Graphics Processing Unit (GPU) Market Report: Trends, Forecast and Competitive Analysis to 2030

Graphics Processing Unit (GPU) Trends and Forecast

The future of the global graphics processing unit (GPU) market looks promising with opportunities in the electronic, IT & telecommunication, defense & intelligence, media & entertainment, and automotive markets. The global graphics processing unit (GPU) market is expected to reach an estimated $110.6 billion by 2030 with a CAGR of 22.5% from 2024 to 2030. The major drivers for this market are increasing demand for high-performance computing devices, growing trend of internet of things (IoT), and rising demand for advanced technologies like AR, VR, and AI.

Lucintel forecasts that integrated will remain the largest segment over the forecast period due to its usage in variety of applications in portable electronic devices, such as smartphones, tablets, wearables, and laptops.

Within this market, automotive is expected to witness the highest growth due to the widespread use of graphics processors in design and engineering applications.

APAC will remain the largest region over the forecast period due to the growing business of IOT systems and massive government investment in high graphic computing systems for the defense and intelligence sectors in the region.

Emerging Trends in the Graphics Processing Unit (GPU) Market

The up-and-coming trends within the GPU marketplace are setting the future's tempo as far as computational and graphics technology is concerned. With industries that require higher performance and newfound capabilities, the following trends show the changing face of modern applications and technological advancement concerning the place of GPUs.

• Broader Prevalence of AI and Machine Learning-Dedicated GPUs: The presence of specialized AI and machine learning video cards is going to be one of the main trendsetters. Such specialized graphics processing units will be developed with even greater power for parallel processing, enabling speedier training and inference. In this way, they will further nudge AI research and application ahead.
• Growth in Gaming GPUs: The demand for higher-quality GPUs keeps increasing with the growth in the gaming industry. Innovations are being channeled to improving graphics quality, frame rates, and support for virtual reality technologies in line with demands from gamers desiring better experiences in gaming.
• Data Center Expansion: GPUs have increasingly been deployed in data centers for cloud computing and High-Performance Computing applications. With greatly improved data processing and computational efficiency thanks to huge parallel task processing capability, the development of cloud services is enabled accordingly.
• Development of Green GPU: Against this background, power consumption and thermal management challenges have aroused higher demands for energy-efficient GPU design. In the future, green GPU will contribute to reducing operational costs and minimizing environmental impacts, and thus fit into the industry's goal of sustainable development.
• Interoperability with Emerging Technologies: GPUs are incorporated into other upcoming technologies such as autonomous cars and smart devices. This is because, on account of the ability of GPUs to process complex tasks in real time with great processing power, special features have been introduced through which more advanced capabilities of those technologies unfold. The capability of GPUs can be stretched further in their area of application.

These trends are driving the development of specialization, performance enhancement, and application expansion in a host of industries. With the emergence of new technologies, the GPU is also evolving to keep up with the demands for emerging technologies.

Recent Developments in the Graphics Processing Unit (GPU) Market

In the last few years, newer trends in the GPU market have been driving technological improvements on aspects like performance and expanded application areas. These illustrate the shift in the characteristics that have dominated so far and the realm of applications of the GPUs.

• AI-Specific GPUs: Specific GPUs for AI have emerged with better processing capability in machine learning. Higher core count in the combination of custom architecture, in this respect, has accelerated AI training and inference, thereby enhancing performance in AI applications.
• Ray Tracing Technology; Recent GPUs have integrated advanced ray tracing technology into their GPUs, further improving the graphical realism of games and simulations. This is farther improved by this technology, which enhances the production of light and shadow to create an immersive and visually correct experience.
• Growth in GPU-as-a-Service: GPU-as-a-Service gives cloud access to high-performance GPUs. It is a development that allows scalable computing resources for data processing and AI without necessarily making huge upfront investments in hardware.
• Development of Multi-Function GPUs: These multi-functional GPUs can also be engaged in different diversified duties, from games and scientific computations to other applications. Given these varied requirements, high-performance GPUs are also made available-from consumer to enterprise applications.
• Improved Energy Efficiency: New generation GPUs have been designed with energy efficiency in mind. Power consumption and heat management are some of the new important design features. It reduces operational cost and ecological impact, and hence it also meets the goals of sustainability.

These developments mark the growing evolution of both the technological advancements and the application requirements for the GPU market. Innovations are also leading the way toward future GPUs and their use in modern computing: AI, ray tracing, and energy efficiency.

