The global Data Center Accelerator Market is estimated to account for US$ 7,330 Mn in terms of value by the end of 2021. Today, modern data centers are being transformed into high-bandwidth, AI-centric data centers. These facilities allow companies to optimize workloads such as artificial intelligence and machine learning. Moreover, these facilities provide accelerated analytics and visualization platforms, which can help businesses to maintain security. Data center accelerators enable significant increases in the performance of applications. This helps to satisfy the demands of customers.
Global Data Center Accelerator Market: Drivers
Rise in need for data centers and cloud resources is expected to propel growth of the global data center accelerator market over the forecast period. The need for cloud resources and data centers is increasing from both the business and consumer service perspective, due to which there is an increase in the development of large-scale public cloud data centers known as hyperscale data centers. For instance as per Ciscco, the rate of hyperscale data centers is likely to increase by 2021 by more than 60%, compared to the rate of hyperscale data centers in 2016. Thus, this factor is likely to boost the demand for data center accelerator in the near future.
Global Data Center Accelerator Market: Opportunities
Growing penetration of IoT devices around the globe is creating growth opportunities in the global data center accelerator market. Countries such as the U.S. are witnessing high penetration of IoT devices. Market players in this region are focused on offering FPGA to cater the low power and high efficiency operational needs of specific operations. This in turn is leading to high-performance-to-cost ration. Secure remote in-field updates and flexible protocol switching/bridging of FPGA supports variety of continuously developing needs of IoT gateway. Thus, the rise in use of IoT devices is providing several growth opportunities in the market.
Global Data Center Accelerator Market: Restraints
High consumption of electricity by data centers is one of the major factors expected to restrain growth of the global data center accelerator market over the forecast period. Due to the increase in working online, the demand for data storage has increased significantly, which has led to rise in use of cloud computing, and has created the requirement for storing and processing. Thus, the investment in data center has increased rapidly; however, it is creating a significant demand for high power. For instance, in 2020, as per the International Energy Agency, the global data center electricity usage was 200 to 250 terawatt-hours, which is nearly 1% of total demand for electricity. Thus, this factor is likely to obstruct growth of the global data center accelerator market over the forecast period.
Global Data Center Accelerator Market - Impact of Coronavirus (Covid-19) Pandemic:
The global data center accelerator market was positively impacted by the Covid-19 pandemic. The virus outbreak led to advanced computing which focused on enhancement of remote capabilities of companies. The enterprises across several industries were pressured to support remote working module due to the pandemic. Thus, demand for data center accelerator increased during the pandemic. Due to expansion of data center, companies and government institutions can hold sovereignty, which in turn is likely to boost growth of the market. Thus, the market was lucratively impacted by the Covid-19 pandemic.