Dell'Oro Group forecasts 25% CAGR for data center accelerator market
75th article in the last 90 days, one of 170 articles referencing Dell'Oro Group. Previous coverage: Dell’Oro Group projects data center capex will reach $1.7 trillion by 2030 (Feb 2026).
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Dell'Oro Group forecasts a 25 percent Compound Annual Growth rate (CAGR) for the global data center accelerator market over five years, driven by Artificial Intelligence (AI) workloads; this will affect procurement and capacity planning for enterprise IT and hyperscale operators.
Market Overview
The report projects AI-driven adoption of accelerator-equipped infrastructure and expects merchant GPUs and custom accelerators to lead spending in the sector.
Demand growth will create parallel requirements for CPUs, High Bandwidth Memory (HBM), NICs, and storage to advance to achieve system-level efficiency.
Key Findings
“The global server and storage semiconductor and component market is entering a new phase of expansion driven by AI,” said Baron Fung, Senior Research Director at Dell’Oro Group. “Merchant GPUs and custom accelerators are at the center of this growth cycle, enabling a broad range of AI and domain-specific workloads.”
“Hyperscale cloud service providers are increasingly deploying custom accelerators to improve efficiency and potentially reduce cost, while significant engineering efforts are underway to improve accelerator performance per watt from the package level through the rack level. At the same time, complementary technologies such as CPUs, HBM, NICs, and storage must advance in parallel to fully realize system-level gains, and the pace of accelerated infrastructure buildouts is expected to continue placing pressure on supply–demand dynamics for key components, particularly memory and storage,” said Fung.
Segment or Supplier Performance
Merchant GPUs and custom accelerators will continue to dominate market spending, and custom accelerators will gain share as hyperscale cloud providers pursue efficiency and cost optimization.
Components supporting general-purpose compute and storage, including CPUs and front-end NICs, are projected to grow at modest single- to low-double-digit rates, reflecting improved server utilization and longer replacement cycles.
Technology or Trend Analysis
Ongoing strong demand for memory and storage is expected to constrain supply, increase costs, and incentivize vendors to develop more resource-efficient architectures that improve Total Cost of Ownership (TCO).
Engineering work to improve accelerator performance per watt from package to rack level must align with advances in complementary components to realize system-level gains.
Forecast or Analyst Outlook
The Data Center Accelerator market is projected to grow at a 25 percent CAGR over the next five years, driven primarily by AI applications requiring accelerator-equipped infrastructure.
That growth will continue to place pressure on supply–demand dynamics for memory and storage and affect procurement and capacity planning for enterprise and hyperscale operators.
Conclusion
The analyst note highlights accelerated spending on GPUs and custom accelerators, persistent pressure on memory and storage supply, and the need for coordinated component advances to realize system-level efficiency. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.
Blog post, originally published at delloro.com.