“AI will remain the primary driver of data center infrastructure spending, with accelerators accounting for the largest share of the component market,” said Baron Fung, vice president of research at Dell’Oro Group
Dell’Oro group, a market research firm specializing in competitive strategic analysis in telecom, security systems and data centre markets has come up with a report, predicting that the worldwide market for data centre semiconductors and components is poised for substantial growth, reaching $1.8 trillion in 2030.
According to Fung memory storage, CPUs and NICs (network interface cards) will innovate and scale alongside accelerators, while supply-chain constraints will keep memory and storage prices high.
At the same time inference, storage and agentic AI will drive growth across broader component categories. Significant development is also done to improve accelerator performance per watt and reduce cost per token by scaling architecture from the package through the rack level.
The report adds that server and storage components are projected to consume 200GW power over the next five years. However, the component prices for memory and storage are expected to moderate over the forecast period supporting long-term sustainable growth.
NICs will shift towards custom silicon as hyperscalers demand greater efficiency at a lower cost. Moreover NIC growth will increase as front-end demand increases from general purpose servers supporting inference, agentic AI and storage, while scale-out AI networking drives back-end demand.
