Graphics Processing Unit (GPU) Market Size - By Component (Hardware, Software, Service), By Deployment Model (On-premises, Cloud), By End-user (Gaming, Design & Manufacturing, Automotive, Real estate, Healthcare), By Application & Forecast, 2024 – 2032

Graphics Processing Unit Market Size

Graphics Processing Unit Market size was valued at USD 52.1 billion in 2023 and is projected to grow at a CAGR of over 27% from 2024 to 2032, owing to the proliferation of AI and ML across various industries. AI and ML workloads require high computational power for tasks such as neural network training, image recognition, natural language processing (NLP), and predictive analytics. GPUs are highly efficient at parallel processing, making them suitable for handling AI workloads. Furthermore, industries such as finance, healthcare, automotive, retail, and manufacturing are adopting AI for automation, recommendation systems, predictive maintenance, and diagnostics.  

For instance, in April 2024, HCA Healthcare partnered with Augmedix to speed up the development of AI-enabled ambient documentation solutions for acute care providers. These solutions use automatic speech recognition (ASR) technology and NLP to convert clinician-patient conversations into medical notes, which care teams can review and finalize before the notes are added into patient EHRs. GPUs are essential in accelerating both the training and inference stages of AI applications.
 

The gaming industry is constantly pushing for better resolutions, real-time ray tracing, and faster frame rates for more immersive experiences which require more powerful GPUs. Additionally, platforms such as NVIDIA GeForce Now, Google Stadia, and Microsoft's xCloud are leading the shift to cloud gaming, where powerful GPUs are hosted in the cloud stream games to users on various devices.
 

For instance, in April 2023, LG Electronics improved the cloud gaming experience on its 2023 TVs by adding 4K support for NVIDIA GeForce NOW and launching the Boosteroid service. These additions, along with the integration of Blacknut and Utomik in 2022, expanded cloud gaming options for LG TV users. This trend is increasing the demand for data centers with high-performance GPUs.
 

The GPU market is highly dependent on the availability of raw materials such as semiconductors and advanced manufacturing processes. Global shortages of semiconductors, driven by high demand across industries such as automotive and consumer electronics, can delay GPU production. Furthermore, trade wars especially between the U.S. and China, and regional conflicts, can disrupt supply chains, increase tariffs, and limit access to key manufacturing hubs in the Asia Pacific. These issues can lead to higher prices, reduced supply, and slower market growth.
 

Graphics Processing Unit Market Trends

Autonomous vehicles use computer vision, lidar, radar, and sensor fusion to interpret their environment. This data must be processed in real time, and GPUs are essential for handling this task. NVIDIA’s DRIVE platform supports autonomous driving technologies and is utilized by leading automotive manufacturers such as Tesla, Audi, Toyota, and Volvo. The DRIVE platform leverages GPUs to process data from sensors and cameras, enabling AI-based decision-making. For instance, in September 2024, Volvo launched the EX90, a software-driven vehicle developed in collaboration with NVIDIA.
 

The EX90 features an advanced computing system that employs the NVIDIA DRIVE Orin system-on-a-chip (SoC), capable of processing over 250 trillion operations per second (TOPS). Additionally, Volvo announced plans to incorporate the NVIDIA DRIVE Thor platform in future models, which offers up to 1,000 TOPS. The integration of DRIVE Thor, which includes the NVIDIA Blackwell GPU architecture, will enhance driving assistance and safety features, support autonomous driving, and introduce new AI-based capabilities and in-car experiences, helping to future-proof the next generation of Volvo vehicles.
 

Graphics Processing Unit Market Analysis

Based on component, the market is segmented into hardware, software and services. The hardware segment held over 70% of the market share in 2023 and is expected to cross USD 200 million by 2032.  The demand for GPU hardware is significantly driven due cryptocurrency mining activities, particularly for mining cryptocurrencies such as Ethereum. GPUs are efficient at solving complex mathematical problems, making them ideal for crypto-mining operations.
 

Additionally, businesses are generating and processing vast amount of data. This has led to a greater need for GPU hardware to speed up data processing and analysis, particularly in artificial intelligence (AI) and machine learning (ML) applications.
 

Based on end-user, the graphics processing unit market is segmented into gaming, design & manufacturing, automotive, real estate, healthcare and others. The gaming segment held around 37% of the market in 2023. The growing demand for higher resolution gaming requires advanced GPUs to handle real-time rendering and smooth gameplay. As more gamers seek ultra-high-definition experiences, the demand for modern GPUs that support these resolutions increases. Companies operating in the market are launching innovative GPUs specifically for the gaming industry.
 

