Graphic Processing Unit (GPU) Market Size, Share & Industry Analysis, By Type (Dedicated or Discrete, Integrated, and Hybrid), By Application (Machine Learning and Artificial Intelligence, Scientific Computing, 3D Modeling and Rendering, Video Editing and Rendering, and Cryptocurrency Mining), By Industry (IT & Telecommunication, Electronics, Media & Entertainment, Defense & Intelligence, and Others), and Regional Forecast, 2024-2032

The global graphics processing unit market size was valued at USD 65.84 billion in 2024. The market is projected to grow from USD 84.3 billion in 2025 to USD 510.27 billion by 2032, exhibiting a CAGR of 29.17% during the forecast period.

The scope included both Graphic Processing Unit (GPU) as hardware and GPU as a Service (GPUaaS), wherein GPU is a specialized electronic circuit designed to accelerate the processing of graphics and visual data. Created to render images, animations, and videos for computers and gaming systems, GPUs have evolved to handle complex mathematical computations.

They are well suited for tasks that involve parallel processing, where multiple calculations can occur simultaneously, making them ideal for applications beyond graphics, such as machine learning and deep learning, gaming and video editing, scientific computing, and data processing and analytics.

MARKET DYNAMICS

Market Drivers

Growing Gaming Sector to Drive Graphics Processing Unit Market Growth

The gaming industry is experiencing rapid growth, fueled by the rise in mobile gaming, esports, and virtual reality. As graphics-related gaming is gaining traction, the need for high-performance GPUs is increasing to provide exceptional gaming experiences. Graphics processing units are also crucial for accelerating AI and machine learning tasks, including inference. For instance,

• According to PwC’s Global Entertainment and Media Outlook 2022-26, the gaming industry is projected to reach USD 321 billion by 2026, maintaining its strong growth trajectory.

These factors are contributing to the expansion of the GPU market as manufacturers strive to meet the growing demand for advanced graphics solutions and services.

Market Restraints

Rising Prices of GPUs and Graphics Cards to Hamper Market Growth

High-end graphics cards are particularly expensive; the average price of graphics cards has doubled between 2020 and 2023. For instance,

• The average selling price (ASP) for an AMD graphics card was approximately USD 314 in February 2020, but it rose to USD 639 by 2023.

This increase in the cost of graphics cards and related units can limit their accessibility for individuals and small to medium-sized enterprises, potentially constraining the graphics processing unit market growth.

Market Opportunities

Cloud Gaming is Set to Become a Major Opportunity for the Market

Cloud gaming platforms are gaining popularity, with GPU as a Service being crucial for delivering high-quality gaming experiences to users without powerful local hardware. The cloud gaming industry is ripe with potential for growth and innovation. Major companies are heavily investing in this space, with a significant focus on augmented reality/virtual reality, cloud gaming, and AI-based experiences.

• In 2023 alone, investments in gaming startups, particularly those based in Silicon Valley and other tech hubs, reached USD 2.10 billion.

These trends create substantial opportunities for market participants and generate revenue potential as cloud gaming continues to evolve and expand its reach.

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GRAPHICS PROCESSING UNIT MARKET TRENDS

Increasing Demand for Mobile Devices Fuels the Adoption of Graphics Processing Units Among Consumers and Enterprises

The graphics processing unit (GPU) is a critical component in smartphones, responsible for rendering graphics and handling complex visual tasks such as video games, high-resolution images, and animations. By offloading these graphics-intensive tasks from the CPU, graphics processing units help save battery life, which is particularly important for power-hungry applications, such as video games.

The mobile industry has experienced rapid growth over the past decade, with advancements in technology driving the integration of 3D graphics in mobile devices. GPUs significantly enhance graphics performance, improve battery life, and reduce the workload on the processor. For instance,

• As of 2024, there are 4.88 billion smartphone users, an increase of 635 million new users over the past year.

Overall, the increasing focus on mobile devices is enhancing the adoption of GPUs among consumers and enterprises.

