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Processor Market

Growth of Hi-tech Technologies and Growing Automation are driving the Processor Market Growth

An Analysis of the Processor Market by Microcontroller, Microprocessor, Embedded Processor, DSP and Media Processors

Processor Market Outlook (2023 to 2033)

The global processor market is predicted to reach US$ 132.4 billion by 2023, growing at a CAGR of 9.6%. By 2033, the industry is expected to reach US$ 332 billion in sales.

Microprocessors of the next generation will be able to handle heavier loads, have faster response times, and have a new power management approach. The evolution from simple single-issue microprocessors to complex multi-issue ones has left the microprocessor with many more resources and many more features at its disposal.

All the new technologies and embedded systems are powered by faster systems that demand higher processor performance. Keeping up with this demand requires industry leaders to go beyond traditional processor approaches. Therefore, many new technical aspects have been introduced and will continue to be introduced in the future.

For instance, SiFive has been selected to supply NASA's High-Performance Spaceflight Computing (HPSC) processor. In HPSC, an 8-core RISC-V vector core from SiFive Intelligence X280 will work alongside four additional RISC-V cores from SiFive Intelligence to provide 100x the processing power of conventional space computers. New application possibilities will be opened up thanks to the increase in computing performance, such as rovers that run on their own, vision processing, rockets, guidance systems, and communication networks.

Report Attributes Details

Processor Market Size (2023)

US$ 132.4 billion

Processor Projected Market Value (2033)

US$ 332 billion

Processor Market CAGR (2023 to 2033)


United States Market Size (2023 to 2033)

US$ 54.5 billion

China Market Size (2023 to 2033)

US$ 87.4 billion

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2018 to 2022 Processor Sales Outlook Compared to Demand Forecast from 2023 to 2033

Persistence Market Research (PMR) projects that the processor market will grow at a CAGR of 13% between 2018 and 2022. According to analysts, the global market will increase at a CAGR of 9.6% between 2023 and 2033.

Every aspect of human life in the digital age is powered by the Internet of Things (IoT). A huge amount of data is collected every day by these connected devices. Data and information must be transferred in real time for these connected devices to function effectively. Advancements in semiconductor manufacturing, architectural design, and emerging applications drive the field of processors and computing technologies.

By mimicking brain neural networks, neuromorphic computing creates processors that are inspired by the architecture of the human brain. With these processors, applications such as cognitive computing, pattern recognition, and robotics could be implemented efficiently, using low power and high parallelism. The field is being driven forward by advances in neuromorphic architectures, memristors, and brain-inspired algorithms.

A new generation of technological innovations is being studied in order to grow the market. For instance, 22 MIT, Berkeley, and Colorado University Boulder researchers made a chip with light instead of electricity. For inputs and outputs (IO), photons are used, while normal electronic cores handle computation. It allows for blisteringly fast data transfers. There are claims of 300 gigabits per second - ten to fifty times more than current CPUs - in the CPU's throughput density.

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What are the Key Drivers Pushing Processor Sales across the Globe?

“AI and Emerging Technologies is Likely to Drive the Market.”

Applications involving machine learning and AI require a considerable amount of computational power. In order to accelerate training and inference tasks, AI/ML processors based on tensor processing units (TPUs) are being developed.

Through advancements in processor architectures, the incorporation of dedicated AI/ML accelerators, and the development of efficient algorithms, there is a significant opportunity to improve AI/ML performance, reduce energy consumption, and enable edge computing.

As IoT devices proliferate and real-time data processing becomes more necessary, edge computing is becoming more prevalent. Power-efficient, high-performance, and real-time-responsive processors play a crucial role in the development of edge applications. The future lies in the development of energy-efficient processors, developing distributed computing architectures, and in tackling security and privacy issues at the edge.

