A graphic processing unit or GPU is a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display. It is well-suited for compute-intensive, highly parallelizable tasks like physics simulations, 3D graphics, image processing, and machine learning. The growing adoption of advanced technologies like virtual reality (VR), artificial intelligence (AI), and machine learning has been driving the demand for high-performance computing, thereby fueling growth of the GPU market. GPU provides more transistors and computational horsepower to perform complex tasks like 3D graphics rendering as compared to a CPU.

The global Graphic Processing Unit Market is estimated to be valued at US$ 47.77 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2031.

Growing penetration of VR and AR devices paired with increasing ownership of PCs and laptops has been bolstering adoption of GPUs globally. Development of advanced GPUs has enabled their utilization in other performance-heavy applications beyond gaming like CAD/CAM simulations, medical imaging, cryptocurrency mining among others. Incorporation of GPUs in data centers and availability of GPU-accelerated cloud services are also creating new opportunities in the market.

Key Takeaways

Key players operating in the Graphic Processing Unit Market Demand are Nvidia Corporation, Advanced Micro Devices, Inc., Intel Corporation, Samsung Electronics Co Ltd.

Rising demand for high-performance computing for complex AI and machine learning tasks across industries represents one of the key opportunities in the market. Adoption of GPUs for training deep learning models has picked up significantly over the past few years.

Nvidia Corporation has been focusing on strong global expansion through strategic partnerships and acquisitions. The company offers GPU cloud solutions like Nvidia GRID vGPU that allows sharing of GPU resources over the cloud. AMD has also scaled up investments in China and opened new data centers in recent times to capture growing demand for AI and HPC workloads in the region.

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