Narrative: Datacenter AI Processor Chips and Accelerators Q1/25 Update – The Rapid March Continues

Q1 2025 brought challenges to the global economy and semiconductor industry; TechInsights' latest forecast reflects tariffs and rising trade tensions.

The datacenter AI processor chip and accelerator market continues to grow. The market will grow at a CAGR of 23% to reach $457 billion by 2030. Generative AI use cases will continue to be the key market driver. GPU accelerators will continue to be the largest market segment, having reached $129 billion in 2024, a 2.5X increase over 2023. CPU usage is expected to be driven by the rise of Arm in accelerated servers, and the market will grow at a CAGR of 12% to $12 billion by 2030. GPUs will continue their dominance, reaching $342 billion by 2030. The AI ASIC accelerator market segment will continue to be primarily driven by the hyperscalers and CSPs, as well as the inference market. It will reach $104 billion by 2030. Overall, we remain bullish on the market prospects and expect it to continue its healthy growth.