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Graphic Processing Unit Market Size, Share

The global graphic processing unit (GPU) market size was valued at USD 48.38 billion in 2023. The market is projected to grow from USD 61.58 billion in 2024 to USD 461.02 billion by 2032, exhibiting a CAGR of 28.6% during the forecast period.

A Graphics Processing Unit (GPU) is a dedicated electronic circuit that fast-tracks video and image processing for visual outcomes. It is designed for interpreting graphics. GPUs are best suited for video playback and parallel processing, making them essential for gaming and multifaceted computations. They improve the performance of electronic devices and computers by managing complex graphical tasks, enhancing overall efficiency and speed.

The graphic processing unit enhances video quality as its specialization is rendering and generating videos, images, and animation. Other prominent features of graphic processing units include higher processing power, faster execution of complex work operations, better scalability, smoothened graphic rendering, and many more. These units are implemented across various devices, including smartphones, computers, tablets, gaming consoles, and televisions. For instance,

  • In April 2023, Samsung signed a multi-year alliance with AMD to deliver an enhanced mobile graphics experience to its customers. With the licensing allowance, Samsung brings console-level graphics eminence and optimized power intake to more smartphone devices, providing an immersive and enduring gaming experience.

The graphic processing unit market has undergone several changes during the COVID-19 pandemic. Some of the industries that have profited from the pandemic include the PC (Personal Computer) industry. The COVID-19 pandemic played a noteworthy role in amplifying the PC demand. Laptops and desktops became vital devices for customers who were required to do their work for jobs and school at home. For instance,

  • According to industry experts, through the first quarter of 2019, before the pandemic, global PC shipments dropped by 4.6%. However, in 2020, when the pandemic initiated, PC shipments increased by 4.8%.

Graphic Processing Unit Market

IMPACT OF GENERATIVE AI

Advanced Features of GPU Technology across Generative AI to Fuel Market Progress 

Graphic processing units were primarily built for the interpretation of graphics in video games but have developed involved in AI owing to their vastly parallel structure. They can accomplish thousands of functions simultaneously. It aligns seamlessly with the operations needed by neural networks, the precarious mechanism in generative AI. Hence, enterprises are designing and developing graphic processing units. For instance,

  • As per the Artificial Intelligence Index Report 2023 of Stanford, the human-focused AI group delivered some context, and GPU performance has improved approximately 7,000 times since 2003. Moreover, the price per presentation is 5,600 times higher.

Various use cases, such as ChatGPT, presented a prevailing example of how these units are efficient for Artificial Intelligence. The LLM (Large Language Model), trained and processed on hundreds of NVIDIA GPUs, processes generative AI facilities used by over 100 million individuals.

Generative AI simulations, including GANs (Generative Adversarial Networks) and VAEs (Variational Autoencoders), majorly depend on the capability to process huge amounts of data efficiently. Graphic processing units are best at parallel processing, allowing them to fast-track model preparation and inference, causing quicker and more precise AI-produced content.

Thus, the high-tech mechanism of such units contributes to the development and advancement of generative AI-based models.

GPU Market Trends

Usage of GPU across AR and VR to be Trending in the Market

Virtual Reality (VR) and Augmented Reality (AR) are high-tech mechanisms with rising usage and demand among consumers. Professional VR (Virtual Reality) applications require powerful workplace hardware. While the memory and CPU necessities for the HTC Vive are comparatively low (3.30GHz Intel Core i5 4590 and 4GB+ RAM), the same is not the case for the Graphics Processing Unit (GPU). VR requires over eight times more graphics processing power than is necessary to view the same work operation on a single FHD monitor. Hence, graphic processing units are preferred over other technologies, such as CPUs.

Augmented reality is required to process digital entities and join them in an actual world effortlessly. The graphic processing unit empowers to trace the user’s position and movement and understand the depth of the real-world situation. 

