Research Note: Global GPU Market Outlook 2024-2028
According to the latest data from International Data Corporation (IDC), the global Graphics Processing Unit (GPU) market is experiencing significant growth and transformation. IDC's Worldwide Quarterly Server Tracker indicates that GPU-accelerated computing is becoming increasingly prevalent in data centers and enterprise environments. The market for data center GPUs is projected to reach $63.0 billion by 2028, growing at a compound annual growth rate (CAGR) of 34.6% from 2024 to 2028. This robust growth is primarily driven by the rising demand for AI and machine learning applications, high-performance computing, and the expansion of cloud-based services.
IDC's research highlights the evolving landscape of GPU applications beyond traditional gaming and graphics rendering. While gaming remains a significant driver, the adoption of GPUs in data centers for AI workloads is rapidly accelerating. The report notes that AI-capable GPUs are expected to account for a substantial portion of GPU shipments by 2025, reflecting the increasing importance of AI in various industries. Furthermore, IDC forecasts that the overall AI hardware market, including GPUs, CPUs, and accelerators, will grow to $131.93 billion by 2029, with GPUs playing a crucial role in this expansion.
The competitive landscape of the GPU market, as analyzed by IDC, remains dominated by a few key players, with NVIDIA maintaining its leadership position, particularly in the high-performance computing and AI segments. However, the market is becoming more competitive, with AMD gaining ground in certain sectors and new entrants like Intel making significant investments in GPU technology. IDC's data suggests that the market share distribution among these players is likely to shift in the coming years as competition intensifies and new technologies emerge.
IDC's research also points to several key trends shaping the future of the GPU market. The integration of AI capabilities directly into GPU architectures is becoming more prevalent, enabling more efficient processing for machine learning tasks. Edge computing is creating new opportunities for GPUs in IoT devices and autonomous systems. Additionally, the report highlights the growing importance of energy efficiency in GPU design, as data centers seek to balance performance with power consumption and environmental considerations.
Looking ahead, IDC forecasts continued strong growth for the GPU market, driven by the expansion of AI applications, the increasing complexity of computational workloads, and the ongoing digital transformation across industries. However, the report also notes potential challenges, including supply chain disruptions, semiconductor shortages, and the need for continued innovation to meet evolving market demands. IDC predicts that as the market evolves, we will see more specialized GPU designs tailored for specific applications, as well as increased integration of GPU technology with other computing elements to create more powerful and efficient systems.
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 Smartphone Forecast Update, 2024-2028"
Published: March 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