Compared to general-purpose central processing units (CPUs), GPUs are better suited to address computational problems that can be expressed as data-parallel computations – the same program is executed on many data elements in parallel with high arithmetic intensity. This allows for higher throughput than general-purpose CPUs for many applications. GPUs are used in image-related consumer electronics like personal computers, workstations, and video games. The increasing demand for high-resolution graphics in parallel applications such as gaming, augmented reality/virtual reality from end-use industries drives market growth.
Market key trends:
Rapid adoption of AI and machine learning technologies has been a key trend in the GPU market. GPUs offer massively parallel processing capabilities that make them ideally suited for machine vision, deep learning, and other compute-intensive AI workloads. Major tech companies are widely adopting GPU accelerators in their AI and machine learning projects and data centers, driving up demand. Another major trend is the growth of autonomous vehicles which require highly powerful GPU processors for advanced computer vision and processing of large neural networks. Increasing investments in self-driving cars will positively impact the GPU market over the forecast period.
Threat of new entrants: The graphic processing unit market is a consolidated market dominated by a few major players having a strong global footprint and high capital investment requirements. This makes the entry difficult for new players.
Bargaining power of buyers: Buyers have moderate to low bargaining power due to the availability of varied product offerings from different brands at competitive prices in the market.
Bargaining power of suppliers: A few multinational companies dominate the global supply of graphic processing units. This gives them significant bargaining power over buyers.
Threat of new substitutes: There is no direct substitute of graphic processing units available. Alternatives like central processing units have limited graphics processing capabilities.
Competitive rivalry: The graphic processing unit market witnesses intense competition among the major vendors based on pricing and innovation.
The global Graphic Processing Unit Market Size is estimated to be valued at US$ 41.46 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global graphic processing unit market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand for graphics intensive applications like gaming, automotive and industrial automation.
Regional analysis: North America dominates the global graphic processing unit market currently, followed by Asia Pacific. China exhibits the fastest growth in the adoption of graphic processing units for gaming as well as datacenter applications. Adoption of AI, ML and deep learning applications are driving revenue generation in countries like the U.S, China and Japan.
Key players: Key players operating in the graphic processing unit market are IBM Corporation, Intel Corporation, NVIDIA Corporation, Samsung Electronics Co., Ltd., Qualcomm Incorporated, Advanced Micro Devices, Inc., Dassault Systems, Inc., Google, Inc., Siemens AG, and Sony Corporation. NVIDIA Corporation and AMD Inc. are the market leaders with extensive product portfolio for gaming, datacenter and automotive segments.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it