AI data center chip to grow to $151B market in 2029, says Omdia
While the growth of GPUs and other accelerator chips for AI in the cloud and data center will eventually slow down, but the presence of such solutions will significantly influence the data center industry.
According to the latest edition of Omdia's AI Processors for Cloud and the Data Center Forecast, the market has grown from just under $10 billion in 2022 to $78 billion this year and is expected to reach $151 billion in 2029.
The research firm noted that there will be a “distinct inflection point” in 2026, with a shift from technology adoption to a change in demand for AI applications as the driver of growth.
"The most significant change is the upward revision of the underlying data center semiconductor market driven by growth in AI,” said Alexander Harrowell, Omdia's principal analyst for advanced computing. “Beyond that, we're noticing hyperscalers' custom chips, especially Google's TPUs, starting to capture market share from GPUs. We expect them to be increasingly important."
For related articles, visit the Data Center Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