Strategic Growth Opportunities for Graphics Processing Unit (GPU) Market

The GPU market is highly heterogeneous, presenting several opportunities for growth across various applications. Driving the marketplace with such opportunities opens new frontiers of innovation within the dynamically changing technology environment.

• AI and Machine Learning Growth: The field of AI and machine learning is a field that is increasingly in demand. GPUs optimized to perform in AI tasks can make a strong appearance in the marketplace within fields like data science, robotics, and automated systems.
• Gaming and Virtual Reality Growth: The growth in gaming and VR is a sequence of opportunities for high-performance GPUs. Innovation in graphics quality, frame rate, and in-VR experiences will be attractive to gamers and VR enthusiasts, which helps drive demand in the marketplace.
• Data Center Solutions: The potential for growth arises due to the increasing use of GPUs within data centers, either for cloud computing or HPC. Therefore, scalable and effective GPU solutions can be availed to these applications in order to meet the expanding computational power demand.
• Development of Energy-Efficient Solutions: A market is developing that is looking toward energy efficiency in GPUs. Because of this fact, the reduction of power consumption and heat generation can be developed into a solution and marketed to appeal to environment-conscious consumers and enterprises in order to meet their sustainability goals.
• Integration with Emerging Technologies: Integration of GPUs with autonomous vehicles and smart devices could also create more avenues in this market. In the case of these developing sectors, emerging high-end GPUs can enable real-time processing and highly complex simulations, hence finding more use in new and evolving industries.

These emerging opportunities, in essence, represent the growth potential of various segments within the AI-driven GPU market, gaming, data centers, power efficiency, and evolving technologies. The ability of companies to capitalize on these opportunities will place them in an advantageous position regarding increasing their marketplace share and driving innovation.

Graphics Processing Unit (GPU) Market Driver and Challenges

Some mega drivers and challenges have driven the GPU market. Market dynamics and strategies are shaped by technological innovations, economic trends, and regulatory considerations.

The factors responsible for driving the graphics processing unit (GPU) market include:

1. Technological Advances: The major factors driving the market are innovations in AI-specific features of GPUs, advanced ray tracing, among other technologies driving these latest innovations in GPU. This will further improve performance and unlock new use cases, which drives demand for high-end GPUs.

2. Growing Demand for AI and Machine Learning: The demand for AI and machine learning applications is also increasing. High-performance GPU demand increases due to the need to support such applications. GPUs designed for these tasks offer accelerated processing power, supporting advancements in data science and automation.

3. Growth of Gaming and VR Markets: The gaming and virtual reality studies place demands on the GPU. These high demands from the market compel manufacturers to produce high-performance GPUs, enabling the study to create immersive experiences and high-quality graphics; hence, it expands the market.

Challenges in the graphics processing unit (GPU) market are:

1. High Production Costs: Manufacturing such advanced GPUs involves costly research and development, which might affect the price of the final product sold in the market, hence affecting their adoption. Companies need to optimize their production costs for better market competitiveness.

2. Supply Chain Disruptions: Supply chain problems, as exemplified by the recent semiconductor shortage, will make the going somewhat tough for the manufacturers of these GPU chips. It can disrupt production timing and availability, hence fluctuating the market dynamics.

3. Fierce Market Competition: The market for a GPU is immensely competitive. There are too many players vying for shares in the market. The companies have to keep innovating and differentiating their offerings to maintain competitive advantage and address price pressures.

In a nutshell, drivers and challenges in the GPU market are complex and influenced by frontiers of technological advances, industrial demands, and market competitiveness. Addressing the drivers and overcoming the challenges stands out as part of the success ingredients for companies remaining competitive in this evolving GPU market.

List of Graphics Processing Unit (GPU) Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies graphics processing unit (GPU) companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the graphics processing unit (GPU) companies profiled in this report include-

• IBM
• Intel
• NVIDIA
• Samsung Electronics
• Qualcomm
• Advanced Micro Devices
• Dassault Systems
• Google
• Siemens
• Sony

Graphics Processing Unit (GPU) by Segment

The study includes a forecast for the global graphics processing unit (GPU) by type, device, end use, and region.

