Graphic Processing Unit Market is Estimated to Witness High Growth
Graphic Processing Units (GPUs) are semiconductor chips that enable 3D graphics and complex calculations. GPUs are extensively used in graphic designing, video rendering, mining of cryptocurrencies like Bitcoin, playing high-end games, and machine learning applications. GPUs enhance the user experience in graphic-intensive applications and games by handling complex calculations related to rendering 3D graphics without placing unnecessary load on the central processing unit (CPU). The flourishing gaming and cryptocurrency industries are fueling a surge in demand for high-end GPUs.
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 Opportunity:
The growing popularity of cryptocurrency mining and the development of advanced computer games are driving demand for high-performance GPUs. Cryptocurrency mining requires substantial computing power and energy to process complex algorithms in order to verify transactions and mint new tokens. Powerful GPUs can enhance the mining capabilities multi-fold compared to CPUs alone. Similarly, rendering graphics and virtual environments for sophisticated games also necessitates graphic cards with advanced architecture and specifications. With bitcoin values rising and gaming immersion levels increasing exponentially, the demand for top-end GPUs is likely to zoom in the upcoming years, opening tremendous opportunities for players in this market.
Porter's Analysis
Threat of new entrants: The graphic processing unit market has moderate threat of new entrants as setting up GPU manufacturing requires huge capital investments and technical expertise.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are few dominant players operating in the market however buyers can negotiate on pricing and demand advanced features.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many component suppliers and switching costs are low.
Threat of new substitutes: There is low threat of new substitutes as GPUs provide highly specialized functions that are difficult to substitute.
Competitive rivalry: The competitive rivalry is high among the key players to gain market share.
SWOT Analysis
Strength: GPUs provide high performance computing power for applications like gaming, machine learning. Advanced technologies like ray tracing give realistic graphics.
Weakness: GPUs have high power consumption and require specialized cooling systems. Frequent upgrades needed to use latest applications.
Opportunity: Emerging applications in virtual reality, augmented reality, self-driving cars offer significant growth opportunities. Increasing AI adoption will boost demand for GPUs.
Threats: Volatility in memory prices can increase production costs. Trade wars and geopolitical tensions impact global supply chain.
Key Takeaways
The Global Graphic Processing Unit Market Growth is expected to witness high over the forecast period supported by the rising demand for GPUs in gaming as well as data centers. Growth in virtual reality and cryptocurrency mining will further propel the demand.
Regional analysis of the Graphic Processing Unit Market reveals that Asia Pacific dominates currently contributing over 40% share driven by the presence of manufacturing hubs in countries like China, Taiwan and growing gaming industry in Southeast Asia. North America and Europe follow as other major regions owing to high adoption in data centers and supercomputing applications.
Key players operating in the Graphic Processing Unit Market are Salesforce.com, Inc., LogicBay Corporation, Oracle Corporation, Allbound Inc., International Business Machines Corp, Impartner Software, ZINFI Technologies, Inc., Zyme Solutions, PartnerPath, Blackhawk Engagement Solutions, Inc., The Planet Group, Allbound Inc., and Channeltivity, LLC.
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