Graphics Processing Unit (GPU) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 65.27 Billion |
| Market Size (2029) | USD 274.21 Billion |
| CAGR (2024 - 2029) | 33.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
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*Disclaimer: Major Players sorted in no particular order |
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Graphics Processing Unit (GPU) Market Analysis
The Graphics Processing Unit Market size is estimated at USD 65.27 billion in 2024, and is expected to reach USD 274.21 billion by 2029, growing at a CAGR of 33.20% during the forecast period (2024-2029).
The graphics processing unit market is primarily driven by the growing demand for specialized processors to manage complex mathematical calculations related to 2D and 3D graphics. The augmenting use of processors to support graphics applications and 3D content in several industry verticals, including manufacturing, automotive, real estate, and healthcare, is also increasing the market’s growth.
•The demand for high-end personal computing devices and gaming consoles has surged in recent years, driving the studied market. Hence, investing in a graphics add-in board is helpful for micro-processing companies, as GPU forms a vital component of the finished product.
•Moreover, the high adoption of computing products, such as personal computers (PCs) or laptops, and the increasing investment in the gaming industry have been significant factors driving the studied market's growth in recent years. The growing demand for high graphics and computing applications and the expansion of technologies, like AI, along with the trend of real-time analysis, are mainly expanding the scope of GPU technology over the forecast period.
•In addition, GPUaaS may be utilized for various purposes, including training multilingual AI speech engines and identifying early indicators of diabetes-related blindness. Modern GPUaaS, which provides a compelling alternative to traditional general-purpose processors with variable pricing and no CAPEX, is one way to achieve the speed required for machine learning systems.
•However, the lack of a skilled workforce has been a significant challenge for companies adopting the technology. Several manufacturing companies cite a shortage of experienced engineers and developers; it becomes challenging to keep up with the complex and rapidly evolving technology and switch to automation, thereby increasing costs and restricting the market's growth.
•Owing to the ongoing US-China dispute, other countries, including India and some Southeast Asian countries, have started to witness a higher inflow of investments in the manufacturing and industrial sector as companies in China look to diversify their manufacturing base. Such trends, in turn, are expected to drive further opportunities in the market studied.
Graphics Processing Unit (GPU) Market Trends
Mobile Devices to Witness Major Growth
- The Graphics Processing Unit (GPU) is a vital component of smartphones, accountable for rendering graphics and managing complex visual tasks, including rendering animations, playing video games, and displaying high-resolution images. The CPU can remain idle and conserve battery power using the GPU to handle intensive graphical tasks. This is especially important for demanding applications like video games, which can consume a lot of battery life if not optimized.
- The mobile devices industry evolved rapidly in the past decade, and the integration of 3D graphics on mobile phones accelerated with the technological evolution. The GPU plays a key role in mobile devices and PCs, providing better graphics performance, enhanced battery life, and offloading CPU tasks. Mobile devices can render high-quality animations, graphics, and special effects with more ease and faster speed with a dedicated GPU, resulting in a better user experience, specifically for consumers who regularly use demanding apps and play video games.
- The recent advancement in smartphone technologies and rising demand for 5G smartphones drive the segment’s growth. Efforts by smartphone makers such as Samsung, Apple, Xiaomi, Oppo, and Vivo to innovate their products are also driving up demand for Mobile GPUs.
- As per Ericsson, 5G subscriptions are forecast to increase drastically worldwide from 2019 to 2028, from over 12 million to over 4.5 billion subscriptions respectively. India, Nepal, and Bhutan are expected to have the most subscriptions by region. Smartphone OEMs are ramping up Artificial intelligence-enabled smartphones in 2024, with an additional storage capacity, boosting the demand for smartphones in coming years.
- Furthermore, continuous development in camera and picture quality attracts new consumers. Rapid AI and machine learning technology integration in mobile phones and laptops drives demand for faster GPUs.
