Graphics Processing Unit (GPU) Market To Grow By USD 388.3 Billion (2024-2028), With AI-Driven Insights On Rising Demand For Advanced Gaming And VR - Technavio

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Key Market Trends Fueling Growth

The global Graphics Processing Unit (GPU) market is experiencing a notable growth in demand for High Performance Computing (HPC) applications. This trend can be attributed to several factors, including the expanding need for advanced graphics capabilities in industries such as gaming, Virtual Reality (VR), and animation. The increasing intricacy of video games and the escalating popularity of VR experiences necessitate graphics processing units that can deliver high-resolution graphics and seamless performance. In response, manufacturers have developed specialized graphics processing units for HPC, empowering game developers and content creators to elevate visual quality and realism. Another significant driver of this trend is the burgeoning adoption of Artificial Intelligence (AI) and Machine Learning (ML) applications. AI and ML algorithms necessitate substantial computational power for tasks like image and speech recognition, natural language processing, and data analysis. Graphics processing units, with their parallel processing capabilities, are a preferred choice for AI and ML developers. Moreover, industries such as finance, scientific research, and healthcare are increasingly relying on HPC using graphics processing units. In finance, graphics processing units are employed for intricate calculations and simulations in areas like risk analysis, portfolio optimization, and algorithmic trading. In scientific research, they are utilized for data-intensive calculations in fields like genomics, climate modeling, and particle physics. In healthcare, graphics processing units are leveraged for medical imaging, drug discovery, and personalized medicine applications. The escalating demand for HPC in the GPU market is also fueled by advancements in cloud computing and the proliferation of data centers. As businesses shift their workloads to the cloud, there is a requirement for graphics processing units in data centers to manage tasks like rendering, video transcoding, and real-time analytics. Consequently, cloud-based GPU services have emerged, enabling organizations to access high-performance computing resources on demand. These factors are anticipated to amplify the demand for graphics processing units, driving the growth of the market during the forecast period.

The GPU market is thriving in the digital world, driven by trends in graphics, video rendering, and gaming platforms. According to a recent PwC report, global spending in the gaming industry is projected to reach USD159.3 billion by 2023. GPUs play a crucial role in delivering visuals and fluid gameplay in video games, 3D designs, and virtual reality (VR) and augmented reality (AR) applications. In the mainstream business sector, GPUs are used for AI applications like fraud detection, conversational AI solutions, and cryptocurrency mining. The rapid evolution of AI, machine learning, and computing technologies is increasing the demand for GPUs in areas like design, development, optimization, and data processing. However, ethical concerns around user data, GDPR, and biased algorithms are creating regulatory scrutiny. Skilled engineers, developers, data scientists, AI researchers, and machine learning experts are in high demand to address these challenges and optimize the use of GPUs in this complex technology landscape. The market for GPUs is expected to continue growing as the technology becomes more integrated into our daily lives through wearable technologies, computing technologies, and other emerging applications.

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Market
Challenges

• The global graphics processing unit (GPU) market in notebooks is facing a persistent challenge with the limitation of GPU upgrades. This issue is a concern for both manufacturers and consumers due to the compact design of notebooks. Notebooks prioritize portability and compactness, leading to thermal and space constraints, making it challenging to accommodate upgrades. In contrast, desktop computers offer more room for expansion and can easily accommodate larger, more powerful GPUs. Another reason for this issue is the proprietary nature of notebook designs. Many manufacturers restrict users from upgrading key components, including GPUs, creating a dependency on the manufacturer for future upgrades. The lack of standardized GPU form factors for notebooks further complicates matters. Unlike desktop GPUs, which follow standard form factors like PCI Express, notebook GPUs come in various shapes and sizes, making it difficult for consumers to find compatible upgrades for their specific notebook models. This issue becomes more significant as the demand for high-performance gaming and professional-grade graphics applications increases. With technology advancing at a rapid pace, users find themselves unable to fully utilize new features and enhancements due to outdated GPU capabilities. These factors are expected to hinder the growth of the GPU market for notebooks during the forecast period.
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  GPU market is experiencing significant growth due to increasing demand from gaming and data center industries. Gaming applications, online gaming, and e-gaming are major drivers, with compatibility and multiple device support being key challenges. Location independence and low-cost high-quality experience are crucial for organizations in the on-premises deployment mode. Data procurement, storage, and machine-learning applications in sectors like AI and online learning /entertainment also fuel demand. Gaming companies like Steam and DirectX 12 GPU manufacturers such as AMD and NVIDIA's RTX gaming servers are leading the charge. New entrants like Fenghua GPU and SenseTime, using GPUs in Exynos SoCs and P5 instances, are also making waves. The HPC sector's demand for GPUs in AI and machine learning is also noteworthy. Despite these opportunities, compatibility across platforms and devices remains a challenge. Overall, the GPU market's future looks bright, with continued innovation and advancements in frame buffer technology.

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Segment Overview

This graphics processing unit (gpu) market report extensively covers market segmentation by