Accelerated Processing Unit (APU) Market - Forecast(2024 - 2030)

Accelerated Processing Unit (APU) Market Overview

The Global Accelerated Processing Unit (APU) market size is estimated to reach $3.5 billion by 2027, growing at a CAGR of 7.3% during the forecast period 2022-2027. Increasing adoption of microprocessors combining central processing unit (CPU) with graphics processing unit (GPU) on a single computer chip (Soc) to enable data-centric real time applications has been impacting the market growth towards accelerated processing unit. Rising penetration of smartphones with high end graphics as well as growing demand for budget gaming PCs among tech savvy millennial are the prime factors attributing towards market growth of integrated graphics processors. Factors such as increasing adoption of smart access memory as a part of improving the gaming performances along with growth in field programmable gate array for facilitating architectural integration of digital components are boosting the market growth overtime. In addition, rising investment towards fusion platform and computing technology to enable application specific smart functions including 3D rendering, video processing is also set to foster market growth during 2022-2027.

Accelerated Processing Unit (APU) Market Report Coverage

The report: “Accelerated Processing Unit Market Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Accelerated Processing Unit Market.

By Product Type: System Integration, Architecture Integration, Others
By CPU Cores: single-core, dual-core, quad-core, hexa-core, octa-core
By End Device: Tablets, Smartphones, Laptops, Personal Computers (PC), Gaming Consoles, Others
By Application: Gaming, Gesture & facial recognition, Visual & audio data processing, 3D rendering, others
By End User : Automotive, IT & Telecommunications, Electronics & Semiconductor, Healthcare, Media & Entertainment, Industrial, Others
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Others), APAC (China, Japan India, South Korea, Australia, Others), South America (Brazil, Argentina, others), RoW (Middle East, Africa)

Key Takeaways

• Smartphone segment is analyzed to witness the highest growth in the global Accelerated Processing Unit Market during 2022-2027, owing to the increasing penetration of smartphones with high end graphics among tech-savvy millennial.
• North America Accelerated Processing Unit Market held the largest share in 2021, attributing to factors like high investment towards growing penetration of immersive gaming, rising demand for in-car entertainment experience and many others.
• Growing demand for budget gaming PCs among tech savvy millennial along with rising development in smartphone chipset introducing incremental improvement in speeds are analyzed to significantly drive the global Accelerated Processing Unit Market during the forecast period 2022-2027

Global Accelerated Processing Unit Market Share, By Geography, 2021 (%)

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Accelerated Processing Unit Market Segment Analysis – By End Device

By end device, Accelerated Processing Unit Market has been segmented into Tablets, Smartphones, Laptops, Personal Computers (PC), Gaming Consoles and others. Smartphone segment is estimated to witness the highest growth with a CAGR of 8.1% in the global accelerated processing unit market during the forecast period 2022-2027. Rising demand for smartphones equipped with high end graphics among millennial is considered as one of the major factors attributing to its market growth. Additionally, growing demand for high end smartphones for optimum hardware acceleration, deployment of advanced embedded chipsets for high end processing capabilities and many others can also help in impacting the market growth overtime. In January 2021, Mediatek announced about the launch of Dimensity 1200 chipsets for flagship smartphones. This product is equipped with APU 3.0 with an aim to enhance AI computing capabilities while reducing latency and improving power efficiency. Such developments are set to fuel the demand for accelerated processing units within smartphones in the long run.

Accelerated Processing Unit Market Segment Analysis - By Application

By application, Accelerated Processing Unit Market has been segmented into Gaming, Gesture & facial recognition, Visual & audio data processing, 3D rendering and others. Gaming segment dominated the global accelerated processing unit (APU) market with a share of 39% in 2021, and is also anticipated to witness a significant growth during the forecast period 2022-2027. Growing investment towards interactive 3D gaming platform with high end graphics can be considered one of the prime factors driving its market growth. Rising demand for achieving immersive experience in order to maximize technological capabilities in gaming sector have been eventually aiding its market growth. With the outbreak of Covid-19 pandemic, demand for online gaming platforms have significantly gained up momentum, which in turn have been driving the market growth of APUs for faster graphics processing as well as enhancing gaming performances. In July 2021, Valve revealed its plans on launching the Steam deck handheld for playing PC games, starting at a price of around US$ 399. This handheld device features an accelerated processing unit (APU) built by AMD offering a 64 GB storage in an eMMC format. Such developments are set to create significant growth opportunities for the market between 2022 and 2027.

