Global Graphic Processing Unit (GPU) Market Size & Growth Trends Analysis Report

Growth Factors

The market of graphic processing units, or GPUs, has expanded due to multiple factors. Most significantly, the growth of the gaming sector has been crucial in boosting GPU sales. Gamers look for high-performance GPUs to ensure fluid gameplay and realistic images as video games grow more graphically demanding and immersive. Due to the ongoing need for cutting-edge GPUs, there is competition in the market and regular hardware upgrades among gamers.

The expansion of AI and machine learning applications is another crucial driver for the GPU growth of this market. GPUs are excellent at parallel processing, which makes them ideal for boosting AI and ML applications like deep learning training. The need for GPUs has increased, notably in data centres and high-performance computing settings, as companies across the board adopt AI-driven solutions.

In addition, the growth of data centres and cloud computing has fueled the GPU industry. In order to conduct AI workloads and other expensive operations in data centres, GPUs are essential for expediting data processing and managing complicated computations. The need for GPUs to power these infrastructures has expanded as a result of the rising demand for data analysis, storage, and AI-driven services.

The GPU market has been greatly influenced by cryptocurrency mining as well. GPUs are used by miners to carry out the intricate mathematical computations necessary for approving transactions and adding new blocks to the network. Despite the volatility of the cryptocurrency market, times of high demand for mining equipment have propelled GPU sales.

However, The GPU market has been jeopardised by a number of factors, including fierce competition that puts pressure on prices, technological disruptions from alternative architectures, supply chain weaknesses, demand fluctuations due to economic uncertainty, changes in consumer preferences, regulatory obstacles, cybersecurity risks, energy efficiency worries, technology convergence, and legal disputes over intellectual property. The GPU market has undergone significant technological disruptions, encompassing breakthroughs in ray tracing, AI, and machine learning, resulting in heightened realism and improved computational capabilities.

Additionally, an increased focus on energy efficiency, advancements in VR, AR, and quantum computing, as well as the impact of gaming, eSports, and cryptocurrency mining have significantly shaped the market. Furthermore, the emergence of cloud-based GPU services has provided scalable access to potent resources for various computational tasks. Despite these obstacles, the GPU industry's adaptation and ongoing innovation are essential for preserving sustainability and competitiveness in a changing market environment.

Impact of Covid-19

The COVID-19 pandemic had a huge effect on the GPU industry, causing supply chain interruptions and rising demand. Due to the growing number of individuals remaining at home at that time, there was a significant increase in demand for GPUs. The need for improved visuals and processing power was created by a variety of applications, particularly those involving gaming, remote work, and leisure activities. The demand for strong GPUs increased more than ever as people searched for better visual sights and computing capacity for their gaming, remote work, and leisure activities.

However, production closures, shipping bottlenecks, and logistical difficulties had an impact on the supply of GPUs, resulting in a constrained supply and increased costs. The rise in demand for GPUs was also fueled by remote work patterns and the move to cloud-based services. On the other hand, the pandemic's effects on manufacturing and R&D operations also delayed the introduction of new products and advancements.

Furthermore, the increased interest in bitcoin mining also made the pandemic's effects on the GPU market worse. There was a resurgence in interest in cryptocurrency mining, which mainly depends on GPUs for processing capacity, as individuals spent more time at home and looked for alternate kinds of money. Due to the increased demand from cryptocurrency miners, there was a shortage of GPUs available, which raised the price of GPUs on the market. GPU producers faced a difficult situation as a result of the pandemic's supply chain interruptions and an unstable market environment, as well as increased demand from gamers, remote workers, and cryptocurrency miners.

Segmentation

The GPU market can be segmented based on product type, component, application, and region. The product type segment is sub-segmented into discrete or dedicated, integrated, and hybrid. The market advancement in 2022 was mostly driven by the discrete segment. Due to their dedicated memory and processing capability, dedicated graphics processors in the context of gaming perform better graphically than integrated graphics, resulting in an uninterrupted and fluid gaming experience. By component, the market is segmented into hardware and software. The application segment covers the market through desktop, mobile /PC, workstation, servers/datacenter, and automotive/self-driving vehicles as its sub-segments.

Regional Analysis

The regional analysis of the GPU market involves a thorough examination of the sales, demand, and growth patterns for graphics processing units in a number of geographically diverse areas, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. This analysis considers a number of important elements, including the widespread gaming culture, technical developments, practical uses, and relevant government regulations.

The GPU market has grown significantly over the past few years, with North America emerging as an essential component in this development. Market revenue in North America has been greatly boosted by the region's established market participants and increasing spending on improving current GPUs. Countries like the U.S., Canada, and Mexico have emerged as major players in North America, with well-established market participants and rising investments in the growth of GPU technology. 

Additionally, Asia Pacific is expected to see the fastest CAGR over the forecast period, according to future projections. In the Asia Pacific region, especially in Japan and India, there is an explosive need for graphic processors for video games due to growing consumer demand. This region is now seen as a key factor in the growth trajectory of the global GPU market as a result of the significant presence of manufacturing facilities in China as well as continuous product advances. 

Through collaborations with and investments in regional start-ups and research facilities, several firms are gaining market share in China with the help of the government. One noteworthy example is SenseTime, a top AI start-up with headquarters in China and a portfolio of 700 clients and partners, including esteemed organisations like MIT and Qualcomm. Due to its access to China's vast database and official support, SenseTime has achieved a remarkable level of success, garnering a valuation of USD 4.5 Billion in a short period of time. The corporation actively works with the Chinese government on initiatives like "Made in China in 2025." It is noteworthy that SenseTime uses an astounding 54 Million GPU cores distributed over 15,000 GPUs in 12 GPU clusters to achieve an outstanding total computational capability of over 160 petaflops.

Similarly, France, Germany, and the UK are leading the growth of the GPU market in Europe. Whereas Brazil, Mexico, and Argentina make important contributions to Latin America with their distinctive gaming cultures and cutting-edge technical developments. Influential countries like the UAE, Saudi Arabia, and South Africa, propelled by industrial expansion and government efforts, are reshaping the GPU market in the Middle East and Africa.

Competitive Analysis

The GPU market is experiencing heightened rivalry. The major three top competitors are Nvidia, AMD and Intel. In 2023, Intel dominated the GPU market share position at 71%. While Nvidia’s market share is 17%, AMD's market share stayed at 12%. In order to draw in gamers in the mainstream and entry-level segments, NVIDIA and AMD might employ older inventories. In contrast, Intel is a major player in the consumer market and now offers some of the greatest performance combinations. Moreover, Intel has launched cutting-edge solutions to address certain market demands. A notable advancement is Intel's recent release of the Arctic Sound-M from the Intel Data Centre GPU Flex Series. This GPU supports up to 68 concurrent cloud gaming streams and boasts a remarkable 5x media transcoding throughput rate.

Other leading companies in the graphic processing unit sectors are ARM Limited, Qualcomm, Imagination Technologies Group, VeriSilicon (Vivante), VIA Technologies, Matrox and SiS. These corporations compete not only in the realm of gaming but also in industries like data storage, artificial intelligence, and cryptocurrency mining, where GPUs are essential for handling demanding workloads. The rivalry between these businesses, which is still severe as demand for high-quality graphics and processing capacity rises across a variety of industries, has sped up research and breakthroughs in GPU technology. Smaller firms, like Intel, are also attempting to get a larger foothold in the GPU industry. This will heighten competition and encourage further advancements in GPU performance and functionality.

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The graphic processing unit (GPU) market is segmented as follows:

By Product Type (Revenue: USD Billion, 2018 – 2030)
●    Dedicated
●    Intregrated
●    Hybrid

By Component (Revenue: USD Billion, 2018 – 2030)
●    Hardware
●    Software

By Application (Revenue: USD Billion, 2018 – 2030)
●    Desktop
●    Mobile/PC
●    Workstation
●    Servers/Datacenter
●    Automotive/Self-Driving Vehicles

By Region (Revenue: USD Billion, 2018 – 2030)

● North America

o U.S.
o Canada
o Mexico

● Europe

o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe
 
● Asia Pacific

o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America

o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa

o GCC Countries
o South Africa
o Rest of Middle East & Africa