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Press Release -- January 25th, 2024
Source: delloro-group

Data Center IT Semiconductor Market to Grow to $286 Billion by 2028, According to Dell’Oro Group

Accelerators to Account for Nearly Half the Total Market

REDWOOD CITY, Calif. – January 24, 2023 – 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 worldwide data center IT semiconductors market, which includes the major components for servers and storage systems, is set to achieve a five-year compound annual growth (CAGR) rate of 25 percent, reaching $286 billion by 2028. We project accelerators, consisting mostly of GPUs, to account for nearly half of the total market.

“The surge in growth of the server and storage semiconductor and component market is attributed to several key factors driving the digital landscape evolution, including the ascendancy of emerging applications such as AI, ongoing digital transformation initiatives, and future edge computing deployments,” said Baron Fung, Senior Research Director at Dell’Oro Group. “In a notable turn of events in 2023, revenues for accelerators surpassed those of CPUs. The gap between accelerator and CPU revenues is predicted to widen further over the next five years as accelerated computing gains traction across diverse domain-specific workloads, ultimately enhancing overall efficiency in data centers,” said Fung.

Additional highlights from the Data Center IT Semiconductors and Components 5-Year January 2024 Forecast Report:

  • CPU revenue growth is expected for moderate growth over the next five years due to reduced demand for general-purpose servers and extended replacement cycles for hyperscalers. The server CPU landscape is diversifying, with compelling choices for the x86 and ARM architectures. The diversity is resulting in innovations, with future generations of CPUs set to increase significantly in core count and will be embedded with accelerators.
  • Memory is anticipated to experience high growth due to increased demand for high-bandwidth memory, while storage drives, including HDDs and flash storage, are projected for robust growth given the proliferation of AI applications could place greater emphasis on data storage.
  • The major Cloud SPs develop their own custom processors, such as CPUs, accelerators, and Smart NICs, as they try to optimize their infrastructure, which could be disruptive to the long-term growth and ecosystem of the market.

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 table 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

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

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