Accelerated Processing Unit Market Segment Analysis - By Geography

By geography, Accelerated Processing Unit Market has been segmented under North America, Europe, APAC, South America and RoW. North America dominated the global Accelerated Processing Unit Market with a share of 35% in 2021 and is also set to witness significant growth during 2022-2027. Factors like high investment towards heterogeneous computing platforms, growing penetration of immersive gaming, rising demand for in-car entertainment experience and many others can be considered vital in driving the market forward in this region. Growing demand towards advanced chipsets, increased penetration of high-end consumer electronic products, as well as rising need for high quality graphic processing requirements within industries, can also help in fuelling the market growth in the long run. In June 2021, Tesla, a US based leading electric vehicle manufacturing company announced their new S Plaid model, which is equipped with two AMD processors. The accelerated processing unit assists in vehicle display renderings, camera displays, music, maps and other basic functions whereas AMD RDNA 2 GPU boosts the gaming experience. Such factors are set to boost the market growth for APU in the coming time.

Accelerated Processing Unit Market Drivers

Growing demand for budget gaming PCs among tech savvy millennial is positively impacting the market growth

Growing demand for budget gaming PCs among tech savvy millennial is positively impacting the global Accelerated Processing Unit Market growth. Factors including shortage of Graphic Processing Units (GPU) globally, its current surging prices and so on acts as major factor driving the global Accelerated Processing Unit Market. PCs integrated with APU in the motherboard have been facing wide popularity, compared to traditional CPU, as it helps in eliminating additional requirement of a dedicated graphics card for performing high-end graphic tasks like gaming. This in turn, have significantly helped in driving the market growth overtime. The growing adoption of APUs on gaming consoles without a dedicated graphics processors in them is also boosting the market growth overtime. However, growing investments in heterogeneous computing software ecosystem as a part of developing APU-enabled end user applications like gaming, video processing are also the factors driving the market. In August 2021, ASUS announced the launch of miniature PCs Mini PC PN50 series, capable of handling lightweight gaming. These mini devices are built around AMD’s Ryzen 4000 accelerated processing units on Zen 2 architecture. Such developments are set to fuel the market growth in the long run.

Growing advancement in smartphone chipset improving its speed and power efficiency drives the market forward

Growing advancement in smartphone chipsets improving its speed due to presence of larger number of transistors act as a major driver boosting its market growth. Rising investment towards fusion platform as a part of fulfilling the demand for high quality graphic processing requirements contribute towards global accelerated processing unit market. Furthermore, with the increasing adoption of artificial intelligence (AI) based applications such as audio & visual data processing, 3D rendering, speech & gesture recognition and many others, demand for accelerated processing units (APU) has gained a huge traction. In November 2021, Mediacom announced the launch of Dimensity 9000 mobile processor, featuring ARM v9 CPU cores. This processor consists of a hexa-core accelerated processing unit which boosts the performance four times more compared to the previous versions. Such factors are analyzed to propel the global accelerated processing unit market growth in the coming time.

Accelerated Processing Unit Market Challenges

Hardware Architecture Limitations associated with underpowered integrated graphic processors hinders its market growth

Hardware architecture limitations associated with underpowered integrated graphic processors (IGP) can be considered as a major factor restraining its market growth. Due to transistor budget constraint, integrated graphic processors mostly pair a CPU with a less capable GPU. This in turn, contributes towards imbalance making it unsuitable for general purpose computing. These undersized or underpowered IGPs can be considered as an effective option for 3D gaming but have a negative impact on general purpose computing. These factors eventually create an adverse impact on the market growth. However, significant investments on higher performing graphics processor is anticipated to offset this challenge and contribute towards healthy growth during later stages of 2022-2027.

Accelerated Processing Unit Industry Outlook

Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in this market. Accelerated Processing Unit top 10 companies include:

1. Advanced Micro Devices Inc. (AMD)
2. Intel Corporation
3. ARM Holdings Plc
4. Nvidia Corporation
5. NXP Semiconductor
6. Broadcom Corporation
7. IBM Corporation
8. Marvell Technologies Inc.
9. Imagination Technology Group
10. Freescale Semiconductor Inc.

Acquisitions/Product Launches

• In August 2021, AMD unveiled two of its new products- Ryzen 7 5700 G and Ryzen 5 5600G for the retail market. These integrated graphics processors were developed for system builders equipped with advanced features such as remote management and additional security functions.
• In September 2020, Intel announced the launch of 11th Gen core processors with Intel Iris Xe graphics for thin and light laptops. This next generation mobile PC processor built on integrated graphics offers 20% faster office productivity and double faster gaming and streaming experiences in real-world as compared to other competitive products.
• In July 2020, AMD announced the launch of Ryzen 4000G accelerated processing unit (APU) series, which is only available for pre-built OEM desktops across consumer and commercial segments. This product was developed with an aim to boost the gaming performance at 1080p between the range of low and medium setting without the requirement of additional investment in a discrete GPU.

Relevant Report Titles:

Application Processor Market – Forecast (2021 - 2026)

Report Code: ESR 95743

Neural Network Processor Market - Forecast(2021 - 2026) 

Report Code: ESR 0689

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