Latest News- Data Center GPU Market: On-premises is expected to lead the Deployment segment during 2025-2029

The Data Center GPU Market is being driven by Rise in adoption of multi-cloud and network upgrades to support 5G

The Data Center GPU Market is expected to grow at a CAGR of 32.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 54075.5 million. In today's data-driven business landscape, enterprises rely heavily on data analysis to make informed decisions that drive growth and success. However, the increasing adoption of advanced technologies like big data, machine learning, and deep learning for data analysis requires significant computational power. Traditional x86 servers in many enterprises and data centers may not be sufficient to handle these complex workloads, leading to the emergence of data center GPUs as a solution. Market vendors are responding to this demand by introducing servers equipped with field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and GPUs to meet the demanding computing requirements of high-performance computing (HPC) workloads. These advanced servers offer enhanced capabilities for data processing and analysis, enabling businesses to gain valuable insights from their data more efficiently and effectively. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on segments_for_ai.nslist

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rise in adoption of multi-cloud and network upgrades to support 5G
• Increasing demand for artificial intelligence
• Growing PC gaming and gaming console industries

However, the market also witnesses some limitations, which are as follows:

• High initial costs and lead times for data center construction
• Issues with GPU upgrades in notebooks
• Growing concerns over server security

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Market Scope in Data Center GPU Market Research Report

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Research Analysis Overview

The Data Center GPU market is experiencing significant growth due to various factors including the adoption of hybrid cloud deployment, advancements in autonomous vehicle development, and the infrastructure build-out for metaverse and immersive technologies. Defense technology investments, financial technology innovation, and AI model training also drive the demand for scalable GPU solutions. Cloud security solutions, cloud scalability, and data center modernization are key priorities, as are cloud infrastructure, data center efficiency, and sustainability. High-performance computing clusters are in high demand for healthcare technology advancements and data center optimization. Cloud computing costs, data center scalability, and energy consumption are major concerns, as is cloud infrastructure security. Supply chain localization and semiconductor shortages pose challenges, while high-performance computing clusters require server maintenance and IT infrastructure costs. Cloud service providers offer cloud cost optimization, on-premise technology, and cloud migration services, but data security, system management costs, and IT support costs remain significant. Data center design, cloud cost optimization, and data center automation are essential for reducing troubleshooting costs and software updates, while data center capacity and data center management are critical for ensuring data center virtualization and efficient system operation.

Market Research Overview

The Data Center GPU market is a significant segment of the global technology hardware, storage, and peripherals market, which encompasses manufacturers of servers, electronic computer components, and peripherals, including data storage components and high-performance graphics processing units (GPUs). According to Technavio, this market is expected to grow due to the increasing volume, velocity, veracity, and variety (4Vs) of data, leading to the expansion of data centers. Furthermore, the proliferation of edge data centers, low-latency requirements for immersive entertainment experiences and metaverse applications, and the adoption of cloud services from providers like Amazon Web Services by financial institutions and other industries undergoing digital transformation, are also driving market growth. The technology trade and high-performance computing sectors, as well as the emergence of autonomous driving technology, are additional key contributors to the market's expansion.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
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