Graphics Processing Unit Market

Graphics Processing Unit Market Outlook from 2024 to 2034

The graphics processing unit market is estimated to be valued at USD 70.9 billion in 2024. The graphics processing unit market is expected to reach USD 1,159.3 billion by 2034, developing at a CAGR of 32.2%.

The primary driver for the graphic processing unit market is the increasing demand for an enhanced graphical visual display. Continuous launches of games functioning on high graphical specifications and incorporation of 3-D, AR, and VR in gaming correspond to the respective demand for the graphic processing unit market.

Ongoing technological advancements, such as developing more power-efficient GPUs, improved memory bandwidth, and ray tracing technology, continually stimulate market growth. As more industries and sectors undergo digital transformation, the need for efficient and powerful computing solutions, including GPUs, continues to rise.

Graphics Processing Unit Market Trend Analysis

• Increasing demand for GPUs in data centers for AI, cloud computing, and high-performance computing tasks leads to the developing specialized data center GPUs.
• The growing demand for GPUs capable of handling computational tasks at the edge for real-time processing and analysis in IoT devices and edge computing setups.
• Constant demand for higher frame rates, improved graphical fidelity, 4K/8K resolutions, and VR experiences pushing for more powerful and efficient GPUs.

Attributes	Key Insights
Graphics Processing Unit Market Estimated Size in 2024	USD 70.9 billion
Projected Market Value in 2034	USD 1,159.3 billion
Value-based CAGR from 2024 to 2034	32.2%

2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

Increasing adoption of smart phones, tablets, notebooks and laptops also drives the growth of processing unit market. The market of graphic processing units is complimented by the overall increasing adoption of graphic processing unit in various devices. Introduction of 3D gaming and multimedia applications fueled demand for more powerful GPUs.

Continued integration of GPUs into AI and machine learning workflows, with emphasis on more specialized architectures for specific AI tasks, further expanding market capabilities.

Growing demand for high-fidelity, immersive experiences in the metaverse and virtual worlds requiring more powerful GPUs capable of handling complex rendering and simulations. The demand for graphics processing unit is projected to rise at a CAGR of 32.2% from 2024 to 2034.

Market Value in 2023	USD 54.4 billion
Market Value in 2034	USD 1.159.3 billion

Graphics Processing Unit Market Growth Drivers

• The growing demand for high-performance GPUs in gaming industry is expected to boost the market growth.
• The increasing demand for AI based and machine learning applications accelerating the graphic processing unit demand
• With the growth of cloud-based services and data center applications, there is a rising need for GPUs to handle tasks such as complex computations, rendering, and parallel processing in these environments.
• The growing VR (Virtual Reality), AR (Augmented Reality), and mixed reality applications demand powerful GPUs for rendering realistic and immersive experiences, contributing to market growth.
• Ongoing technological advancements and growing demand for more power-efficient GPUs are boosting the market sales.

Graphics Processing Unit Market Restrains

• The supply chain disruptions, including shortages of raw materials, semiconductor manufacturing constraints, and geopolitical factors, can lead to a shortage of GPUs.
• The cost of developing high-end GPUs with advanced technology and features can be substantial.
• Manufacturers often face challenges in balancing costs while meeting consumer price expectations.
• Intense competition between major GPU manufacturers can lead to increased R&D expenditures to stay ahead in technological advancements, which may impact the profit margins.
• Managing regulatory compliance with industry standards, export regulations, and intellectual property rights can pose challenges for manufacturers.
• The growing advancements in other technologies, such as quantum computing or alternative processing architectures, could challenge the dominance of traditional GPU technologies.

Country-wise Analysis

The following table shows the top five countries with CAGR, led by Australia and Japan. Australia emerges as a dynamic and rapidly advancing market, poised for substantial growth with a projected CAGR of 35.8% by 2034 in the graphics processing unit market. These two countries are predicted to boost their market efforts through 2034.

Forecast CAGRs from 2024 to 2034

Japan	33.5%
The United States	30.1%
China	32.8%
Australia	35.8%
Germany	31.7%

Expanding Gaming Industry Remain the Key Driver of the Market in United States

The graphics processing unit market in the United States is expected to witness a CAGR of 30.1% by 2034. The gaming industry remains a significant driver of GPU sales in the United States. High demand for GPUs comes from gamers seeking better performance, higher resolutions, and more immersive experiences, which has consistently fuelled market growth.

The increasing adoption of cloud services and the demand for data processing power in data centers have contributed to the growth of GPU sales. The growing integration of AI and machine learning in the operations of industries, including tech, finance, healthcare, and automotive, boosts the GPU market.

Increased Use of Cloud Computing Services Raises the GPU Market in Germany

The graphics processing unit market in Germany is poised to expand at a CAGR of 31.7% through 2034. Germany has a robust gaming culture, with a large population of gamers. This demand for high-performance GPUs for gaming continues to drive market growth.

Increasing technological adoption, with an emphasis on advanced computing solutions, GPUs are used in various sectors such as research, design, and engineering, contributing to market growth.

The growing reliance on data centers and cloud computing services in Germany has spurred the demand for GPUs to handle complex computational tasks and data processing in these environments.

Increasing Demand in Various Industry Drive Market in China

China is a critical player in the graphics processing unit landscape, projecting a CAGR of 32.8% by 2034. Increasing demand in industries such as design, architecture, and entertainment in China for high-performance GPUs for professional applications like 3D modeling, animation, and video editing, contributing to market expansion.

Government initiatives supporting technology development and investments in advanced computing have influenced the growth of the GPU market in China. The growing investment in artificial intelligence (AI) research and development boost the market growth in China.

