June 13, 2024
Graphic Processing Unit Market
Ict

Graphic Processing Unit Market is Estimated to Witness High Growth Owing to Advancements in Machine Learning Technology

The Graphic Processing Unit (GPU) market has witnessed significant growth in recent years. GPUs are optimized for handling multiple tasks simultaneously, making them beneficial for applications related to artificial intelligence, data science, and machine learning. Various industries like automotive, gaming, medical imaging, and video rendering extensively rely on GPUs to enhance the graphics and performance of their applications. Key features of GPUs include massive parallelism, specialized arithmetic instructions, high memory bandwidth, and design prioritization. The increasing usage of AI and deep learning techniques across industries has propelled the demand for high-performance GPUs.

The Global Graphic Processing Unit Market is estimated to be valued at US$ 47.77 Bn 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 Graphic Processing Unit market are Salesforce.com, Inc., LogicBay Corporation, Oracle Corporation, Allbound Inc., International Business Machines Corp, Impartner Software, ZINFI Technologies, Inc., Zyme Solutions, PartnerPath, Blackhawk Engagement Solutions, Inc., The Planet Group, Allbound Inc., and Channeltivity, LLC. The high adoption of GPUs in data centers and increasing investment in AI startups present lucrative opportunities in the market. Technological advancements such as the integration of GPU accelerators with servers and real-time ray tracing are expected to drive the demand for high-performance graphics cards.

The key opportunities in the GPU Market Growth include increasing spending on cloud-based services, rising adoption of AI and deep learning techniques, growing investments in autonomous vehicles development, and advancement of virtual reality and augmented reality technologies. Major players are focusing on developing technologically advanced GPUs to support real-time AI, machine learning, and data analytics workloads.

The increasing focus on research related to machine learning, robotics, and artificial intelligence has accelerated the demand for GPUs with high memory capacities and computational power. Innovation in GPU architecture and emergence of software development kits for computation libraries and programming languages are expected to boost market growth over the forecast period.

Market drivers

The primary growth driver for the graphic processing unit market is the rising adoption of AI, machine learning, and deep learning techniques across industries. Large corporates are massively investing in developing AI-powered applications, platforms, and services, which needs high-performance GPUs for complex modeling and simulations. Another major factor is the increasing penetration of cloud computing and edge computing requiring integration of GPU accelerators for better performance and efficiency. Growing demand for virtual reality and augmented reality technologies from gaming, healthcare, and entertainment industries will also contribute to market revenue.

Current Challenges in Graphic Processing Unit Market

The graphic processing unit market is facing challenges due to the ongoing global semiconductor chip shortage. The Covid-19 pandemic disrupted global supply chains and manufacturing hubs were forced to temporarily shut down. This imbalance between supply and demand has created shortages and increasing lead times for graphic cards. Furthermore, cryptocurrency mining has also increased demand for graphic cards putting further pressure on limited supplies. Companies in this industry must collaborate with chip fabrication plants to ramp up production and meet market needs. They also need to implement effective demand planning and procurement strategies to navigate ongoing supply constraints.

SWOT Analysis

Strength: High demand for graphic cards from gaming and cryptocurrency mining industries.

Weakness: Ongoing semiconductor chip shortage affecting supplies and profitability.

Opportunity: Growth in new application areas like AI, machine learning, VR/AR etc.

Threats: Intense competition from key players and threat of new entrants with superior technology.

Geographical Regions

North America accounts for the largest share of the global graphic processing unit market in terms of value. This is due to high adoption of graphic cards for gaming consoles and PCs in countries like US and Canada. China is the second largest market and is growing at a rapid pace driven by increasing gaming popularity and cryptocurrency boom. The Asia Pacific region excluding China and Japan is projected to be the fastest growing regional market between 2024-2031 due to rising digitalization and strengthening gaming industry in India and Southeast Asia.

Fastest Growing Geographical Region

The Asia Pacific region excluding China and Japan is poised to witness the fastest growth in the graphic processing unit market during the forecast period. Rapid digitalization, increasing adoption of VR/AR technologies, emergence of digital hubs like Mumbai and Bengaluru and strengthening gaming infrastructure are driving high demand for graphic cards in the region. Also, countries like India, Indonesia, Thailand, Philippines and Vietnam offer a favorable business environment with low manufacturing costs attracting investments by global industry leaders. If supply constraints are addressed, the Asia Pacific region can emerge as a major manufacturing and consumption hub for graphic cards globally.

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