Data Center Semiconductor Market to Surpass $500 Billion by 2029

August 26, 2025
The data center semiconductor market is projected to exceed $500 billion by 2029, driven by global AI demand and compute buildouts, according to a report by Futurum.

The data center semiconductor market is set to exceed $500 billion by 2029, driven by global compute buildouts and AI demand, according to a report by Futurum. The market is projected to grow from approximately $265 billion in 2025 to $583 billion by 2029, reflecting a 21.6% compound annual growth rate (CAGR).

Futurum highlights that the global market, including networking, surged to over $180 billion in 2024, primarily due to the demand for GPUs and XPUs. NVIDIA maintains a dominant position in the GPU market with a 95% share, while Broadcom Inc. leads the XPU market with an 80% share.

The report also notes a shift towards Arm-based CPUs in AI cloud infrastructure, with these architectures powering nearly 11% of data center CPUs in Q1 2025. North America remains the largest regional market, while the Asia-Pacific region is the fastest-growing, driven by China's rapid AI expansion.

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