Austin, Texas, USA, August 25, 2025
Futurum Launches Two Comprehensive Market Models on Data Center Semiconductors, Delivering In-Depth Insights Into the Market and Its Supply Chain
Futurum estimates that the data center market is projected to reach about $265 billion in 2025 and approximately $583 billion by 2029, reflecting a 21.6% 5-year CAGR.
Figure 1: Data Center Semiconductor Market (2022–2029; in USD Billion)
Figure 2: AI Exposure Ranking (in USD Billion)
Ray Wang, Research Director for Semiconductors, Supply Chain, and Emerging Tech Practice, said, “We are witnessing a notable acceleration in global investment in AI compute and data centers, fueled by global hyperscalers’ fast-growing investment, sovereign AI initiatives, and overall increase of AI demand worldwide. The significant demand for AI training and inference will likely persist, driven by increasingly complex reasoning models and the growing adoption and deployment of AI across diverse industries.”
The research reveals several key developments shaping the data center semiconductor market:
- The global data center semiconductor market (including networking) surged to over $180B in 2024, up 65% YoY, driven primarily by GPUs and XPUs. It is projected to reach $265B in 2025 and $583B in 2029, with a 21.6% 5-year CAGR.
- NVIDIA retains over 90% of the GPU market, fueled by its CUDA software ecosystem, hardware performance, and scale-up/scale-out capabilities, while AMD’s share remains limited at ~5%.
- Broadcom leads the XPU market with ~80% share, but competition intensifies as Marvell, MediaTek, Alchip, and GUC aggressively pursue hyperscaler projects.
- Arm-based CPUs are gaining traction in AI cloud infrastructure, powering almost 11% of data centers’ CPU in Q1 2025, close to 20% of hyperscaler deployments, and projected to approach 30% by 2027.
- North America remains the largest regional market at ~$23.1B in Q1 2025, while APAC is the fastest-growing, reaching ~$19.9B on the back of China’s rapid AI expansion.
The Q1 2025 Data Center Semiconductor Spot Check reveals exceptional growth momentum in the global market. Total revenue reached $57.4B in Q1 2025, up from $54.1B in Q4 2024, and the full-year 2024 market surged 65% YoY to $180B. The market is projected to hit $265B in 2025 and an estimated $583B by 2029 at a 21.6% CAGR.
NVIDIA remains the undisputed leader in GPUs, commanding 95% market share and benefiting from unmatched hardware performance, the sticky CUDA ecosystem, and scale-up/scale-out capabilities. AMD, on the other hand, holds a 5% share. On the XPU front, Broadcom dominates with ~80% share, followed by Marvell at 15%, but competition from MediaTek, Alchip, and GUC is intensifying as hyperscalers diversify their compute supply.
The data center CPU market is gradually shifting toward Arm-based architectures, accounting for approximately 18% of the hyperscaler server CPU market and 11% of the overall data center CPU market. This transition is driven by major players like AWS (Graviton), NVIDIA (Grace), and Microsoft (Cobalt), who prioritize performance-per-watt efficiency and deeper integration with accelerators.
Regionally, North America leads with $23.1B in Q1 2025 revenue, driven by record hyperscaler capex from Google, Meta, Microsoft, and Amazon. However, APAC’s 15.2% QoQ growth signals it as the fastest-growing region, with China emerging as the second-largest compute-intensive market globally despite U.S. export controls.
Read more in the full report: Q1 2025 Semiconductor Spot Check Report on the Futurum Intelligence Platform. Non-subscribers, click here for inquiry and access.
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Author Information
Ray Wang is the Research Director for Semiconductors, Supply Chain, and Emerging Technology at Futurum. His coverage focuses on the global semiconductor industry and frontier technologies. He also advises clients on global compute distribution, deployment, and supply chain. In addition to his main coverage and expertise, Wang also specializes in global technology policy, supply chain dynamics, and U.S.-China relations.
He has been quoted or interviewed regularly by leading media outlets across the globe, including CNBC, CNN, MarketWatch, Nikkei Asia, South China Morning Post, Business Insider, Science, Al Jazeera, Fast Company, and TaiwanPlus.
Prior to joining Futurum, Wang worked as an independent semiconductor and technology analyst, advising technology firms and institutional investors on industry development, regulations, and geopolitics. He also held positions at leading consulting firms and think tanks in Washington, D.C., including DGA–Albright Stonebridge Group, the Center for Strategic and International Studies (CSIS), and the Carnegie Endowment for International Peace.
