Vision Processing Unit Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, Japan - Size and Forecast 2024-2028

Vision Processing Unit Market Size 2024-2028

The vision processing unit market size is forecast to increase by USD 2.93 billion at a CAGR of 25.4% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing adoption of machine learning and computer vision technologies. Machine learning algorithms, particularly Convolutional Neural Networks (CNNs) and deep learning models, are revolutionizing image processing applications. These advanced algorithms require massive computational power, leading to the rapid adoption of VPUs. Another trend driving the market is the growing use of drones in various industries, including agriculture, construction, and security. Drones rely on computer vision and image processing capabilities for tasks such as object detection, image recognition, and 3D modeling. VPUs offer the necessary processing power to handle these complex tasks efficiently. Despite these growth opportunities, the high cost of VPUs remains a significant challenge for market expansion. Integrated GPUs (iGPUs) have emerged as a cost-effective alternative for low-power applications. However, they lack the processing power of dedicated VPUs, limiting their use in high-performance applications. Neural networks and OpenCV libraries are also being optimized for iGPUs to address this challenge. Overall, the market is expected to grow significantly due to the increasing demand for machine learning and computer vision applications.

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

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• Machine learning and computer vision have emerged as two of the most transformative technologies in the realm of artificial intelligence (AI). These technologies have been instrumental in enabling applications such as image recognition, object detection, and edge detection, among others. The increasing adoption of machine learning and computer vision in various industries has led to a significant increase in demand for advanced hardware solutions to accelerate these applications. Computer vision, a subset of AI, involves teaching computers to interpret and understand visual information from the world.
• Furthermore, convolutional Neural Networks (CNNs) and neural networks have become the backbone of computer vision applications due to their ability to learn and identify patterns in images and videos. These algorithms require immense computational power, making it essential to leverage specialized hardware to achieve optimal performance. Image processing is another crucial aspect of computer vision. OpenCV, a popular open-source computer vision library, has been widely adopted due to its ease of use and versatility. However, as the complexity of image processing tasks increases, there is a growing need for hardware accelerators to handle these tasks efficiently. Integrated GPUs (IGPUs) have emerged as a popular choice for computer vision and image processing applications.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Consumer electronic
  • Automotive
  • Industrial
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • Japan
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Type Insights

• The consumer electronic segment is estimated to witness significant growth during the forecast period.

The consumer electronics industry experiences continuous growth due to the increasing sales of devices integrating Vision Processing Units (VPUs) from Original Equipment Manufacturers (OEMs). These products include Augmented Reality (AR) and Virtual Reality (VR) devices, consumer drones, smart cameras, and smartphones. The escalating demand for these advanced electronic gadgets and the integration of Human-Machine Interface (HMI) technology on Internet of Things (IoT) devices fuel the expansion of the consumer electronics segment. AR and VR devices, which operate in real-time, employ intricate mathematical models that heavily rely on Central Processing Units (CPUs).

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The consumer electronic segment was valued at USD 752.90 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 42% 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.

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The market is experiencing significant growth, with North America being a major contributor. In 2023, North America accounted for the largest market share, and this trend is expected to continue. The region's growth can be attributed to the increasing adoption of drones for commercial and consumer applications. The US and Canada are the primary revenue generators in the region. Major drone manufacturers like China-based DJI and France-based Parrot have a strong presence in North America. The drone market is expected to expand further with the integration of AI acceleration, video processing, object detection, and machine learning inference capabilities.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Vision Processing Unit Market?

Growing adoption of deep learning and AI is the key driver of the market.

• Artificial Intelligence (AI) has emerged as a game-changer in processing real-time data streams, offering significant advantages in terms of hardware acceleration, intelligent edge devices, and energy efficiency. AI's capabilities in learning, reasoning, and problem-solving have led to its widespread adoption in various industries. Governments worldwide are investing in AI research and development, with India, for instance, establishing Centers of Excellence for AI and fostering an ecosystem to drive innovation. The market growth is fueled by the increasing use of AI in consumer electronics, factory automation, and cybersecurity applications.
• Furthermore, smartphone manufacturers integrate AI for real-time depth of field (DoF), gesture recognition, facial recognition, and location and face recognition in pictures. Edge AI workloads, such as AI accelerators and edge servers, enable low power consumption, making AI an ideal solution for real-time data processing at the edge. AI's role in edge computing is expected to grow significantly, with intelligent cameras and edge servers becoming increasingly popular for applications like autonomous vehicles, smart cities, and industrial automation. The future of AI lies in its ability to analyze and learn from vast amounts of data in real-time while maintaining low power consumption.

