Merchant GPUs and Custom Accelerators to Reach $446 Billion by 2029, According to Dell'Oro Group

HBM Market to Exceed $130 billion by 2029

REDWOOD CITY, Calif., Aug. 12, 2025 /PRNewswire/ -- According to a newly published forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the global Data Center Accelerator market is projected to reach $446 billion by 2029. Accelerators now account for roughly one third of total data center capex, making them the single largest driver of growth.

"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, fueled by the continued expansion of AI workloads and the buildout of specialized infrastructure," said Baron Fung, Senior Research Director at Dell'Oro Group. "AI accelerators, including both merchant GPUs and custom silicon, are at the heart of this growth cycle, enabling a wide range of AI and domain specific applications. Hyperscale cloud providers are increasingly investing in custom accelerators to optimize performance and reduce cost, while significant engineering efforts are underway to improve accelerator performance per watt from the chip level to the rack level. Supporting technologies such as High Bandwidth Memory (HBM) are also seeing accelerated growth, with HBM revenue outpacing that of accelerators due to rising memory content per chip. In parallel, demand for high-speed network adapters, enabling accelerator-to-accelerator connectivity in scale-out networks," said Fung.

Additional highlights from the Data Center IT Semiconductors and Components 5-Year July 2025 Forecast Report:

• We project that custom accelerators will account for half of all accelerator shipments by 2029, although merchant GPU revenues will continue to dominate.
• The HBM market is forecast to exceed $130 billion by 2029.
• The Ethernet Network Adapter market for supporting back-end networks in AI compute clusters is projected to grow at a 59 percent CAGR by 2029.

About the Report
Dell'Oro Group's Data Center IT Semiconductors and Components 5-Year Forecast Report provides a complete, in-depth analysis of the market with tables covering manufacturers' revenue, and unit shipments for technologies such as Accelerators, CPUs, Memory, Network Interface Cards (NICs), Storage Drives such as HDDs and SSDs. For more information about the report, please contact us at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell'Oro Group