The Graphics Processing Unit (GPU) Market was valued at USD 23. 90 Billion in 2021, and it is expected to reach a value of USD 130. 02 Billion by 2027, registering a CAGR of 32. 70% during the forecast period (2022-2027).
New York, June 03, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Graphics Processing Unit (GPU) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06283201/?utm_source=GNW
A graphics processing unit, a programmable logic chip used for rendering images, animations, and videos and, for general computing purposes, is deployed in almost all computing devices shipped globally. Deployment in personal computers, laptops, and emerging applications, such as AR/VR, high-performance computing, AI, ML, blockchain, cryptocurrency mining, autonomous driving, and navigation (vehicles, robotics), are also driving the need for advancement in the GPU technology.
The demand for high-end personal computing devices and gaming console effects witnessed a surge in recent years. Hence, investing in a graphics add-in board is helpful for micro-processing companies, as GPU forms a vital component of the finished product.
The high adoption of computing products, such as personal computers (PC) or laptops, globally and the increasing investment in the gaming industry have been major factors driving the studied market’s growth in recent years. The growing demand for high graphics and computing applications and the expansion of technologies, like AI, along with the trend of real-time analysis, are mainly expanding the scope of GPU technology over the forecast period.
GPU manufacturing, especially the standalone GPU chip, is a costlier process and requires high-end machines. Although the raw material is cost-effective, the companies need high initial investment to build the lab for testing and manufacturing.
COVID-19 impacted the industry by disrupting the supply chain in the initial phase. However, the market has reported increased consumer demand in a certain market segment, which mainly supports GPU technology growth.
Key Market Trends
Servers to Lead the GPU Market Growth
The server segment is witnessing significant growth owing to the proliferation of the cloud in various end-user sectors.
In Japan, KDDI, one of the prominent telecom companies, partnered with NVIDIA to offer GeForce Now game-streaming service to customers in March 2020. KDDI reportedly partnered with NVIDIA to deliver PC games over low-latency broadband and a 5G network to gamers in Japan, where it will place NVIDIA’s RTX gaming servers in a new data center in Tokyo.
Moreover, the Indian market is also witnessing investment by many vendors. For instance, Acer launched new NVIDIA Tesla GPUs-powered servers in India. The server can host up to eight NVIDIA Tesla V100 32GB SXM2 GPU accelerators, wherein every GPU pair includes one Peripheral Component Interconnect (PCIe) slot for high-speed interconnect.
The significant growth in cloud computing is set to escalate the demand for the servers, boosting the demand for advanced GPUs.
In November 2021, Intel launched a Server GPU based on the Xe-LP microarchitecture and intended primarily for high-density, low-latency Android cloud gaming and media streaming, which is the company’s first discrete graphics processing unit (GPU) for the data center.
Asia Pacific to Hold the Largest Market Share
In China, the Fenghua GPU has achieved a significant milestone in terms of broad adoption. The GPU was announced in November 2021 by Xindong Technology and Innosilicon. The GPU was validated in March 2022 for stable operation and excellent performance on the Tongxin UOS operating system.
Tongxin UOS is a significant operating system in China because it was created as a government-led effort to usurp Windows. It is built on Debian Linux and has been tweaked to work with the newest homemade hardware. As a result, alongside the development of support for Chinese-designed semiconductor devices such as Zhaoxin CPUs and GPUs, the Fenghua GPU certification represents a significant step.
In April 2022, Moore Threads announced MTT S60 for PC desktops and workstations and the MTT S2000 for servers. Both are based on MUSA-based 12nm GPUs. Moving on to AI, MUSA-based graphics cards can support a variety of common AI frameworks, including those for visual processing, audio processing, natural language processing, and more.
Many companies are also partnering or investing in Chinese start-ups or research laboratories, which are getting government support. This is also known as indirect penetration in the Chinese market. China-based popular AI start-up SenseTime has a portfolio of 700 clients and partners, including the Massachusetts Institute of Technology (MIT), and Qualcomm, among others. The company has become successful in very little time and has a valuation of USD 4.5 billion. One of the reasons SenseTime has been able to grow so quickly is that it has government support and direct access to China’s vast databases. The company is also working with the Chinese government on Made in China in 2025. The company also revealed that its aggregate computing power is more than 160 petaflops, achieved with 54,000,000 GPU cores across 15,000 GPUs within 12 GPU clusters.
The growth in the Chinese gaming industry is mainly due to increasing investment in enhancing R&D capability for GPU technology. Independent games developed by domestic firms have continued to dominate market sales in China.
The global GPU market is highly consolidated and comprises a very limited number of players. Market incumbents spend huge capital on research and development to gain market shares in several end-user segments, often unscalable by new entrants or upcoming players.
April 2022 – AMD released the Radeon RX 6400 with ASRock, Biostar, Gigabyte, MSI, PowerColor, Sapphire, and XFX as partners.
March 2022 – Intel launched the Arc series of Graphics Processing Unit (GPU) for laptops and desktop PCs. Laptops with the Arc 3 GPU, designed for enhanced gaming and content production, are available for pre-order, while laptops with the Arc 5 and Arc 7 GPUs, designed for advanced and high-performance gaming, will come later in 2022.
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