Graphics Processing Unit (GPU) Market Size

Graphics Processing Unit Market Size

Graphics Processing Unit Market size was valued at USD 52.1 billion in 2023 and is projected to grow at a CAGR of over 27% from 2024 to 2032, owing to the proliferation of AI and ML across various industries. AI and ML workloads require high computational power for tasks such as neural network training, image recognition, natural language processing (NLP), and predictive analytics. GPUs are highly efficient at parallel processing, making them suitable for handling AI workloads. Furthermore, industries such as finance, healthcare, automotive, retail, and manufacturing are adopting AI for automation, recommendation systems, predictive maintenance, and diagnostics.  

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For instance, in April 2024, HCA Healthcare partnered with Augmedix to speed up the development of AI-enabled ambient documentation solutions for acute care providers. These solutions use automatic speech recognition (ASR) technology and NLP to convert clinician-patient conversations into medical notes, which care teams can review and finalize before the notes are added into patient EHRs. GPUs are essential in accelerating both the training and inference stages of AI applications.
 

The gaming industry is constantly pushing for better resolutions, real-time ray tracing, and faster frame rates for more immersive experiences which require more powerful GPUs. Additionally, platforms such as NVIDIA GeForce Now, Google Stadia, and Microsoft's xCloud are leading the shift to cloud gaming, where powerful GPUs are hosted in the cloud stream games to users on various devices.
 

For instance, in April 2023, LG Electronics improved the cloud gaming experience on its 2023 TVs by adding 4K support for NVIDIA GeForce NOW and launching the Boosteroid service. These additions, along with the integration of Blacknut and Utomik in 2022, expanded cloud gaming options for LG TV users. This trend is increasing the demand for data centers with high-performance GPUs.
 

The GPU market is highly dependent on the availability of raw materials such as semiconductors and advanced manufacturing processes. Global shortages of semiconductors, driven by high demand across industries such as automotive and consumer electronics, can delay GPU production. Furthermore, trade wars especially between the U.S. and China, and regional conflicts, can disrupt supply chains, increase tariffs, and limit access to key manufacturing hubs in the Asia Pacific. These issues can lead to higher prices, reduced supply, and slower market growth.