IMPACT OF GENERATIVE AI

Increased Adoption of Generative AI for Advanced Processing Capabilities to Drive Market Growth

The integration of graphics processing units into artificial intelligence (AI) has transformed the field by accelerating computational processes and enabling more advanced AI applications. GPUs enhance AI algorithm performance through their parallel processing capabilities, leading to faster and more efficient training and inference. This has made GPUs crucial for a range of AI-driven technologies, including image and video processing and large language models. Additionally, several developing countries, including China, the U.S., India, and Japan, are adopting strategies to boost the GPU market. For example -

• India established a GPU cluster—a network of computers with GPUs on each node to form neural networks for processing images and videos—to support AI startups in September 2023, according to Union Minister Rajeev Chandrasekar.

These developments underscore the growing importance of GPUs in advancing generative AI-based models.

SEGMENTATION ANALYSIS

By Component Analysis

Hardware Held Major Market Share Owing to Its Parallel Processing Units

By component, the market is segmented into hardware and GPUaaS.

Hardware captured the largest share of the market by 93.49% in 2024, as GPUs are widely preferred due to their parallel processing capabilities, which makes them ideal for handling complex operations. Also, for storing data on local infrastructure, GPU hardware gives organizations more control over their sensitive data, which is very important in industries, such as healthcare, government, finance, and others.

GPU as a Service (GPUaaS) is predicted to grow at the highest CAGR during the forecast period as it provides flexible scalability. Organizations can scale their GPU resources up or down based on project requirements without the need to invest in additional physical hardware. This is ideal for fluctuating workloads where GPU demand may vary significantly.

By Type Analysis

Rising Use of Integrated GPUs by Budget-Conscious Consumers Propelled Segment Growth

By type, the market is segmented into dedicated or discrete, integrated, and hybrid.

Among these, integrated GPUs captured the largest share of the market in 2023. Integrated GPUs are much more affordable than discrete GPUs, as they are part of the CPU itself. This makes them ideal for budget-conscious consumers or used in lower-cost devices, such as laptops and basic desktop computers. The segment is likely to capture 43.64% of the market share in 2025.

Hybrid GPUs are anticipated to grow at the highest CAGR of 31.64% during the forecast period as they are a powerful and versatile solution. They combine the capabilities of integrated and dedicated GPUs, such as the high-performance capabilities of dedicated GPUs and the power-saving features of integrated GPUs. Also, they are great for users needing long battery-life and occasional high-performance computing, such as gamers or professionals with modern graphic demand.

By Enterprise Type Analysis

Requirement for High Computational Power to Train AI/ML Models Boosted the Large Enterprises Segment Growth

By enterprise type, the market is segmented into SMEs and large enterprises.

Large enterprises captured a larger share of the market in 2023, as they often deal with massive datasets and require high computational power to train AI/ML models. GPU hardware excels at parallel processing, making it ideal for these applications. The segment is projected to hold 61.87% of the market share in 2025. For instance,

• NVIDIA GPUs are commonly used in deep learning frameworks, such as TensorFlow and PyTorch, to accelerate the training of neural networks, reducing the time required to process and analyze large datasets.

SMEs are expected to grow at the highest CAGR of 30.43% in coming years, as cloud-based solutions give SMEs access to high-performance computing power on a pay-as-you-go basis, which is more flexible and cost-effective for small-scale AI and ML projects.

By Application Analysis

Increasing Adoption of Machine Learning and Artificial Intelligence Helping to Grow the Segment Forward

By application, the market is segmented into machine learning and artificial intelligence, scientific computing, 3D modeling and rendering, video editing and rendering, and cryptocurrency mining.

Machine learning and artificial intelligence captured the larger share of the market in 2023, as AI and ML, particularly in deep learning, large datasets are common. GPUs provide the power to process vast amounts of data quickly. Their architecture is well-suited for performing matrix operations and tensor calculations, which are critical in deep learning. The segment is expected to acquire 34.51% of the market share in 2025.

The 3D modeling and rendering segment is expected to grow at the highest CAGR of 32.93% in the coming years, as real-time rendering is essential in applications, such as gaming, virtual reality (VR), and augmented reality (AR). GPUs are capable of handling millions of polygons and shaders simultaneously, enabling real-time performance in these interactive environments.

