Research Note: Global CPU Market Outlook 2024-2028
According to the latest data from International Data Corporation (IDC), the global Central Processing Unit (CPU) market is undergoing significant changes and growth. IDC's Worldwide Quarterly Server Tracker indicates that the server CPU market, a key segment of the overall CPU market, is experiencing robust growth. The report forecasts that the server CPU market will reach $19.5 billion by 2028, growing at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2028. This growth is primarily driven by the increasing demand for data center expansion, cloud computing services, and the proliferation of AI and machine learning workloads.
IDC's research highlights the evolving landscape of CPU applications and architectures. While x86 processors continue to dominate the market, there is a notable shift towards ARM-based CPUs, particularly in the mobile and edge computing sectors. The report notes that ARM-based server CPUs are gaining traction, with IDC predicting that they will account for approximately 15% of server CPU shipments by 2028. This trend is largely attributed to the growing demand for energy-efficient computing solutions and the increasing adoption of custom silicon by major cloud service providers.
The competitive landscape of the CPU market, as analyzed by IDC, remains primarily a duopoly between Intel and AMD in the x86 space, with ARM-based designs from various manufacturers gaining ground in specific segments. Intel continues to hold the largest market share, but AMD has been steadily increasing its presence, particularly in the high-performance computing and data center segments. IDC's data suggests that this competitive dynamic is driving innovation and leading to more rapid product cycles, benefiting end-users with more powerful and efficient processors.
IDC's research also points to several key trends shaping the future of the CPU market. The integration of AI acceleration capabilities directly into CPUs is becoming more common, blurring the lines between traditional CPUs and specialized AI processors. Edge computing is creating new opportunities for CPU manufacturers, with a growing demand for high-performance, low-power processors for IoT devices and edge servers. Additionally, the report highlights the increasing importance of specialized CPU designs for specific workloads, such as those optimized for AI training and inference.
Looking ahead, IDC forecasts continued growth for the CPU market, driven by the expansion of cloud services, the increasing complexity of computational workloads, and the ongoing digital transformation across industries. However, the report also notes potential challenges, including the need for continued improvements in energy efficiency, the impact of geopolitical factors on supply chains, and the potential disruption from emerging computing paradigms such as quantum computing. IDC predicts that as the market evolves, we will see more heterogeneous computing architectures, combining different types of processors to optimize performance and efficiency for diverse workloads.
Sources:
International Data Corporation (IDC)
"Worldwide Quarterly Server Tracker"
Accessed: October 2024
IDC
"Worldwide Server Market Summary and Outlook, 1Q24 Update"
Published: June 20, 2024
IDC
"Worldwide Processor Forecast, 2024-2028"
Published: April 2024
IDC
"Enabling Technologies: Processors and Architectures"
Accessed: October 2024
IDC
"Worldwide Edge Endpoint AI Processor and Accelerator Forecast, 2024-2028"
Published: May 27, 2024