Graphic Processors Market Overview:
Graphic Processors Market was estimated to be worth USD 34.6 Billion in 2021, accounting for a CAGR of 33.5% during the forecast period (2022-2030), and the market is expected to be worth USD 466.1 Billion by 2030.
Graphic processors are silicon based computer chips capable of performing millions of mathematical operations at lighting speed. They are commonly known as graphic processor unit (GPU’s). GPU’s have wide range of applications especially in tasks involving heavy computing power like gaming, graphic designing, AI, crypto mining etc. They are basically divided into two main types discrete and integrated. Integrated GPU’s are embedded alongside the CPU for their functioning on the other hand, a discrete GPU is a separate chip that is affixed on its own circuit board and is generally attached to a peripheral component interconnect express slot. The later has more computing power but is expensive and consumes copious amount of power. This industry has many drivers which are expected to propel the demand for several decades. Among them the most promising driver which have unmatchable appetite for computing power is crypto mining industry. Bitcoin and ethereum to be specific are the two main crypto coins which are mined the most. Large number of graphic cards with extremely high computing power are required by miners as reward is based on the speed at which these complex mathematical calculation are completed. The fastest one to complete the calculation gets to resister the transection on the blockchain ledger and is in turn rewarded in form of cryptocurrency. Depending on the coin which was being mined.
For instance, in the year 2021 crypto miners single-handedly consumed 25 % of high end graphic cards developed world wide that too only in few starting months. The mining activity is directly related to the price of bitcoin and ethereum. Higher the price higher is the profit margin. With major financial institutions getting involved into crypto ecosystems the crypto industry is here to stay. That to for long period and with this the mining industry. For instance according to Figures from Block Data it was found that 61 out of 100 top banks globally have already invested in the cryptocurrency ecosystem. This represents a whopping 10 percent increase then that in August 2021, pointing towards a steady outlook from investors within the crypto ecosystem. Banks like Goldman Sachs, Morgan Stanley, Citi, commonwealth bank of Australia are few who have already invested. Thus such development could definitely result into lucrative opportunities for graphic processor manufactures.
Dynamics:
Driver:
- Demand from high end gaming industry :
In recent times the gaming industry has come up as the largest consumer for graphic cards. Modern game titles are of large sizes like of call of duty black ops which is more than 250 GB and requires extremely powerful graphic card in order to run this game. Moreover, the increasing demand for ultra-high resolution and realistic graphics in games has led to a parallel demand for high-end graphics cards to meet this requirement.
- Demand for IOT ( inter net of things ) applications :
IOT could be simply defined as interconnection of physical devices like computers, home appliances, cars and smart phones to one another. IOT technology allows these devices to freely exchange information among themselves so that tasks could be perfumed more efficiently and effectively with minimal human intervention. In order to make this possible all the devices within the network of IOT must be equipped with graphic cards then only they could efficiently process the information received, and could perform intended tasks.
- Development of cloud gaming industry :-
Clouding gaming refers to the service which allows gamers to access heavy game titles without the need for dedicated console or high-performance computer. All the heavy computing work is performed by industrial level servers and the results are directly transmitted to the gamers seamlessly. The cloud gaming is said to be the future of gaming industry. These cloud gaming providers use high end graphic cards in high volumes. And this gaming services is much more affordable as compared to building personal gaming setup. The affordable rates will result into the expansion of gaming industry to new users who were unable to afford high end gaming setups earlier. The cloud gaming arrangement will allow End-users to easily run AAA games on low level devices. This could result into the diversion of capital which was to be spent on other gaming components to be now concentrated on the GPU’s to large extent.
Restraint:
High cost of research and development is the major restraint for this market. At the same time this industry is very complex and high level engineers are must to carry out any kind of product development which makes entry of smaller companies very hard in this market. Furthermore, the development of Field programmable gate arrays (FPGA’s) which are superior in computing power that of GPU’s could also pose as a major challenge in coming times. High cost of production is also a restraint in expansion of this market into regions with lower disposable incomes making it largely dependent on specific regions. Which could be dangerous in times of economic downturns.
Covid-19 Impact:
Initially the GPU market was negatively impacted due the shortage of semiconductor chips. Due the restrictions which were imposed by Chinese government industries with them the industries who were indulged in chip manufacturing were also affected. Graphic processor industry was among few industries which had huge demand from the consumer side but were unable to meet the demand due to supply chain issue. Work from home and overall lockdowns pushed people to online means for entertainment purposes. A huge chunk moved to gaming skyrocketing the demand for high end processors. But this demand could not be meet as major companies like NVIDIA and AMD were unable to procure semiconductor chips which are crucial to make processors. But now the supply chain in back on its tracks and semiconductor shortage have been resolved. This is expected to largely propel the market towards profitability. Because still demand for processors is on higher side.