Such enhanced features and benefits of these units aid in delivering an immersive experience of augmented and virtual reality. Hence, various vendors are developing new GPU solutions centered on augmented and virtual reality with new advancements and innovations. For instance,

  • In December 2022, Meta announced 7% more graphic processing units computing power to operate on Meta Quest 2 devices for enhanced application performance on the VR headsets. The augmented GPU power expands the developer’s capability to use higher pixel density, deprived of substantially minimizing the resolution needed at the target frame rate.

Such advancements and added benefits of graphic processing units across augmented reality and VR drive market progress.

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Graphic Processing Unit Market Growth Factors

Implementation of GPUs across HPC to Drive Market Growth

High Performance Computing (HPC) refers to clusters of computers in cloud systems used for high-speed data analytics and processing. These cloud clusters usually work together and are coordinated with particular mechanisms, such as cloud file systems, containerized applications, or other software. These HPC clusters are generally used in specific industries where HPC is required for complex, ongoing applications, such as finance, healthcare, life sciences, supply chain management, genomic sequencing, and many others.

GPUs can aid demanding computing work operations, including high performance computing, AI, and machine learning, much better than their earlier counterparts, such as CPUs. HPC applications depend on vastly parallel processing with comparatively similar procedures, and GPUs are the logical hardware that helps them. Cloud computing platforms with high-performance competencies develop their server infrastructure with the help of this mechanism to fast-track processing for these difficult operations. For instance,

  • In December 2023, Yotta Data Services announced a partnership with NVIDIA to accelerate AI transformation in India. The partnership advances the progression of AI solutions in India with AI competencies. Yotta has already placed a huge order for NVIDIA H100 Tensor Core GPUs, a robust GPU for HPC and AI work operations.

The added benefits of these units in high performance computing solutions drive the graphic processing unit market growth. 

RESTRAINING FACTORS

Rising Prices of GPU and Graphics Cards to Hamper Market Growth

The usage of GPU machines comes with unpredictable and higher costs. Using the GPU cloud needs a low upfront cost, although users need to pay recurring charges for using it. The fees can vary depending on the GPU model, usage, region, configuration, and demand, and they can add up unexpectedly and quickly.

Users also need to keep up with the advanced mechanisms and performance enhancements, which might require frequent upgrades, which can be costly. Also, high-end graphics cards are expensive, as the average cost of graphics cards increased by two times between 2020 and 2023, and there are no signs of dropping these prices. For instance,

  • In February 2020, the ASP (average sale price) for an AMD graphics card was approximately USD 314, while the same ASP for an AMD graphics card increased to USD 639 in 2023.

Such a rise in graphics cards and units limits their usage across individuals and small and medium-sized enterprises, thereby hampering market growth. 

Graphic Processing Unit Market Segmentation Analysis

By Type Analysis

Increasing Popularity of Hybrid GPUs to Fuel Market Development

Based on type, the market is classified into dedicated or discrete, integrated, and hybrid.

The hybrid segment is expected to grow with the highest CAGR during the forecast period, owing to its increased popularity and capability to provide exceptional performance in both professional applications and gaming. With advances in mechanisms, these GPUs can seamlessly switch between dedicated and integrated graphics based on work demands, ensuring optimized performance and energy proficiency.

The integrated segment accounts for the highest market share in 2023, with its larger usage across smaller, lightweight systems, desktops, and laptops. Also, as these GPUs are integrated into the processor, they usually use less power and, hence, generate less heat, which can provide a longer battery life. Such benefits increase the usage of integrated GPUs across individuals and enterprises. For instance,

  • In April 2024, AMD announced the launch of Ryzen 8000G with integrated graphics and Ryzen AI and added 5000 series processors. The ‘G’ suffix showcases an integrated GPU, and iGPUs of AMD are usually powerful.

By Application Analysis

Enhanced Features and Greater Efficiency of GPUs across Machine Learning and Artificial Intelligence Propelled Segment Growth

By application, the market is categorized as machine learning and artificial intelligence, scientific computing, 3D modeling and rendering, video editing and rendering, and cryptocurrency mining.

