Smart wearables, infotainments systems, and medical fitness devices are the high-growth potentials in the microprocessor market. The market which was initially dominated by PCs has been overtaken by smartphones. The emergence of artificial intelligence, demand for augmented reality and virtual reality is likely to create a niche high-growth opportunities in the microprocessor and GPU markets.
A microprocessor, or micro processing unit (MPU), is a device that carries out the core elements of a computer system on a single integrated system. Developments in semiconductor fabrication technology led to the evolution of microprocessors. The global microprocessor market was valued at USD 61.19 billion in 2016 and is expected to reach USD 66.93 billion by 2022, at a CAGR of 1.52% between 2017 and 2022.
A Graphics Processing Unit (GPU) is a specialized electronic circuit designed to accelerate the image output in a frame buffer intended for output to a display device. GPUs are primarily used for generating a three-dimensional (3D) output in computer games. Drawing a 3D scene is an intensive task and can put extra strain on the CPU. The market for GPUs is expected to be worth USD 16.77 billion by 2022, growing at a CAGR of 5.22% between 2017 and 2022.
The chart below shows the opportunities in terms of growth rate for the microprocessor market.
Figure: Opportunities in the next five years
Source: Industry Experts, Primary Interviews, Secondary Sources, & MarketsandMarkets Analysis
The increasing use of electronics in automotive applications can generate huge market opportunities in the future. The growing adoption of advanced driver assistance systems (ADAS) and infotainment systems is the key driving factor for the microprocessor and GPU market in the automotive segment. Telematics, a branch of information technology that deals with the transmission of computerized information to car users, is now becoming a popular business tool, used by automobile manufacturers, that differentiates the product, price, and promotion of automobiles. Panasonic Automotive Systems (US) and Qualcomm Technologies will be working together on developing next-generation Android-based in-vehicle infotainment (IVI) system using a Qualcomm Snapdragon 820Am processor.
On March 13th 2017, Intel and Mobileye (Israel) entered into an agreement for the acquisition of Mobileye. Mobileye a technology company that develops vision-based advanced driver assistance systems (ADAS) to provide warnings for collision prevention and mitigation.
Medical is expected to be one of the key growing applications in the microprocessor market. Traditionally, in the healthcare sector, processor tasks were related to data electronic health records (EHR), personal monitoring devices, and mobile apps. Modern applications include the development of surgical robots that can assist during medical operations. The growing demand for portable and wearable devices, especially smartwatches, is expected to be one of the niche opportunities in the microprocessor market. The global smartwatch market is expected to grow at a double-digit compound annual growth rate (CAGR) between 2017 and 2022.