The data center acceleration refers to a few techniques, including load balancing and SSL acceleration, which collectively boost the server performance in data centers. The cloud architecture places a layer of reconfigurable logic (FPGA, CPU, GPU, and ASIC) between the network switches and servers, enabling network flows to be programmable, thereby accelerating local applications running on the server and enabling the processors to communicate directly with the cloud. In data centers, co-processor or accelerators are used for the work offload of computationally intensive applications. Accelerators are designed to perform complex computational functions in parallel with the general-purpose processors, with higher execution speed.
The growing demand for AI in HPC data centers is a major factor that drives the data center accelerator market. The market is expected to reach USD 21.19 billion by 2023 from USD 2.84 billion by 2018, at a CAGR of 49.47% from 2018 to 2023.
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The growing market for FPGA-based accelerators offers significant growth opportunities for the data center accelerator market players. FPGAs are programmed using hardware description languages, such as VHSIC hardware description language (VHDL) or Verilog. The advantages of FPGAs include rapid prototyping, short time to market, ability to be reprogramed in the field for debugging, and long product life cycle.
The data center accelerator market has been segmented on the basis of processor type into CPU, GPU, FPGA, and ASIC. Of these, the market for FPGA is expected to grow at the highest CAGR during the forecast period. The growth can be attributed to the increasing adoption of FPGAs for the acceleration of enterprise workloads. With the exponential data growth, data center operators have to establish a balance between the need for the performance at scale and the operational efficiencies.
In this report, the data center accelerator market has been segmented on the basis of processor type, application, type, and geography. The market has been segmented on the basis of application into deep learning training, public cloud interface, and enterprise interface. The market for enterprise interface is expected to grow at the highest CAGR during the forecast period owing to the expected traction in the coming years on the back of the hyper-scale cloud-based companies such as Google (US), Facebook (US), and Amazon (US), which are more focused on digital transformation to build similar types of cloud-native applications.
The data center accelerator market in APAC is expected to grow at the highest CAGR during the forecast period. The growth in the region can be attributed to the rising demand from higher education institutes, scientific research institutes, weather forecasting departments, governments, and other enterprises to store and scale up big data.
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