Data Processing Unit Market Expected to Reach $5.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Data Processing Unit Market”, the data processing unit market was valued at $553.96 million in 2021, and is estimated to reach $5.5 billion by 2031, growing at a CAGR of 26.9% from 2022 to 2031.

A data processing unit (DPU) is a programmable processor that helps move data around these data centers. DPUs enable more efficient storage and free up the CPU to focus on processing. The DPU offloads networking and communication tasks from the CPU. It combines processing cores with hardware accelerator blocks and a high-performance network interface to handle data-centric workloads. This enables the DPU to make sure the right data goes to the right place in the right format quickly.

A DPU processor is system on a chip (SOC) that combines three key elements. First, data processing units typically have a multi-core CPU that is software programmable. The second element is a high-performance network interface that enables the DPU to parse, process, and efficiently move data through the network. The third element is a rich set of flexible, programmable acceleration engines that offload network and storage functions from the CPU to the DPU. DPUs are often integrated with smart network interface cards (NICs) offering powerful network data processing.

According to data processing unit market analysis, the FPGA-based segment was the highest contributor in the market in 2021. The colocation and hyperscale segments collectively accounted for around 76.7% market share in 2021. The outbreak of the COVID-19 has significantly impacted the growth of the data processing unit market size.

Moreover, the rapid increase in demand for DPU-based smart NICs to reduce overloads on CPU cores in data centers have driven the data processing unit market growth. The key market players profiled in the report include Intel Corporation, Marvell Technology, NVIDIA Corporation (Mellanox Technologies), Kalray, Broadcom Corp, Advanced Micro Devices, Inc. (Pensando Systems Inc.), Fungible, Inc. and Resnics /Yisixin Technology (Shanghai) Co., Ltd. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the data processing unit market.

Key Findings of the Study

• In 2021, the hyperscale segment was the major revenue contributor to the data processing unit industry, and is projected to grow at a notable CAGR of 24.94% during the forecast period.
• The FPGA-based and SOC-based segments together accounted for around 84.5% of the data processing unit market trends in 2021.
• The IT and telecom segment is projected to growth at a CAGR of 28.91% during the forecast period.
• North America contributed for the major data processing unit market share, accounting for more than 39.2% share in 2021.

Key players profiled in the report include Intel Corporation, Marvell Technology, NVIDIA Corporation (Mellanox Technologies), Kalray, Broadcom Corp, Advanced Micro Devices, Inc. (Pensando Systems Inc.), Fungible, inc. and Resnics /Yisixin Technology (Shanghai) Co., Ltd. Market players have adopted various strategies, such as product launch, collaboration& partnership, joint venture, and acquisition to expand their foothold in the market.