The global microprocessor and GPU market is estimated to be USD 103.0 billion in 2020 and projected to reach USD 138.2 billion by 2025; at a CAGR of 6.1%.

The global microprocessors market is witnessing robust growth, fueled by factors such as increasing demand for computational power, advancements in semiconductor technology, rising adoption of artificial intelligence (AI) and machine learning (ML) applications, and the expansion of edge computing and IoT (Internet of Things) ecosystems. The market encompasses a diverse range of microprocessor types, including general-purpose processors, embedded processors, server processors, and specialized accelerators for AI and graphics processing.

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Microprocessors are integrated circuits that serve as the central processing unit (CPU) of a computer or electronic device. They execute instructions, perform calculations, manage data, and control the operation of hardware components, enabling the functionality and performance of computing systems. Microprocessors come in various architectures, including x86, ARM, RISC-V, and custom-designed processors tailored to specific applications.

Key Trends and Growth Drivers:

AI and Machine Learning (ML): Microprocessors optimized for AI and ML workloads are in high demand, supporting tasks such as deep learning, neural network inference, data analytics, and natural language processing (NLP) in applications ranging from autonomous vehicles and robotics to healthcare and finance.

Edge Computing and IoT: The proliferation of edge computing and IoT devices requires microprocessors with low power consumption, high performance, and real-time processing capabilities to handle sensor data, edge analytics, and decentralized computing tasks at the network edge.

Cloud Computing and Data Centers: Cloud service providers and data center operators rely on high-performance microprocessors for virtualization, cloud computing, big data analytics, and scalable infrastructure solutions, driving demand for server-grade processors with enhanced scalability and efficiency.

Gaming and Graphics Processing: The gaming industry demands microprocessors with powerful graphics processing units (GPUs) and integrated graphics solutions for immersive gaming experiences, real-time rendering, and high-resolution graphics performance in gaming consoles, PCs, and virtual reality (VR) systems.

Automotive Electronics: Microprocessors play a crucial role in automotive electronics for vehicle control systems, infotainment systems, advanced driver-assistance systems (ADAS), autonomous driving technologies, and in-vehicle networking, supporting automotive innovation, safety, and connectivity.

Opportunity: Increase in demand for artificial intelligence (AI) and deep learning-based applications, such as supercomputers, amidst COVID-19 pandemic

The demand for deep learning training and inference systems has witnessed an increase across various sectors, ranging from automated driving and electronic devices to industrial automation. Deep learning is used for speech translation and automated hearing purposes in smart devices, such as smart speakers and smart TVs. These devices adapt to the surrounding voices and understand user preferences to deliver results. Another industry that has witnessed high adoption of AI-based applications in recent times include the finance and banking industry. The fast-growing cryptocurrency market uses high-performance AI processors for bitcoin mining purposes.

An increase in the adoption of technologies which enable digital transformation such as deep learning, artificial intelligence (AI), and Internet of Things (IoT) across various sectors such as automotive, consumer electronics, healthcare, and industrial has fueled the demand for microprocessors and GPU in the APAC region. Also, the emergence of APAC as a manufacturing hub and the adoption of automation processes to achieve manufacturing efficiency is leading to rising demand for microprocessors and GPU in the region.

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The microprocessor and GPU market is dominated by a few globally established players such as Intel (US), Qualcomm (US), Samsung (South Korea), Nvidia (US), and AMD (US).