Graphics Processing Unit (GPU) Market Size

Graphics Processing Unit (GPU) Market Analysis

The Graphics Processing Unit Market is expected to register a CAGR of 32.70% during the forecast period.

The Market was valued at USD 37.9 billion the previous year and is expected to reach USD 206.95 billion by the next five years. The demand for high-end personal computing devices and gaming console effects has surged in recent years. Hence, investing in a graphics add-in board is helpful for micro-processing companies, as GPU forms a vital component of the finished product.

• The high adoption of computing products, such as personal computers (PC) or laptops, globally and the increasing investment in the gaming industry have been major 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.
• The gaming industry is one of the significant driving forces for the GPU market. The growing investment in the global gaming sector and advancement in game development also fuel graphics growth. Features like real-time stimulators demand high graphics. Additionally, game developers mainly leverage competitive advantage by developing high-graphics games that match real-world scenarios. These features also require advanced graphics boards.
• The growing demand for advanced technologies, like AR, VR, and AI, is further fueling the GPU demand, as these technologies require high-speed analysis, for which GPU is an ideal option. AI chips have surpassed GPUs in performance and energy efficiency. However, GPUs are still an indispensable part of high-performance computing. Apart from AI, GPUs also have a solid general-purpose computing capability.
• GPU manufacturing, especially the standalone GPU chip, is costlier and requires high-end machines. Although the raw material is cost-effective, the companies need a high initial investment to build the lab for testing and manufacturing. For instance, Intel announced Intel Arc for consumer high-performance graphics solutions. The Arc brand would encompass hardware, software, and services over multiple generations of hardware, with the first discrete GPU (Alchemist) based on the Xe HPG microarchitecture delivered to OEMs in Q1 of the current year.
• COVID-19 impacted the industry by disrupting the supply chain in the initial phase. However, the market has reported increased consumer demand in a particular segment, mainly supporting GPU technology growth. In April this year, Nvidia stated that researchers discovered trends in Hubble data on 25 of them using a supercomputer with NVIDIA GPUs. To increase the understanding of all planets, high-performance computing is used with NVIDIA GPUs to analyze the torrid atmospheres.