#USA #Redwood City #Dell'Oro Group #AI Accelerators #Custom Silicon

Significant Growth in Data Center Accelerators

According to a recent report by Dell'Oro Group, the market for data center accelerators, including merchant GPUs and custom silicon, is anticipated to surge to an impressive $446 billion by the year 2029. This forecast underscores the growing importance of these technologies within data centers, as they now represent roughly one third of total capital expenditures in this space.

In terms of growth potential, Baron Fung, Senior Research Director at Dell'Oro Group, highlighted that the overall market for Data Center IT semiconductors and components is expected to experience a robust compound annual growth rate (CAGR) of 26% over the next five years. This expansion will be largely fueled by escalating AI workload demands and the ongoing development of specialized infrastructure tailored to these needs.

The Role of AI Accelerators

AI accelerators are central to this growth trajectory. They empower a diverse range of AI applications and domain-specific tasks. Hyperscale cloud providers, such as Amazon and Google, are intensifying their investments in custom accelerators to optimize performance and reduce operational costs. To enhance efficiency, significant engineering work is focused on improving performance metrics on a watt-per-chip basis, extending through to the rack level.

Moreover, the rise in demand for High Bandwidth Memory (HBM) complements this growth, with expectations that HBM revenues will outpace those of accelerators. This is attributed to the increasing memory requirements per chip as AI applications grow in complexity.

Market Predictions

The report further indicates that by 2029, custom accelerators could comprise half of all accelerator shipments. However, it also predicts that merchant GPUs will continue to dominate revenue figures within this context. Additionally, the Ethernet network adapter market, which is critical for supporting backend infrastructures in AI compute clusters, is projected to grow at an extraordinary 59% CAGR by 2029.

Conclusion

Dell'Oro Group's insights underscore an exciting era for data center technology, where the use of merchant GPUs and custom accelerators will be pivotal in accommodating the increasing demands of AI workloads. As these technologies advance, both businesses and consumers will likely benefit from enhanced performance capabilities across various computing tasks.

For more comprehensive data, Dell'Oro Group's full 5-Year Forecast Report on Data Center IT Semiconductors and Components offers in-depth analyses, including revenue statistics and unit shipments for technologies spanning accelerators, CPUs, memory components, network interface cards (NICs), and storage solutions like HDDs and SSDs. Interested parties can reach out directly via email or through their official website for detailed inquiries about the report.

About Dell'Oro Group

Dell'Oro Group is a reputable market research firm specializing in competitive analysis within telecommunications, security, enterprise networks, and data center markets. They provide vital quantitative and qualitative data that assists businesses in making critical, informed decisions. For further details, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.