Processor Market Size (2024 - 2029)

The market size of the Global Processor industry has been expanding due to several factors. The proliferation of consumer electronic devices, including smartphones, smartwatches, and wearable devices, has significantly boosted the demand for processors, particularly CPUs. The growing base of tech-savvy consumers has also led to a surge in the adoption of smartphones, thereby accelerating the demand for mobile application processors. Furthermore, the increasing shift of businesses moving their IT infrastructure to the cloud has propelled the demand for data center CPUs. However, the market growth has been hindered by the need for highly skilled and qualified personnel to create application processors. Despite the initial disruption caused by COVID-19, certain segments have reported increased consumer demand, supporting the growth of APU and CPU technology.

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Market Size of Processor Industry

Processor Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 4.30 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Processor Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Processor Market Analysis

The Global Processor market was valued at around USD 116 billion in 2022 and is expected to register a CAGR of 4.3% over the forecast period. A processor is an important integrated circuitry (IC) in computing devices and performs all of the calculations needed to run the computer.

  • The proliferation of consumer electronic devices is among the key factors responsible for the market growth, with CPUs being used within almost all electronic devices, from smartphones to smartwatches. Additionally, there has been a significant increase in the number of wearable devices sold over the past few years. According to Cisco, the number of connected wearable devices was estimated to rise from 835 million in 2020 to 1,105 million in 2022, fuelling the demand for processors.
  • Also, with the growing base of tech-savvy consumers, there has been a significant rise in the adoption of smartphones, accelerating the demand for mobile application processors. Application processors also find use in a variety of electronic devices such as tablets, e-readers, netbooks, gaming consoles, and automotive navigation devices.
  • Moreover, the demand for data center CPUs continues to grow, with more businesses moving their IT infrastructure to the cloud. Also, one important trend in the data center CPU segment is the increasing use of multi-core processors, which enable more efficient processing of large amounts of data.
  • COVID-19 severely impacted the industry by disrupting the supply chain in the initial phase. For instance, in the early phase of 2020, companies like NVIDIA and AMD witnessed supply chain disruptions due to the lockdown in China. However, the market has reported increased consumer demand in certain segments, which mainly supports the growth of APU and CPU technology.
  • However, one of the major restraints for the market is the need for highly skilled and qualified personnel to create application processors. This has hindered the market growth since processors take time to reach the end-user.

Processor Industry Segmentation

A processor refers to an integrated electronic circuit that performs the calculations that run a computer. It performs arithmetical, logical, I/O, and other basic instructions that are passed from an operating system.

The Processor Market is segmented by Type of Product (CPU (Client (Desktop and Laptop), Server) and APU (Smartphone, Tablet, Smart Television, Smart Speakers)) and Geography (China (including Hong Kong), Taiwan, United States, Rest of the World)). The market sizes and forecasts are provided in terms of value (in USD) for all the above segments.

By Type of Product
CPU
Client (Desktop and Laptop)
Server
APU
Smartphone
Tablet
Smart Television
Smart Speakers
Other Applications (Smartwatch, Notebook, AR/VR, Automotive etc.)
By Geography
China (including Hong Kong)
Taiwan
United States
Rest of the World

Processor Market Size Summary

The global processor market, which encompasses integrated circuitry (IC) crucial for the functioning of computing devices, is experiencing steady growth. This growth is largely driven by the proliferation of consumer electronic devices, with central processing units (CPUs) finding application in a wide range of devices, from smartphones to smartwatches. The market is also seeing an uptick due to the increased sales of wearable devices in recent years, and the rise in tech-savvy consumers leading to a surge in smartphone adoption. This, in turn, is accelerating the demand for mobile application processors, which are also used in tablets, e-readers, netbooks, gaming consoles, and automotive navigation devices. The market for data center CPUs is also expanding as more businesses shift their IT infrastructure to the cloud. Despite the growth, the processor market faces certain challenges, including the need for highly skilled personnel to create application processors. This has somewhat impeded market growth as processors take time to reach the end-user. Meanwhile, application processors (APUs), which are responsible for the optimal functioning of applications in mobile operating systems, are gaining significant market share. The increased use of mobile devices, such as smartphones and tablets, is contributing to this trend. Advanced processors are enhancing the smartphone experience for customers, and the demand for smartphones with high-end graphics is leading to the production of more mobile phones with advanced application processors. The application processor market is also benefiting from the increasing adoption of emerging technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), which are driving the demand for data-centric real-time applications.

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Processor Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview (Current Scenario of Processor Industry, and KPI Analysis)

    2. 1.2 Technology Snapshot (Latest developments, Evolution of Multi-chi p CPUs, applications etc.)

    3. 1.3 Impact of Macroeconomic Scenarios (Post-covid impact, supply chain disruptions, political & economic uncertainties) on the Market

    4. 1.4 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Industry Supply Chain Analysis (Global)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Product

      1. 2.1.1 CPU

        1. 2.1.1.1 Client (Desktop and Laptop)

        2. 2.1.1.2 Server

      2. 2.1.2 APU

        1. 2.1.2.1 Smartphone

        2. 2.1.2.2 Tablet

        3. 2.1.2.3 Smart Television

        4. 2.1.2.4 Smart Speakers

        5. 2.1.2.5 Other Applications (Smartwatch, Notebook, AR/VR, Automotive etc.)

    2. 2.2 By Geography

      1. 2.2.1 China (including Hong Kong)

      2. 2.2.2 Taiwan

      3. 2.2.3 United States

      4. 2.2.4 Rest of the World

Processor Market Size FAQs

The Processor Market is projected to register a CAGR of 4.30% during the forecast period (2024-2029)

Nvidia, AMD, Intel, Qualcomm and Mediatek are the major companies operating in the Processor Market.

Processor Market Report Snapshots

Processor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)