Gaming Graphic Processing Unit (GPU) Market by End-user, Type and Geography - Forecast and Analysis 2023-2027

Gaming GPU Market Forecast 2023-2027

The gaming GPU market size is estimated to grow by USD 30.59 billion at a CAGR of 16.45% between 2022 and 2027. The increasing demand for PC games and gaming consoles, fueled by the release of new titles and advancements in gaming technology, is driving market growth. The rising popularity of eSports tournaments, which attract millions of viewers and offer substantial prize pools, is also driving growth in the gaming industry. Additionally, the increasing popularity of mobile games, driven by the widespread adoption of smartphones and tablets, is expanding the gaming market to a broader audience. Overall, these factors are creating new opportunities for game developers, publishers, and hardware manufacturers in the gaming industry.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (mobile devices, PCs and workstations, gaming consoles, and others), type (dedicated graphic card and integrated graphic card), and geography (North America, Europe, APAC, South America, and Middle East and Africa).

By End-user

The mobile devices segment is estimated to witness significant growth during the forecast period. One of the key factors driving the growth of the mobile segment is the increase in penetration of the Internet and mobile devices such as smartphones and tablets. Over the years, the mobile segment has become a significant part of the gaming industry as several gaming companies are moving toward app design.

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The mobile devices segment was the largest segment and was valued at USD 5.82 billion in 2017. There is a growing popularity of mobile gaming as several game developers are adopting the freemium model wherein the initial level of a game is offered free of cost, and users are required to pay to access the advanced levels. Factors such as the increasing penetration of smartphone devices and the availability of easy updates for mobile games are significantly contributing to the growth of the mobile segment, which in turn will drive market growth during the forecast period.

By Type

The improved features of gaming consoles are expected to fuel the dedicated graphic cards segment growth during the forecast period. A dedicated graphics card can be referred to as those graphic cards which have their own dedicated memory and a processor that is completely independent of the central processing unit (CPU). One of the main features of this dedicated graphics card is that it can perform better but consume more power. The key functionality of this segment while playing games is that this helps to free up resources for the CPU to process data and helps prevent frame rate issues. Thus the advancements in these consoles is expected to drive the demand for dedicated graphics card segments, which in turn will drive the market growth during the forecast period.

By Region

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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors for the significant growth of the market in North America is due to factors such as the increase in demand for console games. Several game developers and companies in the region are innovating newer games or upgrading existing ones to meet the growing demand for console games. Even though personal computer games contribute a significant market share as well as revenue to the market in North America, the revenue generated from the sales of console games is increasing rapidly. As a result, game developers in North America are increasingly focusing on console games which are expected to drive the market growth during the forecast period.

Market Dynamics and Customer Landscape

The market is driven by the increasing demand for rendering images and 3D graphics in graphic-intensive applications and gaming. As software developers continue to push the boundaries of visual quality and productivity, the need for durable GPUs in portable electronic devices like tablets, laptops, and AR systems is growing. This market is characterized by factors such as the power consumption of GPUs, the competitive intensity among competitors, and the bargaining power of both suppliers and buyers. The market's dynamics are influenced by the threat of new entrants and substitutes, making innovation and performance key factors for success.

Key Market Driver

The increase in demand for PC games and gaming consoles is driving the market growth. The gaming industry has undergone a significant transformation from traditional board games to a technology-driven sector, largely due to the rise of personal and community gaming. The introduction and popularity of consoles like Xbox and PlayStation have played a major role in shaping the modern video game industry. Leading companies such as Dell Inc. have adapted their PC configurations to cater to the market, while many companies now offer downloadable games, eliminating the need for physical discs. This trend reflects the industry's focus on optimizing hardware and software for gaming, including aspects such as cores, threads, CPUs, cache memory, plug-in cards, chipsets, motherboards, RAM, transistors, and 3D graphics. These advancements contribute to enhanced gaming experiences and performance.  These games are readily accessible on digital distribution platforms like Steam by Valve Corp. Overall. These developments are anticipated to fuel market growth in the foreseeable future.

Significant Market Trends

The launch of new gaming GPU is expected to have a positive impact on the market in the coming years. Several prominent companies in the market highly rely on innovative products to sustain themselves in the market. For instance, some of the major market players in the gaming industry, such as Intel, NVIDIA, and AMD, have recently launched the GPU's new products to dominate the market.

