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Processor Market by Type (Microprocessors, Microcontrollers and Digital Signal Processors), Microprocessor is utilized to increase a smartphone's speed and efficiency.
The global Processor Market is anticipated to reach a valuation of US$ 132.4 billion in 2023. A valuation of US$ 332.0 billion is predicted for the global market by 2033. It is projected to witness a CAGR of 9.6% in the forecast period from 2023 to 2033.
The global market for processors is expected to be driven by improved algorithms and increased data availability. Increasing use of personal computer (PC) processors in animation rendering & modeling, medical imaging, visualization, graphic design, and computer-aided design is set to push sales. As internet of things adoption rises, billions of additional devices will be linked together, requiring fast and highly efficient computation.
The market is also projected to be fueled by Field Programmable Gate Array – Central Processing Unit (FPGA-CPU) integration for high-performance computing and supercomputing applications. On the other side, any innovation in integrated circuits and perhaps other semiconductor goods has the potential to upend processor sales.
Due to their widespread use in consumer electronics goods such as refrigerators, laptops, and cellphones, embedded processors are experiencing rapid growth. More processors and microcontrollers are being used by producers of these gadgets to add new functions and compete in the fiercely competitive market.
Future market expansion is predicted to be fueled by fierce rivalry in the consumer electronics sector and a steady stream of product upgrades. Rising adoption of automated processes in the automobile sector thanks to electronic devices is another crucial factor that would boost processor demand.
Surging demand for tablets and smartphones among millennials and gen Z worldwide is a key factor driving the global market. As a microprocessor is utilized to increase a smartphone's speed and efficiency, it improves efficiency of the device.
Any smartphone's performance speed is directly correlated with the microprocessor's performance. With the rise of ‘smart’ gadgets, electronic items such as wearable devices, laptops, digital cameras, and televisions nowadays provide a variety of advanced technologies, including Bluetooth, touch screen displays & monitors, and flat screens. These often call for more integrated circuits (ICs).
Attributes |
Key Insights |
Processor Market Size (2021A) |
US$ 117.2 billion |
Estimated Market Size (2023E) |
US$ 132.4 billion |
Projected Market Valuation (2033F) |
US$ 332.0 billion |
Value-based CAGR (2023 to 2033) |
9.6% |
USA Value-based CAGR (2023 to 2033) |
9.0% |
As per Persistence Market Research (PMR), the global processor market stood at an exponential CAGR of 13.0% during the historical period between 2018 and 2022. The market is set to exhibit steady growth at a CAGR of 9.6% in the forecast period.
Desktop computers and servers were the original applications for which processors were created. To provide better connectivity and high-speed to vehicle systems, these integrated circuits are currently being employed in automotive applications such as Advanced Driver-Assistance Systems (ADAS) and infotainment systems.
Apart from that, processors can control massive mainframes, personal computers, and servers. They are also employed for embedded processing in a wide range of systems, including internet of things (IoT), wearable technology, video game consoles, televisions, networking hardware, industrial machinery, computer peripherals, medical devices, and set-top boxes applications.
A processor is a logic unit that responds and processes basic instructions that drive a computer. It performs operations on external data sources such as memory. Processors are used in personal computers (PCs), servers that have numerous computers connected, and supercomputers that are used in high performance computing (HPC).
Smartphones produced by leading companies such as OnePlus, Samsung, and Apple also include processors. Wearables such as Smartwatches built by Apple and fitness trackers such as Fitbit often include high-quality processors.
Apart from that, these are set to be extensively used in communication and networking equipment devices such as Bluetooth devices & infrared devices for communication. In embedded devices such as electrocardiogram (ECG) measurement systems, as well as internet of things (IoT) devices, including Google home voice controllers, processors are widely used.
Rapid growth in the gaming sector has boosted demand for processors across the globe. For instance, Intel Corporation, a USA-based technology company has developed Intel Core X series family processors that are used in high end gaming, photo & video editing, visual effects & motion graphics, and 3D animation.
High performance computing (HPC) applications of processors are immense. For instance, Intel Corporation has developed the Aurora Exascale Supercomputer that is used in neuroscience, aerospace, astronomical, and advanced clean fusion research. In smartwatches, processors are used so that it can display music & volume controls, daily activity tracker, 24/7 heart monitoring system, and swim tracking with stroke recognition features.
A wide range of applications across several industry verticals are addressed by the new generation of processors thanks to increasing performance concentration of integrated circuits. Regarding its use in harsh working conditions such as severe temperature, vibration, and humidity, embedded processors run across issues.
These circumstances often make it difficult for embedded systems and processors to operate in a variety of business sectors, including aerospace & defense, industrial, and manufacturing.
Owing to their harsh working conditions, embedded systems frequently retrieve data incorrectly.
