Vision Processing Unit Market - By Fabrication Process (16nm, 16-28nm), By Application (Smartphones, Drones, Cameras, AR/VR, ADAS, Robotics) By End-use (Consumer Electronics, Security & Surveillance, Automotive) & Forecast, 2024 – 2032

Vision Processing Unit Market Size

Vision Processing Unit Market was valued at over USD 3 billion in 2023 and is estimated to register over 12% CAGR between 2024 & 2032.
 

The Vision Processing Unit (VPU) market is primarily driven by the increasing demand for artificial intelligence (AI) and machine learning (ML) technologies across various industries. VPUs play a crucial role in accelerating the processing of visual data for applications such as image recognition, object detection, autonomous vehicles, surveillance, and augmented reality. One of the key drivers propelling the VPU market is the rapid advancement in computer vision algorithms and deep learning techniques. As these algorithms become more complex and sophisticated, there is a growing need for dedicated hardware solutions like VPUs to efficiently process the immense amount of visual data generated.
 

Moreover, the proliferation of smart devices and IoT (Internet of Things) applications is fueling the demand for VPUs in edge computing scenarios. VPUs enable real-time processing of visual data directly on the device, reducing latency and bandwidth requirements associated with cloud-based processing. Furthermore, the automotive industry is a significant driver of the VPU market, with the rising adoption of advanced driver-assistance systems (ADAS) and autonomous driving technologies. VPUs are essential components in enabling vehicles to perceive their surroundings and make intelligent decisions in real-time, thereby enhancing safety and driving experience.
 

Designing efficient and high-performance VPUs requires addressing various technical challenges, including power consumption, heat dissipation, memory bandwidth, and integration with other system components. Managing the complexity of VPU architectures and optimizing their performance pose significant hurdles for manufacturers in this market. The research, development, and manufacturing of vision processing units (VPUs) involve significant investment in technology, resources, and expertise. Companies operating in this market face challenges in managing these costs while ensuring the competitiveness and profitability of their products.
 

Vision Processing Unit Market Trends

There is a growing demand for VPUs integrated with artificial intelligence (AI) capabilities such as machine learning and neural network processing. These AI-enabled VPUs are utilized in various applications such as autonomous vehicles, smart surveillance systems, and robotics to enable real-time decision-making and advanced image processing tasks. With the rise of edge computing, there is a trend towards integrating VPUs into edge devices such as smartphones, IoT devices, and edge servers. This integration enables efficient processing of visual data closer to the source, reducing latency and bandwidth requirements. Edge devices equipped with VPUs can perform tasks like object detection, facial recognition, and gesture recognition locally, enhancing their performance and responsiveness.
 

The rising deployment of surveillance and security systems marks a pivotal shift in modern society, driven by technological advancements and an increasing need for enhanced safety measures. In today's world, where security threats are diverse and complex, the demand for robust surveillance solutions has surged across various sectors including public safety, transportation, critical infrastructure, retail, and residential areas. Surveillance and security systems encompass a wide array of technologies, including CCTV cameras, access control systems, biometric identification systems, drones, and acoustic cameras. These systems are strategically deployed to monitor and protect assets, infrastructure, and people against various threats such as theft, vandalism, terrorism, and unauthorized access.
 

Vision Processing Unit Market Analysis

Based on end-use, the market is divided consumer electronics, security & surveillance, automotive. The security & surveillance segment are expected to register a CAGR of over 13% during the forecast period.
 

• In the Vision Processing Unit (VPU) market, the Security and Surveillance segment plays a pivotal role in enhancing security measures across various domains. With advancements in technology, security and surveillance systems have evolved significantly, incorporating sophisticated visual processing capabilities enabled by VPUs. These systems are deployed in diverse environments such as public spaces, transportation hubs, critical infrastructure, and commercial establishments to monitor and analyze activities in real-time.
   
