The Graphic Processing Unit Market is Estimated To Witness High...

The Graphic Processing Unit Market is Estimated To Witness High Growth Owing To Wide Applications in Gaming

Posted 2023-12-06 12:29:13

Market Overview:
The Graphic Processing Unit (GPU) is a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display. GPUs are used in embedded systems, mobile phones, personal computers, workstations, and game consoles. Modern GPUs are very efficient at manipulating computer graphics and image processing, and their highly parallel structure makes them more effective than general-purpose CPUs for algorithms where the processing of large blocks of data is done in parallel.

Market Dynamics:
The Graphic Processing Unit market is estimated to witness high growth owing to wide applications of GPUs in gaming. GPU gaming has become highly popular due to advancements in graphics capabilities. In addition, the increasing adoption of deep learning and AI technologies have also boosted the demand for GPUs. Deep learning and AI require massive computation power to process huge datasets in parallel. Therefore, GPUs have emerged as the preferred platform compared to CPUs. Further, rising demand for high-performance computing from industries such as automotive, healthcare and IT is expected to fuel the GPU market growth over the forecast period. Adoption of virtual reality and augmented reality technologies will also create opportunities for GPU manufacturers and solution providers.

The global Graphic Processing Unit Market Size is estimated to be valued at US$ 41.46 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

SWOT Analysis

Strength: Graphic Processing Unit (GPU) has high-performance capabilities for graphic-intensive applications. GPU provides superior parallel processing compared to CPU. Major tech companies are investing in research and development of advanced GPUs.

Weakness: GPUs require high power consumption and produce significant amount of heat. Designing powerful GPUs require high capital investment and manufacturing challenges. Vulnerabilities in GPU software drivers can expose systems to cyber attacks.

Opportunity: Emerging applications of AI, VR, AR, & autonomous vehicles would drive the demand for powerful GPUs. Growing gaming industry worldwide offers substantial growth opportunities. Increasing usage of GPUs for cloud gaming and high-performance computing presents new avenues.

Threats: Growing threat of substitutes like FPGAs and ASICs that are optimized for dedicated tasks. Intense competition from existing and new market players may lead to pricing pressures. Trade barriers and geopolitical tensions can disrupt global supply chains.

Key Takeaways

The global Graphic Processing Unit market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand for AI-enabled devices and high-performance computing systems. Advancements in virtual reality and machine learning/deep learning would further aid the market expansion.

Regional analysis: North America dominated the market with highest revenue share in 2023 owing to strong technology adoption and presence of key players in the US and Canada. Asia Pacific is expected to grow at fastest pace during the forecast period driven by the increasing sales of gaming PCs and notebooks in China, India, and Southeast Asian countries.

Key players: Key players operating in the 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. NVIDIA Corporation is currently leading the global market with highest shipment of high-performance GPUs used in AI and machine learning workstations and servers.