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Data Center Chip Market with Statistics and Growth Prediction 2018 to 2025

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Data Center Chip Market with Statistics and Growth Prediction 2018 to 2025

Data Center ChipPress Release

Data Center Chip Market was valued at $7,718.9 million in 2017 and is projected to reach $15,641.1 million by 2025, registering a CAGR of 9.4% from 2018 to 2025. North America was the highest contributor to the global market, with $2,933.2 million in 2017, and is estimated to reach $5,474.4 million by 2025, registering a CAGR of 8.3% during the forecast period.

Innovations in chip technology, rise in adoption of cloud computing, and favorable government regulations regarding localization of data centers facilitate the growth in the market. However, very high costs of operation restrain market growth. On the other hand, the increase in the number of smart computing devices is expected to create numerous opportunities in the industry.

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Based on the chip type, the GPU segment held the major market share, accounting for nearly one-third of the total share in 2017. This segment is estimated to continue its dominance throughout the forecast period. This is due to the increase in parallel processing capabilities along with rising in applications such as artificial intelligence (AI) for carrying out large scale data computations. On the other hand, the FPGA segment would register the highest CAGR of 11.2% from 2018 to 2025, owing to rise in adoption across various verticals for its excellent reprogramming functionality. The report also discusses chip types such as CPU, ASIC, and others.

Graphics processing unit (GPU) segment to maintain a dominant position by 2025

GPU contributed to nearly one-third of the total market share in 2017 and is expected to maintain its dominant position by 2025. This is due to its growth in parallel processing capability and increases in adoption in applications such as artificial intelligence for large scale data computations. However, FPGA is expected to grow at the highest CAGR of 11.2% from 2018 to 2025, owing to rise in adoption across different verticals as it has reprogramming functionality. The report also analyzes chip types including ASIC, CPU, and others.

Large sized data centers to maintain its leadership status during the forecast period

Large sized data centers accounted for more than two-thirds of the total market share in 2017 and will maintain its leadership during the forecast period. This is due to an increase in demand from multinational corporations such as IBM and Microsoft among others and rise in availability of power-saving chips. However, small and medium-sized data centers would register the fastest CAGR of 10.4% from 2018 to 2025, owing to an increase in number of small and medium-size enterprises along with reduced data center chip costs.

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Key market players discussed in the report include Intel Corporation, GlobalFoundries, Advanced Micro Devices Inc., Taiwan Semiconductor Manufacturing Co. Ltd., Samsung Electronics Co. Ltd., Arm Limited (SoftBank Group Corp.), Broadcom, Xilinx, Inc., Huawei Technologies Co. Ltd., and Nvidia Corporation. They have adopted various strategies including expansion, mergers & acquisitions, collaborations, partnerships, and others to gain a strong position in the industry and make an international mark.

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