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Microprocessor And Gpu Market Opportunities And Challenges

The global microprocessor and GPU market is estimated to be USD 79.2 billion in 2020 and is projected to reach 112.7 billion by 2025, at a CAGR of 7.3% during the forecast period. The key factors fueling the growth of this market include the demand for consumer electronics, rise in adoption of Internet of Things (IoT)-enabled devices and equipment, and the implementation of cloud-based platforms and server environments during the COVID-19 pandemic.
The microprocessor and GPU market has promising growth potential due to several factors, including the increase in demand for artificial intelligence (AI) and deep learning-based applications, such as supercomputers, amidst COVID-19 pandemic and increase in the adoption of smart factories and industry 4.0. The adoption of remote working practices due to COVID-19 pandemic and growing automotive and electronics industry in China, Japan, South Korea, and India due to high domestic and export demand for consumer electronics and automobiles has led to the growth of microprocessor and GPU market.
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Even, ...
... countries in the North America and Europe region are taking several initiatives to aid the growth of microprocessor and GPU industry. There are several government-initiated programs such as the Industrial Research Assistance Program in Canada, which aim at flourishing the industrial sector in the country and creating growth opportunities for the providers of industrial chipsets and devices in Canada. For instance, in May 2019, Rogers Communications Inc., a Canadian communications company, announced its plan to invest in the Narrowband-Internet of Things (NB-IoT) network technology for the future of IoT devices that generate and receive small volumes of data. Such initiatives are expected to boost the demand for microprocessors in the country.
The x86 architecture is projected to be the largest growing segment of the microprocessor and GPU market, by architecture. Various software and operating systems (OS) such as Disk Operating System (DOS), Linux, Windows, Solaris, Berkeley Software Distribution (BSD), and Mac OS support x86 based hardware. Several developments related to the architecture of these processors have made it possible to fit millions of transistors in small chip sizes, which deliver the required power and energy efficiency and support various network connectivity protocols. This has led to the adoption of x86 architecture-based microprocessors in various applications related to consumer electronics, automotive, healthcare, aerospace and defense, and other such industries.
The on-cloud GPU segment of the microprocessor and GPU market is estimated to grow at highest CAGR during the forecast period, by deployment. The high performance offered by on–cloud GPUs, in addition to the benefit of subscription-based pricing model and low IT infrastructure costs, has boosted the growth of on–cloud GPU based solutions. Additionally, the increasing adoption of virtual GPU as a replacement to virtual CPU infrastructure is further expected to propel the growth of the on–cloud GPU market. The adoption of in-premise GPU across several applications ranging from consumer electronics and datacenter to automotive-based applications has led to the market growth of these GPUs in past years.
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The microprocessor and GPU market in APAC is estimated to grow at higher CAGR in terms of value and volume during the forecast period. The flourishing electronics industry in China, Taiwan, Japan, and India is driving the growth of the microprocessor market. The rising demand for consumer electronic products in the region is expected to increase the adoption of factory automation processes. This is expected to fuel the growth of the market for microprocessors used in various embedded devices, which aid in the automation of factories. The expected evolution of electric vehicles (EV) and hybrid vehicles (HEV) in the APAC region to comply with environmental regulations could lead to an increase in the adoption of microprocessors used in these automotive vehicles to perform various functions related to advanced driver assistance systems (ADAS), semi-autonomous mobility, and infotainment capabilities.
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