by GPUs are semi-conductor devices that are responsible for handling the graphical interfaces on any system. They primarily handle calculations related to graphics, such as rendering 3D images and real-time video. GPUs find their applications in workstations, desktops, and servers, and are extensively used in applications such as video games, virtual reality (VR), augmented reality (AR), machine learning (ML), and deep learning. The growing use of graphic designs, animation, digital artwork, engineering designs, and visualizations has boosted the demand for increasingly powerful GPUs.
Given the realistic experiences rendered by high graphics gaming and VR, graphic cards with powerful GPUs have become essential components of gaming PCs and consoles. Growing popularity of e-sports and cloud gaming has further spurred demand. Advances in ML and deep learning have increased utilization of GPUs in data centers as well.
The global Graphic Processing Unit Market is estimated to be valued at US$ 41.46 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing gaming industry is a key factor driving the Graphic Processing Unit Market. According to Statista, the gaming industry was valued at US$ 175.8 billion in 2021 and is expected to reach US$ 314.40 billion by 2027, growing at a CAGR of 10.7% during the forecast period.
With the increase in graphic intensive games and e-sports, GPUs with higher memory bandwidth and processing power are being adopted. Moreover, advanced GPUs offer enhanced VR and AR experiences fueling their application across different sectors. Additionally, growing data centers and server computing has increased the implementation of multi-core GPUs for machine and deep learning applications thereby propelling market growth.
Segment Analysis
The graphics processing unit market is segmented into integrated graphics and discrete graphics. Discrete graphics dominates the market occupying around 80% share owing to its enhanced processing power for graphics-intensive applications like gaming, CAD/CAM software, medical imaging etc. Discrete graphics cards provide dedicated video memory and processing units allowing high-quality graphics rendering compared to integrated graphics which shares system memory.
PEST Analysis
Political: Governments globally are supporting the growth of gaming industry by relaxing regulations which is driving the adoption of high-performance GPUs.
Economic: Rising disposable incomes is increasing spending on gaming PCs and workstations requiring powerful GPUs.
Social: Growing popularity of eSports and online multiplayer gaming among younger population is propelling the graphics processing unit market.
Technological: Advancements in areas like machine learning, artificial intelligence and virtual reality requiring real-time rendering is augmenting the demand for GPUs with higher processing capabilities.
Key Takeaways
The Global Graphic Processing Unit Market Size is expected to witness high growth at an anticipated CAGR of 18% during the forecast period of 2023 to 2030.
Regional analysis: The Asia Pacific region dominates the market holding around 40% share owing to large gaming population and strong presence of semiconductor manufacturers in countries like China, Taiwan and South Korea.
Key players: Key players operating in the Graphics Processing Unit market are Nvidia Corporation, AMD Inc., Intel Corporation. Nvidia leads the market with around 75% share owing to its powerful RTX and GTX series of gaming GPUs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
