The market for Graphics Processing Units (GPUs) is projected to expand significantly, with an increase from US$ 41.23 billion in 2022 to US$ 395.52 billion by 2030, reflecting a compound annual growth rate (CAGR) of 32.7% during this period.
GPUs are becoming integral to cloud infrastructure, enhancing a wide array of applications such as machine learning (ML), artificial intelligence (AI), data analytics, scientific computations, and media production. The growing trend of cloud computing facilitates easier and more cost-effective access to GPU resources for both businesses and individuals.
Additionally, companies like Nvidia are broadening their presence in cloud computing, advanced medical imaging for cancer therapies, automated customer support, and high-quality gaming experiences. The advancements in AI, high-performance computing (HPC), and graphics capabilities are pushing the limits of technology. With NVIDIA's GPU-accelerated solutions now available across all major cloud platforms, innovators can readily tap into substantial computational power as needed.
Furthermore, several firms, including Nvidia, are adopting a hybrid cloud strategy that merges on-premises and cloud resources, allowing for flexible scaling of GPU resources. This adaptability is expected to drive growth in the GPU market, as more users leverage GPUs to enhance their productivity. Consequently, the rising trend of cloud computing is anticipated to play a pivotal role in the GPU market's evolution throughout the forecast period.
The GPU market in North America is experiencing notable growth, characterized by its maturity and established presence. Nvidia, one of the leading GPU manufacturers, is based in this region. The demand for GPUs in North America is primarily fueled by the gaming sector, data centers, and AI solutions. For example, in April 2023, Nvidia's key partners in the Americas were instrumental in promoting sales and services for AI solutions that utilize the company's hardware and software across various industries, including retail, education, government, healthcare, and manufacturing. The winners of the 2023 Nvidia Partner Network Americas Partner of the Year awards highlighted major solution providers in North America, such as CDW, Worldwide Technology, and Insight Enterprises, all recognized in CRN's 2022 Solution Provider 500 list. Other notable winners included Arrow Electronics, Deloitte, and emerging solution providers like Lambda and Quantiphi. The accelerated computing initiatives of these partners align with Nvidia's strategy of offering a comprehensive "full-stack platform" that includes specialized GPU systems, high-performance networking components, and an expanding array of both free and commercial software for enhanced computing capabilities.
Effects of the COVID-19 Pandemic on the GPU Market
• The pandemic disrupted global supply chains, impacting GPU production and availability. This led to semiconductor shortages and manufacturing delays, resulting in increased costs and limited access to certain GPU models.
• Conversely, during the COVID-19 pandemic, the demand for GPUs surged due to several factors, including the rise in remote work, online gaming, cryptocurrency mining, and AI applications. These trends are expected to persist in the post-pandemic landscape.
• The gaming sector saw substantial growth during the pandemic, as many individuals turned to gaming for entertainment. This shift led to a heightened demand for high-performance GPUs as gamers sought to upgrade their systems for improved experiences.
• GPUs are also essential for data centers and AI/machine learning workloads. As these technologies continue to evolve, the demand for GPUs in these areas is projected to remain robust.
• Cryptocurrency mining, particularly for Bitcoin and Ethereum, significantly influenced the GPU market during and after the pandemic, with miners purchasing GPUs in bulk, exacerbating shortages and driving up prices.
In Europe, the GPU market is segmented into various countries, including Germany, France, Italy, the UK, Russia, and other regions. The expanding gaming industry and the increasing application of GPUs in defense and intelligence sectors are propelling market growth across Europe. Additionally, the rising demand for video games is broadening the GPU market's scope. The adoption of portable computing devices, such as smartphones and laptops, is expected to further drive GPU usage in Europe. Moreover, technological advancements in graphics processing units are enhancing their adoption in the region.
Manufacturers are also developing powerful graphic computing systems for applications in augmented reality (AR) and virtual reality (VR), contributing to the growth of the GPU market in Europe. Major players like AMD, Nvidia, and Intel are actively involved in the European GPU market.
The GPU market in the Middle East and Africa (MEA) is experiencing significant growth, driven by the increasing adoption of AI and ML technologies. GPUs play a crucial role in accelerating AI and ML workloads, which are becoming increasingly vital across various sectors, including healthcare, finance, and manufacturing. Additionally, there is a rising demand for high-performance computing. GPUs are utilized in HPC applications such as scientific research, engineering simulations, and video editing. The demand for HPC is rapidly increasing in the MEA as governments and businesses invest in advanced technologies. Furthermore, the gaming industry in the region is expanding quickly, with GPUs being a fundamental component of gaming hardware.
Key players in the GPU market include Intel Corp, NVIDIA Corp, Apple Inc, Qualcomm Inc, Samsung Electronics Co Ltd, SAPPHIRE Technology Ltd, Advanced Micro Devices Inc, ASUSTek Computer Inc, Imagination Technologies Ltd, and EVGA Corp. A comprehensive analysis of several other significant GPU market players was conducted to provide a well-rounded view of the market and its ecosystem.