Asia-Pacific MPU Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.27 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific MPU Market Analysis
The Asia-Pacific Microprocessor (MPU) market is valued at 34.92 billion in the previous year and is expected to grow at a CAGR of 7.27% during the forecast period to reach a value of 54.18 billion by the next five years. Microprocessors are widely used in several devices in the consumer electronics category, including smartphones, laptops, Tablets, TVs, and GPS devices, thus driving the market's revenue and volume growth over the forecast period.
- The growing development of connected vehicles and the technological advancements of infotainment and IoT equipment is leading to a significant increase in electronic control unit contents in automobiles, fueling the demand for the Asia-Pacific microprocessor (MPU) market.
- The automotive industry is increasing in Asia-Pacific, and the region holds a significant share of the global automotive market. Further, the Government of China estimates that China's automobile output is expected to reach 35 million units by 2025.
- With the growing technological innovations in the region, the demand for microprocessors has also been increasing at a similar rate. In line with these trends, various companies have invested in the market by undertaking various initiatives.
- For instance, in February 2023, The Center for Development of Advanced Computing (C-DAC) announced the development of a family of microprocessors using indigenous design. These processors will be used in smart water meters, smart energy meters, smart gas meters, multimedia processing, IoT devices, and VR/AR applications. Through this development, the company aims to help India become self-reliant in microprocessor development.
- Furthermore, the growth of the IT sector in the Asia Pacific region is creating a huge demand for computing devices, further supporting the studied market's growth in this region. For instance, according to IBEF, in FY22, the IT industry accounted for about 7.4% of India's GDP and is expected to contribute 10% to India's GDP by 2025.
- Moreover, several data center companies are focusing on expanding their presence in the Asia-Pacific region to gain a competitive edge in the market. For instance, in March 2023, OVHcloud, the European cloud company, announced launching its first data center in India as a part of the Asia-Pacific expansion plan. The company will also build two additional data centers in Australia and Singapore by next year. Through this expansion, the company aims to provide customers with trusted, open, sustainable, and sovereign cloud solutions and enable them to meet growing needs.
- The Asia-Pacific microprocessor (MPU) market has witnessed high growth during the COVID period. The widespread shift to the remote work model significantly increased the demand for laptops, desktops, and other computing devices. Although the industry is shifting back to a traditional working model, the hybrid work culture is expected to stay relevant during the forecast period, which is expected to positively influence the studied market's growth during the forecast period.
Asia-Pacific MPU Market Trends
Increasing Demand for Smart Phone and Consumer Electronics in the Region
With the growing advancements in technologies, the use of consumer electronic devices has increased drastically over the past few years. Consumer electronics have attracted customers with various technological advances, which have increased the demand for microprocessors during the forecast period.
Consumer electronics include household appliances, smartphones, computers, laptops, and other electronics, such as wearables, gaming consoles, etc. The demand for microprocessors in the industry is increasing with product introduction in consumer electronics.
Smartphones have emerged as significant elements for the use of microprocessors. With the increasing smartphone innovations and the growing smartphone penetration rate, there are further opportunities for growth, especially in emerging countries. According to Ericsson's report, smartphone subscriptions in Asia-Pacific will be 5,300 million in 2022 and are expected to grow by 6,150 million in 2028. This growth in smartphone subscribers is expected to drive the demand for Asia-Pacific microprocessors (MPUs) during the forecast period.
Moreover, the Asia-Pacific Microprocessor market will witness high growth due to the adoption of smart homes and smart cities. As these trends govern a higher adoption of connectivity technology in consumer appliances, household appliance manufacturers increasingly focus on integrating IoT technologies with products to help customers stay connected with their homes.
The increasing disposable income, growing internet penetration, and rising awareness of digital technologies are the driving factors behind the market's growth. Furthermore, major industry players focus on new product development to overcome the challenges and offer a reliable user experience.
For instance, in January 2023, Advanced Micro Device, Inc. released its new Ryzen 7000 series of mobile microprocessors, which uses its Zen4 architecture with up to 16 cores and Radeon DNA (RDNA) 2 Graphics Processing Unit (GPU). The Ryzen 7040 features new generation RDNA3 graphics and integrates a new artificial intelligence (AI) engine, making it one of the most advanced mobile processors for gaming.
Increasing Penetration of Industrial Automation to Augment Market Growth
With the rising Industry 4.0 and automation trend, the manufacturing sector across various Asian countries, particularly China, India, and Japan, is growing significantly. Many manufacturing hubs in China, Japan, and Taiwan drive the Asia-Pacific microprocessor market.
China is among the fastest-growing countries, with a very high industrial production rate. These factors act as drivers for the automation market in the country. Investments are being planned to aid the quality of growth, address environmental concerns, and reduce overcapacity, for the same. The number of companies deploying robotics and process and factory automation technologies in the country is less when compared to the enormous size of China's manufacturing base and the number of workers it employs. This trend presents a great opportunity for companies operating in the Asia-Pacific microprocessor market.
The use of robots in factory automation continues to grow as it significantly increases efficiency, reduces costs, and improves quality. Modern autonomous robots are hybrids of superior sensors, microprocessors, and artificial intelligence (AI) software. The processor is not only the heart of the robot but also the brain. Processors help to implement the various robot control functions. The processor gives the robot some native intelligence that will allow it to function independently.
