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Market for AI Accelerators to Reach $382 Billion by 2029, According to Dell'Oro Group
Friday, February 14, 2025
Custom Accelerators Poised to Outpace GPUs in Volume
REDWOOD CITY, Calif. , Feb. 6, 2025 /PRNewswire/ -- 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 $382 billion by 2029. Custom accelerators are also poised to outpace commercially available accelerator such as GPUs in volume during that time period.
"AI workloads are expected to drive substantial growth in server and storage components over the next five years, fueling demand for accelerators, specialized memory, storage, and connectivity," said Baron Fung, Senior Research Director at Dell'Oro Group. "While recent developments like DeepSeek have highlighted concerns over the sustainability of recent expenditures, the cloud service providers are undergoing a multi-year capex cycle to support larger LLMs and expand AI services, broadening use cases. Sustainable growth remains a priority, with more efficient architectures and LLMs on the horizon. We expect the hyperscalers to transitioning from commercial GPUs to custom accelerators over time, enhancing efficiency and reducing costs," said Fung.
Additional highlights from the Data Center IT Semiconductors and Components 5-Year January 2025 Forecast Report:
-- By 2029, we project accelerators will lead the market in revenue,
followed by storage drives and memory, with CPUs trailing behind these
technologies.
-- The memory (HBMs) and storage drive (SSDs and HDDs) markets will benefit
from growth driven by increasing AI deployments.
-- The Ethernet network adapter market for supporting back-end networks in
AI compute clusters is projected to grow at a 40 percent CAGR by 2029.
About the Report
Dell'Oro Group's Data Center IT Semiconductors and Components 5-Year Forecast Report provides a complete, in-depth analysis of the market with table covering manufacturers' revenue, and unit shipments for technologies such as Accelerators, CPUs, Memory, Network Interface Cards (NICs), Storage Drives such as HDDs and SSDs. For more information about the report, please contact us at dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.
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SOURCE Dell'Oro Group
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