Data Center GPU Market Size, Share, and Industry Analysis, By Deployment Type (Cloud and On-premise), By Function (Training and Inference), By End User (Cloud Service Providers (CSPs), Enterprises, and Government), and Regional Forecast, 2024-2032

Graphics processing units (GPUs) are specialized processors designed to render all visual elements on a computer screen. They are a more robust version of traditional computer chips found in PCs, engineered to enhance graphical performance and provide end users with a more realistic visual experience. GPU in data centers helps in addressing specific types of computations that CPUs are not well-suited to handle efficiently. 

The market took pace from 2022 and grew even more prominent with the generative AI boom in 2023. The key driving factors of the market include the rising adoption of digital technologies, expansion of cloud services, increasing demand for data analytics, and advancements in GPU technology. The below chart highlights the respondent's exposure to gen AI tools in 2023.

This adoption rate indicates that with the proliferation of gen AI tools, the market will also grow respectively. In addition, the growing data center infrastructure has increased the demand for data center GPUs across the globe.

However, the high initial costs and supply chain disruptions can hinder the market growth. The market is dominated by three major players: NVIDIA Corporation, Intel, and AMD. These players are heavily dependent on players such as Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung. Supply chain disruptions from these players can impact majorly on the overall market revenues.

Moreover, to highlight the impact of generative AI, the market was supremely impacted. With the current AI boom, the market players received huge demand from hyperscalers, such as Microsoft Corporation and Alphabet Inc. These cloud service providers are known to develop powerful large language models that can perform more tasks. These models require massive amounts of computing power.

Gen AI platforms develop proficiency by training on vast repositories of existing material. They develop through iterative experimentation, consuming massive amounts of computing power in the process. Thus, requiring good-quality GPUs.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Consolidated SWOT Analysis of Key Players

Analysis by End User

There are predominantly three types of end users of data center GPUs; cloud service providers (CSPs), enterprises, and government. In 2023, CSPs governed the market in terms of generating revenue for the market. Computer components usually are not expected to garner heavy revenue returns. However, market players, such as NVIDIA Corporation and Intel have seen massive demand for GPUs during 2023 and are anticipating that the demand will persist in the coming years as well. This increase in demand is expected to remain elevated due to the growing inclination of end users toward generative AI. The chart below showcases PC graphics processing unit (GPU) vendor shipment share worldwide from 2019 to 2023.

Regional Analysis

The global data center GPU market study is concentrated into five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. As of 2023, a significant share of the market is held by North America, owing to the technological leadership of the U.S., the prominence of data center infrastructure, and the presence of market leaders such as NVIDIA, Intel, and AMD. Furthermore, Asia Pacific holds the second largest market share as several market players rely on Asia Pacific manufacturers, such as Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung. These companies, their business operations, and supply chain distributions have a crucial impact on the market leaders. Besides, the region’s growing economies and their technological investments further cement the regional hold of the market.

Moreover, the European market also holds a significant share owing to the increasing technological developments and solid governmental support. On the other hand, the South American, Middle East & African regions are expected to showcase a slower growth rate as compared to other regions. However, the growing number of smart city initiatives and rapid growth of digital infrastructure indicate positive development for the market across the regions.

The distribution of the global data center GPU market by region of origin is as follows:

• North America – 35%


• South America – 6%


• Europe – 20%


• Middle East & Africa – 10%


• Asia Pacific – 29%

Key Players Covered

The key players in this market include NVIDIA Corporation, Advanced Micro Devices, Inc., Intel Corporation, Qualcomm Technologies, Inc., Alphabet Inc. (Google LLC), IBM Corporation, Advantech Co., Ltd., Baidu, Huawei, and Samsung.

Key Industry Developments

• April 2024: NVIDIA completed the acquisition of GPU software company Run:ai for USD 700 million. The acquired company is based in Tel Aviv and specializes in efficient cluster resource utilization for AI capabilities across shared accelerated computing ecosystems.


• March 2024: NVIDIA expanded its strategic partnership with Google Cloud with the intent of helping the machine learning end users with technology that allows them to develop and manage gen AI applications. In addition, the companies would also provide Vertex AI instances powered by NVIDIA H100 and L4 Tensor Core GPUs and support for JAX on NVIDIA GPUs.