Hardware Acceleration Market Research Report - Global Forecast till 2027

Hardware Acceleration Market Research Report: by Type (Graphics Processing Unit, Video Processing Unit, AI Accelerator, Regular Expression accelerator, Cryptographic Accelerator and others), by Application (Deep Learning Training, Public Cloud Inference, Enterprise Inference and others), by End User (Information Technology and Telecommunication, BFSI, Retail, Hospitality, Logistics, Automotive, Healthcare, Energy and others) and by Region (North America, Europe, Asia-Pacific, Middle East and Africa, Central and South America) - Forecas...

ID: MRFR/SEM/6777-HCR | February 2021 | Region: Global | 111 pages

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Hardware Acceleration Market Synopsis

The Hardware acceleration is specially built for the specific task of a program that enables the user to offset those tasks for this Hardware acceleration. The Hardware acceleration was specially built for the CPU optimization and to reduce the burden for the CPU thereby improving the overall system performance. Such benefitting factors of Hardware acceleration propel its adoption across the market verticals and significant organizations. Without the aid of the Hardware accelerations, the CPUs tend to get more tasks and therefore affect the battery performance and generate more heat during the process. Therefore, the manufacturers are increasingly focused on integrating the hardware accelerations and other GPU accelerations to enhance the system performance. Moreover, the increasing prevalence of smart devices and the increasing demand for faster data processing are considered as the major growth stimulating factors of the Hardware Acceleration market. The Hardware Acceleration Market is expected to grow from USD 3.12 billion in 2018 to USD ~50 billion by 2025, at a CAGR of ~49% during the forecast period.


COVID 19 Analysis:


The outbreak of COVID 19 has affected several business processes due to the stringent regulations imposed by the regulatory bodies present across the globe. However, the data have been generated in large amounts in the industrial verticals with the increasing number of data applications. Such factors have propelled the Hardware acceleration market demand during the pandemic. On the other hand, the declining production and manufacturing rate across the industrial verticals have significantly reduced the deployment of hardware acceleration, this factor has affected the overall growth of the Hardware acceleration market negatively. Therefore the COVID has impacted the Hardware Acceleration market growth moderately.


Market Dynamics:


Market Drivers:


The potential benefits of the Hardware acceleration such as improved performance, smoother running of application at reduced time, CPU optimization which leads to improved system performance, allowing the user to perform multiple tasks with better performance, and so on. Such factors are increasing the overall growth of the Hardware Acceleration Industry. 


The emerging battery-powered devices and the requirement for battery optimization are the keys in recent times. Such factors have propelled the manufacturers to include Hardware acceleration in smart devices. On the other hand, in recent times, the websites are fancier and contain many graphical effects for customer retention, such websites intensively utilize 3D graphics and they are highly benefitted from GPU hardware acceleration.


Market Opportunities:


The advancing technologies in the informal sectors and video and imaging analytics sectors, innovation in automated vehicles, and AI robotics have impacted the demand for hardware acceleration and are expected to continue to aid the overall growth of the Hardware Acceleration Industry. On the other hand, the increasing prevalence of drones, automated vehicles across the globe are also presenting lucrative opportunities for the overall growth of the Hardware acceleration market.


With the increasing number of data applications and the increasing data volumes generated every day in the industrial sectors from the varied sources in the form of videos and images, processing and managing these data are also crucial. Such factors have impacted the Hardware acceleration market growth in recent years and are expected to aid the growth further.


Market Restraints:


The inclusion of the additional hardware for the specific tasks adds up to the manufacturing costs and the cost of ownership as well. Moreover, the development costs and the silicon costs are increasing which are considered as the major restraining factors of the Hardware Acceleration Industry.


Some of the drawbacks in the data processing, like, instead of enhancing the performance, some accelerators tend to reduce the performance of the system because of processing the higher resolution and colors. The acceleration of the software affects the performance of the machine. Such drawbacks are expected to hinder the overall growth of the Hardware acceleration industry.


Market Challenges:


The lack of technical expertise in the market regarding the design and integration of the technologies is considered as the major challenge for the overall growth of the Hardware Acceleration Industry.


The incompatibility in terms of the hardware acceleration present in the system might not be suitable for the specific application or specific video encoding, which might require the user to purchase the hardware that is suitable for the tasks. Such factors are considered as the major challenge in the Hardware Acceleration Industry.


