Market Trends of Data Center Accelerator Industry
This section covers the major market trends shaping the Data Center Accelerator Market according to our research experts:
FPGA Processor Type Segemnt is Expected to Hold Significant Market Share
- The data center accelerator market for field-programmable gate arrays (FGPA)-based accelerators are expected to offer attractive growth opportunities for the market. FPGAs (field programmable gate arrays) are pre-fabricated silicon devices that can be programmed electrically (post-manufacturing) to become almost any digital system. They are an array of configurable logic blocks (CLBs) connected with programmable interconnects and can be reprogrammed to the desired application requirements after manufacturing.
- Field programmable gate arrays (FPGAs) are one of the preferred digital implementation platforms in a profusion of industrial applications, and extensions and improvements are continuously included in devices. Also, while FPGA-based accelerators are slowly being adopted in mainstream computing owing to the benefits of performance/consumption and enhanced ease of use, a lot of work is still being processed to support the evolution toward an adaptive-acceleration data center.
- FPGAs combine the best parts of processor-based systems and application-specific integrated circuits (ASICs), which drives the adoption of FPGA chips across all industries. Additionally, for low-to-medium volume productions, FPGAs provide cheaper solutions and faster time to market, compared to ASIC, which usually requires a lot of time and capital resources to obtain the first device.
- Another factor driving the growth of the FPGA market is the demand for extensive application computation, which gives a new direction to the FPGA industry. Moreover, cloud computing and data processing in data centers are significant application areas for FPGAs. FPGAs can improve the performance of large-scale data systems. FPGAs offer faster data processing by connecting network and storage systems with tailored high-bandwidth, low-latency connections. According to Cisco Systems, In the last year, the cloud data center IP traffic reached 19.5 zettabytes.
- The rise in the demand for optimization in big data analytics is one of the primary drivers for the market. To execute operations in parallel for real-time performance, prominent tech companies like Google and Amazon, which derive consumer insights through big data analytics, increase their dependence on FPGAs to make business decisions.
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Asia-Pacific is Expected to Hold Significant Market Growth
- Asia-Pacific is anticipated to be the principal contributor of data center accelerator to global demand as the region undergoes vast investments for better and quicker IT infrastructure. For instance, according to Cisco Systems, Australia creates up to 4% of the global data center market. Big multinational players, like AirTrunk and Equinix, build hyper-scale data centers in Melbourne and Sydney. Such developments are anticipated to drive market growth.
- According to Xilinx, a chip maker, India seems confident with the government's push to get global companies to store local user data. This is expected to provide a huge business opportunity to players offering chips to server makers in India. In addressing this high demand, Xilinx hires more engineers at its R&D facility in Hyderabad, in addition to Alveo. This data center accelerator card can increase performance in cloud and on-premise data centers and a broad range of applications, including AI inference.
- Emerging AI workloads further propel the data center market in the region, particularly those data centers hosting programmable co-processors that can support graphic chips used for parallel processing of machine learning tasks.
- Players in the market strengthen their competitiveness through various growth strategies, such as the innovation of products, new collaborations, investments into new production facilities, increased R&D, and exploration of overseas markets.
- In February this year, Fujitsu announced that it had been selected by Japan's new energy and industrial technology development organization for the "Green Innovation Fund Project/Construction of Next Generation Digital Infrastructure" project in the field of "Technology Development of the Next Generation Green Data Center" (NEDO). The Fujitsu Group's contribution to this national initiative aims to strengthen the development of advanced computing and network technologies that play an essential role in society's digital infrastructure, as well as to promote the use of total solutions globally, with the ultimate goal of achieving its commitment to delivering a more sustainable society through innovation.
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