The global data center accelerator market was valued at USD 17.67 billion in 2024 and is projected to reach USD 63.22 billion by 2030, growing at a compound annual growth rate (CAGR) of 24.7% from 2025 to 2030. Data center accelerators including Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), and Application-Specific Integrated Circuits (ASICs) are specialized hardware components designed to handle highly data-intensive workloads far more efficiently than traditional Central Processing Units (CPUs). They are essential in scenarios where computational speed, parallel processing capability, and energy efficiency are critical.

The demand for these accelerators is being driven predominantly by hyperscale data centers and leading cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These technology giants rely on high-performance hardware to meet the increasing computational requirements of artificial intelligence (AI) driven applications, including natural language processing, image recognition, and predictive analytics. As more industries incorporate AI and machine learning (ML) into their operations, the demand for advanced accelerators to power data analytics and automate decision-making processes continues to surge.

The expansion of cloud computing, particularly through hyperscale data centers, is another significant growth driver. These massive facilities process petabytes of data daily, making accelerator technologies vital for reducing latency and improving throughput. Additionally, the growing adoption of edge computing where data is processed closer to the source rather than in centralized data centers further fuels demand for accelerators. This trend is critical for applications requiring real-time processing, such as industrial automation, autonomous vehicles, and smart city infrastructure. The deployment of 5G networks is also acting as a catalyst for market growth. With 5G enabling high-speed, low-latency connectivity, more complex and data-intensive applications including the Internet of Things (IoT), augmented reality (AR), and virtual reality (VR) are becoming feasible, thereby increasing the need for advanced data center accelerator solutions.

Key Market Trends & Insights:

• North America led the market in 2024 with over 37% of the global share, supported by its mature data center infrastructure, high cloud adoption rates, and significant AI research investments.
• The Asia Pacific market is expected to grow at a CAGR of 27.8% from 2025 to 2030, driven by rapid digital transformation, increased hyperscale data center construction, and surging AI adoption in China, India, Japan, and South Korea.
• GPU-based accelerators accounted for the largest market share of over 44% in 2024 due to their exceptional performance in parallel processing tasks such as deep learning training and scientific simulations. The FPGA segment is expected to grow steadily, supported by its flexibility and adaptability for custom workloads, particularly in networking and data processing applications.
• Cloud data centers dominated the market in 2024, as public and hybrid cloud models increasingly rely on accelerator hardware for optimized AI, ML, and big data processing. The high-performance computing (HPC) data center segment is anticipated to grow steadily, driven by demand from research institutions, aerospace, defense, and genomic analysis applications.
• The deep learning training segment led the market in 2024, reflecting its extensive use in AI model development for industries such as healthcare, finance, and autonomous systems. The enterprise interface segment is projected to grow steadily as enterprises adopt AI-powered business intelligence and process automation tools.

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Market Size & Forecast:

• 2024 Market Size: USD 17.67 Billion
• 2030 Projected Market Size: USD 63.22 Billion
• CAGR (2025-2030): 24.7%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

The market is highly competitive and innovation-driven, with companies investing in research, strategic partnerships, and acquisitions to strengthen their technological capabilities and expand market reach. Leading players are also developing comprehensive ecosystems that combine hardware, software frameworks, and developer tools to accelerate AI adoption across industries.

• NVIDIA Corporation is globally recognized for its GPU leadership, essential in powering high-performance computing, AI workloads, and deep learning training in data centers. Beyond hardware, NVIDIA has built a robust software ecosystem, including CUDA, cuDNN, and optimized AI frameworks such as TensorFlow, enabling developers to fully utilize GPU capabilities. This integration of hardware and software has made NVIDIA a leader in both AI model development and data-intensive application performance across multiple industries.
• Advanced Micro Devices, Inc. (AMD) plays a significant role in the data center accelerator market with its Radeon Instinct GPUs, designed for deep learning, parallel computing, and high-throughput workloads. With architectures like RDNA and CDNA, AMD delivers energy-efficient and high-performance solutions optimized for data centers. Additionally, AMD’s EPYC processors excel in virtualization, enabling multiple workloads to run efficiently on shared resources an essential feature for enterprises seeking flexibility and scalability in their IT operations.

Other notable players include Dell Inc., IBM Corporation, and others, who are investing in custom accelerator designs and AI-optimized platforms to cater to both hyperscale operators and enterprise clients.

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Conclusion:

In conclusion, the data center accelerator market is set for rapid expansion, driven by the rising adoption of AI, machine learning, cloud computing, and edge technologies. With increasing demand from hyperscale data centers and the proliferation of 5G-enabled, data-intensive applications, accelerators like GPUs, FPGAs, and ASICs will play a critical role in enhancing computational efficiency. Key industry players are well-positioned to capitalize on this growth through innovation, strategic partnerships, and expanding high-performance hardware and software ecosystems.