The quantum computer promises to revolutionize computing by enabling complex calculations to be performed exponentially faster than they would be on classical computers. As a technology still in its infancy, quantum processors can offer tremendous potential for solving problems related to cryptography, optimization, material science, and drug discovery, but the field is still in its infancy.

A number of technologies are being explored by researchers in order to develop scalable and error-corrected quantum processors, such as superconducting qubits, topological qubits, and trapped ions.

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Which Factors May Restrain Processor Demand Worldwide?

What are the Growth Prospects for the North American Processor Market?

Development of High-tech Products and Advancement in Technologies is Expected to Drive the Market

The processor market is expected to be dominated by North America. The North American processor market is expected to reach US$ 89.308 billion by 2033. The United States has witnessed significant growth in products such as electronic consumer goods, healthcare monitoring systems, and hybrid and electric vehicles. As a result of the presence of key market players in these regions, demand in these regions is forecast to increase in the near future.

Smart devices and the Internet of Things are driving the potential for processor sales in the United States. In the era when technology is advancing at a rapid rate and more gadgets are being connected to the Internet than ever before, processors that are powerful and energy-efficient are becoming increasingly popular. Moreover, cloud platforms and growing R&D investments are resulting in the widespread adoption of Internet of Things processors in the region.

By 2025, it is estimated that 5.1 billion IoT connections will exist in North America. A provincial government report estimated that 2.9 billion connected devices would be in use by 2020.

Among the major countries contributing to the market, the United States holds the largest share of 61% during the forecast period. The processor market has been forecasted to reach US$ 54.5 billion in 2033, growing at a CAGR of 9%.

What Role are Processors Playing in Asia-Pacific Region?

An Increasing Number of Consumers are Adopting Smartphones and Electronic Devices to Grow the Market

Markets for processors are expected to be most popular in the Asia Pacific. It is estimated that the processor market will reach US$ 167.992 billion by 2033. According to the research, the rise in smartphone penetration as well as other electronic devices such as laptops, mobile phones, personal computers, and tablets in the region has contributed to the growth of the industry.

Various factors, such as increasing digitization and an increase in high-tech gadgets on the market, are also supporting the market growth in developing economies like China and India. Additionally, the increasing use of the Internet of Things (IoT) and government spending on IT is expected to boost regional market growth. A growing number of investments are being made towards expanding the capabilities of their regional production facilities.

A growing number of international business expansions and the growth of the IT sectors in developing nations such as India and China are expected to fuel the demand for processors in the next few years. According to this projection, by 2033, China is projected to generate US$ 87.4 billion by 2033. PMR estimates that the market will capture approximately 45.50% of the market by 2033. There is an expected growth of 11.1% CAGR in the Chinese processor market between 2023 and 2033.

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Which is the Dominating Market Segment Type for Global Processors?

“The Microprocessor Market is Expected to Grow in the Coming Years.”

According to the type, the market is segmented into microcontroller, microprocessor, embedded processor, digital signal processor-DSP, and media processor. Microprocessors are predicted to dominate the market in the years to come. Forecasts indicate that microprocessor sales will grow by 9.4% between 2023 and 2033.

Cloud-based applications and data centers, as well as artificial intelligence (AI), are predicted to drive the market. Digital cameras and video game consoles, as well as augmented reality and virtual reality applications, feature microprocessors, which are also becoming more popular.

According to predictions, the main factor driving the market expansion worldwide is likely to be consistent demand in key end-use verticals. As consumers have adopted more electronics, microprocessor markets have grown overall, but servers, industrial equipment, and automotive technology have contributed to further growth.

Technological advancements have played a significant role in the development of the market in recent years. A modern microprocessor is a fundamental component of computers, capable of quickly and precisely carrying out real-time logical instructions. All these factors are expected to grow demand for microprocessors in the coming years.

Which Application is Most Likely to Lead the Processor Market?

