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

August 13, 2025

The High Bandwidth Memory (HBM) market is expected to exceed $130 billion by 2029, driven by advancements in data center infrastructure and Artificial Intelligence (AI) workloads.

Market Overview

According to a recent forecast report from Dell’Oro Group, the global Data Center Accelerator market is projected to reach $446 billion by 2029, with accelerators comprising a significant portion of total data center capital expenditures. These advancements play a crucial role in driving growth across the industry.

Growth Factors

Baron Fung, Senior Research Director at Dell’Oro Group, noted, “The worldwide Data Center IT Semiconductor and Component market is projected to grow at a 26 percent compound annual growth rate (CAGR) over the next five years.” This growth is attributed to the increasing demand for AI workloads and the development of specialized infrastructure. AI accelerators are central to this trend, enabling various applications.

Market Highlights

  • Custom accelerators are expected to account for approximately 50% of all accelerator shipments by 2029.

  • HBM revenue is anticipated to exceed $130 billion within the same timeframe.

  • The Ethernet Network Adapter market in AI compute clusters is projected to grow at a 59 percent Compound Annual Growth rate (CAGR) by 2029.

This brief reflects a timely, fact-based summary of the original blog post. The insights provided are intended for enterprise IT leaders and technical decision-makers looking for relevant market trends and forecasts in the data center sector.

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