• The security and surveillance segment benefits from VPUs by enabling features like facial recognition, object detection, behavior analysis, and anomaly detection. These capabilities enhance situational awareness, threat detection, and response capabilities, thereby bolstering security measures. VPUs empower security cameras and monitoring systems to process vast amounts of visual data efficiently, enabling swift and accurate identification of potential security breaches or suspicious activities.
   

Based on application, the market is divided into smartphones, drones, cameras, AR/VR, ADAS, robotics, others. The smartphones segment dominated the global market with a share of over 21% in 2023.
 

• The smartphones segment in the Vision Processing Unit (VPU) market is experiencing significant growth driven by the increasing integration of advanced visual processing capabilities in mobile devices. VPUs are crucial components in smartphones as they enable various advanced features such as augmented reality (AR), facial recognition, object detection, and real-time image processing.
   
• One key driver of the smartphones segment is the rising demand for enhanced user experiences. Consumers increasingly expect smartphones to offer high-quality imaging capabilities, efficient image recognition, and seamless AR/VR experiences. VPUs play a pivotal role in meeting these expectations by enabling real-time processing of visual data, improving camera performance, and supporting advanced AR applications.
   

Asia Pacific dominated the global vision processing unit market in 2023, accounting for a share of over 36%. In Asia Pacific, the VPU market is propelled by the region's rapid technological advancements, particularly in countries like China, Japan, and South Korea. These countries are witnessing a surge in demand for VPUs due to the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies across diverse industries such as automotive, consumer electronics, and robotics.
 

Additionally, the proliferation of smartphones, drones, and surveillance systems in the region is fueling the demand for VPUs, which are essential for enabling advanced visual processing capabilities in these devices. South Korea is witnessing a surge in demand for VPUs in the automotive sector, particularly for ADAS applications. Korean automotive manufacturers are incorporating VPUs into their vehicles to power advanced driver assistance features such as lane departure warning, collision avoidance, and adaptive cruise control, enhancing both safety and convenience for drivers.
 

Vision Processing Unit Market Share

Intel Corporation and Qualcomm Technologies, Inc. are prominent players in the Vision Processing Unit (VPU) market and holds the significant share of over 35% in the market. Intel, a leading semiconductor manufacturer, offers a range of VPUs tailored for applications such as autonomous vehicles, smart cameras, and augmented reality devices. Their VPUs leverage advanced AI algorithms to enable real-time image recognition and processing, enhancing user experiences and system performance. On the other hand, Qualcomm Technologies specializes in mobile technologies and provides VPUs optimized for smartphones, drones, and other portable devices. These VPUs enable efficient image processing, power management, and support for AI-driven features in mobile applications.
 

Some of the major players in the market are MediaTek Inc., NVIDIA Corporation, Advanced Micro Devices, Inc. (AMD), Google LLC (for its Tensor Processing Unit), Ambarella, Inc. These major players applying strategies like product innovations and mergers and acquisitions. Also, companies are involved in several growth and expansion strategies to gain a competitive advantage in the market.
 

Vision Processing Unit Market Companies

Major players operating in the industry are:

• Intel Corporation
• Qualcomm Technologies, Inc.
• MediaTek Inc.
• NVIDIA Corporation
• Advanced Micro Devices, Inc. (AMD)
• Google LLC (for its Tensor Processing Unit)
• Ambarella, Inc.
   

Vision Processing Unit Industry News

• In June 2023, Intel launches its 13th Gen Intel Core mobile processor family, led by the launch of the new flagship Intel Core i9-13980HX – what the company calls “the first 24-core processor for a laptop.” The new H-series processors push the computing possibilities for gamers and creators with up to 5.6GHz turbo frequency. In another first, select designs based on these processors will feature the Intel Movidius vision processing unit (VPU).
   

The vision processing unit market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Fabrication Process

• 16nm
• 16-28nm

Market, By Application

• Smartphones
• Drones
• Cameras
• AR/VR
• ADAS
• Robotics
• Others

Market, By End-use

• Consumer electronics
• Security and surveillance
• Automotive

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

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