The graphic processing unit (GPU) market is primarily driven by the increasing demand from the gaming industry. GPUs are designed to handle computer graphics and image processing tasks more efficiently than the central processing units. The ever-growing gaming industry with new titles and enhanced graphics is fueling the demand for high-performance GPUs. Several software and game developers are optimizing their applications and titles for GPUs to leverage the benefits of parallel processing. Furthermore, the rising adoption of GPU accelerated applications for data analytics, AI, machine learning and graphics-intensive tasks is also propelling the graphic processing unit market growth.

The global graphic processing unit market is estimated to be valued at US$ 47.77 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the graphic processing unit market are Salesforce.com, Inc., LogicBay Corporation, Oracle Corporation, Allbound Inc., International Business Machines Corp, Impartner Software, ZINFI Technologies, Inc., Zyme Solutions, PartnerPath, Blackhawk Engagement Solutions, Inc., The Planet Group, Allbound Inc., and Channeltivity, LLC. Salesforce.com dominates the global market with more than 15% revenue share. Partnerships and collaborations with leading gaming and tech companies are some of the key strategies adopted by these players to gain competitive advantage.

The growing demand for high-graphics virtual reality and augmented reality devices provides numerous opportunities for GPU manufacturers and tech companies to incorporate innovative GPU solutions. Additionally, the rising applications of AI, machine learning and deep learning across industries requires powerful GPU computing capabilities, thus fueling the market opportunities.

Major GPU manufacturers are focusing on expanding their global presence with strategic partnerships, collaborations and acquisitions. For instance, Nvidia acquired ARM Holdings in 2022 to expand its presence in the mobile computing market. Meanwhile, AMD has opened several new facilities in countries like India, China and Taiwan to cater to the growing demand from Asian markets. The widespread adoption of cloud gaming and edge computing also drives the global expansion of the graphic processing unit market.

Market Drivers and Restrain

Growing gaming industry with an increasing number of gamers globally is a major factor driving the Graphic Processing Unit Market Growth. New AAA game titles incorporating photorealistic graphics are fueling the demand for high-performance GPUs. Rapid adoption of AI and machine learning accelerators based on GPU technology is further propelling the market. Increasing deployment of graphics-intensive VR/AR devices across industries is another growth driver.

High costs associated with GPU hardware development pose a major challenge to market growth. Significant R&D investments are required to develop advanced GPU chips with higher core counts and memory bandwidths. GPUs also have higher power consumption compared to CPUs, limiting their adoption in portable devices. Volatility in crypto currency markets also impacts the demand outlook as GPU mining activities depend on currency value fluctuations.

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