Several electronics require temperatures higher than 225 degrees Celsius. This makes it challenging for integrated processors to operate and maybe provide accurate results. Deploying ingrained processors in harsh working environments hence represents a substantial obstacle, which is further anticipated to restrain the expansion of the market on a global scale.
Why is the USA Showcasing High Demand for Processors?
The USA processor market is expected to be worth US$ 54.5 billion by 2033 and create an absolute dollar opportunity of US$ 31.4 billion in the next ten years. The country witnessed growth at a CAGR of 9.8% from 2018 to 2022. It is projected to expand at a CAGR of 9.0% in the forecast period.
For instance, Qualcomm, a technology company headquartered in San Diego, California, has developed the APQ8016E application processor. It is used in internet of things (IoT) applications. The processor is expected to be used in integrated Wi-Fi and Bluetooth connectivity mediums such as digital signage, in building automation and connected homes systems. Such innovative product launches by USA-based processor manufacturers would drive sales.
Will Sales of Processors Skyrocket in the United Kingdom?
The United Kingdom processor market is predicted to witness a CAGR of 8.0% in the estimated time frame. The country is set to create an incremental opportunity of around US$ 4.5 billion in the next ten years. A valuation of US$ 8.4 billion is estimated for the United Kingdom by 2033.
ARM Limited, a Cambridge-based technology company and processors manufacturer, for instance, has developed a processor called ARM926EJ-S. It is used in the manufacturing of mobile phones such as Sony Ericsson K and W series, as well as LG arena. High demand for smartphones in the country is hence projected to drive sales in the market.
How are South Korea-based Processor Manufacturers Progressing?
South Korea processor market is anticipated to reach a valuation of US$ 21.0 billion by 2033. A CAGR of 10.1% is expected from the market in the assessment period. In the next ten years, South Korea is projected to create an absolute dollar opportunity of US$ 13.0 billion.
For instance, in January 2022, Samsung Electronics Co Ltd headquartered in South Korea announced that it manufactured the Exynos 2200 mobile processor. The processor is expected to be used in smartphones. Similar developments by renowned players would support sales of processors in South Korea.
Will Japan be Considered as a Leading Processor Manufacturing Hub?
Japan processor market is likely to witness growth at a CAGR of 9.9% throughout the evaluation period. The country is set to reach US$ 53.8 billion in terms of valuation by 2033. The country is estimated to create an absolute dollar opportunity of US$ 32.8 billion in the forecast period.
For instance, in April 2019, Fujitsu Limited, a Tokyo-based communication technology equipment company announced that it has developed A64FX, the world’s first processor. It is expected to be used in supercomputers that have applications in scalable vector extensions. The processor has world leading performance and has excellent power efficiency. Introduction to similar products in the country would lead to market expansion.
Which Application of Processors is Projected to Witness Astonishing Growth?
Based on application, the smartphones segment is projected to dominate the global processor market in the next ten years. The segment is likely to witness a CAGR of 9.2% between 2023 and 2033 from 12.0% CAGR exhibited in the historical period, mentions Persistence Market Research.
In order to track characteristics and provide a centralized system for autonomous control, smartphones contain sensors such as temperature detector, accelerometer, proximity sensor, ambient light sensor, and gyroscope. Demand for 5G gadgets among millennials is rising. As a result, chipmakers are pressuring smartphone companies to integrate 5G chips in their new assortment. These factors are projected to propel the segment during the forecast period.
Key players in the global processors market are Intel, Qualcomm, Mediatek, Samsung, Apple, Marvell Technology, Nvidia, AMD, IBM, MIPS, and ARM Limited among others. Providers of processors are concentrating on research and development, which will help them to become more visible in the global market.
Few of the recent developments in the processors market are:
Attribute |
Details |
Estimated Market Size (2023) |
US$ 132.4 billion |
Projected Market Valuation (2033) |
US$ 332.0 billion |
Value-based CAGR (2023 to 2033) |
9.6% |
Forecast Period |
2023 to 2033 |
Historical Data Available for |
2018 to 2022 |
Market Analysis |
Value (US$ billion) |
Key Regions Covered |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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By Type:
By Application:
By Region:
The global processor industry is set to be worth US$ 132.4 billion in 2023.
The global processor industry is projected to reach a valuation of US$ 332.0 billion in 2033.
From 2018 to 2022, the processor industry expanded at a CAGR of 13.0%.
The processor industry is projected to witness a CAGR of 9.6% from 2023 to 2033.
By type, the microprocessor segment is likely to dominate the processor industry and witness a CAGR of 9.4% by 2033.
Based on application, the smartphones segment is likely to lead and showcase a CAGR of 9.2% in the next ten years.
The USA processor industry is anticipated to be valued at US$ 54.5 billion by 2033.
Intel, Qualcomm, Mediatek, Samsung, Apple, Marvell Technology, Nvidia, AMD, IBM, MIPS and ARM Limited are key companies in the processor industry.
Asia Pacific is projected to lead the global processor industry in the estimated time period.