Market Trends of Graphics Processing Unit (GPU) Industry
Servers Application Segment is Expected to Hold Significant Market Share
- The server segment is witnessing significant growth owing to the proliferation of the cloud in various end-user sectors. For instance, in Japan, KDDI, one of the prominent telecom companies, partnered with NVIDIA to offer GeForce Now game-streaming service to customers. KDDI reportedly partnered with NVIDIA to deliver PC games over low-latency broadband and a 5G network to gamers in Japan. It would place NVIDIA's RTX gaming servers in a new data center in Tokyo.
- Additionally, 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.
- Moreover, the Indian market is also witnessing investment by many vendors. For instance, Acer launched new NVIDIA Tesla GPU-powered servers in India. The server can host up to eight NVIDIA Tesla V100 32GB SXM2 GPU accelerators. GPU pair includes one Peripheral Component Interconnect (PCIe) slot for high-speed interconnect.
- Technological advancement in high-performing computing (HPC) may also develop an opportunity for GPU vendors. For instance, in April 2022, 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. According to Steam, 91.22 percent of respondents used a DirectX 12 GPU graphics card as of August 2022.
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Asia Pacific is Expected to Hold Significant Market Share
- In China, the Fenghua GPU achieved a significant milestone in terms of broad adoption. The GPU was announced in November last year by Xindong Technology and Innosilicon. The GPU was validated in March 2022 for stable operation and excellent Tongxin UOS operating system performance.
- Tongxin UOS is a significant operating system in China because it was created as a government-led effort to usurp Windows. It is built on Debian Linux and has been tweaked to work with the newest homemade hardware. As a result, alongside the development of support for Chinese-designed semiconductor devices such as Zhaoxin CPUs and GPUs, the Fenghua GPU certification represents a significant step.
- In April 2022, Moore Threads announced MTT S60 for PC desktops and workstations and the MTT S2000 for servers. Both are based on MUSA-based 12nm GPUs. Moving on to AI, MUSA-based graphics cards can support a variety of common AI frameworks, including those for visual processing, audio processing, natural language processing, and more.
- Many companies are also partnering or investing in Chinese start-ups or research laboratories, which are getting government support. This is also known as indirect penetration in the Chinese market. China-based popular AI start-up SenseTime has a portfolio of 700 clients and partners, including the Massachusetts Institute of Technology (MIT), and Qualcomm, among others.
- The company has become successful in very little time and has a valuation of USD 4.5 billion. One of the reasons SenseTime has been able to grow so quickly is that it has government support and direct access to China’s vast databases. The company is also working with the Chinese government on Made in China in 2025. The company also revealed that its aggregate computing power is more than 160 petaflops, achieved with 54,000,000 GPU cores across 15,000 GPUs within 12 GPU clusters.
- The growth in the Chinese gaming industry is mainly due to increasing investment in enhancing R&D capability for GPU technology. Independent games developed by domestic firms have continued to dominate market sales in China.
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