Global Data Center Chip Market Size to worth USD 41.5 Billion by 2033: Market Statistics Report

Global Data Center Chip Market Size to worth USD 41.5 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Data Center Chip Market Size is Expected to Grow from USD 13.2 Billion in 2023 to USD 41.5 Billion by 2033, at a CAGR of 12.14% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Data Center Chip Market Size, Share, and COVID-19 Impact Analysis, By Chip Type (Central Processing Unit (CPU), Graphics Processing Unit (GPU), Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), and Others), By Data Center Type (Small & Medium Data Centers and Large Data Centers), By End-user (BFSI, Healthcare, Retail, Telecommunication, Media & Entertainment, Energy & Utilities, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

A data center chip is a specialized semiconductor that performs the computational and data processing tasks required by modern data centers. They are designed to handle the high-performance computing and data storage demands of data centers. High-performance computing for applications involving cloud, AI, and big data is made possible by this chip. The growing volume of data generated globally, the planned expenditures in data centers by cloud service providers, and the growing use of cloud-based AI services like cloud computing and AI-as-a-Service are expected to improve the market growth opportunities for data center chips. The growing demand for cloud computing, big data analytics, and integration of artificial intelligence are driving the demand for advanced data center chips, thereby propelling market growth. Further, technological advancements and the need for efficient, scalable, and cost-effective data center infrastructure are driving the market. On the contrary, the increased cost of R&D and the complexity of chip design and manufacturing are impeding market growth.

The central processing unit (CPU) segment is anticipated to hold the largest market share through the forecast period.

Based on the chip type, the data center chip market is classified into central processing unit (CPU), graphics processing unit (GPU), application-specific integrated circuit (ASIC), field-programmable gate array (FPGA), and others. Among these, the central processing unit (CPU) segment is anticipated to hold the largest market share through the forecast period. The increasing demand for high-performance computing, gaming & esports, and the emergence of IoT & edge computing are driving the market in the central processing units (CPUs) segment.

The large data centers segment dominates the market with the largest revenue share during the forecast period.

Based on the data center type, the global data center chip market is divided into small & medium data centers and large data centers. Among these, the large data centers segment dominates the market with the largest revenue share during the forecast period. The need for reliable, scalable chips to manage enormous workloads and support a variety of applications, such as cloud services, big data analytics, and artificial intelligence is driving the market in the large data centers segment.

The telecommunication segment accounted for the largest revenue share of the data center chip market during the projected timeframe.

Based on the end-user, the global data center chip market is divided into BFSI, healthcare, retail, telecommunication, media & entertainment, energy & utilities, and others. Among these, the telecommunication segment accounted for the largest revenue share of the data center chip market during the projected timeframe. Data center chips are used to deliver content and support mobile and cloud services in the telecommunication sector. The enormous need for high-performance data processing and storage systems to facilitate the deployment of 5G infrastructure and large-scale network operations is driving the market.

North America is projected to hold the largest share of the global data center chip market over the forecast period.

North America is projected to hold the largest share of the global data center chip market over the forecast period. The presence of advanced infrastructure and significant investment in data center technology are driving the market growth. Further, the increased demand for data processing by the major tech companies and financial institutions is propelling the market. The U.S. government has set aside $52 billion to increase domestic chip production through laws like the CHIPS Act, which plays a significant role in driving the regional market growth for data center chips.

Asia Pacific is predicted to grow at the fastest CAGR in the data center chip market over the forecast period. Rapid digitization, growing cloud use, and large expenditures in data center infrastructure by governments and tech companies in nations like China, Japan, and India are propelling the market. Further, the region’s growing telecom and IT industries surging the demand for data center chips for handling large-scale data operations are driving the market demand.

Major key players in the data center chip market include Intel Corporation, Advanced Micro Devices (AMD), NVIDIA Corporation, Broadcom Inc., Qualcomm Technologies, Inc., Micron Technology, Inc., Samsung, Marvell Technology Group Ltd., Huawei Technologies Co. Ltd., Cisco Systems, Inc., Arm Limited, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In March 2024, NVIDIA announced that TSMC and Synopsys are going into production with NVIDIA’s computational lithography platform to accelerate manufacturing and push the limits of physics for the next generation of advanced semiconductor chips.

• In November 2023, Broadcom Inc. announced a novel on-chip, neural-network inference engine called NetGNT (Networking General-purpose Neural-network Traffic-analyzer) in its new, software-programmable Trident 5-X12 chip.

• In November 2023, Qualcomm introduced the Qualcomm Cloud AI 100 Ultra, the latest addition to its lineup of cloud artificial intelligence (AI) inference cards, specifically designed to handle generative AI and large language models (LLMs).

• In May 2023, NVIDIA and SoftBank Corp. announced they are collaborating on a pioneering platform for generative AI and 5G/6G applications that is based on the NVIDIA GH200 Grace Hopper Superchip and which SoftBank plans to roll out a new, distributed AI data centers across Japan.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global data center chip market based on the below-mentioned segments:

Global Data Center Chip Market, By Chip Type

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Application-Specific Integrated Circuit (ASIC)
• Field-Programmable Gate Array (FPGA)
• Others

Global Data Center Chip Market, By Data Center Type  

• Small & Medium Data Centers
• Large Data Centers

Global Data Center Chip Market, By End-user   

• BFSI
• Healthcare
• Retail
• Telecommunication
• Media & Entertainment
• Energy & Utilities
• Others

Global Data Center Chip Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa