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GPU Market 2019 Regional Growth Drivers, Opportunities, Trends, and Forecasts to 2024

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The key factors driving the GPU market growth include the rising adoption of GPUs in the healthcare sector, rapidly evolving PC gaming landscape with the advent of interactive Virtual Reality (VR) games, and the growing popularity of GPUs for machine learning and neural network training applications. In applications involving machine learning and Big Data analytics, GPUs are highly efficient when compared with CPUs as they enable excellent multiple parallel processing. With 10-100x application throughput and thousands of computational cores compared to CPUs, GPUs are preferred by scientists and data analysts who require massive Big Data processing capabilities.

From interactive model-based image registration and MRI connectivity mapping to medical imaging and image reconstruction, the healthcare industry is increasingly leveraging the extensive computational power of GPUs. Technological advancements are giving rise to a persistent expectation from healthcare providers to deliver advanced visualization capabilities. Also, the increasing emphasis on affordable care is exerting an increasing pressure to effectively manage costs across the entire medical imaging lifecycle.

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Players operating in the GPU market are collaborating with technology service providers to integrate advanced technologies into their products. IBM, Intel, Advanced Micro Devices, and other chipmakers are investing significantly in R&D to offer better performing chips that can crunch huge data sets used in AI and machine learning applications such as image & voice recognition. As the demand for high power computing to represent complex graphical objects and animations increases, the uptake of advanced GPUs is likely to accelerate swiftly over the forecast timeline. Also, there has been an increasing trend among processor manufacturers to join forces with cloud service providers for offering GPUaaS services to their customers. Cloud-based GPU capabilities deliver excellent computational power to customers without the need for investing in dedicated hardware on their premises. Associated scalability and flexible pricing models offer cost-effective alternatives to users for leveraging the processing power of high-performance GPUs to their compute-intensive applications.

GPUs are highly optimized for data-parallel and throughput computing wherein more transistors are dedicated for computation and the overall architecture is tolerant of memory latency. They are specialized microprocessors that are primarily designed for quick & effective image rendering. Modern GPUs provide superior memory bandwidth, processing power, and efficiency over their CPU counterparts. GPUs enable a richer gaming experience for PC gaming where onboard graphics solutions cannot match the performance of dedicated graphics cards to deliver a rich video output along with excellent performance in terms of interactive input/output.

Asia Pacific held the majority share of the GPU market in 2017 accounting for over 34% and is expected to maintain market dominance throughout the forecast period. The extensive penetration of PC games in countries including Japan, China, and South Korea is driving the massive uptake of dedicated GPUs in this region. The Japanese gaming market is the third largest in the world due to the continued success of several mobile gaming companies in the country. Japanese gamers spend more than players in any other country. The average spending per Japanese player is approximately 2.5 times higher than that in western Europe and nearly 1.5 times higher than that in North America.

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In Europe, there is a high demand for GPUs from cryptocurrency miners. There has been a growing trend among miners to shift to Sweden and Norway to benefit from low temperatures and cheap hydro-electric energy to power-up and cool their high-performance servers. According to the Association for UK Interactive Entertainment (UKIE), as of June 2018, there are 2,261 active gaming companies in the country using a broad spectrum of gaming technologies including AR and AI to develop games suitable for mobiles, PCs, and consoles. The growing penetration of PC games in the region will supplement the adoption of GPUs over the forecast timeline.

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