Summary

The Graphics Processing Unit (GPU) Market is expected to register a CAGR of approximately 13% over the forecast period (2021 - 2026). With the outbreak of COVID-19, the global demand for online gaming has increased significantly, with gamers increasingly participating in gaming activities due to quarantine; however, the demand for hardware components has slumped significantly, such as laptops, gaming consoles, and smartphones.

Apart from this, due to supply chain disruptions from China, various gaming console manufacturers are looking to scale down their production numbers and delaying the release of their new consoles. For example, Sony is planning to produce a limited number of its PS5 consoles. Xbox Series X is on schedule, but the game development is expected to be delayed due to COVID-19. Such developments are expected to influence consumer demand for gaming consoles.

Key Highlights
The global demand for GPU is primarily augmented by gaming applications in devices, such as gaming consoles, laptops, and mobile devices. The global gaming hardware market in 2019 stood at around USD 140 billion, and it is growing at a steady pace; a primary demand for dedicated GPU is driven by the industry. For instance, NVIDIA generates 51% of its revenue from the gaming industry.
The global gaming industry has been observing a prominent shift in recent years, and consumer's propensity toward mobile gaming is expected to influence the GPU vendor's focus as well. For example, the mobile gaming industry is expected to generate USD 100 billion in revenue in 2020, up from USD 86 billion during the previous year, according to App Annie.
In terms of dedicated GPU, the global market is dominated by two vendors, NVIDIA and AMD; these two companies’ share combined account for almost the entirety of the market. In the case of integrated GPU, these vendors lose a significant share of the market to Intel and other vendors operating in the space.
In recent years, Intel is increasingly focusing on entering into a dedicated graphics market with its Xe chips for PC space. According to Intel, it is on track to release its graphics cards in 2020; in 2019, the company unveiled its Exascale Xe-based GPU named “Ponte Vecchio” targeting HPC and AI training.


Key Market Trends

Mobile Devices are Expected to Augment the Demand


The growing application of GPU in mobile devices, such as smartphones and tablets, is expected to augment the market growth over the forecast period. Vendors, such as AMD, Qualcomm, ARM, and Imagination, are intensely competing in this space.
The growing smartphone space, combined with growth in mobile gaming, is expected to augment the demand; according to Ericsson, in 2019, the total number of mobile subscriptions stood at 8 billion, and subscriptions associated with smartphones accounted for more than 70%. Owing to such growth prospects, vendors are increasingly focusing on developing solutions specific to mobile applications.
The smartphone GPU market is dominated by Imagination, ARM, and Qualcomm, with their Power, ARM Mali, and Adreno series offerings. Apple has its own GPU components, such as Apple A11 Bionic GPU and Apple A12 Bionic GPU, which it offers as a part of its iPhone 8, iPhone X, and iPhone XR; whereas, a large share of the market is dominated by other smartphone vendors apart from Apple.


North America to Loose Share to Asia-Pacific


North America is home to major economies, such as the United States and Canada, which are amongst the primary markets for gaming, electronics, and technology vendors. The United States is home to major GPU vendors, such as Nvidia, AMD, Intel, Qualcomm, etc. Apart from this, the region holds a significant share of the global gaming demand and a prominent market for gaming consoles.
For instance, according to Theesa, in 2018, video game sales in the United States exceeded USD 43.4 billion, and over 164 million adults play video games, and three-quarters of all Americans have at least one gamer in their household. Such developments are expected to augment the demand for gaming hardware solutions.
Apart from this, the region is home to one of the largest markets for electronics. According to Ericsson, the region's smartphone subscription in 2019 stood at 320 million, and it is expected to reach 360 million by 2025, with a CAGR of 2%. Apple holds a prominent share of the smartphone market in the region, and its devices are equipped with GPUs.


Competitive Landscape

The study of GPU market includes companies involved in the design and manufacture of GPUs such as NVIDIA, AMD, Intel and also computer hardware companies that produce vendor-specific GPU-based video/graphic cards such as Imagination Technologies, ASUS, among others. GPU manufactures have been expanding their horizon across applications and are increasing technology partnerships to reap benefits. Further, new GPUs, based on new architectures are expected in the next two years.


May 2020 - Nvidia GeForce RTX 3080 is slated to hit the market in 2020, along with the rest of the RTX 3000; this is expected to be the graphic architecture behind the next line up of Nvidia GeForce GPUs.
January 2020 - AMD unveiled its new mainstream 7 nanometer GPU AMD Radeon 5600 series to compete with Nvidia.


Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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