Technological Innovation to Boost the Market Demand in Japan

Japan anticipates a remarkable CAGR of 33.5% in the graphics processing unit market by 2034. The popularity of gaming and esports continues to drive GPU sales in the country. Industries across various sectors, including automotive, manufacturing, and design, utilize GPUs for research, simulations, and design tasks, contributing to market growth.

Industries such as design, animation, and media in Japan rely on powerful GPUs for professional-grade workstations. The need for efficient and high-performance GPUs for these specialized applications drives market growth.

Technology-Driven Adoption Accelerate Market Growth in Australia

Australia anticipates exceptional growth with a forecasted CAGR of 35.8% in the graphics processing unit market by 2034. Increasing utilization of GPUs in emerging applications like virtual reality (VR), augmented reality (AR), and content creation further fuels demand for high-performance graphical solutions.

Increasing technological advancements in GPU technology, improving performance, efficiency, and capabilities, stimulate market expansion as users upgrade to newer models.

Category-wise Insights

The integrated GPU segment will dominate until 2034, with a market share of 35.0%. Cost-effectiveness and energy efficiency of integrated GPUs drive their demand, especially in devices where space and power consumption are critical factors.

The smartphone segment is expected to have a share of 37.0%. Smartphones are becoming more versatile, serving as all-in-one devices for communication, entertainment, and productivity. The demand for efficient and powerful GPUs continues to grow.

Category	Market share
Integrated GPUs	35%
Smart Phones	37%

Integrated GPUs Driving Growth with a Sizeable Market Share

The integrated GPUs segment accounted for the maximum share of 35% of the overall revenue in 2024. Integrated GPUs are built into the CPU, eliminating the need for a separate dedicated graphics card. This integration reduces costs for manufacturers and consumers while offering a more power-efficient solution.

Integrated GPUs consume less power compared to discrete GPUs, making them more suitable for devices requiring more extended battery life, such as laptops and tablets. In laptops, tablets, and smaller form-factor devices, integrated GPUs allow manufacturers to create thinner and lighter devices by eliminating the need for a separate GPU, providing adequate graphical capabilities within a smaller footprint.

Integrated graphics are tightly integrated with the CPU, allowing for better optimization and coordination between the two components, improving overall system performance.

The Increasing Use of Smartphones Reshapes the Industry Landscape

The smartphone segment accounted for the largest share, around 37% of the overall revenue in 2024, and it is projected to continue growing over the forecast period.

The increasing consumer demand for smartphones with better graphical capabilities has led manufacturers to prioritize GPUs in their device specifications Intense competition in the smartphone market has pushed for continuous innovation and performance improvements in GPUs.

Increasing graphically intensive applications, including gaming, augmented reality (AR), virtual reality (VR), and multimedia content consumption in smartphones, boosting the need for graphics processing unit.

Competative Landscape

Market players are investing in research and development to develop innovative graphic processing units. The market players are also entering into partnerships to offer more comprehensive solutions to their customers, accelerate product development, and expand their market share. The companies are developing solutions that are more powerful, efficient, and affordable.

Some of the leading players operating in the global graphics processing unit market are as follows

• Intel Corporation
• Advanced Micro Devices Inc.
• Nvidia Corporation
• Imagination Technologies Group
• Samsung Electronics Co. Ltd.
• Arm Limted (soft Bank Group)
• EVGA Corporation
• SAPPHIRE Technology Limited
• Qualcomm Technologies Inc.

Some of the developments in the market are as follows

• In November 2023, NVIDIA propelled its AI computing platform to new heights with the introduction of the NVIDIA HGX H200. This advancement, leveraging the potent NVIDIA Hopper architecture, showcases the formidable capabilities of the NVIDIA H200 Tensor Core GPU. Specifically engineered to swiftly handle extensive data sets, this GPU stands as a crucial asset for high-performance computing workloads, especially those centered around generative AI tasks.
• In November 2023, Imagination Technologies introduced the IMG DXD, marking the debut of a cutting-edge line of high-performance GPU IP. This innovative product line boasts support for DirectX®, kicking off with a hardware-based implementation of DirectX 11 Feature Level 11_0. The IMG DXD offers comprehensive API coverage, enabling it to seamlessly run popular PC games, Windows-based applications, and mobile titles.

Report Scope

Attributes	Details
Estimated Market Size in 2024	USD 70.9 billion
Projected Market Valuation in 2034	USD 1,159.3 billion
Value-based CAGR 2024 to 2034	32.2%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD billion
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa
Key Market Segments Covered	Type, Application, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Intel Corporation; Advanced Micro Devices Inc.; Nvidia Corporation; Imagination Technologies Group; Samsung Electronics Co. Ltd.; Arm Limted (soft Bank Group); EVGA Corporation; SAPPHIRE Technology Limited; Qualcomm Technologies Inc.

Graphics Processing Unit Market Key Segments

By Type:

• Dedicated
• Integrated
• Hybrid

By Application:

• Computer
• Tablet
• Smartphone
• Gaming Console
• Television
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Frequently Asked Questions

What is the expected worth of the graphics processing unit market in 2024?

As of 2024, the market for graphics processing units is expected to be valued at USD 70.9 billion, as per FMI.

According to FMI, what is the anticipated market value for graphics processing units in 2034?

By 2034, the market value of graphics processing units is expected to reach USD 1,159.3 billion.

What is the projected forecast CAGR for the graphics processing unit market from 2024 to 2034?

From 2024 to 2034, graphics processing units are expected to flourish at a CAGR of 32.2%

Based on type, which segment dominates the graphics processing unit market?

The integrated GPUs segment is expected to account for a market share of 35% in 2024.

Which country is likely to be at the pinnacle of the market?

The Australia is likely the top-performing market with a CAGR of 35.8%.