A new Stocklytics.com report forecasts that the GPU market will exceed €249.48 billion by 2029, with a compound annual growth rate (CAGR) of 33.2 per cent from 2024. Presently, the GPU market is valued at over €59.16 billion, a rise from €39.12 billion in 2023, highlighting the vast growth potential in this sector.
Stocklytics.com Financial financial analyst Edith Reads said the GPU market is experiencing a significant surge, mainly due to the rising demand for specialised processors capable of handling 2D and 3D graphics.
“ The progress in AI technologies and the booming gaming industry also drive its remarkable expansion. With AI and gaming projects accelerating, the GPU market is on track for unprecedented success,” she said.
Mobile GPUs have emerged as the most sought-after stock, propelling the graphics processor market forward. As a result, major technology companies like Samsung, Apple, and Xiaomi are competing to surpass each other in producing 5G smartphones, which boosts GPU sales and strengthens the market's standing. Additionally, global 5G subscriptions are expected to skyrocket from just 12 million in 2019 to over 4.5 billion by 2028, indicating a bright future for the GPU industry.
Despite this, PCs and gaming consoles dominate GPU usage, especially in Asia Pacific. India, Japan, and South Korea hold the largest shares of the GPU market. The continuous innovation in new technologies and the expansion of the gaming industry in these nations have propelled them to the forefront. For example, India had over 490 million gamers in 2023, projected to increase to approximately 500 million by 2025, with a CAGR of about 20.7 per cent.
By 2028, India, Nepal, and Bhutan are expected to lead in 5G mobile subscriptions in their region, indicating that the Asia Pacific will continue to be the largest consumer of processors.
The report said that Intel, Nvidia, and AMD remain the leading companies in the current GPU market. These corporations have focused on creativity and innovation to maintain their competitive edge and boost revenue. In October 2023, AMD introduced its fastest laptop graphics card, the AMD Radeon RX 7900M, which helped increase its market share by 2.2 per cent.
In November, Intel partnered with VMware to enhance the deployment and optimisation of AI-driven applications and services, making private AI more accessible.
Nvidia achieved a significant milestone at the beginning of 2024 with the release of its GeForce RTX SUPER Series family of GPUs, which enhances the performance of the latest games and is central to AI-powered GPUs.
These companies are making notable progress in the GPU market, with their sales and innovations closely tied to the adoption of AI and gaming advancements.