI solutions and also help train the end-users of AI and other high-tech solutions, which is likely to boost the growth of the training segment of the market during the forecast period.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the data center graphics processing unit market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The data center graphics processing unit market in this region is primarily driven by the increasing adoption of cloud services by enterprises across industries, especially in the US and Canada. Enterprises are opting for cloud solutions to reduce the operating and capital expenditure incurred in operating on-premises information centers. Enterprises are increasingly adopting cloud solutions from hyper-scale data center providers such as AWS, Microsoft, and Oracle to meet the computing capacity requirements with minimum expenditure. Also, the region has several data centers already established by enterprises.
In addition, the demand for data centers in North America is also propelled by the rising adoption of high-performance computing (HPC) systems by sectors such as government, BFSI, healthcare, and others. For instance, the demand in Houston, US, is increasing owing to the growing use of HPC systems and seismic imaging in the oil and gas industry. In addition, the healthcare sector in the region has embraced the adoption of the cloud, thus moving their storage to multi-tenant data center facilities. Such factors are expected to drive the regional market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advantech Co. Ltd. - The company offers data center GPU such as SKY MXM T1000, SKY MXM RTX3000, AIMB 787, SKY MXM A2000, SKY MXM RTX3000, ACP 4340, and SKY MXM T1000.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Advanced Micro Devices Inc., Advantech Co. Ltd., Alphabet Inc., Broadcom Inc., Fujitsu Ltd., Gigabyte Technology Co. Ltd., Imagination Technologies Ltd., Intel Corp., International Business Machines Corp., Micron Technology Inc., NVIDIA Corp., PC Partner Group Ltd., Qualcomm Inc., Samsung Electronics Co. Ltd., SAPPHIRE Technology Ltd., and Huawei Technologies Co. Ltd.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
Yotta Data Services is at the forefront of the market with its innovative Shakti Cloud platform. Boasting a remarkable 16 Exaflops of computational power, the platform integrates cutting-edge H100 Tensor Core GPUs that significantly enhance processing capabilities. Such services addresses critical considerations such as power consumption, thereby optimizing electricity costs and minimizing heat dissipation. In the era of digital transformation and remote work trends, the Shakti Cloud platform plays a pivotal role in facilitating seamless operations, catering to the demands of entertainment and edge computing. With a focus on the Internet of Things (IoT), Yotta Data Services collaborates with industry leaders like StackPath, offering solutions through Virtual Machine (VM) and Container deployment models.
In addition, the inclusion of NVIDIA A2 Tensor Core and NVIDIA A16 GPUs underscores Yotta's commitment to handling data-intensive workloads and empowering neural networks for advanced pattern recognition and predictive modeling. As businesses increasingly rely on computational power, Yotta Data Services emerges as a key player, aligning with the evolving landscape of the market.
Data Center GPU Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
31.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Advantech Co. Ltd., Alphabet Inc., Broadcom Inc., Fujitsu Ltd., Gigabyte Technology Co. Ltd., Imagination Technologies Ltd., Intel Corp., International Business Machines Corp., Micron Technology Inc., NVIDIA Corp., PC Partner Group Ltd., Qualcomm Inc., Samsung Electronics Co. Ltd., SAPPHIRE Technology Ltd., and Huawei Technologies Co. Ltd. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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