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HBM market anticipated to exceed $130 billion by 2029, Dell’Oro reports

August 20, 2025

The High Bandwidth Memory (HBM) market is anticipated to surpass $130 billion by 2029, driven by advancements in data center infrastructure and Artificial Intelligence (AI) workloads. This projection holds considerable relevance for IT decision-makers focused on market trends.

Market Overview

According to a forecast report from Dell’Oro Group, the global Data Center Accelerator market is expected to reach $446 billion by 2029. Accelerators are projected to represent a notable portion of total data center investments, influencing growth within the sector.

Growth Factors

Baron Fung, Senior Research Director at Dell’Oro Group, indicated that the Data Center IT Semiconductor and Component market is expected to experience a 26 percent Compound Annual Growth rate (CAGR) over the next five years. This trend is linked to the rising demand for AI workloads and advancements in specialized infrastructure.

Market Highlights

  • Custom accelerators are projected to represent around 50% of all accelerator shipments by 2029.

  • HBM revenue is expected to exceed $130 billion during the same period.

  • The Ethernet Network Adapter market in AI compute clusters is predicted to grow at a 59 percent CAGR by 2029.

This update provides a factual summary of the original blog post and is intended for enterprise IT leaders and technical decision-makers seeking insights into market trends within the data center industry.

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