Market Challenges And Opportunities

Global Data Center Accelerator Market Drivers:

Growing use of AI in HPC data centers to propel the market growth

Chipmakers are taking significant efforts to produce accelerators, and companies operating in setting up of data centers such as Dell EMC and HP are also focused on integration of deep learning-based accelerators into their HPC (high-performance computing) data centers. This is due to rise in amount of consumer data generated and growing use of AI-based services leading to rise in demand for AI-centric data centers. AI can provide personalized services as it can understand customer behavior data produced from CRM systems, product reviews, and social media comments. Thus, growing use of AI in HPC data centers is expected to fuel demand for global data center accelerator over the forecast period.

Rise in deployment of cloud-based services and data center facilities to boost the market pace

Along with the increasing demand for data around the world, the demand for data centers is also on the rise, as several cloud vendors focus on commissioning several datacenter projects and on heavy investment for the same. For instance, Amazon, a leading cloud service provider continues to heavily invest in development of data centers across the globe, specifically in emerging markets. Amazon invested US$ 1.5 billion to build two data centers in India for its AWS wing. Thus, these factors are likely to support growth of the global data center accelerator market during the forecast period.

Global Data Center Accelerator Market Opportunities:

Growing focus of parallel computing in artificial intelligence data centers is expected to offer multiple business opportunities in the global data center accelerator market over the forecast period. Increase in the development in cloud-based services is also creating several growth opportunities in the market. In the past few years, there has been several advancements in silicon engineering design-based products. Especially, node designs based on ASIC/FPGA has improved towards nodes of 7nm and lower. Thus, the demand for data center accelerators in increasing, which is creating growth opportunities in the market.

Moreover, increasing architectural changes is also anticipated to create growth opportunities in the global data center accelerator market over the forecast period. Transistor densities continue to increase to boost performance gains. However, this is possible when they are used more efficiently and effectively by the applications taking architectural changes and requirements for specialized accelerators that are being developed for particular workloads. There is rise in domain-specific architectures as promising solutions for addressing some these requirements. Thus, these factors are providing market players in the global data center accelerator market with several growth opportunities.

Lack of AI hardware experts
Rise in infrastructural concerns

Global Data Center Accelerator Market Restraints:

Lack of AI hardware experts to hamper growth of the market

AI is a complicated system, and companies need skilled professionals for development, management, and implementation of AI systems. For instance, AI system operators need awareness regarding technologies such as ML, cognitive computing, machine intelligence, image recognition, and deep learning. Moreover, integration of AI solutions with existing systems is complicated and it needs in-house R&D as well as patent filling. Smallest errors can cause failure of system or malfunctioning of solutions. Thus, lack of AI hardware experts is expected to restrain growth of the market.

Rise in infrastructural concerns to impede growth of the market

Accelerators provide several benefits to the data center operators such as a way of offloading computationally intensive sections of applications along with consumption of less power and cooling resources. However, the cost of accelerators and concerns regarding the infrastructure are hampering the market growth. Data centers need highly specialized infrastructure. This infrastructure refers to the core hardware-based or physical resources as well as components, which include all IT infrastructure devices, technologies, and equipment comprising a data center. The specialized requirement of infrastructure can sometimes become hampering factor for the growth of the global data center accelerator market.