July 16, 2024
Graphic Processing Unit Market
Ict

Graphic Processing Unit (GPU) Market: Growing Demand for High-quality Graphics and Visual Computing Drives Market Growth

The global Graphic Processing Unit (GPU) market is estimated to be valued at US$37.02 billion in 2022 and is expected to exhibit a CAGR of 12% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The GPU market offers high-quality graphics and visual computing capabilities, which are in high demand across various industries, including gaming, animation, virtual reality, and artificial intelligence. GPUs are specially designed to handle complex graphical computations efficiently, providing superior performance and speed. These advantages make GPUs a critical component in devices such as gaming consoles, mobile phones, workstations, and data centers, driving the market growth. The increasing adoption of GPUs in emerging technologies like AI and machine learning is further fueling market expansion. The need for realistic and immersive graphics experiences has led to a surge in demand for advanced GPU solutions.

Market Key Trends:

One key trend in the GPU market is the growing adoption of GPUs in artificial intelligence and machine learning applications. GPUs enhance the performance and computational capabilities of AI algorithms, enabling faster and more accurate processing of massive datasets. The parallel processing architecture of GPUs allows for efficient training and inference of AI models, leading to better insights and decision-making. This trend is driven by the increasing use of AI and machine learning in various sectors, including healthcare, finance, automotive, and retail. The demand for GPU-powered AI solutions is expected to rise significantly in the coming years, driving the growth of the GPU market.

Porter’s Analysis

The graphic processing unit market is expected to witness significant growth, exhibiting a CAGR of 12% over the forecast period of 2023-2030. This growth can be attributed to the increasing demand for high-quality graphics and the growing gaming industry.

Threat of new entrants: The threat of new entrants in the graphic processing unit market is low. The industry is dominated by key players who have high brand recognition and strong financial capabilities. Additionally, there are significant barriers to entry, such as the need for substantial investment in research and development and the establishment of distribution networks.

Bargaining power of buyers: The bargaining power of buyers in the graphic processing unit market is moderate. While buyers have access to a wide range of options and can compare prices and features, they are still dependent on the key players for high-quality graphics and gaming experiences. Thus, the power of buyers is somewhat limited.

Bargaining power of suppliers: The bargaining power of suppliers in the graphic processing unit market is high. Key players rely on suppliers for the raw materials and components required to manufacture graphic processing units. This gives suppliers the ability to dictate prices and terms, which can impact the profitability of the key players.

Threat of new substitutes: The threat of new substitutes in the graphic processing unit market is low. Graphic processing units are essential for high-quality graphics and gaming experiences, and there are currently no viable alternatives that can match their performance. As a result, the market is relatively insulated from the threat of substitutes.

Competitive rivalry: The competitive rivalry in the graphic processing unit market is intense. Key players, such as IBM Corporation, Intel Corporation, NVIDIA Corporation, and Samsung Electronics Co., Ltd., are constantly innovating and competing for market share. This leads to a continuous stream of product advancements and technological developments, benefiting consumers.

Key Takeaways

The global graphic processing unit market is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period. This growth is primarily driven by the increasing demand for high-quality graphics and the growing gaming industry. As consumers seek more immersive and realistic experiences, the demand for graphic processing units continues to rise.

In terms of regional analysis, Asia Pacific is expected to be the fastest growing and dominating region in the graphic processing unit market. With countries like China, Japan, and South Korea leading the way in the gaming industry, the demand for high-performance graphic processing units in the region is surging. Additionally, the growing popularity of e-sports and virtual reality further contributes to the region’s market dominance.

Key players operating in the graphic processing unit market include IBM Corporation, Intel Corporation, NVIDIA Corporation, Samsung Electronics Co., Ltd., Qualcomm Incorporated, Advanced Micro Devices, Inc., Dassault Systems, Inc., Google, Inc., Siemens AG, and Sony Corporation. These companies have established strong brand recognition and are constantly innovating to maintain their market positions. As the market continues to grow, competition among these key players is expected to intensify, leading to further advancements in graphics processing technology.

In conclusion, the graphic processing unit market is poised for significant growth over the forecast period. With the increasing demand for high-quality graphics and the growing gaming industry, key players and suppliers in the market are set to benefit. However, intense competition and the need for continuous innovation present challenges that must be overcome to maintain market leadership.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it