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The graphics processing unit (GPU) market is projected to reach a value of USD 185.75 billion in 2027 with a CAGR of 33.15% between 2022 and 2027. The growth of the market depends on several factors, including an increase in demand for advanced gaming and VR experiences, an increase in demand for visual effects (VFX) in the media and entertainment industry, and a rise in the adoption in automotive applications
Analysis Period | 2017-2027 |
Market Size (2017) Historic Year | USD 14.50 billion |
Market Size (2027) - Forecasted Year | USD 185.75 billion |
Historic Opportunity (2017-2021) | USD 19.40 billion |
Historic CAGR | 23.65 % |
Forecasted Opportunity (2023-2027) | USD 141.37 billion |
Market Opportunity Transformation Growth | 1181% |
Market Opportunity Capitalization | USD 160.77 billion |
GPUs are essential components in computers and other devices for handling complex graphics and calculations. The demand for GPUs has been increasing due to the rise in gaming, artificial intelligence, and cryptocurrency mining. Pricing and availability of GPUs can fluctuate based on supply and demand dynamics in the market. NVIDIA holds largest desktop GPU market share. AMD's Radeon GPUs are used by gamers worldwide.
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In the dynamic realm of the GPU market, the demand for high-end, mid-range, and budget graphics cards is driven by enthusiasts, gamers, and the needs of the artificial intelligence and cloud computing sectors. These factors plays a crucial role, in influencing the development and innovation of the next generation of GPUs. Market research showcases the value and performance of these cards are essential for both individuals and government entities seeking the latest advancements. The gaming gpu market augments and thrive the continuous developement of the market for gamers, enthusiasts and industries embracing AI.
An increase in demand for visual effects (VFX) in the media and entertainment industry is notably driving market growth and trends. Due to the growing popularity of visual effects (VFX) in the media and entertainment industry, the market is experiencing demand which is driven by the need for more realistic and visually stunning content in movies, television shows, video games, and other forms of media. Further, the rise of streaming platforms has also contributed to the increased demand for VFX. There is a need for content that stands out from the competition as more and more consumers turn to streaming services for their entertainment needs. Also, VFX offers a way for streaming platforms to determine their content and captivate audiences with incredible visuals that cannot be replicated on conventional television. The outbreak of the COVID-19 pandemic has also catalyzed the demand for VFX as it has forced many productions to halt or limit their physical filming.
Moreover, many filmmakers have turned to VFX to create scenes and environments that would normally require large-scale sets and on-location shooting with strict safety protocols in place. This has led to an increasing reliance on technology to generate realistic digital sets, backgrounds, and characters. Therefore, such factors are anticipated to expand the demand, which will drive the growth of the market focus during the forecast period.
The growing adoption of AI and ML is an emerging trend shaping the market growth. The market is witnessing a major shift in the adoption of AI and ML technologies. This increase can be attributed to the multiple benefits that AI and ML bring to the table, making them highly sought-after technologies. Their ability to enhance the overall performance of processing is one of the main reasons behind the growing adoption of AI and ML in the market. They process large amounts of data at lightning-fast speeds with AI and ML algorithms, allowing for real-time visual computing and rendering. This is especially useful in industries such as gaming, VR, and AR, where high-quality graphics and smooth performance are crucial.
In addition, the growing adoption of AI and ML in the market is also driven by advancements in hardware and software. With powerful tools and libraries to harness the capabilities of AI and ML tasks, software frameworks such as TensorFlow, PyTorch, and CUDA provide developers. Therefore, these factors are anticipated to increase the demand, which will show positive results in the market during the forecast period.
The challenge of upgrading the notebooks significantly hampers market growth, impacting both manufacturers and consumers. The inability to easily upgrade notebooks limits their capacity to keep pace with rapid advancements in graphics technology, creating concern. Unlike standardized desktop GPU form factors, notebooks come in various shapes and sizes, complicating the upgrading process for users. This issue becomes more pronounced with the growing demand for high-performance gaming and professional graphics applications, leaving users with outdated capabilities amid fast-paced technological advancements. This challenge is expected to hinder market growth in the forecast period, emphasizing the need for solutions that offer both compatibility and ease of upgrade.
