GRAPHIC PROCESSING UNIT MARKET ANALYSIS

The global graphic processing unit market size was valued at US$ 37.02 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 12% from 2023 to 2030. The major factors driving the growth of this market include constant advancements in intense graphic games, growing popularity of VR and AR, thriving portable electronics and wearable’s market, adoption of artificial intelligence and growing number of gaming laptops & computers. Furthermore, rising emphasis on big data technology to derive actionable business intelligence is anticipated to fuel the growth of this market.

Global Graphic Processing Unit Market: Regional Insights

North America is projected to dominate the global graphic processing unit market over the forecast period. The region is witnessing rise in adoption of GPUs, owing to the presence of major gaming developers. Moreover, the use of graphic technologies in various industries such as education, healthcare, and manufacturing is growing rapidly. In order to cater the growing demand, market players are focused on development of advanced systems. These factors are expected to support growth of the market in North America region.

Europe among other regions is also expected to show significant growth in the global graphic processing unit market over the forecast period. This is due to new cloud gaming market players entering in the regional market to expand their services and enhance gaming experience for gamers through development of new set-top boxes. Moreover, with increasing development of automated cars and EVs in the region, the demand for integrated GPUs is increasing. These factors are further likely to support growth of the market across the region.

Figure 1: Global Graphic Processing Unit Market Share (%), in terms of Value, By Region, 2022

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Global Graphic Processing Unit Market Drivers:

Growing developments in graphic-based games to fuel the market growth

The evolution of graphic games continues to increase. Numerous games have been developed in past 50 years, which now can work with sophisticated AI, complex physical simulations, and procedural generation due to enhancement in GPU systems. With increasing demand for gaming industry, the development of heavy graphic games is on the constant rise. These games need high memory graphic card. As a result, the demand for graphic processing units is increasing all over the world. Hence, with growing advancements in high graphic games, the global graphic processing unit market is anticipated to gain major growth in the coming future.

Growing popularity of virtual reality (VR) and augmented reality (AR) to drive the market growth

Due to several advancements in graphic technology, and other related technologies, it has become possible to achieve true virtual reality or augmented reality, which further creates promising user experience. Several companies are focused on development of VR solutions, to fundamentally reshape the computing experience for people. As a result, the development of advanced GPU systems for VR and AR, which is again creating a deep experience appealing to the film and computer industries, consumers, as well as developers. Thus, growing incorporation of VR and AR in different applications is expected to boost growth of the global graphic processing unit market over the forecast period.

Global Graphic Processing Unit Market Opportunities:

Growing adoption of portable electronics and wearable devices to offer ample of growth opportunities in the global graphic processing unit market over the forecast period. The portable electronics and wearables industry are booming currently, with availability of various products including smart watches, laptops, smartphones, and other communication technologies needing GPU systems. The sales of smart watches and fitness trackers is likely to double in the coming years. With growing interest in 3D image processing in electronic devices with the use of advanced GPU systems is creating growth opportunities in the market.

Emergence of Internet of Things (IoT) to generate multiple business opportunities in the global graphic processing unit market during the forecast period. In order to facilitate IoT technologies, GPU is a crucial system. It features rich interface of IoT that allows omnipresent user experience in several industries. GPUs have various applications in IoT including dynamic 3D user interfaces and 3D graphics for user interface composite processing. Thus, with growing use of IoT, the global graphic processing unit market is likely to witness multiple growth opportunities in the coming future.

Global Graphic Processing Unit Market Trends:

Growing demand for servers is a major trend in the market

With the proliferation of cloud technology in different end user industries, demand for servers is increasing rapidly. Market players are thus involved in offering various solutions through partnerships and collaborations. For instance, KDDI, a leading telecom company in Japan and NVIDIA partnered for offering GeForce Now game-streaming services to consumers. The company partnered with NVIDIA for delivering PC games over a 5G network and low-latency broadband for gamers in the country. This trend in thus expected to support growth of the global graphic processing unit market over the forecast period.

Increasing adoption of computing products is also trending in the market

Computing products such as laptops or personal computers are increasingly being adopted all over the world. The demand for these products is increasing due to various factors such as growing gaming industry, and digitization of education systems among others. The demand for graphics and computing applications is increasing along with expansion of advanced technologies such as artificial intelligence. As a result, the demand for GPU systems on the rise. This trend is expected to continue in the global graphic processing unit market over the forecast future.

