The global microprocessor market is expected to grow at a CAGR of around 4.5% from 2020 to 2027 and expected to reach the market value of around US$ 140.5 Bn by 2027.
A microprocessor is an essential component of computer architecture, without which the user will be unable to perform any tasks on their computer. It is a programmable device that accepts input, performs arithmetic and logical operations on it, and produces the desired output. A microprocessor is a digital device on a chip that can retrieve instructions from memory, decode and execute them, and return results. A microprocessor is an electronic component that is integrated on a single integrated circuit (IC) and contains millions of small components that work together, such as diodes, transistors, and resistors. This chip performs a variety of functions, including timing, data storage, and interaction with peripheral devices. These integrated circuits are found in a variety of electronic devices, including servers, tablets, smart phones, and embedded devices.
Artificial Intelligence (AI) offering hope to global microprocessor market
According to a report published by the Institution of Engineering and Technology, the increasing use of artificial intelligence (AI) is up scaling many standard types of IT workload as well as powering new services powered by advanced algorithmic data processing and machine learning techniques. There is no universally accepted definition of an AI chip. According to the Beijing Innovation Centre for Future Chips (ICFC), any type of microprocessor used for AI applications can be referred to as an AI chip. As a result, many novel designs and methods for AI applications have emerged, covering all stages of microprocessor construction, from materials and devices to circuits and architectures. According to the study, by 2025, AI-related processors could account for nearly 20% of total microprocessor demand, worth approximately US$67 Bn. In 2019, a slew of new AI chips were released by a variety of high-tech companies, ranging from incumbent microprocessor vendors (such as AMD, Intel, IBM, and Qualcomm) to cloud service providers (AWS, GPC, and Alibaba) and investor-funded start-ups (like BrainChip, Cerebras, Graphcore, Groq, and Gyrfalcon Technology). Furthermore, some of the most innovative AI chip offerings have come from vendors with limited experience in the microprocessor sector – start-ups such as BrainChip, Cerebras, Graphcore, and Gyrfalcon Technology.
The global microprocessor market is being pushed hard by rising demand for smart phones and tablets all over the world. The microprocessor can transfer data from one location to another in a user-friendly and easy-to-transfer manner, which is increasing its market share. Furthermore, the expansion of the IT sector and IoT infrastructure may lead to the expansion of the microprocessor market. In the future, technological advancements and graphic-based superiority are expected to create new growth opportunities for the global microprocessor market.
Despite the microprocessor's numerous advantages, there are some factors that limit and challenge the overall market's growth. Factors such as high microprocessor integrated circuit manufacturing costs, circuit design costs, increasing sales of low-cost mobile devices, decreasing shipment of individual computers, and high raw material prices are expected to limit the market. Furthermore, the growing popularity of consumer electronics, technological advancements, and rising demand for high processing speeds are some of the major factors driving the microprocessor market's growth. The market for microprocessors is expanding in the APAC region as the electronics industry expands, providing an opportunity for market participants to establish a strong market position.
The global microprocessor market is segmented as technology and application. By technology, the market is segmented as CISC, RISC, ASIC, Superscalar, and DSP. Based on application, the market is segregated as smart phone, personal computers, servers, tablets, embedded devices, and others
Reduced Instruction Set Microprocessor (RISC) under technology segment holds the maximum market share for the global microprocessor market
By technology, the Reduced Instruction Set Microprocessor (RISC) segment leads the global market with a significant market share. This is due to reduced chip complexity, which aids in maintaining constant instruction size without a microcode layer or associated overhead.
PC segment holds the dominating share for the global microprocessor market
By application, the PC segment has dominated the global microprocessor market in the past and is expected to do so again during the forecast period. The personal computer segment provides significant commercial opportunities for key market players to capitalize on, as evidenced by the increasing use of microprocessor chips in personal computers around the world. Microprocessors provide numerous benefits such as increased storage, improved volatile memory, logical functions, more operating system tasks, and low power consumption, resulting in increased adoption of the component in personal computer applications.
Furthermore, personal computer manufacturers are collaborating with technology providers to provide consumers with high-tech products. For example, in 2018, Samsung announced collaboration with Avnet, Inc., a provider of System on Chip and ASIC solutions. The collaboration aimed to involve both companies in designing and manufacturing ASIC that will benefit consumers by utilizing the most recent and improved ASIC design solutions implemented with silicon ICs and advanced process technologies.
Asia Pacific is expected to record dominant market share for the global microprocessor market
The increased adoption of digital transformation technologies such as deep learning, artificial intelligence (AI), and the Internet of Things (IoT) across various industries such as automotive, consumer electronics, healthcare, and industrial has fueled demand for microprocessors in the APAC region. Furthermore, the emergence of APAC as a manufacturing hub, as well as the adoption of automation processes to improve manufacturing efficiency, is driving up demand for microprocessors in this region.
North America, on the other hand, is expected to grow moderately during the analysis period. The presence of key players in this region is attributed to the growth. This is one of the most important factors influencing the growth of the microprocessor market in this region.
Microprocessor suppliers are focusing on research and development, which will help them increase their market presence. The prominent players involved in the global market include Advanced Micro Devices, Inc., Intel Corporation, Toshiba Electronic Devices and Storage Corporation, Texas Instruments, Qualcomm, Taiwan Semiconductor Manufacturing Company, and among others
Market By Technology
Market By Application
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Microprocessor market is expected to reach a market value of around US$ 140.5 Bn by 2027.
The microprocessor market is expected to grow at a CAGR of around 4.5% from 2020 to 2027.
Based on technology, RISC system segment is the leading segment in the overall market.
Technological advancement is one of the prominent factors that drive the demand for microprocessor market.
Advanced Micro Devices, Inc., Intel Corporation, Toshiba Electronic Devices and Storage Corporation, Texas Instruments, Qualcomm, Taiwan Semiconductor Manufacturing Company, and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
North America is expected to be the fastest growing market in the forthcoming years