Application Processor Market Overview
Application Processor market size
is projected to reach US$ 45.02 billion by 2026 and is estimated to grow at around
CAGR 5.6% during 2021-2026. With the increasing penetration of smart phones
with high-end graphics and growing demand for achieving immersive user experiences
among tech-savvy millennial, Application Processors Market is anticipated to
gain huge traction due to the rise of system on chip and microprocessors. Rising demand for advanced digital signal processors in
electronic devices handling primary processing and other smart functions
including superior connectivity, enhanced camera functionality, immersive
augmented reality (AR) and virtual reality (VR) experience, long battery life
integrated with robust security solutions rather than only managing background
functions such as display, wireless communication and power management have
contributed to the Application Processor Market growth. With the increasing
adoption of emerging technologies such as Artificial Intelligence (AI), microprocessors, Internet of Things (IoT) infrastructure the rising demand for data-centric
real-time applications is augmenting the Application Processor Market.
The report: “Application Processor Market Forecast (2021-2026)”, by IndustryARC,
covers an in-depth analysis of the following segments of the Application
By Architecture: RISC/reduced instruction set computer processors
(MIPS, ARM, Power, others), CISC/Complex instruction set computer processors
(X86, others), Application Specific Integrated Circuit (ASIC),
Superscalar Processors, and Digital Signal Microprocessors (DSP).
By Design: Embedded, stand-alone.
By number of cores: single-core, dual-core, quad-core, hexa-core, octa-core.
By storage capacity: 8 bit, 16 bit, 32 bit, 64 bit
By end product: tablets, smartphones, smart wears, e-readers, automotive navigation devices, gaming consoles others.
By End User : Industrial (Automotive, Telecommunications, Others) Commercial (Hotels & restaurants, shopping malls, smart office buildings, Media & Entertainment, others), consumer/residential.
By Geography: North America (U.S., Canada and Mexico); Europe (U.K., Germany, Italy, France,Spain, Russia, Rest of Europe); APAC (China, Japan, South Korea, India, Australia, Rest of APAC); South America (Brazil, Argentina, Rest of South Americas); RoW (Middle East & Africa).
- RICS is estimated to dominate the market during the forecast period 2021-2026 owing to increasing penetration of portable devices.
- Consumer sector is estimated to witness highest growth during 2021-2026 due to massive and quick adoption of smartphones, tablets and laptops.
- APAC is estimated to dominate the Application Processor market during the forecast period 2021-2026 owing to increasing investments towards IoT infrastructure across this region.
- Increasing penetration of smartphones and growing adoption of Artificial Intelligence technology are driving the Application Processor Market.
- Increased cost is one of the major challenges to impede the market growth during 2021-2026.
Global Application Processor Market Share, By geography, 2020, (by %)
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Application Processor Market Segment Analysis – By Architecture
By architecture, Application Processor Market has been
segmented under RISC, CISC, Application Specific Integrated Circuit (ASIC),
Superscalar Processors, and Digital Signal Microprocessors (DSP). RISC architecture is
estimated to hold the major Application Processor Market Share of 34% during
the forecast period 2021-2026 owing to its reduced chip complexity and huge demand
for RISC technology in consumer electronic devices such as smartphones, tablets
and smart wears. ARM processor is analyzed to dominate the market during 2021-2026
owing to minimal power consumption, low cost and more mobile friendliness. The growing
demand of ARM processors in portable devices has contributed to the Application Processor Market
growth. For instance, in November 2020, Arm launched new Cortex-A78C processor
enhancing gaming and productivity to power the next generation of flagship
smartphones. Such developments are anticipated to propel the market growth
Application Processor Market Segment Analysis – By End User
By end user, Application Processor Market has been
segmented under industrial, commercial and consumer sector. Consumer
sector dominated the market in 2020 acquiring a market share of 42% and is
estimated to hold the major market share of 45% by 2026 with a CAGR 9.56%
during the forecast period 2021-2026 owing to massive penetration of
smartphones globally. Furthermore growing demand for other consumer electronic
devices such as tablets, laptops, smart watches is also boosting the market. The
rising awareness among consumers about the fitness and productivity has
significantly increased the demand for smart watches and thus accelerating the
Application Processor Market growth. For instance, in November 2021, Samsung
Electronics announced to deliver its smartphone application processors to
Chinese smartphone manufacturing companies including Xiaomi, Oppo and Vivo.