According to IFR, Asia remains the world's largest market for industrial robots, with 74% of newly deployed robots in 2021. Installations in China, the region's largest user, surged by 51% to 268,195 units shipped. Japan remained the second largest market for industrial robots after China. The number of installations in 2021 increased by 22% to 47,182 units.
Moreover, under its 'Make in India' initiative, India aims to increase the value the manufacturing sector contributes toward the GDP, to 25%, by 2022. These initiatives are expected to drive the deployment of automation technologies, thereby increasing the demand for microprocessors.
Furthermore, major Korean businesses are fully committed to moving their manufacturing to a smart solution. The companies improved productivity and profitability through expediting manufacturing automation solutions. As a result, the companies witnessed reduced expenses throughout the supply chain. These major Korean companies will play a crucial role in upgrading obsolete centralized systems to automatically controlled smart platforms to create sophisticated industrial environments in Korea.
Asia-Pacific MPU Industry Overview
With their wide-scale availability of offerings, microprocessors' wide range of applications contributes to intense rivalry among the key market players. The major providers are in the process of the constant evolution of products, following different strategies to capture the market. The players are looking forward to strategic collaboration with other brands and joint product developments for coming up with problem-solving solutions.
March 2023: Qualcomm Technologies, Inc. announced introducing the world's first integrated 5G IoT processors to support four major operating systems, two new robotics platforms, and an accelerator platform for IoT ecosystem partners. The company aims to support the next generation of 5G connectivity and premium edge AI through this launch.
May 2022: Intel Corporation announced to unveil seven new 12th Gen Intel Core HX processors based on Intel's performance hybrid architecture. The 12th Generation Intel, Core HX processors use desktop-grade silicon in a mobile package to deliver high-performance levels for professional workflows such as CAD, animation, and visual effects.
Asia-Pacific MPU Market Leaders
Intel Corporation
Sony
Nvidia
TSMC
SK Hynik
*Disclaimer: Major Players sorted in no particular order
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Asia-Pacific MPU Market News
- March 2023: Nvidia, TSMC, ASML, and Synopsys announced to set the foundation for next-generation chip manufacturing. This foundation enables 500 NVIDIA DGX H100 systems to do the work of 40,000 CPU systems, with all parts of the computational lithography process running in parallel, reducing power requirements and potential environmental impact.
- September 2022: Intel Corporation announced the introduction of a new processor for its major product range. The new offering will replace the Intel Celeron and Intel Pentium branding in the 2023 notebook product stack. The company aims to enhance customer communication on each product's value proposition and enable a greater customer experience through this product.
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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macro-economic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand For Smartphones and Consumer Electronics in the Region
5.1.2 Proliferation of Industrial Automation
5.2 Market Challenges
5.2.1 Declined Demand for PCs
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 8-bit
6.1.2 16 bit
6.1.3 32 bit or greater
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Enterprise- Computer and Servers
6.2.3 Automotive
6.2.4 Industrial
6.2.5 Others
6.3 By Geography
6.3.1 China
6.3.2 Japan
6.3.3 South Korea
6.3.4 Rest of APAC
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Intel Corporation
7.1.2 TSMC
7.1.3 SK Hynix Inc.
7.1.4 Sony
7.1.5 Nvidia
7.1.6 Samsung Technologies
7.1.7 Qualcomm Technologies
7.1.8 Broadcom Inc.
7.1.9 Micron Technology
7.1.10 Advanced Micro Devices Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Asia-Pacific MPU Industry Segmentation
A microprocessor is a computer processor that includes data processing logic and control in a single integrated circuit or a few ICs. A microprocessor contains the logic, arithmetic, and control circuits necessary to perform the functions of a computer's central processing unit.
The Asia-Pacific Microprocessor Market is segmented by Product (8-bit, 16-bit, and 32-bit or greater), Application (Consumer Electronics, Enterprise, Automotive, and Industrial), by Country (China, Japan, South Korea, and Rest of APAC). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Product | |
| 8-bit | |
| 16 bit | |
| 32 bit or greater |
| By Application | |
| Consumer Electronics | |
| Enterprise- Computer and Servers | |
| Automotive | |
| Industrial | |
| Others |
| By Geography | |
| China | |
| Japan | |
| South Korea | |
| Rest of APAC |
Frequently Asked Questions
What is the current Asia-Pacific MPU Market size?
The Asia-Pacific MPU Market is projected to register a CAGR of 7.27% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific MPU Market?
Intel Corporation, Sony, Nvidia, TSMC and SK Hynik are the major companies operating in the Asia-Pacific MPU Market.
Which is the fastest growing region in Asia-Pacific MPU Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Asia-Pacific MPU Market?
In 2024, the Asia Pacific accounts for the largest market share in Asia-Pacific MPU Market.
What years does this Asia-Pacific MPU Market cover?
The report covers the Asia-Pacific MPU Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific MPU Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific MPU Industry Report
Statistics for the 2024 Asia-Pacific MPU market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific MPU analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
