Graphics Processing Unit (GPU) Market Analysis

Graphics Processing Unit Market Analysis

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Based on component, the market is segmented into hardware, software and services. The hardware segment held over 70% of the market share in 2023 and is expected to cross USD 200 million by 2032.  The demand for GPU hardware is significantly driven due cryptocurrency mining activities, particularly for mining cryptocurrencies such as Ethereum. GPUs are efficient at solving complex mathematical problems, making them ideal for crypto-mining operations.
 

Additionally, businesses are generating and processing vast amount of data. This has led to a greater need for GPU hardware to speed up data processing and analysis, particularly in artificial intelligence (AI) and machine learning (ML) applications.
 

Based on end-user, the graphics processing unit market is segmented into gaming, design & manufacturing, automotive, real estate, healthcare and others. The gaming segment held around 37% of the market in 2023. The growing demand for higher resolution gaming requires advanced GPUs to handle real-time rendering and smooth gameplay. As more gamers seek ultra-high-definition experiences, the demand for modern GPUs that support these resolutions increases. Companies operating in the market are launching innovative GPUs specifically for the gaming industry.
 

For instance, in January 2024, Advanced Micro Devices (AMD) launched the AMD Radeon 7600 XT 16GB and AMD Radeon 7600 XT 8GB for the middle and low-end of the gamer market. According to the company, the new GPUs are up to 1.9 times faster at gaming and raytracing than the GeForce RTX 2060 and it can display games at 1440p resolution and has processing power for AI and content creation.
 

Asia Pacific holds around 40% of the graphics processing unit market share in 2023 and is expected to expand significantly through 2032. Mobile gaming is a dominant force in Asia Pacific, with a large portion of gamers playing on smartphones. According to “India Gaming Opportunity: Robust Fundamentals to Power Continued Growth” Report, by Interactive Entertainment and Innovation Council (IEIC) and WinZo, India has the largest gaming market in the world with user base of over 560 million gamers and the country contributes nearly 20% of the world’s total mobile game downloads.
 

As mobile devices use specialized GPUs, the demand for gaming experiences with high-quality graphics is driving the development of more powerful mobile GPUs. Companies like MediaTek and Qualcomm are investing in this technology, making the region a center for innovation in mobile GPUs.
 

The U.S. is a major market for cloud gaming, with platforms like NVIDIA GeForce NOW, Google Stadia, and Microsoft xCloud allowing users to stream high-quality games without needing powerful local hardware. This trend is driving more investments in data centers equipped with advanced GPUs for real-time game rendering. Additionally, the rising popularity of game streaming and content creation on platforms such as Twitch and YouTube is further driving the growth of the market. Gamers and content creators need GPUs for real-time rendering, encoding, and video processing, increasing the need for powerful GPUs in personal devices and data centers.
 

Europe has a presence of major car manufacturers such as BMW, Volkswagen, Daimler, and Volvo which are investing heavily for innovating in autonomous vehicles and Advanced Driver Assistance Systems (ADAS). GPUs are crucial for real-time data processing and AI-based decision-making in these vehicles. The shift towards electric vehicles (EVs) and autonomous driving technologies in Europe is increasing the demand for high-performance GPUs in automotive systems.