Some of the key product launches in the market include AMD Radeon RX 5600 series graphics products such as AMD Radeon RX 5600M GPU and AMD Radeon RX 5700M GPU. Hence, such product innovations and launches by several companies in the market are expected to drive the market during the forecast period.

Major Market Restrain

The threat of cybercrime in gaming will be a major challenge for the market during the forecast period. The significant popularity of online gaming has led to an increase in the number of cybercrime cases in the last five years. It has increasingly become easy for hackers to access the personal data of gamers as online gamers access connected platforms that have limited security features.

Additionally, as some online gamers are required to save their credit card details on websites for the purchase of games and allied merchandise, they are more prone to hacking and other cyber security threats. Several methods as well as software such as  Trojans and ransomware are used by hackers to access the account details of gamers and carry out financial frauds. Hence, such factors are expected to hinder the market during the forecast period.

Key Market Customer Landscape

The Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Gaming GPU Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Advanced Micro Devices Inc: The company offers gaming GPU such as Radeon RX 6900 Series, Radeon RX 6800 Series, and Radeon RX 6700 Series.

Arm Ltd: The company offers gaming GPU such as Immortalis-G715 and Mali-G715.

ASUSTeK Computer Inc: The company offers gaming GPU such as ROG Matrix and ROG Strix.

The research report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:

• EVGA Corp.
• Gigabyte Technology Co. Ltd.
• Imagination Technologies Ltd.
• Intel Corp.
• Micro Star International Co. Ltd.
• NVIDIA Corp.
• PC Partner Group Ltd.
• Qualcomm Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Mobile devices
  • PCs and workstations
  • Gaming consoles
  • Others
• Type Outlook 
  • Dedicated graphic card
  • Integrated graphic card
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is driven by advancements in graphics-based games and the increasing demand for virtual reality (VR) and augmented reality (AR) systems. These technologies require high-performance visual processing units (GPUs) capable of handling complex mathematical calculations and rendering realistic graphics. The market is characterized by intense competition among CPU and GPU manufacturers, leading to innovations in cores, threads, and cache memory. The rise of artificial intelligence (AI) platforms and the Internet of Things (IoT) further fuel the demand for GPUs in medical wearable equipment, smartphones, and supercomputers. Government investments in defense and intelligence sectors also contribute to the market's growth, driving advancements in hardware components and supplier-side technologies.

The market is witnessing rapid growth driven by the increasing demand for high-performance graphics in gaming applications, virtual reality (VR), and augmented reality (AR) systems. Computer chips with advanced CPUs and transistors are powering these GPUs, along with plug-in cards for enhanced graphics processing. Mobile phones and other portable devices are incorporating integrated GPUs and Augmented reality systems, which are Graphics processing units used to deliver immersive gaming experiences. The market is also fueled by the adoption of artificial intelligence platforms and the expansion of the IoT sector, driving demand for GPUs in various industries. With the bargaining power of suppliers and competitive intensity shaping the market dynamics, organizations are focusing on enhancing user experience in gaming laptops and consumer electronics through innovative GPU technologies.

The visual processing unit, also known as the GPU or graphics processing unit, is a crucial component within computer chips and chipsets, typically integrated into motherboards. Emerging technologies like hybrid GPUs cater to various applications, including virtual reality systems, shaping the global GPU market. This market extends into segments such as smartphones, where VR systems are gaining prominence, driven by government investments and demand from sectors like defense & intelligence and IoT systems. Competitive dynamics include the threat of substitutes and the bargaining power of buyers, influencing the integrated and hybrid processor markets, alongside wearables. Amidst fluctuations in the worldwide economy, ventures are exploring opportunities while considering factors on the supplier side.

Market Scope
Report Coverage	Details
Page number	147
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 16.45%
Market growth 2023-2027	USD 30.59 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	15.52
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 30%
Key countries	US, China, South Korea, Japan, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advanced Micro Devices Inc., Arm Ltd., ASUSTeK Computer Inc., EVGA Corp., Gigabyte Technology Co. Ltd., Imagination Technologies Ltd., Intel Corp., Micro Star International Co. Ltd., NVIDIA Corp., PC Partner Group Ltd., and Qualcomm Inc.
Market dynamics	Parent market analysis, Market  Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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