European Data Center GPU Market Set to Surge to $82.2 Billion by 2034, Driven by AI and High-Performance Computing Demand

DUBLIN—(BUSINESS WIRE)—ResearchAndMarkets.com has added a new report to its collection, titled "Europe Data Center GPUs Market: Focus on Product, Application, and Country - Analysis and Forecast, 2024-2034." According to this report, the European data center GPU market is expected to surge to $82.2 billion by 2034, up from $10.6 billion in 2024. This substantial growth represents a compound annual growth rate (CAGR) of 22.75% over the forecast period from 2024 to 2034. The primary drivers behind this rapid expansion are the increasing demands for high-performance computing (HPC) to support advanced technologies such as artificial intelligence (AI), deep learning, and big data analytics. These computational tasks require immense processing power and efficient parallel computing capabilities, which GPUs excel at providing. As businesses and research institutions in Europe continue to invest in AI and HPC, the need for powerful and specialized hardware, including GPUs, will only intensify. The report also highlights the significant role that data centers play in accommodating these technological advancements. With the proliferation of cloud services and the internet of things (IoT), the volume of data being generated and processed is rising exponentially. Data centers equipped with GPUs can handle this influx of data much more effectively, making them indispensable for a wide range of industries, including healthcare, automotive, and finance. In terms of product segments, the market is broadly categorized into discrete GPUs, integrated GPUs, and GPU accelerators. Discrete GPUs are expected to dominate due to their superior performance and flexibility. These devices are particularly suited for complex AI and deep learning applications, where high computational throughput is crucial. Integrated GPUs, while less powerful, offer cost-effective solutions and are becoming more sophisticated, catering to scenarios where moderate performance is sufficient. GPU accelerators, designed to work alongside CPUs to boost computational efficiency, are also gaining traction, especially in HPC environments. On the application front, AI and machine learning are the leading sectors, followed by scientific computing and data analytics. AI applications, ranging from natural language processing to autonomous vehicle systems, are driving the demand for GPUs. Scientific computing, which includes areas like weather forecasting and genetic research, also benefits greatly from GPU acceleration due to the massive amounts of data involved. Similarly, data analytics, essential for business intelligence and decision-making, requires the robust processing power that GPUs provide. Country-wise, Germany, France, and the UK are anticipated to be the major contributors to the market's growth. These countries have robust tech ecosystems and significant investments in AI and HPC. Germany, known for its strong manufacturing and automotive industries, is leveraging GPUs to enhance production processes and develop autonomous vehicles. France and the UK, with their advanced research and development sectors, are making substantial investments in AI-driven technologies and infrastructure to stay competitive globally. The report further notes that the increasing adoption of edge computing and the deployment of 5G networks will further fuel the demand for GPUs. Edge computing allows data to be processed closer to where it is generated, reducing latency and improving real-time performance. With 5G enabling faster data transfer rates and lower latency, the integration of edge computing and high-performance GPUs is set to revolutionize various industries by facilitating seamless and immediate data processing. However, the market faces challenges such as the high cost of GPUs, the need for specialized expertise in deploying and managing GPU-based systems, and ongoing competition from alternative hardware solutions like FPGAs and ASICs. Despite these hurdles, the report remains optimistic about the market's future, emphasizing the critical role that GPUs will play in shaping the next generation of computing technologies. In conclusion, the European data center GPU market is on the verge of significant growth, driven by the rising demand for AI, HPC, and data analytics. With key players investing heavily in these sectors and technological advancements continuing to push boundaries, the market is well-positioned to capitalize on these trends and achieve substantial gains over the next decade.