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GPU as a Service Market Report 2019-2025 – A Comprehensive Insights into Current Industry

GPU as a Service Market Report 2019-2025 – A Comprehensive Insights into Current Industry

GPU as a Service (GPUaaS) market is projected to surpass USD 7 billion by 2025. The growth is attributed to a sudden surge in crypto mining and rapid growth in cloud gaming. The growing number of data centers to provide data storage and predictive analytics using deep learning to enterprises across various sectors, which are focusing to tap the growing digital business opportunities is driving the market growth. Prominent cloud service providers including Microsoft and Amazon are partnering with GPU providers, such as NVIDIA and Intel, to provide deep learning specific GPUaaS to end-use sectors. For instance, in November 2017, Amazon Web Services launched AWS DeepLens AI Dev Kit running deep learning algorithms, which uses the Intel Deep Learning Deployment Toolkit (Intel DL Deployment Toolkit) and clDNN library on Intel GPU. Additionally, in March 2018, Microsoft launched WinML AI framework for Windows, demonstrating computer vision capabilities, which run on Intel's GPU.

The increasing demand to provide applications, such as video editing, graphic design, and image processing through the cloud, is driving the GPUaaS market. Major cloud providers and GPU providers offering a pay-per-subscription pricing model to end-users to run high-end graphic applications through a web browser are contributing to the market growth. GPUaaS market players provide services through SaaS, IaaS, and PaaS models to end-use enterprises for several purposes such as real-time data analysis, predictive analytics, and product designing.

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The increased demand for GPU systems from crypto miners is also proliferating the market growth. GPUaaS market players are strategically developing customized products for miners, providing attractive deals & offers for gamers and other customers. For instance, AMD Group developed Radeon Packs, under which gamers can obtain a discount of up to USD 400 if they buy Vega GPU along with the complementary hardware such as high-end gaming monitors. If a consumer only buys Vega GPU, the price of the card increases by USD 100. Similarly, NVIDIA also launched its new artificial intelligence, gaming, automotive, and professional visualization solutions for long-term growth.

The public cloud segment in the deployment model held the largest market share in 2018 and is anticipated to dominate the market share over the forecast timeline due to the highest level of efficiency in terms of shared resources. In a public cloud environment, all the software, hardware, and other supporting infrastructure are owned & managed by the cloud provider. Some of the typical benefits of a public cloud model include lower costs, lower maintenance, high reliability, and near-unlimited scalability. Public cloud allows users to easily add or reduce the capacity and is accessible from internet-connected devices.

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The Asia Pacific GPUaaS market is projected to grow at a CAGR of over 40% during the forecast period. The growing gaming market and supportive government investments to support the designing & manufacturing enterprises are fueling the market growth in the region. The rising internet penetration coupled with the proliferation of smart devices and increasing spend on gaming is transforming the region as a potential market for cloud gaming over the forecast timeline. For instance, China, Japan, and South Korea generated combined gaming revenue of over USD 58 billion in 2018 and were among the top four contributors to the gaming market.

The prominent GPU providers, such as Intel, AMD, and NVIDIA, are strategically collaborating & partnering with cloud service providers to enhance GPUaaS for end-users and hold a significant market share in the competitive GPUaaS market. GPUaaS market players are developing specific GPUs for several purposes such as deep learning, crypto mining, and cloud gaming. Additionally, this enables them to expand their existing portfolio and increase their geographical reach. For instance, in March 2019, Google launched Stadia cloud gaming services at the Game Developers Conference (GDC) in San Francisco. Stadia will stream games from the cloud to the Chromecast, Chrome browser, and Pixel devices, in the U.S., Canada, the UK, and Europe.

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