Global Data Center Accelerator Market to Hit $446B by 2029, Driven by AI Surge

According to a newly published forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the global Data Center Accelerator market is projected to reach $446 billion by 2029. Accelerators now account for roughly one third of total data center capex, making them the single largest driver of growth.

"The worldwide Data Center IT Semiconductor and Component market is projected to grow at a 26 percent compound annual growth rate (CAGR) over the next five years, fueled by the continued expansion of AI workloads and the buildout of specialized infrastructure," said Baron Fung, Senior Research Director at Dell'Oro Group. "AI accelerators, including both merchant GPUs and custom silicon, are at the heart of this growth cycle, enabling a wide range of AI and domain specific applications. Hyperscale cloud providers are increasingly investing in custom accelerators to optimize performance and reduce cost, while significant engineering efforts are underway to improve accelerator performance per watt from the chip level to the rack level. Supporting technologies such as High Bandwidth Memory (HBM) are also seeing accelerated growth, with HBM revenue outpacing that of accelerators due to rising memory content per chip. In parallel, demand for high-speed network adapters, enabling accelerator-to-accelerator connectivity in scale-out networks," said Fung.