What are the market trends shaping the Vision Processing Unit Market?

Rapid adoption of drones is the upcoming trend in the market.

• Unmanned Aerial Vehicles (UAVs), also known as drones, are increasingly utilized for various applications due to their affordability and versatility. These aircraft can operate autonomously or with handheld or GPS remotes, offering solutions for surveillance and rescue, emergency response, high-altitude imaging, forest fire monitoring, flood mapping, humanitarian aid, product delivery, oil spill monitoring, Internet connectivity, and photography, among others.
• Moreover, drones are equipped with cameras and sonar sensors, which are connected to a Vision Processing Unit (VPU). Intel Corporation's Movidius Myriad 2 VPU, for instance, is integrated into DJI's Phantom 4 drone, enhancing its autonomous flying capabilities and object avoidance. The use of VPUs in drones enables real-time image processing, making them valuable tools for environmental monitoring, mapping, soil moisture imaging, hyperspectral imaging, plume dispersion and tracking, in-site atmospheric monitoring, and aerosol source determination.

What challenges does the Vision Processing Unit Market face during the growth?

High cost of VPUs is a key challenge affecting the market growth.

• The integration of Vision Processing Units (VPUs) in sectors such as consumer electronics, industrial, and automotive is a growing trend due to their ability to facilitate advanced computer vision-based applications, including AI appliances and deep neural networks. However, the high cost of VPUs poses a significant challenge for end-users. Intel Movidius Myriad X, for instance, retails around USD5 for basic models, while high-end VPUs can cost over USD10. The high cost is attributed to the sophisticated design and manufacturing requirements of VPUs. The production process involves the use of expensive semiconductor manufacturing and test equipment and the acquisition of intellectual property rights.
• Moreover, the continuous development of next-generation VPUs necessitates significant research and development investments to cater to diverse end-user requirements. Consumer sensitivity to pricing further complicates the adoption of VPUs. As a result, manufacturers must maintain a balance between innovation, performance, and affordability to meet the evolving needs of various industries. Edge computing, security and safety, and industrial automation are some of the sectors poised to benefit significantly from VPUs, provided the cost barrier can be addressed.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

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

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

• Alphabet Inc.
• Cadence Design Systems Inc.
• CEVA Inc.
• Rockchip Electronics Co. Ltd.
• GEO Semiconductor Inc.
• Huawei Technologies Co. Ltd.
• Imagination Technologies Ltd.
• Intel Corp.
• Inuitive Ltd.
• Lattice Semiconductor Corp.
• MediaTek Inc.
• NXP Semiconductors NV
• Renesas Electronics Corp.
• Samsung Electronics Co. Ltd.
• Shanghai Coolcore Microelectronics Co. Ltd.
• STMicroelectronics International N.V.
• Synopsys Inc.
• Texas Instruments Inc.
• VeriSilicon Microelectronics Shanghai Co. Ltd.

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.

Research Analyst Overview

The integration of machine learning and computer vision technologies has revolutionized industries, from security and safety to industrial automation. Convolutional neural networks (CNNs) and other deep learning algorithms have become the backbone of image processing, enabling edge detection, object detection, and feature extraction in real-time. Imaging accelerators, such as integrated GPUs (IGPUs), neural compute engines, and vector processors, play a pivotal role in handling the computational demands of these advanced algorithms. OpenCV, a popular open-source computer vision library, has been instrumental in the proliferation of machine learning in image processing. Furthermore, the deployment of these technologies is no longer confined to data centers. USB sticks and edge servers enable the deployment of machine learning inference at the edge, reducing latency and increasing affordability.

Edge AI workloads, such as those from Intel Corporation, are versatile and suitable for various applications, including DJI drones and intelligent cameras. AI acceleration is a critical aspect of computer vision-based applications, as low power consumption and real-time data processing are essential. Microprocessors and video processing units are increasingly being used to enhance the performance of these systems. In summary, the market for imaging accelerators is witnessing significant growth due to the increasing demand for computer vision and machine learning applications across various industries. The need for affordable, versatile, and low-power solutions is driving the development of new hardware acceleration technologies.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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