Asia-Pacific to Witness Significant Growth
- The Asia-Pacific region is anticipated to remain among the prominent contributors to the growth of the market studied, considering the changing dynamics of various industries in the region. Over the years, the adoption of digital technologies has grown significantly outside significant countries such as China, Japan, and South Korea, creating opportunities in the market studied. For instance, the “Digital India” mission is one such initiative that had a notable impact on the uptake of digital technologies in India, driving the demand for GPUs across various end-user verticals in the country.
- In the last few decades, China has become the primary producer and consumer of semiconductors and related products. The demand for semiconductor chips in China is driven primarily by the expanding digital ecosystem.
- Government initiatives also support the growth in the uptake of digital technologies in China. For example, “Made in China 2025” is an initiative by the Chinese government to promote the adoption of advanced technologies, such as robotics, IoT, automation, and advanced ICT solutions, such as AI, AR/VR, ML, etc., in the industrial sector.
- Furthermore, China has also emerged among the leaders in the Asia-Pacific region in adopting digital technologies in the public sector to improve the efficiency of public services. As a result, the adoption of cloud and related services has been increasing in the country, creating a favorable ecosystem for demand and becoming a vital component of data center infrastructure.
Graphics Processing Unit (GPU) Industry Overview
The graphics processing unit market is fragmented with the presence of major players like Intel Corporation, Advanced Micro Devices Inc., Nvidia Corporation, Imagination Technologies Group, and Samsung Electronics Co. Ltd. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
•In January 2024, NVIDIA announced the GeForce RTX 40 SUPER Series family of GPUs, including the GeForce RTX 4080 SUPER, GeForce RTX 4070 Ti SUPER, and GeForce RTX 4070 SUPER, which supercharges the latest games and forms the core of AI-powered PCs. This newest iteration of NVIDIA Ada Lovelace architecture-based GPUs delivers up to 52 shader TFLOPS, 121 RT TFLOPS, and 836 AI TOPS to supercharge gaming and provide the power to develop new entertainment worlds and experiences.
•In November 2023, VMware Inc. announced a partnership with Intel Corporation to extend their innovation by enabling private AI across data centers, public clouds, or Edge environments to help customers accelerate the adoption of AI in data centers, public clouds, and edge environments. The combination of VMware Cloud Foundation and Intel’s AI software suite, Intel Xeon processors with built-in AI accelerators, and Intel Max Series GPUs will deliver a validated and benchmarked AI stack for data preparation, model training, fine-tuning and inferencing to accelerate scientific discovery and enrich business and consumer services.
Graphics Processing Unit (GPU) Market Leaders
Intel Corporation
Advanced Micro Devices, Inc.
Nvidia Corporation
Imagination Technologies Group
Samsung Electronics Co. Ltd
*Disclaimer: Major Players sorted in no particular order
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Graphics Processing Unit (GPU) Market News
- March 2024: Amazon Web Services and NVIDIA announced the extension of their collaboration to advance Gen AI innovation. To help customers unlock new generative artificial intelligence capabilities, Blackwell plans to offer the NVIDIA GB200 Grace Blackwell super chip and B100 Tensor core GPUs, extending the long-standing strategic collaboration between the two companies to deliver the most secure and advanced infrastructure, software, and services.
- October 2023: AMD introduced its flagship laptop graphics processor, AMD Radeon RX 7900M, the fastest GPU developed for laptops. It is based on AMD's RDNA 3 architecture. This new high-performance graphics card delivers impressive gaming and content creation capability to mobile devices with an average 7% improvement over the competitive offer in select games at QHD resolution.
