The global accelerator card market has registered significant competition between the top providers of accelerator cards. The growth of these players majorly depends upon the market conditions, industrial requirements, technological advancements, and industry development. Thus, it becomes necessary for the vendors to integrate state-of-the-art technology and develop cost-effective solutions for users to maintain their market position and gain a competitive advantage. Thus, the players in the market are constantly focusing on research & development and product expansion strategies to maintain their stronghold on the market.
NVIDIA Corporation, Intel Corporation, Advanced Micro Devices Inc., Xilinx Inc., and Achronix Semiconductor Corporation are some of the prominent players in the market. The increasing cloud computing market and growing demand for AI and HPC in data centers are increasing the demand for accelerator cards. Apart from technological innovations and development of the existing product portfolios, these players have entered into various partnerships and strategic alliances with local companies to expand their geographic presence.
NVIDIA is one of the leading players in the accelerator card market that engages in visual computing. It operates through GPU and Tegra Processor segments. The GPU segment consists of components such as GeForce, GeForce Now, Quadro, Tesla, DGX. The Tegra Processor segment consists of components such as Tegra processors, DRIVE, SHIELD, and Jetson TX2. Additionally, the company focuses on expanding into the existing markets by strong customer and channel partner relationships.
Intel Corporation is also one of the prominent players in the global accelerator card market. The company specializes in semiconductor design and manufacturing, artificial intelligence, autonomous driving, and non-volatile memory solutions. It operates through a number of business segments, namely client computing group, data center group, Internet of Things group, non-volatile memory solutions group, and programmable solutions segment. It has a strong presence across the globe. The company strongly focuses on partnerships and new product developments to increase its business and customer base worldwide.
Advanced Micro Devices Inc. operates through two business segments, namely computing and graphics segment and the enterprise, embedded and semi-custom segment. The computing and graphics segment include notebook and desktop processors and chipsets, professional GPUs, and licensing portions of the intellectual property (IP) portfolio. The enterprise embedded and semi-custom segment includes development services, server, embedded processors, and semi-custom system-on-chip (SoC) components and technology for game consoles. The company aims at investing in acquisitions to strengthen its business and gain a competitive advantage.
Xilinx Inc. designs and develops programmable devices and associated technologies, including software design tools, printed circuit boards, adaptive compute acceleration platform (ACAP), and integrated circuits (ICs), in the form of programmable logic devices (PLDs). The company focuses on the innovation and development of its products to provide its customers with cost-effective and energy-efficient products.
Achronix Semiconductor Corporation is a provider of high-performance FPGA and embedded FPGA (eFPGA) solutions. The offerings include programmable FPGA fabrics, discrete high-performance and high-density FPGAs with hardwired system-level blocks, data center, and HPC hardware accelerator boards, and many more products. The company invests in R&D for delivering innovations in the programmable logic segment that set the industry standard for performance, power, and cost leadership.
THREAT OF NEW ENTRANTS
The global accelerator card market is experiencing high growth. The entry barriers to new players in this market are high due to the strong customer base of existing key players and high market share. Developing accelerator cards requires high investments for the supply of raw materials and manufacturing chips. Furthermore, high technical expertise is needed to understand complex accelerator card designing technologies. Due to these factors, the new players in the global accelerator card market possess a low threat to the existing market players.
BARGAINING POWER OF SUPPLIERS
The majority of the consumer electronics devices manufacturing companies are adopting accelerator cards to increase the computing capabilities of the devices. The accelerator card providers are under continuous pressure to design chips with enhanced capabilities at lower costs.
The presence of raw material suppliers for accelerator cards is relatively high. Furthermore, they offer products that are very easy to replicate. Due to this, there is minimal product differentiation. Thus, with the presence of a large number of raw material suppliers and the minimal switching costs due to the adoption of low-cost raw materials by accelerator card manufacturers, the bargaining power of suppliers is expected to be low.
THREAT OF SUBSTITUTES
The threat of substitutes is low in the global accelerator card market. The accelerator cards are complex to design and require high technical expertise due to which the availability of close substitutes is low. However, product differentiation is moderate; therefore, the companies are investing heavily to leverage advanced capabilities such as artificial intelligence and offer differentiated and enhanced products to the consumers.
BARGAINING POWER OF BUYERS
Globally, the buyer concentration of accelerator cards is moderate. The buyers in the global accelerator card market include IT & telecommunication companies, consumer electronics manufacturers, healthcare, transportation, and media and entertainment. Technical expertise among the buyers is moderate due to the lack of technology awareness. However, the buyers are price sensitive and largely opt for outsourcing services instead of in-house manufacturing. The above factors, coupled with moderate brand identity, result in the moderate bargaining power of buyers.
INTENSITY OF RIVALRY
The market is expected to experience high competition among the existing players in the global accelerator card market. The global market has witnessed increased demand for high computing capability chips consuming low power. For maintaining a competitive advantage, companies are spending a significant share of their revenue on research and development to offer additional capabilities in their product offerings. Also, the global market poses moderate barriers to entry. Due to the above factors, the rivalry among the competitors is expected to be high.
