Accelerator Card Market is projected to expand at a 7.97% CAGR, attaining USD 19.699 billion in 2031 from USD 12.432 billion in 2025.
The accelerator card market is experiencing rapid growth due to the increasing demand for high-performance computing solutions. Accelerator cards, also known as GPUs, are specialized hardware components that boost processing speed and performance. The market is driven by factors such as rising computational requirements, advancements in AI and ML technologies, and the expansion of cloud computing. They find extensive applications in industries such as AI, ML, data analytics, scientific research, and gaming, enabling faster data processing, real-time simulations, and improved system performance. Key players in the market include NVIDIA, AMD, Intel, Xilinx, and IBM. However, the market also faces challenges such as high costs, limited compatibility, and power consumption. Nonetheless, the demand for accelerator cards continues to grow as businesses seek robust computing solutions for complex tasks. As a result, the accelerator card market is poised for further expansion and innovation.
The accelerator card market is driven by the rising adoption of AI, ML, and cloud computing, and growth in the gaming industry.
Rising adoption of AI, ML, and cloud computing- The widespread adoption of AI and ML technologies across industries, coupled with the expansion of cloud computing services, fuels the demand for accelerator cards. Businesses are integrating AI and ML into their operations, requiring powerful computing solutions for training and inference. Cloud providers, with their infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings, rely on accelerator cards to meet the computational demands of their customers.
Growths in the gaming industry- Modern games are increasingly complex, with advanced graphics and immersive virtual worlds. Gamers require powerful accelerator cards to ensure smooth gameplay with high resolutions and frame rates. The rise of VR and AR gaming further boosts the need for robust computing solutions, as real-time rendering and interaction with virtual objects demand high-speed graphics processing. Cloud gaming services have also contributed to the demand for accelerator cards, enabling high-quality gaming experiences on various devices. Consequently, the gaming industry drives innovation in the accelerator card market, as GPU manufacturers strive to meet gamers' growing demands for performance and visual fidelity. According to the UN Creative Economy Outlook report, the digital gaming industry is expected to witness a significant growth rate in Africa, with a substantial increase in the number of gamers in sub-Saharan Africa from 77 million in 2015 to 186 million people in 2021. The region's gaming industry is projected to grow at a rate of 12% between 2020 and 2025, largely due to the adoption of augmented reality and virtual reality technologies.
Based on type, the accelerator card market is expected to witness positive growth in the cloud accelerator segment.
The cloud accelerator segment is a key driver in the accelerator card market, experiencing rapid growth. Cloud accelerators enhance the performance of cloud computing services, particularly for data-intensive workloads like AI and machine learning. The demand for scalable processing in cloud environments and the increasing adoption of cloud computing has fueled the need for powerful acceleration technologies. GPU manufacturers and technology companies are actively developing cloud-specific accelerator cards to improve performance, energy efficiency, and scalability. The rise of AI workloads and the cost-effectiveness of cloud computing is expected to boost the cloud accelerator segment growth in the accelerator card market.
North America accounted for a significant share of the global accelerator card market.
Based on geography, the accelerator card market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America is a significant market for accelerator cards. The region showcases a robust technology sector, including leading accelerator card manufacturers and prominent cloud service providers. North America benefits from advanced research and development activities in artificial intelligence, machine learning, and high-performance computing, driving the demand for accelerator cards. The presence of a mature data center infrastructure, coupled with the increasing adoption of cloud-based services, contributes to the growth of the accelerator card market in the region. Additionally, North America's gaming industry is a significant driver for accelerator card demand. The region has a large gamer population and a strong market for consoles, PCs, and cloud gaming. Accelerator cards are crucial for delivering high-quality gaming experiences, making the gaming industry a key factor in the region's accelerator card market growth. According to the Commercial Gaming Revenue Tracker published by the American Gaming Association (AGA), the commercial gaming industry in the United States achieved all-time high annual revenue of $60.4 billion in 2022. This represents the initial instance of surpassing the previous record of $53.0 billion established in 2021. Overall, North America offers a favourable environment for the development, adoption, and utilization of accelerator cards across various industries and applications.
Segmentation:
By Type
HPC Accelerator
Cloud Accelerator
By Application
By Processor Type
Central Processing Units (CPU)
Graphics Processing Units (GPU)
Field-Programmable Gate Arrays (FPGA)
Application-specific Integrated Circuit (ASIC)
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others