Global Graphic Processing Unit Market Restraints:

Incapability of integrated GPUs in facilitative intensive graphic designing software

The use of integrated GPU is significantly high in portable electronic devices as well as wearable devices such as tablets, smartphones, handheld gaming consoles, and others. These devices are smaller in size and require lesser power. Such devices are mostly used for HD image processing 2D or 3D gaming. However, the GPUs of these devices are incapable of supporting AI platforms, play stations, supercomputers, and AR & VR systems requiring intense graphic computing. This factor in turn impacts adoption of integrated GPU systems, which is expected to hinder growth of the market. However, with increasing R&D by market players for facilitating the development of advanced integrated GPUs is likely to support the market growth.

High cost of advanced GPU systems to hinder the market growth

Applications such as intense graphic gaming, graphic designing, video editing and others require heavily advanced GPU systems. These systems make the gaming seamless and efficient. However, cost of these graphic processing units is significantly high due to which adoption of these systems is hindered on a large scale. This factor is thus expected to hamper growth of the global graphic processing unit market over the forecast period.

Figure 2: Global Graphic Processing Unit Market Share (%), in terms of Value, By Type, 2022

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Global Graphic Processing Unit Market Segmentation:

The global graphic processing unit market report is segmented into Type, Device, and Industry Vertical.

Based on Type, the market is segmented into Dedicated, Integrated, and Hybrid. Out of which, Dedicated is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for dedicated GPUs for content creation and gaming. These applications mostly need discrete graphics. Several companies are focused on development of advanced dedicated GPU systems. Thus, the segment is anticipated to show substantial growth in the global graphic processing unit market over the forecast period.

Integrated segment is also expected to witness significant growth in the near future and this is owing to the growing R&D activities for the development of integrated GPUs capable of supporting high graphic processing for AI platforms, VR systems, and supercomputers. Along with this the growing demand for IoT systems is also likely to support growth of this segment in the global graphic processing unit market in the coming future.

Based on Device, the market is segmented into Computer, Tablet, Smartphone, Gaming Console, Television, and Others. Out of which, Computer is expected to dominate the global market over the forecast period and this is attributed to the growing applications of computers across various industries. Computers have applications across industries such as defense & intelligence, industrial, healthcare, and IT & telecommunication among others. With increasing development of AI platforms, the demand for computers is increasing. These factors are in turn likely to fuel growth of this segment in the global market.

Tablet segment is also expected to witness significant growth in the near future and this is owing to the increasing demand and sales of tables driving the adoption of GPU. Regulations from governments around the world are implementing use of tablets in educational institutions. The growing use of hybrid-tablets in various companies is also driving the sales of tablets. The segment is therefore anticipated to gain major growth in the near future.

Based on Industry Vertical, the market is segmented into Electronics, IT & Telecommunication, Defense & Intelligence, Media & Entertainment, Others. Out of which, Electronics is expected to dominate the global market over the forecast period and this is attributed to the constantly rising demand for consumer electronics around the world. Consumer electronics includes wearable devices, smartphones, and televisions among others. With changing lifestyle choices and disposable incomes, the demand for these electronic devices is increasing all over the world. As a result, the segment is anticipated to gain major growth in the coming years.

IT & Telecommunication segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of advanced GPU chips for building software-defined infrastructure. This is to cater the growing demand for increased voluminous data processing, increased memory, and to offer smart services to the customers. Thus, market players are launching partnerships and advanced products in the market. The segment is therefore likely to gain traction in the global graphic processing unit market in the coming future.  

Global Graphic Processing Unit Market: Key Developments

In January 2020, Advanced Micro Devices, Inc. introduced a novel mainstream graphics processing unit, AMD Radeon 5600 series GPUs that are designed for hitting low-power and low-cost targets.

In April 2020, Dassault Systemes and Aden Group, one of the biggest integrated facility management group in Asia, announced partnership to collaboratively develop a turnkey, Akila Care, a ready-to-use infectious disease medical solution.

In February 2020, Dassault Systemes introduced 3DEXPERIENCE WORKS commercial offers to offer SolidWorks users with an automated, integrated, and connected way of streamlining the creative process, and save money and time.

In January 2022, Microsoft revealed that it will be acquiring Activision Blizzard Inc., a leading interactive entertainment content publisher and game developer.

Global Graphic Processing Unit Market: Key Companies Insights

The global graphic processing unit market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global graphic processing unit market are IBM Corporation, Intel Corporation, NVIDIA Corporation, Samsung Electronics Co., Ltd., Qualcomm Incorporated, Advanced Micro Devices, Inc., Dassault Systems, Inc., Google, Inc., Siemens AG, and Sony Corporation

*Definition: A Graphic Processing Unit is a microprocessor that specializes in image processing on personal computers, workstations, video game consoles and mobile devices (such as tablets and smartphones). It’s also known as a visual processor or display core.