By Industry Analysis

Growing Use of AI and Machine Learning Algorithms in the IT & Telecommunication Sector Boosted Segment Growth

By industry, the market is segmented into healthcare, BFSI, manufacturing, IT & telecommunication, media & entertainment, automotive, and others.

IT & telecommunication captured the largest part of the graphics processing unit market share in 2023, as telecom companies use AI and machine learning algorithms for tasks, such as network optimization, predictive maintenance, and fraud detection. The segment is expected to acquire 22.42% of the market share in 2025.

Further, the BFSI industry leverages GPUs for faster data processing, fraud detection, and real-time analytics. By utilizing GPU hardware, organizations can gain insights from large volumes of financial data much more quickly than with CPU-based systems alone. Small fintech companies might use GPUs for performing large-scale quantitative analysis, enabling them to stay competitive with larger firms; this factor plays an important role in fueling market growth.

The BFSI segment is expected to display a strong CAGR of 31.58% during the forecast period.

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GRAPHICS PROCESSING UNIT MARKET REGIONAL OUTLOOK

North America

Industry 4.0 initiatives in North America focus on industrial automation, robotics, and predictive maintenance, all of which are powered by GPU-based systems. The regional market value in 2024 was USD 23.22 billion, and in 2023, the market value led the region by USD 17.98 billion. Graphics processing units are used to analyze data from sensors and AI models to optimize production processes and reduce downtime. Also, the region has the presence of major players, such as NVIDIA, Advanced Micro Devices, Intel Corporation, and others, contributing to the leading market share. For instance,

• In March 2024, NVIDIA Healthcare announced the launch of GPU-enhanced microservices and NVIDIA NIM for biology, chemistry, imaging, and healthcare data processes in every NVIDIA DGX cloud. These are generative AI microservices to enhance drug discovery, digital health, and MedTech.

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The U.S. captured the larger share of the North American market in 2023. The U.S. market size is estimated to be USD 15.55 billion in 2025. Silicon Valley and other tech hubs in the U.S. are at the forefront of autonomous vehicle development. Companies, such as Tesla, Waymo, and Uber rely on GPUs for processing sensor data from cameras, radars, and Lidar systems in real time, enabling advanced driver assistance systems (ADAS) and autonomous driving technologies. GPUs also power simulations and digital twins, which are used for vehicle design, testing, and performance optimization.

South America

AI-driven agriculture is a rising trend in South America, particularly in Brazil and Argentina. Farmers are using precision farming techniques powered by GPU-based AI models for improved crop management, resource optimization, and environmental sustainability. For instance,

• In December 2023, Deep Agro, an artificial intelligence startup firm located in Argentina, raised USD 2 million for AI-based Agri-tech. Through this funding, the company aims to revolutionize agricultural practices using AI technology as well as expand its footprints in Brazil and the U.S.

Europe

Europe region is to be anticipated as the third-largest market with USD 15.18 billion in 2025. In Europe, surging AI and ML investments majorly drive the market, the availability of high-quality digital infrastructure, and rapid adoption of High Performance Computing (HPC) across various sectors, including healthcare and automotive, for processing data-intensive workloads. Several governments in Europe have launched funds to support various AI projects. The market value in U.K. is expected to be USD 3.70 billion in 2025.

On the other hand, Germany is projecting to hit USD 3.30 billion and France is likely to hold USD 2.25 billion in 2025. For instance,

• In April 2023, Innovate U.K., the U.K.’s national innovation agency, raised around USD 110 million in AI funds for the U.K. companies to boost an AI innovation network in the U.K.

Middle East & Africa

The Middle East & Africa market is expected to be the fourth-largest region with a value of USD 8.67 billion in 2025. The demand for AI and machine learning technologies is growing in the Middle East & Africa region, particularly in industries, such as healthcare, finance, and government. The GCC market size is estimated to be USD 1.11 billion in 2025. Countries, such as UAE, Saudi Arabia, and South Africa are leading in AI adoption and use GPUs to accelerate AI model training, data processing, and predictive analytics.