The Smartphone Segment is expected to Grow Steadily Over the Forecast Period

Based on application, the market is segmented into servers, PCs, supercomputers - HPC, smartphones, wearables, embedded systems, IoT devices, communication and networking equipment, and other applications. According to the market forecasts, smartphone sales will grow in the coming years, as gamers and fast-speed smartphones will continue to drive the demand for smartphones.

Smartphones are constantly evolving and growing. In the coming years, processors are expected to grow in demand as smartphones are developed and more micro and innovative technologies are being used in their development. In 2021, Ericsson estimates that there will be six billion smartphone subscriptions worldwide, and they will continue to rise by several hundred million as time goes by.

Smartphone subscribers are expected to reach 7,516 million by 2026. Smartphone manufacturers are developing efficient products to meet the increasing demand for their products. In order to improve smartphone performance, microprocessors are used to enhance speed and efficiency. Microprocessors play a huge role in determining the performance speed of a smartphone. Therefore, the processor market is projected to grow rapidly as smartphones become more popular.

Competitive Landscape

Processor devices are being developed by a number of technology companies. In order to gain a significant share of the market, companies need to provide a wide range of products, develop excellent marketing strategies, and have a high level of technological expertise. Combining the strengths of different companies can lead to innovative products.

Research and development are often responsible for the development of new products and technologies. A competitive advantage can be gained by improving existing products or creating new ones.

  • In May 2023, AMD, Intel, Samsung, TSMC, and Arm announced a new universal chiplet interface - in the hope of accelerating the development of future chiplets. This new consortium, known as Universal Chiplet Interconnect Express (UCIE) was created to standardize future chipset interconnects. This new chiplet standard gives the industry an essential tool to address the scaling challenges brought about by Moore's Law's end and physics.
  • In May 2023, a new M2 Pro and M2 Max chip were launched by Apple, and development is now underway on the next M3 processor in its M series. App Store developers have reported seeing several versions of the chip, including one with 12 cores. Possibly, the M3 Pro will have 18 graphic cores along with 36GB of memory and the same number of cores.

Processor Industry Report Scope

Attribute Details

Forecast Period

2023 to 2033

Historical Data Available for

2018 to 2022

Market Analysis

US$ Billion for Value

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Rest of Latin America
  • Germany
  • United Kingdom
  • France
  • Spain
  •  Italy
  • Rest of Europe
  • China
  • Japan
  • South Korea
  • Singapore
  • Thailand
  • Indonesia
  • Australia
  •  New Zealand
  • Rest of Asia Pacific
  • GCC Countries
  • South Africa
  • Israel
  • Rest of MEA

Key Market Segments Covered

  • Type
  • Application
  • Region

Key Companies Profiled

  • Intel
  • Qualcomm
  • Mediatek
  • Samsung
  • Apple
  • Marvell Technology
  • Nvidia
  • AMD
  • IBM
  • MIPS
  • ARM Limited


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Processor Market Outlook by Category

By Type

  • Microcontroller
  • Microprocessor
  • Embedded Processor
  • Digital Signal Processor - DSP
  • Media Processor

By Application

  • Servers
  • PCs
  • Supercomputers - HPC
  • Smartphones
  • Wearables
  • Embedded Systems
  • IoT Devices
  • Communication and Networking Equipment
  • Other Applications

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • Intel
  • Qualcomm
  • Mediatek
  • Samsung
  • Apple
  • Marvell Technology
  • Nvidia
  • AMD
  • IBM
  • MIPS
  • ARM Limited

- Frequently Asked Questions -

Globally, the processor market was worth US$ 117.2 billion by 2022.

Processor is expected to generate US$ 132.4 billion in revenue in 2023.

Globally, the processor market is expected to reach US$ 332 billion by 2033.

The processor market is expected to grow at a CAGR of 9.6% during the forecast period.

According to PMR, processor revenue increased by 13% between 2018 and 2022.

Smartphone market revenues are projected to increase by 9.2% by 2033.

processor market in Japan is expected to grow at 9.9% CAGR over the forecast period.

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