The Data Center GPU Market is expected to register a CAGR of 27.7% from 2025 to 2031, with a market size expanding from US$ XX million in 2024 to US$ XX Million by 2031.
The report is segmented by Deployment Type (Cloud, On-premise), Function (Training, Inference), End User (Cloud Service Providers, Enterprises, Government). The global analysis is further broken-down at regional level and major countries. The Report Offers the Value in USD for the above analysis and segments.
Purpose of the ReportThe report Data Center GPU Market by The Insight Partners aims to describe the present landscape and future growth, top driving factors, challenges, and opportunities. This will provide insights to various business stakeholders, such as:
- Technology Providers/Manufacturers: To understand the evolving market dynamics and know the potential growth opportunities, enabling them to make informed strategic decisions.
- Investors: To conduct a comprehensive trend analysis regarding the market growth rate, market financial projections, and opportunities that exist across the value chain.
- Regulatory bodies: To regulate policies and police activities in the market with the aim of minimizing abuse, preserving investor trust and confidence, and upholding the integrity and stability of the market.
Data Center GPU Market Segmentation
Deployment Type- Cloud
- On-premise
- Training
- Inference
- Cloud Service Providers
- Enterprises
- Government
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South and Central America
Strategic Insights
Data Center GPU Market Growth Drivers- Demand for High-Performance Computing (HPC): The increasing demand for high-performance computing is one of the primary drivers of the data center GPU market. Traditional Central Processing Units (CPUs) are increasingly unable to meet the processing needs of demanding applications in sectors like AI, machine learning, and data analytics. GPUs, with their parallel processing architecture, are capable of handling complex computational tasks more efficiently than CPUs. This efficiency makes GPUs indispensable for workloads that require massive amounts of parallel processing, such as deep learning model training, scientific research, and real-time data analytics. As these applications grow in complexity, data centers are increasingly relying on GPUs to handle their high-performance computing demands.
- Cloud Computing and Virtualization: The rise of cloud computing and the growing shift toward virtualization are pivotal in the expansion of the data center GPU market. Cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are increasingly incorporating GPUs into their infrastructure to deliver faster processing power to customers. This shift allows organizations to offload compute-intensive workloads to cloud platforms without needing to invest in physical GPU hardware themselves. Additionally, GPUs are becoming an essential part of Virtual Desktop Infrastructure (VDI) solutions, offering enhanced performance for cloud-based applications, simulations, and 3D rendering tasks.
- Data Explosion and Big Data Analytics: The exponential increase in data generated across industries is another key driver for the data center GPU market. With more organizations leveraging big data analytics to derive insights and make data-driven decisions, there is a growing need for high-performance systems capable of processing and analyzing large volumes of data in real-time. GPUs are well-suited for these tasks because of their ability to accelerate data processing, enhance the performance of data analytics applications, and support complex data models. As more organizations rely on big data for business intelligence, GPUs will continue to be integral to the data center infrastructure.
- Integration of AI and Edge AI Chips: One of the most prominent future trends in the data center GPU market is the integration of AI and edge AI chips with GPUs to accelerate the development of AI-powered systems. These chips are designed to complement GPUs by offloading certain tasks, such as AI model inference, and enabling faster decision-making at the edge. This integration will create more efficient data center infrastructure that is capable of supporting AI workloads at both the edge and in centralized data centers. As AI becomes more embedded in applications like autonomous vehicles, smart cities, and industrial automation, data centers will need to adapt their GPU systems to handle diverse AI workloads.
- Cloud and GPU as a Service (GPUaaS): The increasing shift to cloud-based solutions will drive the future growth of GPU as a Service (GPUaaS) offerings. GPUaaS allows businesses to access GPU-powered infrastructure through cloud service providers without the need for upfront capital investment in hardware. This pay-as-you-go model makes it easier for businesses of all sizes to leverage GPU capabilities for computationally intensive tasks like AI model training and scientific simulations. As more cloud providers integrate GPU capabilities into their services, the adoption of GPUaaS is expected to grow rapidly, providing new revenue streams for service providers and making GPU resources more accessible to a broader range of users.
- Integration with Quantum Computing: Another intriguing future trend is the potential integration of GPUs with quantum computing. While still in the early stages of development, quantum computing promises to revolutionize industries by solving complex problems that classical computers cannot. GPUs, with their parallel processing capabilities, could play a critical role in the hybrid computing systems of the future, assisting quantum processors with pre- and post-processing tasks. This synergy could open up new opportunities for data center GPUs to be involved in groundbreaking technologies like quantum machine learning and simulation.
- Edge Computing and 5G Networks: The rise of edge computing and the deployment of 5G networks present new opportunities for the data center GPU market. As more devices generate data at the edge (e.g., in IoT environments), there will be an increased need for localized processing power to analyze this data in real time. GPUs will play a vital role in edge data centers by providing the necessary computational power to process large volumes of data close to the source, thereby reducing latency and bandwidth demands on central data centers. The widespread adoption of 5G will also enable more distributed and real-time data processing, which will further fuel demand for GPUs in edge computing environments.
- GPU Virtualization and Multi-Tenant Environments: GPU virtualization is emerging as a valuable opportunity for data centers that need to deliver GPU-accelerated services to multiple clients or tenants. GPU virtualization allows data centers to partition GPU resources and allocate them dynamically to different virtual machines (VMs) or containers. This capability enables cloud service providers and enterprises to offer GPU-accelerated workloads to a broader range of users without requiring dedicated GPU hardware for each client. This is particularly valuable in multi-tenant environments, where resource efficiency is crucial for cost-effective operations.
- Development of Specialized GPUs for Data Centers: As the demand for GPUs in data centers increases, there is a growing opportunity for companies to develop GPUs tailored specifically to the needs of data center workloads. While general-purpose GPUs are widely used, specialized GPUs optimized for specific tasks such as deep learning, real-time data analytics, and high-frequency trading are becoming increasingly important. Companies that can deliver GPUs designed for these applications, with improved power efficiency and performance, will have a competitive edge in the market.
Market Report Scope
Key Selling Points
- Comprehensive Coverage: The report comprehensively covers the analysis of products, services, types, and end users of the Data Center GPU Market, providing a holistic landscape.
- Expert Analysis: The report is compiled based on the in-depth understanding of industry experts and analysts.
- Up-to-date Information: The report assures business relevance due to its coverage of recent information and data trends.
- Customization Options: This report can be customized to cater to specific client requirements and suit the business strategies aptly.
The research report on the Data Center GPU Market can, therefore, help spearhead the trail of decoding and understanding the industry scenario and growth prospects. Although there can be a few valid concerns, the overall benefits of this report tend to outweigh the disadvantages.
REGIONAL FRAMEWORK
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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Frequently Asked Questions
Some of the customization options available based on the request are an additional 3–5 company profiles and country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation as our team would review the same and check the feasibility
The report can be delivered in PDF/PPT format; we can also share excel dataset based on the request
Integration of AI and Edge AI Chips is anticipated to play a significant role in the global data center GPU market in the coming years
The major factors driving the data center GPU market are:
1. Demand for High-Performance Computing (HPC)
2. Data Explosion and Big Data Analytics
The global data center GPU market is expected to grow at a CAGR of 27.7% during the forecast period 2024 - 2031
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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