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Global Data Center Chip Market Is Expected To Reach $15.64 Billion By 2025

According to the report published by Allied Market Research, the global data center chip market is estimated to reach $15.64 billion by 2025, from $7.71 billion in 2017, registering a CAGR of 9.4% from 2018 to 2025. The report provides an extensive analysis of key segments, drivers & opportunities, market size & forecasts, key investment pockets, and competitive scenario.

Innovations in chip technology, rise in adoption of cloud computing, and favourable 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, increase in number of smart computing devices is expected create numerous opportunities in the industry.

Based on 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 rise 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.

Based on regions, North America contributed to nearly two-fifths of the total share in terms of revenue in 2017 and will maintain its dominance by 2025. This is due to rise in technological advancements and investments in research and development activities for data centers. On the other hand, LAMEA is expected to grow at the highest CAGR of 12.1% from during the forecast period, 2018–2025. This is due to increase in demand from emerging economies such as Brazil and Chile and developed economies including South Africa and UAE. The research also discusses Asia-Pacific and Europe.―Globe Newswire

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