Friday 12 July 2024

Data Center Accelerator Market Size, Share, Industry Report, Revenue Trends and Growth Drivers

 

The global data center accelerator market was valued at USD 109.9 billion in 2024 and is projected to reach USD 372.9 billion by 2029; it is expected to register a CAGR of 27.7% during the forecast period. The Growing demand for cloud-based services  and surging adoption of deep learning technology in big data analytics are attributed to the ever-increasing demand for data center accelerator system.

Driver: Increasing data volumes and pressing need for fast and efficient data processing

The exponential growth in data volume is significantly facilitating the development and adoption of data center accelerators, such as graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs). These accelerators are designed to handle specialized and intensive computational tasks more efficiently than traditional central processing units (CPUs). The immense volume of data generated by social media platforms, IoT devices, online transactions, video streaming, and various other sources necessitates the processing power that these accelerators provide.

The sheer volume and complexity of data require robust computational power to perform real-time data analysis, machine learning (ML), and artificial intelligence (AI) tasks. GPUs, for instance, are highly effective in parallel processing, which is essential for training deep learning (DL) models. This parallelism allows for faster processing of large datasets, leading to quicker insights and decision-making capabilities. As AI and ML applications become more prevalent, the demand for GPUs in data centers continues to rise, driving advancements in GPU technology and their integration into data center infrastructures.

Restraint: Premium pricing of accelerators

The growing use of AI in different industries has raised consumer expectations of AI technologies. However, the non-availability of affordable and energy-efficient hardware products, especially computing hardware, is slowing down the development of dedicated AI hardware, including deep learning accelerators. Manufacturers of accelerators many times unable to meet the demand due to the high complexity and cost of producing these specialized chips. Limited supply relative to demand can drive up prices, especially during periods of high demand for AI and HPC applications.

Opportunity: Proliferation of MLaaS offerings

Machine learning is a subset of artificial intelligence. These algorithms are useful in many applications designed to eliminate human tasks and work independently. Deep machine learning is used to examine massive datasets, identify patterns, and outline the human interface based on the data. Data centers are equipped with sensors to filter out and provide historical data. Many research centers apply ML and AI to their historical data to improve efficiency and productivity.

The increasing demand for AI has led to a rise in the number of companies offering machine learning for cloud services. As a result, the adoption of cloud-based technology is increasing, which, in turn, is creating growth opportunities for data center accelerator market players.

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=48984803

 

Challenge: Unreliability of AI algorithms

AI is implemented through machine learning using a computer to run specific software that can be trained. Machine learning can help systems process data with the help of algorithms and identify certain features from that dataset. As AI applications grow increasingly complex and data-intensive, the performance and accuracy of AI models become critical. However, inconsistencies in algorithmic predictions can lead to inefficiencies and errors, undermining the reliability of data center operations. These issues are exacerbated by the diverse and dynamic nature of data sets, which can further impact the stability of AI-driven processes. Consequently, ensuring robust and dependable AI algorithms is essential for the effective deployment of accelerators in data centers, necessitating ongoing advancements in algorithmic development and validation to maintain operational integrity and trustworthiness.

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