Asia Pacific

The Asia Pacific is anticipated to account for the second-highest market size of USD 24.86 billion in 2025, exhibiting the second-fastest growing CAGR of 32.06% during the forecast period. In Asia Pacific, GPU has accelerated IT and telecommunication with new advancements and enhancements, such as wireless incorporation across telecom services. For instance,

• In September 2023, NTT DOCOMO and NVIDIA introduced the incorporation of a GPU-enhanced wireless solution across its network in Japan. The enhancement distinguishes it as the innovative global telco to integrate a GPU-driven commercial 5G network.

The market in China is expected to hit USD 8.99 billion in 2025, whereas India is likely to reach USD 5.90 billion and Japan is projected to hit USD 3.85 billion in 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Market Players are Focusing on Collaboration Strategies to Expand Their Graphics Solutions Globally

As a part of their growth strategy, these companies aim to engage in collaboration, partnership, mergers, and acquisition (M&A) activities to expand their business and geographical presence. For instance,

• In March 2024, NVIDIA engaged in collaboration with AWS. Through this collaboration, the company will provide the NVIDIA Blackwell GPU platform to AWS. This platform will play a key role in providing secure, advanced infrastructure, software, and services to help customers.

Major Players in the Graphics Processing Unit Market

The global graphics processing unit market is consolidated, with the top 5 players accounting for around 53% of the market share.

Long List of Companies Studied

• Nvidia Corporation (U.S.)
• Advanced Micro Devices (U.S.)
• Samsung Electronics (South Korea)
• Intel Corporation (U.S.)
• Com, Inc. (U.S.)
• Microsoft Corporation (U.S.)
• Alphabet, (U.S.)
• Gigabyte Technology Co., Ltd (Taiwan)
• IBM Corporation (U.S.)
• Alibaba Group Holding Limited (China)
• Imagination Technologies Group (U.K.)
• Sapphire Technology (China)
• CoreWeave (U.S.)
• Kinetica (U.S.)
• Apple LLC (U.S.)
• Assembly AI (U.S.)
• EVGA Corporation (U.S.)
• Asus (Taiwan)
• MSI (Taiwan)
• Sapphire Technology Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• In August 2024, Intel introduced its discrete graphics processing unit (dGPU), the Intel Arc Graphics for Automotive. It offers automakers a scalable and flexible platform solution that brings high-fidelity experiences to the vehicle.
• In March 2024, Amazon Web Services and NVIDIA announced the new NVIDIA Blackwell GPU platform, which NVIDIA launched at GTC 2024. AWS will provide the NVIDIA GB200 Grace Blackwell Superchip and B100 Tensor Core GPUs, expanding the two companies' long-standing strategic collaboration to provide the most secure solutions and advanced infrastructure, software, and services to help customers tap into new artificial intelligence (AI) capabilities.
• In March 2024, GIGABYTE launched Comprehensive AI Platforms at NVIDIA GTC. The launch will help in deepening and improving the GIGABYTE server group to support NVIDIA GPUs, DPUs, CPUs, and high-speed networking.
• In January 2024, NVIDIA unveiled new GeForce RTX 40 SUPER Series graphics cards. These graphic cards include G-SYNC technologies, RTX games, and Generative AI innovations that will help to enhance RTX Video Super Resolution, new GeForce NOW games and features.
• In January 2024, NVIDIA launched the GeForce RTX 40 SUPER Series family of GPUs — comprising the GeForce RTX 4070 Ti SUPER, GeForce RTX 4080 SUPER, and GeForce RTX 4070 SUPER — which boost the core of AI-powered PCs and the latest games.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Growth Of E-Sports To Boost The Investment Opportunities In The Market

GPUs are essential for accelerating AI and machine learning tasks due to their parallel processing capabilities. Industries such as healthcare, finance, and automotive are rapidly adopting GPUs to power AI-driven applications, such as real-time analytics, natural language processing, and image recognition. The gaming industry plays an important role in driving GPU demand across the globe, as GPUs are vital for delivering high-performance graphics and immersive experiences in PC gaming, console gaming, VR/AR, and game development. The growth of e-sports and game streaming platforms, such as Twitch, further boosts GPU usage in the gaming and entertainment sectors.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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REPORT SCOPE & SEGMENTATION