In January and July, Dell’Oro Group publishes the Data Center IT Semiconductors and Components 5-year forecast reports offering a complete overview of the market with historical data from 2018 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering the same technology areas as the quarterly report:
Central Processing Units (CPUs)
Accelerators such as Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), and custom processors
Memory (DRAM)
Ethernet and InfiniBand Network Interface Cards (NICs) and Smart NICs
Hard disk drives (HDDs)
Solid state drives (SSDs) and NAND
We provide our long-term forecast of key metrics such as revenue, unit and capacity shipments, and price per unit or capacity, for the associated technology areas. In addition, we provide our assessment of the adoption of new technologies that could be disruptive to server and storage system architectures and ecosystem.
Market for AI Accelerators to Reach $382 Billion by 2029, According to Dell’Oro Group
Custom Accelerators Poised to Outpace GPUs in Volume
REDWOOD CITY, Calif. February 06, 2025
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,
