A newly published forecast report by Dell’Oro Group, accelerator revenues, consisting mostly of GPUs and custom accelerators, are forecast to grow at a 38% compound annual growth rate (CAGR) over the next five years.
The report says the worldwide market for data centre IT semiconductors, which includes the major components for servers and storage systems, is set to reach USD390 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 Dell’Oro Group’s Senior Research Director Baron Fung.
“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.”
Additional findings from the Data Center IT Semiconductors and Components 5-Year July 2024 Forecast Report include:
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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;
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The memory market will benefit from increasing AI infrastructure adoption, especially for high-bandwidth memory (HBM);
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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; and
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The inclusion of the back-end market for connectivity to accelerated computing clusters significantly raised revenue projections for NICs.