The machine learning and artificial Intelligence segment held the highest market share in 2023, as the utilization and inclusion of GPUs made a significant difference to vast neural networks. GPUs perform mechanical calculations quickly and with better efficiency than CPUs. Thus, it delivers enhanced performance for AI training and inference as well as gains across a broad array of implementations.

  • In March 2024, NVIDIA and Google Cloud expanded their alliance to enhance AI development. The firms also announced aid for JAX on Vertex AI and NVIDIA GPU instances empowered by L4 Tensor Core GPUs and NVIDIA H100.

The 3D modeling and rendering segment is anticipated to grow with the highest CAGR during the forecast period. Professionals across industries, such as industrial design and architecture, make use of these units to fast-track 3D modeling and rendering operations. Also, the demand for the implementation of emerging technologies and automation across these industries fuels the graphic processing unit market share.

By Industry Analysis

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Growing Implementation of GPUs across IT and Telecommunication Boosted Segment Growth

Based on industry, the market is categorized into IT & telecommunication, electronics, media & entertainment, defense & intelligence, and others (automotive).

The IT & telecommunication segment accounted for the highest revenue in 2023. GPU has enabled the revolution of telecommunication services. GPU has accelerated IT and telecommunication with new advancements and enhancements, such as wireless incorporation across telecom services. For instance,

  • In September 2023, NTT DOCOMO and NVIDIA introduced the incorporation of a GPU-enhanced wireless solution across its network in Japan. The enhancement distinguishes it as the innovative global telco to integrate a GPU-driven commercial 5G network.

The defense & intelligence segment is estimated to lead the market with the highest CAGR during the forecast period. With the capability to connect the potential of Artificial Intelligence (AI), big data, and IoT mechanisms, GPU-driven computing solutions play an increasingly significant role across modernized military and aerospace applications. It empowers forces to practice huge quantities of raw data quickly and reliably for faster decision-making than previously possible methods.

REGIONAL INSIGHTS

The graphic processing unit market has been analyzed by region: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America Graphic Processing Unit Market Size, 2023 (USD Billion)

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North America accounted for the highest market share for the year 2023. Numerous opportunities across 3D modeling and rendering and other mechanisms, such as machine learning and artificial intelligence, generative AI, and many others, increase the demand for GPUs in the region. Also, the region has the presence of major players, such as Nvidia, AMD, Intel, and others, contributing to the region’s market share. For instance,

  • In March 2024, NVIDIA Healthcare announced the launch of GPU-enhanced microservices and NVIDIA NIM for biology, chemistry, imaging, and healthcare data processes in every NVIDIA DGX cloud. These are generative AI microservices to enhance drug discovery, digital health, and MedTech.

As per Fortune Business Insights, Asia Pacific is anticipated to grow with the highest CAGR during the forecast period. Continuous enhancement of GPU construction and design aids the rapid expansion and development of the overall infrastructure in Asia Pacific. Higher-quality GPU interpretation capabilities improve handling speed for specialized effects. Hence, the adoption and implementation of these units across the region is increasing. For instance,

  • According to Industry Experts, by 2027, 60% of enterprise developers in Asia Pacific would make use of GPUs and other specialty mainframes to improve development for artificial intelligence, machine learning, 3D modeling, video editing, simulations, and digital twins.

Europe’s graphic processing unit market share is anticipated to increase during the forecast period significantly. The regional landscape provides admittance to a wide range of opportunities for foreign enterprises. Also, there is rising investment and funding across developments in the region’s market. For instance,

  • In December 2023, Microsoft announced it would invest USD 3.2 billion in the U.K. in the coming three years to accomplish a noteworthy AI infrastructure, introducing more than 20,000 enhanced GPUs by 2026.

The Middle East & Africa and South America are projected to grow at a substantial rate during the forecast period. Innovations and enhancements across graphics, simulation, video editing, and others are growing in the UAE, Turkey, and Brazil. These regions also have a rising number of foreign investments in the graphics sector. Also, the UAE is one of the leading countries with a higher number of investors in the region.

