The Graphic Processing Unit (GPU) is a dedicated graphics-rendering device for a personal computer, workstation or game console which offers improved performance, greater power efficiency, lower CPU usage, and a richer media experience. GPUs can process hundreds or thousands of threads simultaneously through parallel processing, thereby delivering highly parallelizable workloads such as graphics processing, machine learning, and artificial intelligence much faster than a general-purpose CPU. The advantages of using GPUs for high-performance computing tasks such as machine learning applications, scientific computing, animation, medical imaging, and gaming have boosted their demand substantially.
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 from 2024 to 2031.
Key Takeaways
Key players operating in the Graphic Processing Unit 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. Growing demand from data centers, AI/ML, blockchain, IoT, gaming, autonomous vehicles, and simulations by cloud service providers, enterprises, and governments has accelerated the adoption of GPUs. The increasing global footprint of cloud service providers and data center expansion has further propelled the GPU market growth.
Market key trends
The growing popularity of deep learning and AI applications across various sectors has emerged as a key trend fueling the Graphic Processing Unit Market Growth. GPUs have become indispensable for AI/deep learning workloads owing to their ability to handle huge volumes of parallel calculations required for neural network inferences and neural network training. Their high computational capabilities enable faster and more efficient training of complex neural networks. This has led to burgeoning demand from sectors like automotive, healthcare, banking, and manufacturing that are increasingly adopting AI technologies.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale in production acts as a deterrent for new companies to enter. Bargaining power of buyers: Large tech giants have strong bargaining power due to bulk purchases and demand concentration. Bargaining power of suppliers: Few large chip manufacturer control major supply which gives them bargaining power in negotiations. Threat of new substitutes: Threat is moderate as GPUs are continuously innovated to match new workloads with improved performance and efficiency. Competitive rivalry: Intense competition between existing players to gain market share through continuous innovation and product differentiation.
Geographical Regions
North America region currently holds the largest share in terms of value owing to strong presence of major GPU manufacturers and growing demand for GPUs from gaming and data centers. Asia Pacific is poised to be the fastest growing region due to increasing adoption of AI, ML and rapid expansion of data centers in countries like China and India. Countries like China, Taiwan and South Korea are emerging as manufacturing hubs for GPU chips which is fueling market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it