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Processor Market Size (2024 - 2029)

The processor market is experiencing growth driven by the increasing demand for consumer electronic devices, including smartphones and wearables, which require integrated circuitry for essential computations. The expansion of tech-savvy consumer bases and the rising adoption of mobile application processors across various devices are significant contributors to this growth. Additionally, the shift of business IT infrastructures to the cloud is boosting the demand for data center CPUs, particularly multi-core processors that enhance data processing efficiency. However, the market faces challenges due to the need for highly skilled personnel to develop application processors, which can impede growth.

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Market Size of Processor Industry

Processor Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 126.19 Billion
Market Size (2029) USD 155.76 Billion
CAGR (2024 - 2029) 4.30 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Processor Market Major Players

*Disclaimer: Major Players sorted in no particular order

Processor Market Analysis

The Processor Market size is estimated at USD 126.19 billion in 2024, and is expected to reach USD 155.76 billion by 2029, growing at a CAGR of 4.30% during the forecast period (2024-2029).

A processor is an important integrated circuitry (IC) in computing devices and performs all of the calculations needed to run the computer.

  • The proliferation of consumer electronic devices is among the key factors responsible for the market growth, with CPUs being used within almost all electronic devices, from smartphones to smartwatches. Additionally, there has been a significant increase in the number of wearable devices sold over the past few years. According to Cisco, the number of connected wearable devices was estimated to rise from 835 million in 2020 to 1,105 million in 2022, fuelling the demand for processors.
  • Also, with the growing base of tech-savvy consumers, there has been a significant rise in the adoption of smartphones, accelerating the demand for mobile application processors. Application processors also find use in a variety of electronic devices such as tablets, e-readers, netbooks, gaming consoles, and automotive navigation devices.
  • Moreover, the demand for data center CPUs continues to grow, with more businesses moving their IT infrastructure to the cloud. Also, one important trend in the data center CPU segment is the increasing use of multi-core processors, which enable more efficient processing of large amounts of data.
  • However, one of the major restraints for the market is the need for highly skilled and qualified personnel to create application processors. This has hindered the market growth since processors take time to reach the end-user.

Processor Industry Segmentation

A processor refers to an integrated electronic circuit that performs the calculations that run a computer. It performs arithmetical, logical, I/O, and other basic instructions that are passed from an operating system.

The processor market is segmented by type of product (CPU (client (desktop and laptop), server) and APU (smartphone, tablet, smart television, smart speakers)) and geography (China (including Hong Kong), Taiwan, United States, Rest of the World)). The market sizes and forecasts are provided in terms of value (in USD) for all the above segments.

By Type of Product
CPU
Client (Desktop and Laptop)
Server
APU
Smartphone
Tablet
Smart Television
Smart Speakers
Other Applications (Smartwatch, Notebook, AR/VR, Automotive etc.)
By Geography ***
China (including Hong Kong)
Taiwan
United States
Latin America
Middle East and Africa
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Processor Market Size Summary

The processor market is poised for steady growth over the forecast period, driven by the increasing proliferation of consumer electronic devices. Processors, as integral components of computing devices, are essential for performing the calculations necessary to operate these devices. The rising adoption of smartphones, tablets, and wearable devices has significantly boosted the demand for application processors, which are crucial for enhancing the functionality of mobile operating systems. Additionally, the growing trend of cloud computing and the need for data center CPUs have further fueled market expansion, with multi-core processors becoming increasingly popular for efficient data processing. However, the market faces challenges due to the requirement for highly skilled personnel to develop these advanced processors, which can slow down market growth.

China stands out as a key player in the processor market, being the largest producer and exporter of consumer electronics globally. The country's rapid economic growth and its leadership in 5G adoption have contributed to the expansion of its electronics manufacturing and data center industries. The mass adoption of smartphones, smart devices, and emerging technologies like AI and IoT in China supports the robust demand for processors. The market is characterized by consolidation, with major players such as AMD, NVIDIA, Intel, Qualcomm, and MediaTek leveraging partnerships, innovations, and strategic acquisitions to maintain a competitive edge. These companies continue to introduce advanced processors that cater to the evolving needs of gamers, content creators, and enterprise customers, further driving market growth.

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Processor Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview (Current Scenario of Processor Industry, and KPI Analysis)

    2. 1.2 Technology Snapshot (Latest developments, Evolution of Multi-chi p CPUs, applications etc.)

    3. 1.3 Impact of Macroeconomic Scenarios (Post-covid impact, supply chain disruptions, political & economic uncertainties) on the Market

    4. 1.4 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Industry Supply Chain Analysis (Global)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Product

      1. 2.1.1 CPU

        1. 2.1.1.1 Client (Desktop and Laptop)

        2. 2.1.1.2 Server

      2. 2.1.2 APU

        1. 2.1.2.1 Smartphone

        2. 2.1.2.2 Tablet

        3. 2.1.2.3 Smart Television

        4. 2.1.2.4 Smart Speakers

        5. 2.1.2.5 Other Applications (Smartwatch, Notebook, AR/VR, Automotive etc.)

    2. 2.2 By Geography ***

      1. 2.2.1 China (including Hong Kong)

      2. 2.2.2 Taiwan

      3. 2.2.3 United States

      4. 2.2.4 Latin America

      5. 2.2.5 Middle East and Africa

Processor Market Size FAQs

The Processor Market size is expected to reach USD 126.19 billion in 2024 and grow at a CAGR of 4.30% to reach USD 155.76 billion by 2029.

In 2024, the Processor Market size is expected to reach USD 126.19 billion.

Processor Market Report Snapshots

Processor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)