Owing to benefits such as greater performance and efficiency, the demand for microprocessors is expected to grow substantially during the forecast period. This is because microprocessors are used in almost every electronic device, from PCs to servers, mainframes, tablets, mobile phones, and embedded systems. Microprocessors have been experiencing a greater adoption globally as compared to other alternatives that operate in the market.
The need for better performance increased data processing capabilities, and greater efficiency is driving the growth of the global microprocessor market. The emergence of cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things is expected to result in a rise in the usage of microprocessors in the future years (IoT).
Applications-wise, microprocessors are used in PCs, servers, mainframes, tablets, cell phones, and embedded systems. Of these applications, PCs account for a dominant portion of the market share due to their widespread use in offices as well as homes. On the other hand, server-based solutions are expected to register substantial growth during 2021–2031 owing to the rising demand from data centers that require high-performance solutions.
Advantages such as low power consumption, enhanced portability, and cost-effectiveness are expected to contribute to the growth of the microprocessor market during the forecast period. In addition, technological advancements such as 5G technology, AI, and ML are likely to boost the demand for advanced microprocessors in 2021–2031.
Considering these factors, it is reasonable to say that the global microprocessors market is growing at an appreciable compound annual growth rate (CAGR) of 5%. It is expected that the global power ICs market might acquire a size of USD 193.3 billion during the period of forecast, that is, 2021-31.
Logic and memory circuits are both located on a single integrated circuit in a microprocessor. The majority of computing devices, such as desktop and laptop computers, smartphones, tablets, and other digital gadgets, are powered by them. Microprocessors are capable of performing complex calculations and operations quickly and efficiently. Microprocessors are essentially the "brains" of a computer or device. They are responsible for controlling and executing all of the operations necessary to run the device, from basic tasks such as displaying text and images on a screen to more complex activities such as playing music or running a game. Microprocessors can also power other devices such as appliances, vehicles, robots, and medical equipment.
A significant rise in the adoption of advanced technologies such as AI, ML, and IoT across various industries, coupled with rising consumer awareness about these technologies is likely to drive further growth in the global microprocessor market during 2021–2031. Moreover, factors such as increasing disposable incomes, rising consumer awareness about advanced technologies, and growing demand for mobile devices are some of the other factors that could drive the global microprocessor market during 2021–2031.
However, over the anticipated time, restrictions including high power consumption and complex design are anticipated to hamper the growth of the microprocessor industry. In spite of the restrictions, the market is expected to witness substantial growth in the coming years owing to technological advancements, increased demand from end-use applications, and greater cost efficiency.
The key companies in the global Microprocessor Market market are Intel Corporation, Advanced Micro Devices (AMD), Qualcomm Technologies (Qualcomm), Texas Instruments, ARM Holdings, NVIDIA Corporation, Cavium Networks, Applied Micro Circuits Corporation (AMCC), NXP Semiconductors NV and VIA Technologies. The competition in the global microprocessor market is expected to remain intense as numerous players are striving to gain a competitive edge over their rivals by leveraging technologies such as AI and ML. Furthermore, major players are also focusing on strategic alliances to gain an edge over their competitors.
The ARM-Based MPUs Segment Remains the Most Lucrative Segment
The global microprocessor market is divided into two main types, namely ARM-based MPUs and X86-based MPUs. ARM-based MPUs are expected to dominate the global market due to their low power consumption and greater efficiency, while x86-based MPUs are expected to experience robust growth during 2021–2031 as they offer higher performance capabilities.
The PCs Application to Ensure Maximum Revenue
On the basis of application, the microprocessor market is segmented into PCs, servers, mainframes, tablets, cell phones, and embedded systems. PCs account for a dominant portion of the market share due to their widespread use in offices as well as homes. However, server-based solutions are expected to register substantial growth during 2021–2031 owing to the rising demand from data centers that require high-performance solutions.
The Asia Pacific Region is Anticipated to Offer Numerous Investment Opportunities.
Geographically, the market is divided into North America, Europe, Asia Pacific, the Middle East, Africa, and South America, which together make up the five main areas. Due to rising demand from nations like China and India, the Asia Pacific region is predicted to experience the most growth of these throughout the projected period. Furthermore, the presence of numerous leading players in this region is likely to bolster its growth during 2021–2031.
Covid-19 Impact and Market Status
The global pandemic has wreaked havoc on the microprocessor market. The market was already struggling with the escalating trade tensions between the US and China, and the outbreak of the pandemic has further exacerbated the situation. In terms of revenue, the global microprocessor market is expected to decline by 5.5% in 2020. The impact of the pandemic has been particularly severe in the tablet and cellphone segments, where shipments are expected to decline by 20% and 15%, respectively. The PC segment has also been affected, with shipments expected to decline by 10%. The server segment is expected to fare better, with shipments declining by only 5%. The pandemic has also had a significant impact on production levels. Many factories in China, which is a major hub for microprocessor manufacturing, were forced to shut down due to the outbreak of the disease. This led to a shortage of microprocessors globally, and prices spiked as a result. Looking forward, it is hoped that the situation will improve in 2021 as factories reopen and production ramps up again. However, it remains to be seen how long it will take for demand to recover fully.
Latest Innovations in the Global Microprocessor Market: a Snapshot
• In 2020, Qualcomm Technologies and Microsoft announced a strategic partnership to develop Windows 10 on ARM laptops powered by Snapdragon processors. This partnership is expected to further strengthen the competitive landscape of the global microprocessor market.
• Similarly, in 2021, Intel announced the launch of its first 3rd generation Xeon Scalable processors, designed for data center and cloud infrastructure. This is likely to bolster Intel’s position in the global microprocessor market.
• In 2022, AMD is slated to launch its next-gen Zen 4 CPU architecture for the desktop and server markets.
Microprocessor Market Scope
|Revenue forecast in 2031
|USD 193.3 BN
|CAGR of 5 % during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Intel Corporation, Advanced Micro Devices (AMD), Qualcomm Technologies (Qualcomm), Texas Instruments, ARM Holdings, NVIDIA Corporation, Cavium Networks, Applied Micro Circuits Corporation (AMCC), NXP Semiconductors NV and VIA Technologies
Key Segments of the Microprocessor Market
By Type Overview, 2021-2031 (USD Billion)
• ARM-Based MPUs
• X86-Based MPUs
By Application Overview, 2021-2031 (USD Billion)
• Embedded MPUs
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa