Data Center Chip Market to Reach $15.64 Bn, Globally, by 2025 at 9.4% CAGR: Allied Market Research

Data Center Chip Market to Reach $15.64 Bn, Globally, by 2025 at 9.4% CAGR: Allied Market Research

Advancements in chip technology, upsurge in adoption of cloud computing, and government regulations related to localization of data centers drive the growth in the global data center chip industry

PR Newswire

PORTLAND, Oregon, Feb. 5, 2019

PORTLAND, Oregon, Feb. 5, 2019 /PRNewswire/ -- Allied Market Research published a report, titled, "Data Center Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and Others), Data Center Size (Small & Medium Size and Large Size) and Industry Vertical (BFSI, Manufacturing, Government, IT & Telecom, Retail, Transportation, Energy & Utilities, and Others): Global Opportunity Analysis and Industry Forecast, 2018–2025." The report offers a detailed analysis of drivers & opportunities, key segments, market size & forecasts, and competitive scenario. According to the report, the global data center chip market garnered $7.71 billion in 2017, and is expected to reach $15.64 billion by 2025, growing at a CAGR of 9.4% from 2018 to 2025.

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Advancements in chip technology, upsurge in adoption of cloud computing, and government regulations related to localization of data centers drive the growth in the industry. However, expensive operational costs hinder the growth in the market. On the other hand, rise in smart computing devices would create new opportunities in the industry.

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Graphic processing unit (GPU) segment to maintain dominant position by 2025

GPU contributed to nearly one-third of the total market share in 2017 and is expected maintain its dominant position by 2025. This is due to its growth in parallel processing capability and increase in adoption in applications such as artificial intelligence for large scale data computations. However, FPGA is expected to grow at the highest CAGR of 11.2% from 2018 to 2025, owing to rise in adoption across different verticals as it has reprogramming functionality. The report also analyzes chip types including ASIC, CPU, and others.

Large sized data centers to maintain its leadership status during the forecast period

Large sized data centers accounted for more than two-thirds of the total market share in 2017 and will maintain its leadership during the forecast period. This is due to increase in demand from multinational corporations such as IBM and Microsoft among others and rise in availability of power saving chips. However, small and medium -sized data centers would register the fastest CAGR of 10.4% from 2018 to 2025, owing to increase in number of small and medium size enterprises along with reduced data center chip costs.

BFSI to lead throughout the forecast period

BFSI held the major share of the market in terms of revenue in 2017, contributing 30% of the total market share. This is due to requirements of high storage and processing capabilities for facilitating online banking transactions and offering personalized services. Energy & utilities would register the fastest growth, with a CAGR of 12.7% from 2018 to 2025, owing to surge in data generated from smart home appliances and smart grid technologies. The research also analyzes industry verticals including manufacturing, government, IT & Telecom, retail, transportation, and others.

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North America to remain dominant by 2025

North America accounted nearly two-fifths of the total market share in 2017 and is expected to remain dominant during the forecast period. This is due to increase in technological advancements, innovations, and investments in data centers. LAMEA is expected to grow at the fastest CAGR of 12.1% from 2018 to 2025, owing to surge in demand from emerging countries including Brazil and Chile and developed countries such as South Africa and UAE. The research also discusses Europe and Asia-Pacific.

Leading market players

Key market players analyzed in the research include Intel Corporation, Advanced Micro Devices Inc., GlobalFoundries, Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., Broadcom, Arm Limited (SoftBank Group Corp.), Huawei Technologies Co. Ltd., Xilinx, Inc., and Nvidia Corporation.

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