The graphic processing unit (GPU) market has experienced significant growth in recent years. GPUs provide enhanced graphics capabilities for applications like gaming, graphic designing and animation. Advantages of using GPUs over conventional CPUs include parallel processing, faster rendering of graphics and video processing. The growing demand of GPUs from industries like gaming, automotive and healthcare for applications like machine learning and artificial intelligence is a key factor fuelling the graphic processing unit market.
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 demand for high-performance computing across industries is driving the sales of GPUs. Gaming has emerged as the largest application segment for GPUs. Rapid development of AI and machine learning has also bolstered the demand for GPUs.
The continuously growing demand for graphic-intensive applications and superior computing power is boosting the GPU Market Demand. Gaming applications account for more than half of the total GPU shipments globally. Rising popularity of eSports and immersive gaming experiences are augmenting sales of GPUs. Healthcare industry’s increasing use of AI and machine learning for medical imaging, drug discovery and precision medicine is a key factor fuelling graphics card adoption.
Growing trends of cloud gaming and edge computing provide growth opportunities for GPU manufacturers. The adoption of GPUs for crypto mining also drives market expansion. However, volatile cryptocurrency prices are a challenge. Demand for power-efficient GPUs promotes the development of integrated and mobile graphics solutions. Overall, the requirement of real-time, high performance graphics across industries ensures ongoing technology innovation in GPUs.
Porter’s Analysis
Threat of new entrants: Low economies of scale required for manufacturing make entry difficult.
Bargaining power of buyers: Large buyer base in various industries like gaming, automotive etc dilutes individual buyer power.
Bargaining power of suppliers: Strong technical expertise and IP of AMD, Intel and Nvidia increase supplier bargaining power.
Threat of new substitutes: Rapid innovation makes substitute threat high from AI/ML solutions.
Competitive rivalry: Fierce competition between AMD, Intel, Nvidia drives down margins and increases investment in R&D.
Geographical Regions
North America accounts for the largest share and is expected to maintain its lead through 2024 owing to extensive use of AI, VR and gaming. The Asia Pacific region is expected to witness highest growth during the forecast period due to increasing demand from gaming and high performance computing industries especially in countries like China, Japan and India.