“The server and storage system component market is poised for an 11% growth for full-year 2023, primarily propelled by accelerators. Excluding accelerators, a 27% decline in revenue is forecasted, attributed to reduced demand resulting from inventory adjustments by system vendors and hyperscale cloud service providers for general-purpose computing,” says Dell’Oro’s Baron Fung,
“looking ahead to 2024, we anticipate strong double-digit growth in accelerator revenue. Moreover, our forecasts indicate a comprehensive recovery in the market across various categories, including CPU, memory, storage drives, and network interface cards (NICs), as vendors increase their inventories in anticipation of healthier server demand. Alongside the unit growth of these component categories, we expect pricing to improve in tandem with higher demand and the transition to the next-generation server platforms,” explained Fung.