For instance, in January 2024, Advanced Micro Devices (AMD) launched the AMD Radeon 7600 XT 16GB and AMD Radeon 7600 XT 8GB for the middle and low-end of the gamer market. According to the company, the new GPUs are up to 1.9 times faster at gaming and raytracing than the GeForce RTX 2060 and it can display games at 1440p resolution and has processing power for AI and content creation.
 

Asia Pacific holds around 40% of the graphics processing unit market share in 2023 and is expected to expand significantly through 2032. Mobile gaming is a dominant force in Asia Pacific, with a large portion of gamers playing on smartphones. According to “India Gaming Opportunity: Robust Fundamentals to Power Continued Growth” Report, by Interactive Entertainment and Innovation Council (IEIC) and WinZo, India has the largest gaming market in the world with user base of over 560 million gamers and the country contributes nearly 20% of the world’s total mobile game downloads.
 

As mobile devices use specialized GPUs, the demand for gaming experiences with high-quality graphics is driving the development of more powerful mobile GPUs. Companies like MediaTek and Qualcomm are investing in this technology, making the region a center for innovation in mobile GPUs.
 

The U.S. is a major market for cloud gaming, with platforms like NVIDIA GeForce NOW, Google Stadia, and Microsoft xCloud allowing users to stream high-quality games without needing powerful local hardware. This trend is driving more investments in data centers equipped with advanced GPUs for real-time game rendering. Additionally, the rising popularity of game streaming and content creation on platforms such as Twitch and YouTube is further driving the growth of the market. Gamers and content creators need GPUs for real-time rendering, encoding, and video processing, increasing the need for powerful GPUs in personal devices and data centers.
 

Europe has a presence of major car manufacturers such as BMW, Volkswagen, Daimler, and Volvo which are investing heavily for innovating in autonomous vehicles and Advanced Driver Assistance Systems (ADAS). GPUs are crucial for real-time data processing and AI-based decision-making in these vehicles. The shift towards electric vehicles (EVs) and autonomous driving technologies in Europe is increasing the demand for high-performance GPUs in automotive systems.
 

Graphics Processing Unit Market Share

Nvidia Corporation and Advanced Micro Devices Inc. hold a market share of around 50% in the GPU market in 2023. Nvidia invests heavily in GPUs designed for AI, machine learning, and data centers. This helps the company to cater to industries that require vast computational power for AI model training and high-performance computing (HPC). The company's dominance in the AI market is fueled by the increasing adoption of AI across sectors such as healthcare, autonomous driving, and cloud computing.
 

AMD focuses on forming strategic partnerships with companies operating in the gaming market. These partnerships give AMD a large revenue base and ensure long-term presence in the gaming industry. By consistently improving its hardware for console gaming, AMD benefits from economies of scale and builds credibility for its consumer GPUs, driving growth across its entire portfolio. Additionally, AMD is focusing on emerging markets like India and China to grow its global footprint.
 

Graphics Processing Unit Market Companies

Major companies operating in the GPU industry are:

• Advanced Micro Devices, Inc.
• Amazon Web Services Inc.
• ARM Holding
• Autodesk Inc.
• Imagination Technologies Group
• Intel Corporation
• Microsoft Corporation
• Nvidia Corporation
• Qualcomm Technologies
• Samsung Electronics Co. Ltd.
   

Graphics Processing Unit Industry News

• In March 2024, Nvidia launched its next-generation Blackwell GPUs, new supercomputers, and software to help businesses build and run generative AI and other energy-intensive applications more efficiently. The Blackwell GPUs offer 20 petaflops of AI performance per unit, allowing faster AI model training, better inferencing, and up to 25 times more energy efficiency.
   
• In November 2023, Indian server maker Netweb Technologies partnered with Nvidia to produce servers for AI and high-end computing.  Under this partnership, Netweb Technologies will manufacture Nvidia's Grace CPU Superchip and GH200 Grace Hopper Superchip MGX server designs.
   

The Graphics Processing Unit (GPU) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
  • GPU type
    • Integrated
    • Dedicated
    • Hybrid
  • Device type
    • Computer
    • Tablet
    • Gaming console
    • Television
• Software
  • CAD/CAM
  • Simulation
  • Imaging
  • Digital Video
  • Modeling and animation
  • Others
• Service
  • Training & consulting
  • Integration & maintenance
  • Managed services

Market, By Deployment Model

• On-premises
• Cloud

Market, By End-user

• Gaming
• Design and Manufacturing
• Automotive
• Real estate
• Healthcare
• Others

Market, By Application

• Gaming Consoles
• Data Centers
• AI & ML
• Cryptocurrency Mining
• High-performance Computing (HPC)
• Rendering and Visualization
• Autonomous System
• Edge Computing and IoT
• Healthcare and Medical Imaging
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA