AI Buildouts Will Drive GPU and Other Accelerator Revenues at 38 Percent CAGR for Next Five Years, According to Dell'Oro Group

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Aug 06, 2024, 08:30 ET

Data Center IT Semiconductor Market to Reach $390 Billion by 2028

REDWOOD CITY, Calif., Aug. 6, 2024 /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, accelerator revenues, consisting mostly that of GPUs and custom accelerators, are forecast to grow at a 38 percent compound annual growth rate (CAGR) for the next five years. The worldwide Data Center IT Semiconductors market, which includes the major components for servers and storage systems, is set to reach $390 billion by 2028.

"We recently raised our revenue forecast on accelerators because AI-related data center capex for hyperscale Cloud SP and Enterprise markets has surged since last year, and is expected to remain elevated during our forecast horizon," said Baron Fung, Senior Research Director at Dell'Oro Group. "In addition to AI, workloads such as video transcoding, HPC, and inline storage compression and decompression will also benefit from domain-specific accelerators. While NVIDIA currently has a dominant share in the GPU accelerator market, we anticipate that other vendors such as AMD and Intel, and the hyperscalers' deployment of custom accelerators will gain some share over time as customers seek greater vendor diversity," said Fung.

Additional highlights from the Data Center IT Semiconductors and Components 5-Year July 2024 Forecast Report:

We project the CPU market will lag that of other component categories in terms of growth, given the focus on optimizing the footprint of general-purpose servers.
The memory market will benefit from increasing AI infrastructure adoption, especially for high-bandwidth memory (HBM).
While the impact of AI is not immediately apparent, it is expected to inject long-term growth in the storage drive market given the vast amount of data that needs to be harvested and retained to train data models.
We significantly raised our revenue projections for NICs with the inclusion of the back-end market for connectivity to accelerated computing clusters.

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 [email protected].

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 https://www.delloro.com.

SOURCE Dell'Oro Group