Such collaborations are anticipated to boost the Application Processor Market. In
industrial sector, automotive Industry is estimated to be the fastest growing
market with a CAGR 11.3% between 2021 and 2026 due to rising demand for
advanced driver assistance system (ADAS) globally. For instance, in April 2021,
SiFive Inc. announced a strategic partnership with Renesas Electronics
Corporation to develop next-generation RISC-V application processors for
automotive applications and such partnerships are anticipated to drive the
market from 2021 to 2026.
Application Processor Market Segment Analysis – By Geography
By geography, Application Processor Market has been segmented under North America, Europe, APAC, South America and RoW. APAC dominated the Application Processor Market in 2020 acquiring a share of 72% and is estimated to hold the major market share of 79% with a CAGR 12.78% during 2021-2026 owing to increasing investments towards setting up a digital infrastructure across this region. Massive and quick adoption of IoTs in this region is analyzed to accelerate the market growth during the forecast period 2021-2026. The presence of large consumer electronics manufacturers in the East Asia region such as Lenevo, Huawei, Samsung is contributing to the growth of the Application Processor market. For instance, in November 2021, Samsung Electronics introduced a new application processor “Exynos 1080” based on 5 nm EUV process with improved multi-core performance and power efficiency in Shanghai, China. Such new product launches are driving the market in this region. Indian Government initiatives such as “Make in India” is estimated to boost the market in this region during the forecast period 2021-2026.
Application Processor Market Drivers
Increasing penetration of smartphones
penetration of smartphones along with high speed internet is analyzed to drive Application
Processor Market during the forecast period 2021-2026. The Application
Processor Market growth is majorly attributed to the growing demand for smart
applications such as image enhancement techniques utilizing digital
computation, rich AR & VR immersive experience, gaming. The increasing
adoption of embedded application processors to run mobile operating system
environment or a specialized real-time operating system is steering the market.
For instance, in April 2021, Kingston Digital Inc. announced the partnership
with NXP Semiconductor on their new i.MX 8M application processors to enhance
their IoT business solutions and such partnerships are analyzed to drive the
market from 2021 to 2026.
Growing demand for Artificial intelligence
Increasing demand for deep learning based AI applications
such as image recognition, voice recognition, speech translation, data mining,
video surveillance across various sectors is set to drive the market. The high rate
of adoption of deep learning systems in autonomous cars, wearable devices, data
analytics, cyber security, fraud detection is anticipated to stimulate the Application
Processor market during the forecast period 2021-2026. Increasing adoption of
cloud based applications for large volume data storage and processing has
contributed to the growth of the market. Growing demand for digital assistants
such as Alexa, Siri has contributed to the growth of Application Processor market.
For instance, in December 2020, Qualcomm announced the launch of Snapdragon
888, 5G equipped latest flagship smartphone processor consisting of 6th
generation Qualcomm AI Engine with Hexagon 780 processor.
Application Processor Market Challenges
The growing demand for high
performance processors coupled with low power requirement have significantly
triggered the growth of application processors. But the high cost of
Application Processors due to its complex architecture secured with
cryptographic algorithms is hampering the adoption.
Application Processor Market Landscape
Technology launches, Acquisitions, Collaboration, and
R&D activities are key strategies adopted by players in the Application
Processor market. Application Processor top 10 companies include Qualcomm Inc.,
Intel Corporation, Texas Instruments Inc., Meditek Inc., Nvidia Corporation,
Huawei Technologies Co. Ltd., Samsung Technologies, Silicon Laboratories Inc., Renesas
Electronics Corporation, NXP semiconductors N. V. and others.
- In June 2020, Qualcomm introduced new snapdragon 690 processor which will enable 5g network usage in budget phones.
- In January 2020, Texas instruments launched Jacinto 7 processor platform to enhance deep learning capabilities for optimizing advanced driver assistance systems (ADAS) and automotive gateway applications.
Relevant Report Titles:
Narrowband IoT Chipset Market
Report Code: ESR 0370
Integrated Graphics Chipset Market
Report Code: ESR 0258
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