Graphics Processing Unit (GPU) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Evolving Graphics in Games
5.1.2 Growing Applications of AR, VR, and AI
5.2 Market Restraints
5.2.1 High Initial Investments
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Discrete GPU
6.1.2 Integrated GPU
6.1.3 Hybrid GPU
6.2 By Applications
6.2.1 Mobile Devices
6.2.2 PCs and Workstations
6.2.3 Servers/Data Centers
6.2.4 Automotive/Self-driving Vehicles
6.2.5 Gaming Consoles
6.2.6 Other Applications
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Intel Corporation
7.1.2 Advanced Micro Devices Inc.
7.1.3 Nvidia Corporation
7.1.4 Imagination Technologies Group
7.1.5 Samsung Electronics Co. Ltd
7.1.6 Arm Limited (Soft Bank Group)
7.1.7 EVGA Corporation
7.1.8 SAPPHIRE Technology Limited
7.1.9 Qualcomm Technologies Inc.
8. VENDOR MARKET SHARE
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Graphics Processing Unit (GPU) Industry Segmentation
A graphics processing unit (GPU) is an electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. GPUs are used in mobile devices, personal computers, workstations, edge data centers, automotive, and gaming consoles.
The graphics processing unit (GPU) market is segmented by type (discrete GPUs, integrated GPUs, and hybrid GPUs), applications (mobile devices, PCs and workstations, servers/data centers, automotive/self-driving vehicles, gaming consoles, and other applications) and geography (North America, Europe, Asia-Pacific, Australia and New Zealand, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Discrete GPU | |
| Integrated GPU | |
| Hybrid GPU |
| By Applications | |
| Mobile Devices | |
| PCs and Workstations | |
| Servers/Data Centers | |
| Automotive/Self-driving Vehicles | |
| Gaming Consoles | |
| Other Applications |
| By Geography*** | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Graphics Processing Unit (GPU) Market Research FAQs
How big is the Graphics Processing Unit Market?
The Graphics Processing Unit Market size is expected to reach USD 65.27 billion in 2024 and grow at a CAGR of 33.20% to reach USD 274.21 billion by 2029.
What is the current Graphics Processing Unit Market size?
In 2024, the Graphics Processing Unit Market size is expected to reach USD 65.27 billion.
Who are the key players in Graphics Processing Unit Market?
Intel Corporation, Advanced Micro Devices, Inc., Nvidia Corporation, Imagination Technologies Group and Samsung Electronics Co. Ltd are the major companies operating in the Graphics Processing Unit Market.
Which is the fastest growing region in Graphics Processing Unit Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Graphics Processing Unit Market?
In 2024, the Asia Pacific accounts for the largest market share in Graphics Processing Unit Market.
What years does this Graphics Processing Unit Market cover, and what was the market size in 2023?
In 2023, the Graphics Processing Unit Market size was estimated at USD 43.60 billion. The report covers the Graphics Processing Unit Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Graphics Processing Unit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the future trends in the GPU market?
Future trends in the Graphics Processing Unit (GPU) Market are: a) Integration with AI and machine learning b) Focus on energy efficiency c) Cloud-based GPU offerings, and d) Advancements in 3D graphics and virtual reality
What are the future trends in the GPU market?
Future trends in the Graphics Processing Unit (GPU) Market are: a) Integration with AI and machine learning b) Focus on energy efficiency c) Cloud-based GPU offerings, and d) Advancements in 3D graphics and virtual reality
Graphics Processing Unit (GPU) Industry Report
The global GPU market is booming, fueled by the demand for high-performance computing in various sectors. Integrated GPUs, essential in devices like smartphones and laptops, are evolving to meet the needs of AI, VR, and supercomputers. Meanwhile, hybrid GPUs are emerging as a powerful solution for graphics-intensive applications. The smartphone sector, driven by VR/AR and gaming, leads the market, with the Asia-Pacific region at the forefront due to its investment in high graphic computing for defense and IoT. The demand for GPUs in servers and cloud deployments is rising, emphasizing their role in cloud-based services across consumer electronics, healthcare, and media. Innovations and the expanding integration of GPUs are steering the market towards more efficient solutions. For a detailed forecast and market analysis, Mordor Intelligence™ offers a comprehensive report on GPU market trends, and is available as a free PDF download.