Graphic Processors Market Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 401.05 Billion |
| CAGR (2022-2030) | 33.5% |
| by Type | Discrete, Integrated, Hybrid and External |
| By Application | Gaming Pc, Workstations, Smart Phones, Media & Entertainment, Automobile and Crypto Mining Rigs. |
| By Geography | North America, Europe, Asia Pacific, Latin America, Middle East and Africa. |
| Key Players | Advanced Micro Devices, Inc. (U.S.), Arm Limited (U.K.), Asustek Computer Inc. (Taiwan), Broadcom (U.S.), Digi-Key Electronics (U.S.), Environmental Systems Research Institute, Inc. (Esri) (U.S.), EVGA Corporation (U.S.), Hexagon (Sweden), IBM (U.S.), Imagination Technologies (U.K.), Intel Corporation (U.S.), NXP Semiconductors (Netherlands), NVIDIA Corporation (U.S.), Pitney Bowes Inc. (U.S.), Qualcomm Technologies, Inc. (U.S.), Renesas Electronics Corporation (Japan), SAMSUNG (South Korea), SAPPHIRE Technology Limited (China), Silicon Integrated Systems Corporation (Taiwan), VIA TECHNOLOGIES, INC. (Taiwan), ZOTAC (Hong Kong). |
Market Segmentation:
By Type
The type segment could be divided into Discrete, Integrated, Hybrid and External. In the type division the largest market share is captured by integrated GPU’s. They account for nearly 76 % of total GPU’s sales. The main reason this expansion is use of integrated type GPU’s in laptops and smartphones. Majorly laptops have integrate GPU in them and all the smartphones have integrated GPU’s mounted in them. After this the largest market share is captured by desecrate type graphic processors also this segment is expected to witness fastest growth rate in the forecasted period as they are mainly employed in gaming pc’s. The gaming industry is witnessing double digit growth (13%) mainly in developing industries in south East Asia and India. The growth of gaming industry will very much positively impact the demand for discrete type graphic processors.
By Application
The application segment is categorized into Gaming Pc, Workstations, Smart Phones, Media & Entertainment, Automobile and Crypto Mining Rigs. In this segment the largest market share was captured by the smartphone segment. There are around 5.22 billion smartphone and they all have GPU’s integrated in them making this segment the biggest consumer for GPU’s.
After the smartphones the gaming pc and pc segment has the largest market share they mainly account for the sales of discreet type graphic processor. This segment is also antic aped to resister significant growth in coming years due to rise in popularity of gaming in APEC countries.
In recent times the crypto mining Rigs are also presenting themselves as major consumer for high end graphic processors. The demand for graphic processors is estimated to rise further with rise in popularity of crypto currency.
By Region
The region segment is divided into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. In this segment the fastest growth is estimated to be achieved by the Asia pacific region. Countries like china and India have large young population who are more inclined towards gaming and tech related activities. Rising consumer spendings and continuous technological advancements have resulted in to development and consumption many new games in this region. At the same the demand for other computer devices is also on rise. These factors are propelling the demand for graphic processors in this region.
The North America market currently has largest market share for high end graphic processors. The main reason for the demand could be associated to the popularity of gaming culture in this region.
Graphic Processors Market Competitive Landscape:
The competitive landscape of the Graphic Processors Market has been analyzed in detail in this report. Along with in depth profiles of the major players operating in this industry. Surge in R&D, product innovation, business strategies, product launches were found to be accelerating the growth of this market. This report also includes various company overviews, financials, revenues, market potential, strength and weakness. Key players in this market are-
NVIDIA Corporation (U.S.)
Arm Limited (U.K.)
ASUSTeK Computer Inc. (Taiwan)
Broadcom. (U.S.)
Digi-Key Electronics. (U.S.)
Environmental Systems Research Institute, Inc. (Esri) (U.S.)
EVGA Corporation (U.S.)
Hexagon (Sweden)
IBM (U.S.)
Imagination Technologies (U.K.)
Intel Corporation (U.S.)
NXP Semiconductors. (Netherlands)
Pitney Bowes Inc. (U.S.)
Qualcomm Technologies, Inc. (U.S.)
Renesas Electronics Corporation. (Japan)
SAMSUNG (South Korea)
SAPPHIRE Technology Limited. (China)
Silicon Integrated Systems Corporation. (Taiwan)
VIA TECHNOLOGIES, INC. (Taiwan)
ZOTAC (Hong KONG)
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