June 18, 2024
Graphic Processing Unit Market

Graphic Processing Unit Market is Estimated to Witness High Growth Owing to Increasing Demand for Higher Processing and Graphics Capabilities

Graphic processing units or GPUs play a vital role in enhancing gaming, graphic design, and video editing experiences by offering superior processing and graphics rendering capabilities compared to central processing units or CPUs. GPUs are specialized electronic circuits designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display. The rising demand for supreme quality graphics and processing power in applications such as machine learning, artificial intelligence, gaming, and cryptocurrency mining is a key driver propelling the graphic processing unit market forward.

The Global Graphic Processing Unit Market is estimated to be valued at US$ 47.77 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Graphic Processing Unit market are Salesforce.com, Inc., LogicBay Corporation, Oracle Corporation, Allbound Inc., International Business Machines Corp, Impartner Software, ZINFI Technologies, Inc., Zyme Solutions, PartnerPath, Blackhawk Engagement Solutions, Inc., The Planet Group, Allbound Inc., and Channeltivity, LLC. The increasing use of GPUs in applications beyond gaming such as machine learning and deep learning is expected to present growth opportunities for GPU manufacturers. Many GPU manufacturers are focusing on strengthening their presence in emerging markets such as Asia Pacific and Latin America through partnerships and by establishing manufacturing plants in these regions.

Market drivers
The rising adoption of AI and IoT technologies has been propelling the need for high-performance computing capabilities which conventional CPUs cannot often fulfill. This has been creating strong demand for GPUs to handle graphics-intensive and complex computations associated with AI, machine learning, and edge analytics applications. The exponential growth of data volumes that need to be processed in real-time has significantly boosted requirements for graphics processing power, thereby driving the graphic processing unit market forward.

PEST Analysis
Political: The Graphic Processing Unit Market Share is subject to government regulations regarding data privacy and security issues. Changes in trade policies can impact the global supply chains of the graphic processing unit manufacturers.

Economic: Fluctuations in the global and regional economic conditions directly impact the spending on graphic processing units by end-use industries like gaming, automotive, and healthcare. The demand heavily relies on the economic growth and investment scenarios.

Social: Increasing digitalization and growing applications of virtual reality and augmented reality are positively influencing the social acceptance and demand for high-performance graphic processing units. Younger generations are driving the demand through increased gaming and entertainment consumption.

Technological: Advancements in semiconductor fabrication processes allow higher transistor integration leading to more powerful and efficient graphic processing units. Integration of artificial intelligence capabilities is expanding the scope and applications of graphic processing units beyond graphics.

According to value, North America holds the largest share of the graphic processing unit market, led by the United States. This can be attributed to the early adoption of cutting-edge technologies and presence of major graphic processing unit manufacturers and end-users in the region.

The Asia Pacific region is poised to become the fastest growing market for graphic processing units during the forecast period. This is supported by the improving economic conditions, growing digitalization trends, and rapidly expanding gaming and e-sports industries in countries like China, India, and South Korea. Countries in Southeast Asia also offer lucrative opportunitieswith increasing digitization of industries and infrastructure.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it