Asia-Pacific MPU Market Size

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.