Graphics Processing Unit (GPU) Market by Type [Analysis by Value from 2018 to 2030]:

• Dedicated
• Integrated
• Hybrid

Graphics Processing Unit (GPU) Market by Device [Analysis by Value from 2018 to 2030]:

• Computers
• Tablets
• Smartphones
• Gaming Consoles
• Televisions
• Others

Graphics Processing Unit (GPU) Market by End Use [Analysis by Value from 2018 to 2030]:

• Electronics
• IT & Telecommunication
• Defense & Intelligence
• Media & Entertainment
• Automotive
• Others

Graphics Processing Unit (GPU) Market by Region [Analysis by Value from 2018 to 2030]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Graphics Processing Unit (GPU) Market

The graphics processing unit market has recently seen significant development because of technological innovations matched by increased demand for these gadgets from sectors such as gaming, AI, and data centers. The key regional disparities in development show the varied manner in which different markets respond to these development trends.

• United States: With rapid developments in AI and machine learning, the U.S. has increased GPU demand. Key players develop high-performance GPUs targeting data centers and cloud computing. Innovation to create efficiency in computations by increasing the number of cores and dedicated hardware to accelerate deep learning tasks spurs the growth of the market.
• China: The surging demand for gaming and AI applications has extended China's GPU market to a great extent. The technologies are getting advanced from the local players, competing with international players in this field. The government's initiative in the field of high computing infrastructure drew investments in high-performance GPUs with a motive to boost the domestic capabilities and reduce dependency on foreign technology.
• Germany: The growth of Germany is supported by the new developments of automotive and industrial automation. Different German companies are involved in the development of autonomous driving systems that incorporate GPUs and integrate them into smart manufacturing processes. The new innovations are done to enable this GPU to handle huge data processing capability with more efficiency according to the demand of such high-tech applications.
• India: The growing demand for gaming and AI applications is driving the growth of the GPU market in India. Also, rising tech startups and companies embracing electronic gaming contribute to increasing demand for higher-end GPUs. Local and global players are deeply investing in R&D to come up with better-performance GPU solutions and to cater to the booming market of high-performance computing solutions.
• Japan: It is seen that the GPU market in Japan remains considerably strong, with the main focus on robotics and electronics. Japanese companies are designing new GPUs that have better parallel processing capabilities to aid in sophisticated simulations and real-time processing of robotics-based applications. Innovation and integration with emerging technologies are driving growth in this sector.

Features of the Global Graphics Processing Unit (GPU) Market

Market Size Estimates: Graphics processing unit (GPU) market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.

Segmentation Analysis: Graphics processing unit (GPU) market size by type, device, end use, and region in terms of value ($B).

Regional Analysis: Graphics processing unit (GPU) market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different types, devices, end uses, and regions for the graphics processing unit (GPU) market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the graphics processing unit (GPU) market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

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FAQ

Q1. What is the graphics processing unit (GPU) market size?

Answer: The global graphics processing unit (GPU) market is expected to reach an estimated $110.6 billion by 2030.

Q2. What is the growth forecast for graphics processing unit (GPU) market?

Answer: The global graphics processing unit (GPU) market is expected to grow with a CAGR of 22.5% from 2024 to 2030.

Q3. What are the major drivers influencing the growth of the graphics processing unit (GPU) market?

Answer: The major drivers for this market are increasing demand for high-performance computing devices, growing trend of internet of things (IoT), and rising demand for advanced technologies like AR, VR, and AI.

Q4. What are the major segments for graphics processing unit (GPU) market?

Answer: The future of the graphics processing unit (GPU) market looks promising with opportunities in the electronic, IT & telecommunication, defense & intelligence, media & entertainment, and automotive markets.

Q5. Who are the key graphics processing unit (GPU) market companies?

Answer: Some of the key graphics processing unit (GPU) companies are as follows:

• IBM
• Intel
• NVIDIA
• Samsung Electronics
• Qualcomm
• Advanced Micro Devices
• Dassault Systems
• Google
• Siemens
• Sony

Q6. Which graphics processing unit (GPU) market segment will be the largest in future?

Answer: Lucintel forecasts that integrated will remain the largest segment over the forecast period due to its usage in variety of applications in portable electronic devices, such as smartphones, tablets, wearables, and laptops.

Q7. In graphics processing unit (GPU) market, which region is expected to be the largest in next 5 years?

Answer: APAC will remain the largest region over the forecast period due to the growing business of IOT systems and massive government investment in high graphic computing systems for the defense and intelligence sectors in the region.

Q.8 Do we receive customization in this report?

Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the graphics processing unit (GPU) market by type (dedicated, integrated, and hybrid), device (computer, tablet, smartphone, gaming console, television, and others), end use (electronics, IT & telecommunication, defense & intelligence, media & entertainment, automotive, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
• Market Report