Cumulative Growth Analysis:


The advent of AI video analytics which is utilized to analyze the audio and video files with the help of computer software to determine the objects, attributes, events and immediately triggers the alarm when it detects the trespassers breaking the rule imparted on the software solution. Such applications require the continuous monitoring and processing of data, including behavioral analytics, self-learning and other require observations on the various characteristics and patterns. Such applications intensively utilize Hardware acceleration for the quick and efficient processing of data and they are highly latency-sensitive. Therefore the market value of the Hardware Acceleration market was at USD 3.12 billion in 2018 and it is expected to surpass the market value of over USD 50 billion by the year 2025 while registering a CAGR of 49% during the forecast period. This estimated growth of the Hardware acceleration market was highly influenced by the innovation in AI robotics, autonomous vehicles, increasing utilization of drones, smart appliances, and significant IoT-based industrial devices. 


Value Chain Analysis:


The Hardware acceleration technologies perform certain tasks that are required in the computing and data analytics sectors such as higher quality playback and quality sound recording, clear higher-definition images compared to the situation when the software runs on the CPU. Therefore the Hardware acceleration is designed for the specific task and to carry out them in an efficient and optimized way. For instance, for the heavy arithmetic calculations and special tasks, the hardware accelerations assign the GPU while freeing the CPU, or allocating the CPU for other operations. Such beneficiary values of Hardware Acceleration have improved the productivity and the user experience overall. These factors are considered as the primary factors of Hardware acceleration market growth. Another key growth-stimulating factor such as the increasing prevalence of smartphones and computers, with the increasing production of these devices, is propelling the overall growth of the Hardware Acceleration market. With the expansion of end-user industries such as information technology, telecommunication, BFSI, retail, hospitality, logistics, automotive, energy, healthcare, and much more and the continuous growth of these end-user industries are aiding the overall growth of the Hardware acceleration market. 


Segment Overview:

Based on Type:


  • Graphics Processing Unit

  • Video Processing unit

  • AI accelerator

  • Regular expression accelerator

  • Cryptographic accelerator

  • Others


Based on Application:


  • Deep learning training

  • Public cloud inference

  • Enterprise inference 

  • Others


Based on End-user Applications:


  • Information technology

  • Telecommunication

  • BFSI

  • Retail

  • Hospitality

  • Logistics

  • Automotive

  • Healthcare

  • Energy

  • Others


Regional Analysis:


North America is currently holding the highest market share regarding the Hardware acceleration market owing to the trend of immediate adoption of novel technologies. The countries such as the US, Germany, UK have already adopted the hardware accelerators for better performance. Moreover, there are a few numbers of market players such as Xilinx, Intel, NVIDIA, and other prominent players who are supporting the overall growth of the Hardware Acceleration market. On the other hand, Asia-pacific is expected to grow with a steady CAGR as there is an increasing number of semi-conductors and IT sectors across the region.  


European countries are considered as the second largest market shareholder in the hardware acceleration market owing to the increasing adoption of advanced technologies such as AI, machine learning, and IoT-based systems. The increasing demand for productivity and efficiency in performance are some of the key factors that propel the Hardware acceleration market growth. Moreover, the spurring rise in the telecommunication sectors and information technology sectors are fuelling the overall growth of the Hardware Acceleration market.


Competitive Landscape:


  • NVIDIA Corporation (US)

  • Intel Corporation (US)

  • Advanced Micro Devices, Inc. (US)

  • Achronix Semiconductor (US)

  • Oracle Corporation (US)

  • Xilinx, Inc. (US)

  • IBM Corporation (US)

  • Hewlett Packard Enterprise Company (US)

  • Dell (US)

  • Lenovo Group Limited (China)

  • Fujitsu Ltd (Japan)

  • Cisco Systems, Inc. (US)

  • VMware, Inc. (US)

  • Enyx (France)HAX (US)

  • Revvx (India)

  • AlphaLab Gear (US)

  • HWTrek (Taiwan)

  • Wazer (China)

  • Teradici (Canada)


Recent Developments:


Recently, one of the leading players, NVidia, has introduced the encoder chip, named NVENC, which is primarily designed for recording and streaming. This hardware acceleration doesn’t affect the performance of the games.


In the year 2018, NVIDIA has introduced an open-source GPU acceleration platform which is specially designed for data science and machine learning for large enterprises and organizations to analyze a humongous amount of data and to make data-driven decisions, business predictions at unprecedented speeds. This GPU acceleration is considered to offer the accurate prediction of credit card fraud, analyzing the customer purchasing behavior, and so on.


Report Overview:


This report has covered:

  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segment Overview

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments

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Frequently Asked Questions (FAQ) :

The hardware acceleration market is expected to expand at 49% CAGR.

The hardware acceleration market is anticipated to attain a valuation of USD 50 Bn.

Innovation in self-driving vehicles, AI robotics, drones, industrial IoT, and smart appliances are anticipated to drive market growth.

The high cost of the technology is assessed to check market expansion rate.

The type-based segments of the hardware acceleration market are cryptographic accelerator, graphics processing unit, AI accelerator, video processing unit, regular expression accelerator, and others