The data center chip market is driven by factors such as growth in cloud computing, advancement in chip technology, and government regulations regarding the localization of data centers.

WILMINGTON, Del., Nov. 5, 2025 /PRNewswire/ — Allied Market Research published a report, titled, “Data Center Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and Others), Data Center Size (Small & Medium Size and Large Size) and Industry Vertical (BFSI, Manufacturing, Government, IT & Telecom, Retail, Transportation, Energy & Utilities, and Others): Global Opportunity Analysis and Industry Forecast, 2023 – 2032″. According to the report, the global data center chip industry generated $11.7 billion in 2022, and is projected to reach $45.3 billion by 2032, registering a CAGR of 14.6% from 2023 to 2032.

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Over the past few decades, the number of smartphone and smart device users has surged a lot. Therefore, the importance of data centre has increased a lot, with which companies are focusing on changing the way new semiconductor chips are being designed for data center usage.

Prime determinants of growth

The data center chip market is anticipated to expand significantly during the forecast period owing to growth in cloud computing. In addition, advancements in chip technology fuel market growth. Moreover, the data center chip market is anticipated to benefit owing to the increase in smart computing devices and is expected to present enormous opportunities for the market over the forecast period. On the other hand, high data center operational cost is anticipated to restrain the market growth during the forecast period.

Report coverage & details:

Report Coverage	Details
Forecast Period	2022–2032
Base Year	2022
Market Size in 2022	$11.7 billion
Market Size in 2032	$45.3 billion
CAGR	14.6 %
No. of Pages in Report	281
Segments covered	Chip type, data center size, industry vertical, and region
Drivers	Growth in cloud computing Advancements in chip technology Government regulations regarding the localization of data centers
Opportunities	Increase in smart computing devices
Restraints	High data center operational cost

Covid-19 Scenario

The COVID-19 pandemic had a significant impact on the data center chip market. As more individuals switched to remote work and online learning, the need for data center services skyrocketed, resulting in a surge in demand for data center chips.
At the same time, the pandemic affected supply chains and manufacturing operations, causing shortages and delays in the production and delivery of data center chips.
The COVID-19 pandemic affected the growth of the market, owing to the disruption of global supply chains. Many chip makers relied on components and raw materials, and the pandemic caused disruptions in their supplies. This resulted in chip production and delivery delays, as well as increased expenses.

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The GPU segment to maintain its leadership status throughout the forecast period.

Based on chip size, the GPU segment held the highest market share in 2022, accounting for nearly one-third of the global data center chip market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to their parallel processing and can perform many tasks simultaneously. Moreover, the FPGA segment is projected to manifest the highest CAGR of 15.95% from 2023 to 2032, driven by its re-programming nature. In addition, FPGAs are used in a variety of industries such as data centers, aerospace & defense, automotive, medical, and industrial automation. Due to their versatility and programmability FPGAs is an ideal solution for data center infrastructure, where performance, flexibility, and customization are critical.

The large size segment to maintain its leadership status throughout the forecast period.

Based on data center size, the large size segment held the highest market share in 2022, accounting for nearly two-thirds of the global data center chip market revenue and is estimated to maintain its leadership status throughout the forecast period. In addition, the small and medium size segment is projected to manifest the highest CAGR of 15.88% from 2023 to 2032 due to increasing cloud computing and big data analytics. These trends and growth factors present significant opportunities for data center chip providers in the small and medium-sized segment.

The BFSI segment to maintain its leadership status throughout the forecast period.

Based on industry verticals, the BFSI segment held the highest market share in 2022, accounting for more than one-fifth of the global data center chip market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to an increased usage of online and mobile banking services, financial institutions must handle and analyze vast volumes of data in order to ensure secure transactions and avoid fraud. In addition, the energy and utilities segment is projected to manifest the highest CAGR of 19.97% from 2023 to 2032 due to the rise of the Internet of Things (IoT) in the energy and utilities sectors. Moreover, with the increasing adoption of renewable energy sources and the development of smart grid technologies. Renewable energy sources such as wind and solar power require advanced monitoring and control systems that rely on data center chips for processing and analysis. Furthermore, to manage and optimize energy distribution, smart grid technologies such as advanced metering infrastructure (AMI) and distribution automation systems (DAS) require powerful data center chips. These factors collectively create a strong demand for data center chips in the data center chip market.

North America to maintain its dominance by 2032.

Based on region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-third of the global data center chip market revenue, owing to many companies such as Amazon, Microsoft, Google, and Facebook, is the largest consumer of data center chips in North America which are fueling the growth of the market in this region.The Asia-Pacific region is expected to witness the fastest CAGR of 15.02% from 2023 to 2032.

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Leading Market Players: –

ADVANCED MICRO DEVICES, INC.
ARM LIMITED (SOFTBANK GROUP CORP.)
BROADCOM INC.
GLOBALFOUNDRIES INC.
HUAWEI TECHNOLOGIES CO., LTD.
INTEL CORPORATION
NVIDIA CORPORATION
SAMSUNG ELECTRONICS CO. LTD.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
QUALCOMM TECHNOLOGIES, INC.

The report provides a detailed analysis of these key players of the global data center chip market. These players have adopted different strategies such as product launch, product development, partnership, investment, acquisition, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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