Challenges in the desktop market involve the competition between global vendors, particularly the struggle for market share between AMD vs Nvidia. The rise of data center demand adds complexity, with Jon Peddie Research (JPR) monitoring trends and shifts, highlighting the evolving landscape in desktop and data center.
The market share growth by the integrated segment will be significant during the forecast period. Integrated is an integral component of the processing units, which are incorporated into the coprocessor. It does not use a distinct memory bank for graphics/video. Rather, the use system memory that is shared with the CPU.
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The integrated segment was the largest and was valued at USD 9.92 billion in 2017. Generally, processors are found in smaller form factor systems such as laptops and Intel next unit of computing (NUC). However, integrated units are commonly used for basic usages such as web browsing, and social media, and resource-light work such as spreadsheets, editing documents, and project management software. Therefore, these factors are anticipated to boost the demand for integrated segment which will drive the growth of the market focus during the forecast period.
It's an important part of some computers and are responsible for rendering images, videos, and graphics. They are specially designed to augment the processing of complex calculations required for high-quality visuals and simulations. Also, the rise in VR and AR applications has also augmented the demand in the computer segment. The well-suited for accelerating AI/ML workloads by allowing parallel processing, which remarkably enhances the training and inference times of AI models. VR and AR applications require substantial computational power to generate immersive and realistic experiences. The accelerate the rendering process, enabling the developer to attain lifelike visuals with smooth frame rates which improves the overall gaming experience and attracts a larger consumer base. Therefore, such aspects are anticipated to boost the demand in the computer segment, which will drive the market's growth during the forecast period.
Sales and affordability play a pivotal role in 3D graphics, influencing user experience across various sectors. Organizations, enterprises, and governments evaluate the potential of while considering budget constraints. Striking a balance between cost and performance is crucial, ensuring widespread adoption without compromising on heat management, a factor integral to efficiency in diverse applications. The market growth analysis of pricing is a critical aspect of achieving optimal user experiences in both professional and consumer settings.
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APAC is estimated to contribute 42% of the global market growth and forecasting during the forecast period. The US and France are the top two countries contributing to the market growth. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the global market, APAC holds a major position. This can be attributed to various factors such as technological advancements, growing demand for gaming and virtual reality (VR) applications, and the presence of significant market players in the region. In APAC, the factor contributing to the growth of the t market is the presence of significant players in the region, such as NVIDIA, AMD, and Intel, which play a vital role in influencing the industry.
Such companies deliver cutting-edge solutions to meet the growing demand of various industries in the region. Moreover, the region has a well-developed electronics manufacturing industry, enabling companies to produce at competitive prices. Such factors attract manufacturers to establish their production facilities in APAC, further bolstering the market dominance of the region.
The market 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.
Market Customer Landscape
Various vendors compete in the market, offering a diverse range of graphics cards to meet the demands of the evolving marketplace. These video card providers play a crucial role in shaping the dynamics of the graphics card market, contributing to the continuous growth and innovation within the market. The market is highly competitive, with major companies like NVIDIA and AMD dominating the industry.
Advanced Micro Devices Inc - The company offers such as Radeon PRO for workstation servers, AMD Advantage and Radeon RX for desktops, and Radeon Mobile Graphics for laptops.
Arm Ltd. - The company offers units such as Immortalis G720 with capabilities of Deferred vertex shading, 64x64 larger tile support, and increased texture mapper throughput for 64bpp content.
Apple Inc. - The company offers such as Apple M2 8-core with 4 performance cores and 4 efficiency cores, 16-core Neural Engine, and 100GB per second memory bandwidth.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market partners, including:
Qualitative and quantitative analysis of companies and Market forecasting 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.
The market analysis and 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.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 33.15% |
Market growth 2023-2027 |
USD 141.37 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
31.61 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 42% |
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, Alphabet Inc., Apple Inc., Arm Ltd., ASUSTeK Computer Inc., Broadcom Inc., Fujitsu Ltd., Galaxy Microsystems Ltd., Gigabyte Technology Co. Ltd., Imagination Technologies Ltd., Intel Corp., International Business Machines Corp., NVIDIA Corp., Qualcomm Inc., Samsung Electronics Co. Ltd., SAPPHIRE Technology Ltd., Sony Group Corp., Taiwan Semiconductor Manufacturing Co. Ltd., Zebra Technologies Corp., and Zotac Technology Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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