The graphic processing unit (GPU) market has seen major growth in the past few years due to the increasing demand for GPU products in various applications related to gaming, machine learning, and blockchain. GPUs enable faster rendering of graphics and imaging applications compared to processors’ integrated graphics. Key features and advantages of GPUs include high parallel processing capabilities, video memory used for graphics rendering, and dedicated graphics cards featuring powerful processors. The growing need for real-time graphics rendering, virtual reality, machine learning algorithms for image and video processing applications is fueling massive demand for GPUs worldwide.
The Global GPU 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 companies are focusing on developing more powerful GPUs with higher memory and parallel processing capabilities to gain market share.
The growing market for cryptocurrency mining and rising applications of blockchain technology present significant opportunities for GPU manufacturers. Increasing investments in AI and machine learning projects involving computer vision, image recognition, natural processing language are expected to boost demand for high-performance GPUs.
Technological advancements such as the integration of ray tracing cores, Variable Rate Shading, mesh shaders and other new features in the latest generation of graphics cards are improving graphics rendering capabilities. The integration of GPUs in data centers and adoption of GPUs for deep learning workloads are further enhancing the capabilities of AI and machine learning applications.
Market Drivers
The dominant driver for the GPU Market Demand is the increasing demand for GPUs from industries like automotive, gaming, data centers, and healthcare for various graphics-intensive applications such as virtual reality, augmented reality, machine learning, and deep learning. The rapid growth in AI projects involving computer vision, image recognition is fueling the need for powerful GPUs to accelerate machine learning workloads. Emerging applications in the cryptocurrency mining and blockchain networks are also expected to contribute to the growing demand.
Challenges in the Graphic Processing Unit Market
The Graphic Processing Unit market is facing challenges related to the decline in global semiconductor sales and ongoing trade war between the US and China. With the decline in sales of personal computers and notebooks, the demand for graphic cards has also reduced impacting the revenues of GPU manufacturers. Moreover, geopolitical tensions have disrupted global supply chains affecting the availability of components. GPU makers are facing rising costs of raw materials like memory chips putting pressure on margins. Furthermore, increasing competition from integrated graphics on processors poses a threat. brands will have to focus on developing more powerful and energy-efficient GPUs for applications like AI, VR and gaming to drive future growth.
SWOT Analysis
Strength: Growing demand for GPUs from gaming, data centers and automotive sector. Leading manufacturers have strong R&D capabilities to develop advanced graphics technologies.
Weakness: High dependency on PC industry sales cycles and global trade environment. Risingcomponent costs can impact profitability.
Opportunity: Expanding role of AI and machine learning opens up new revenue streams. Increasing use of virtual reality and augmented reality offers opportunities.
Threats: Stiff competition from integrated graphics. Vulnerability to cryptocurrency mining cycles which affects demand.
Geographical Regions
In terms of value, the Graphic Processing Unit market is currently concentrated in Asia Pacific region primarily due to presence of leading GPU manufacturers in China, South Korea and Taiwan. The region accounts for around 35% of the global market valuations led by countries like China, Japan and South Korea. North America is the second largest region dominating over 30% of the total market share owing to large customer base in US for gaming and data centers.
The fastest growing regional market for Graphic Processing Units is expected to be Central and Eastern Europe over the forecast period from 2024 to 2031. The CAGR for Central and Eastern European GPU market is projected to be around 22% during this timeframe. Increased government investments in digitalization, emergence of local gaming industry and growing adoption of AI/ML technologies are major drivers for strong growth in Central and Eastern Europe.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
