Application Processor Market

Application Processor Market Outlook (2022 to 2032)

The global application processor market garnered USD 26.2 Billion in 2021 and is likely to exhibit a Y-o-Y increase of 6.6% to be valued at USD 27.93 Billion in 2022. Owing to the adoption of smartphones and advancements in technology, the market is likely to expand to USD 53 Billion by 2032. Apple, Intel, Qualcomm, MediaTek, and Samsung LSI captured the top-five smartphone Application Processor revenue share rankings in 2021.

Higher 5G penetration and rising demand for consumer electronic products, the multifunctional utility of mobile phones, and increasing adoption of artificial intelligence are expected to create opportunities for Application Processor market growth over the forecast period.

Attributes	Details
Global Application Processor Market CAGR (2022 to 2032)	6.6%
Global Application Processor Market (2032)	USD 53 Billion
Global Application Processor Market Attraction	Technological advancements and favorable government policies are helping key manufacturers to gain new grounds across the globe

An application processor is a system-on-chip processor which has been in the market to support applications in operating system environments. The application processor has components like a memory controller, graphics processing unit, and multimedia decoding units for the mobile environments and similarly other components for other environments.

Recently it has been observed that the mobile phone application processor combines both SoC and SiP technology where the main processor comprises an array of functions from CPU, GPU, static RAM, and analog interface blocks.

What are the factors propelling the Application Processor Market?

Many factors are driving the market for application processors, and one of the major factors is the high adoption of application processors in the industries like consumer electronics specifically the wearable devices, and also in other industries for its use in applications like automotive ADAS and the infotainment systems.

This has been the major driver for the application processor market and has led to the strong growth of the market. Also, the increase in penetration of smartphones has increased the sales of mobile application processors which are a part of the application processor market. This has also been a driving factor for the application processor market and has led to the fast growth of the market.

What are the Factors Hampering the Global Application Processor Market?

Some of the restraints in the application processor market have been related to the development of application processors in the market. There have been problems regarding the development of the application processor which needs skilled personnel for its development. This has been a restraining factor for the application processor market as the processors take time to reach the end-user which slows down the process cycle of the application process market leading to slow growth.

Besides, the costs associated with mobile application processor development and operations will test the mobile apps market in the upcoming years. Mobile apps are designed to enable user activities with technological support. However, with the swelling demand for mobile apps, there has been an augmented need for administrative support, maintenance support, and infrastructure services, among others. These events incur a higher price than that involved in application development cost.

Why is North America Emerging as an Opportunistic Application Processor Market?

The North American region is likely to capture lion’s share in the application processor segment, backed by the bolstering demand for smart wearables and increasing penetration of tablets. Several tech giants are making hefty investments in developing fast and powerful processors to support all types of gadgets, exhibiting a positive elevation in the growth trajectory. Across the region, Apple led the tablet AP market with a 62 percent revenue share, followed by Intel with 12 percent and Qualcomm with 10 percent.

In March 2022, Apple announced M1 Ultra, the next giant leap for Apple silicon and the Mac. Which featured UltraFusion - Apple’s innovative packaging architecture that interconnects the die of two M1 Max chips to create a system on a chip (SoC) with unique levels of performance and capabilities - M1 Ultra delivers breathtaking computing power to the new Mac Studio while maintaining industry-leading performance per watt. The new SoC consists of 114 billion transistors, the most ever in a personal computer chip. According to Future Market Insights, the demand for application processors is likely to expand at a CAGR of 6% by 2032 end.

Why is the Asia Pacific Contributing to the Growth of the Application Processor Market?

With the consistent advancement in smartphone technology and growing emphasis on powerful processors, the APAC region is witnessing immense growth in the current scenario which is prospective to continue in the future nearby. Prominent players like Qualcomm and Samsung are working together to enhance the user experience of using a smart gadget by offering next-generation processors.

For instance, Qualcomm’s Snapdragon 8 Gen 1 flagship, the mobile platform created a market in the first quarter of 2022. The performance in Q1 2022 will be propelled by design wins in the Samsung Galaxy S22 series and launches in the Chinese New Year. With the announcement of 5G network connectivity in India, major OEMs are offering advanced processors with their products. The APAC market for application processors is projected to reflect a CAGR of 6.5% throughout the forecast period, reveals Future Market Insights report.

Who are the Key Players in the Global Application Processor Market?

Some of the key players in the Application Processor market are Apple, Inc., Samsung Electronics, Qualcomm, MediaTek Inc., Intel Corporation, Advanced Micro Devices, Inc., NXP Semiconductors, NVIDIA Corporation, Renesas Mobile Corporation, Huawei Technologies Co. Ltd., Texas Instruments, Broadcom Corporation, Allwinner Technology, and HiSilicon Technologies among others.

• In January 2022, Nvidia’s deal to acquire Apple’s strategically important supplier, Arm went on hold. Nvidia has been attempting to purchase Arm at a cost of around USD 40 billion, but the plan has upset regulators worldwide. They are concerned that the purchase puts Nvidia in a position to harm competitors and hinder future technology development.
• In December 2021, IBM and Samsung Electronics jointly announced a breakthrough in semiconductor design utilizing a new vertical transistor architecture that demonstrates a path to scaling beyond nanosheet and has the potential to reduce energy usage by 85 percent compared to a scaled fin field-effect transistor (finFET)1.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of 6.6% from 2022 to 2032
Market Value in 2022	USD 27.93 Billion
Market Value in 2032	USD 53 Billion
Base Year for Estimation	2021
Historical Data Available For	2017 to 2021
Forecast Period	2022 to 2032
Quantitative Units	Revenue in USD Million, Volume in Kilotons, and CAGR from 2022 to 2032
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered	Device Type, Core type, Industry, Region
Regions Covered	North America; Latin America; Europe; Asia Pacific; Middle East and Africa
Key Countries Profiled	USA, Canada, Brazil, Mexico, Germany, UK, France, Spain, Italy, Russia, BENELUX, China, Japan, South Korea, GCC, South Africa, Turkey
Key Companies Profiled	Apple, Inc.; Samsung Electronics; Qualcomm; MediaTek Inc.; Intel Corporation; Advanced Micro Devices, Inc.; NXP Semiconductors; NVIDIA Corporation; Renesas Mobile Corporation; Huawei Technologies Co. Ltd.; Texas Instruments; Broadcom Corporation; Allwinner Technology; HiSilicon Technologies
Customization	Available Upon Request

Key Segments Covered in the Application Processor Industry Survey

Application Processor Market by Device Type:

• Mobile Phones Application Processor
• PC Tablets Application Processor
• Smart Wearables Application Processor
• Automotive ADAS & Infotainment Systems Application Processor

Application Processor Market by Core Type:

• Single-core Application Processor
• Dual-core Application Processor
• Quad-core Application Processor
• Hexa-core Application Processor
• Octa-core Application Processor

Application Processor Market by Industry:

• Application Processor for Consumer Electronics
• Application Processor for Automotive

Application Processor by Region:

• North America Application Processor Market
• Europe Application Processor Market
• Asia-Pacific Application Processor Market
• Middle East & Africa Application Processor Market
• Latin America Application Processor Market

Frequently Asked Questions

What is the projected CAGR of the global application processor market until 2032?

The global application processor market is estimated to grow at a CAGR of 6.6% from 2022 to 2032.

Which industry segment propels the global Application Processor market?

The Consumer Electronics Application Processor segment is likely to exhibit a 6.3% CAGR from 2022 to 2032.

Which region is expected to account for the most lucrative growth for application processors?

The North American market is expected to be the most opportunistic, with an expected 6.0% CAGR from 2022 to 2032