Graphics Processing Units or GPUs have become integral components of modern computing systems, powering the realistic 3D graphics in games and simulations. GPUs are specialized electronic circuits designed to rapidly manipulate and alter memory to accelerate the creation of images. As GPUs have become more programmable and flexible with each generation, their role has expanded from graphics rendering alone to general purpose parallel computing used for machine learning, computational physics, video encoding/decoding and more. The high-end GPU market targets demanding applications like virtual reality, real-time ray tracing, and crypto currency mining and professional graphics workloads. NVIDIA’s GeForce RTX 30 series and AMD’s Radeon RX6000 line are the current flagship offerings aimed at gaming enthusiasts and professionals.
The global Graphic Processing Unit Market is estimated to be valued at US$ 41.46 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Crypto currency mining and increasing crypto currency valuations drove a boom in dedicated GPU sales in recent years. However, the past year saw crypto currency prices crash and crypto mining become unprofitable once again, removing this key source of GPU demand. Going forward, increasing adoption of real-time ray tracing and advanced graphics features in games is expected to be a major driver for high-end GPU sales as next-gen gaming titles fully leverage these techniques.
Threat of new entrants: The graphic processing unit market requires high initial investments in R&D which poses barriers for new entrants. The established manufacturers enjoy economies of scale which new entrants may find difficult to achieve.
Bargaining power of buyers: There are few large buyers in the graphic processing unit market which enables them to negotiate prices. However, the differentiated nature of products limits switching.
Bargaining power of suppliers: The graphic processing unit market has few large chip manufacturers who supply specialized components. This gives them bargaining power over manufacturers.
Threat of new substitutes: There exists a low threat of substitution as graphic processing units have specialized applications in computation intensive tasks like gaming, mining etc.
Competitive rivalry: The graphic processing unit market has few large players like Nvidia and AMD who compete intensely on pricing and innovation.
The Global Graphic Processing Unit Market Demand is expected to witness high growth over the forecast period.
Regional analysis: North America currently dominates the graphic processing unit market due to the strong presence of manufacturers and high adoption in gaming and data centers. Asia Pacific is expected to be the fastest growing market due to increasing investments in data centers in countries like China and India.
Key players: Key players operating in the Graphic Processing Unit Market are Nvidia, AMD, Intel, Qualcomm, Samsung, Toshiba, IBM, Sony, etc. Nvidia leads the market with offerings across diverse price points for gaming and datacenters. AMD offers competitive options across both desktop and laptop markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it