List of Key Companies in Graphic Processing Unit Market

Rising Collaborations, Innovations, and Product Integrations to Advance Technological Advancements to Upsurge Business Expansion

Prominent market players, such as NVIDIA Corporation, Advanced Micro Devices, Inc., Intel Corporation, ASUSTeK Computer Inc., GIGA-BYTE Technology Co., P.C. Partner Group Limited, EVGA, SAPPHIRE Technology Limited., SAMSUNG, and Imagination Technologies, among others, are attentive to offering innovative technology-driven GPUs. These players are extending their product line due to the rising demand for generative AI and machine learning. Prominent players are adopting various business strategies, such as partnerships, innovations, product integrations, and others, to expand their businesses across the globe. 

LIST OF KEY COMPANIES PROFILED:

KEY INDUSTRY DEVELOPMENTS:

  • March 2024: NVIDIA introduced the Blackwell platform to empower a new era of computing. The Blackwell GPU infrastructure features six innovative mechanisms for accelerated computing. These mechanisms aid in unlocking breakthroughs in engineering simulation, data processing, electronic design automation, quantum computing, computer-aided drug design, and generative AI.
  • March 2024: AWS expanded its collaboration with NVIDIA to enhance generative AI innovation. AWS will provide Grace Blackwell with NVIDIA’s GPU-driven Amazon EC2 instances and NVIDIA DGX Cloud to fast-track the performance of developing and processing inferences on various parameter LLMs.
  • January 2024: AMD announced the launch of next-generation GPUs and AI processors intended for gaming players in 2024. AMD Radeon 7600 XT 8GB and Radeon 7600 XT 16GB are aimed at the low and middle end of the gaming market, individuals who have not restored their gaming hardware in recent times. 
  • September 2023: Asus launched Cable-Less GPU, RTX 4070 BTF, in Asia. The new product line comprises the Tianxuan TX Gaming graphics card, the cableless GPU, and two new B760 motherboards. These new modules would most probably be limited to Asian regions.
  • February 2023: Vultr announced the addition of NVIDIA A16 to its A100, A40, and Fractional GPU product line. It offers access to customers with the highest-performance VDI (virtual desktop infrastructure), empowered by NVIDIA GPUs, with users paying only for what they use. 

REPORT COVERAGE

An Infographic Representation of Graphic Processing Unit (GPU) Market


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The market research report highlights leading regions globally to offer a better understanding to the user. Furthermore, the report provides insights into the latest GPU market trends and analyzes technologies deployed rapidly. It further highlights some drivers and restraints, helping the reader gain in-depth knowledge about the market analysis.

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REPORT SCOPE & SEGMENTATION












ATTRIBUTE

DETAILS

Study Period

2019-2032

Base Year

2023

Estimated Year

2024

Forecast Period

2024-2032

Historical Period

2019-2022

Growth Rate

CAGR of 28.6% from 2024 to 2032

Unit

Value (USD Billion)

Segmentation

By Type

  • Dedicated or Discrete
  • Integrated
  • Hybrid

By Application

  • Machine Learning and Artificial Intelligence
  • Scientific Computing
  • 3D Modeling and Rendering
  • Video Editing and Rendering
  • Cryptocurrency Mining

By Industry

  • IT & Telecommunication
  • Electronics
  • Media & Entertainment
  • Defense & Intelligence
  • Others (Automotive)

By Region

  • North America (By Type, Application, Industry, and Country)  


  • Europe (By Type, Application, Industry, and Country)

    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Benelux
    • Nordics
    • Rest of Europe

  • Asia Pacific (By Type, Application, Industry, and Country)

    • China
    • India
    • Japan
    • South Korea
    • ASEAN
    • Oceania
    • Rest of Asia Pacific

  • Middle East & Africa (By Type, Application, Industry, and Country)

    • Turkey
    • Israel
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

  • South America (By Type, Application, Industry, and Country)

    • Brazil
    • Argentina
    • Rest of South America

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