The graphic processing unit (GPU) market comprises graphics cards as well as integrated solutions that are designed to handle rigorous graphical processing requirements. GPUs are extensively used across gaming consoles, workstations, and integrated laptops to deliver robust 3D graphics rendering capabilities and GPU-accelerated workflows. They are heavily deployed in industries like automotive, healthcare, manufacturing, and construction for video processing, electronic design automation, engineering product lifecycle management, and other graphical operations.
The Global GPU 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 2024 to 2031.
Key Takeaways
Key players operating in the GPU market are Salesforce.com, Inc., LogicBay Corporation, Oracle Corporation, Allbound Inc., and International Business Machines Corp. The rapidly growing cloud gaming industry has been a major driver of GPU adoption globally. The introduction of cloud-based game streaming services by Microsoft, Google, Nvidia, and Amazon is expected to significantly boost GPU sales. To meet the massive graphical processing demands of AAA cloud-based games, GPU manufacturers are focused on developing more powerful solutions with superior capabilities.
The growing demand for virtual reality and augmented reality applications across various industries has also created opportunities for GPU providers. VR/AR technologies deploy GPUs extensively for complex 3D rendering, spatial mapping, gesture tracking, and more. As adoption of immersive technologies increases, the requirement for high-end graphics solutions will surge. Several IT giants like Facebook, Qualcomm, and Intel are working on bringing affordable VR/AR devices to consumers which will further propel the GPU market growth.
Major GPU manufacturers like Nvidia and AMD are expanding their global footprint through strategic partnerships and acquisitions. They are focusing on emerging Asia Pacific and Middle Eastern markets that are witnessing a rapid increase in gaming, VR/AR, and AI activities. Increased R&D investment in the development of cutting-edge graphics cards tailored for cryptocurrency mining and AI workloads will also support the market revenue in the coming years.
Market Key Trends
The rising adoption of cloud gaming across both personal computers and mobile devices has been a major trend driving the Graphic Processing Unit Market Demand. The introduction of game streaming services by leading technology companies has created significant demand for high-performance GPUs that can handle graphics-intensive workloads of modern AAA games. To deliver lag-free and seamless gaming experiences on any device through the cloud, these services require powerful backend servers optimized with top-of-the-line GPUs. This has accelerated purchases of graphics cards especially by cloud gaming providers and data center operators.
Porter's Analysis
Threat of new entrants: Low cost of production prevents new entrants in the market. Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes. Bargaining power of suppliers: Suppliers have low bargaining power as there are many suppliers in the market. Threat of new substitutes: Threat of new substitutes is high as technology is advancing rapidly. Competitive rivalry: Intense competition exists among existing players to gain market share.
Geographical Regions
North America accounts for the largest share of the graphic processing unit market in terms of value. Availability of advanced technology and high adoption of graphic processing units from gaming and datacenters for machine learning and AI applications drive the market.
The Asia Pacific region is expected to witness the fastest growth during the forecast period. Increasing demand for graphic processing units from gaming and AI applications and presence of manufacturing units of major players in countries like China, Taiwan, and South Korea support the growth of the market.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
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