Microprocessor Market to Surpass USD 111.16 Billion by 2026

Growing micro data center, rising usage of personal computing devices, increasing demand of high-performance computing technology outlook to boost the global microprocessor market’s development through 2026.

Microprocessor“Microprocessor Market — Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2016-2026”, the Global microprocessor market is anticipated to grow at a CAGR of 4.44% in value terms, in the next five years to reach USD111.16 billion by 2026. The market was valued at USD85.85 billion in 2020 and is expected to be driven by the increasing proliferation of internet services and the growing trend of portable devices. Moreover, the adoption of work-from-home and distance learning modes in the midst of the COVID-19 pandemic has increased the sales of computers and smartphones around the world, further propelling the industry’s growth.

The growing exchange of data through IoT-connected devices has created a demand for micro-data centers all over the globe. These micro-data centers offer maximum efficiency by greatly reducing energy consumption which in turn drives their increased adoption all around the industries. Infrastructure housed in micro-data centers of any microprocessor includes IT infrastructure, UPS (uninterruptible power supply) systems, power distribution units (PDUs), and cooling units. The numerous advantages that include lower transactional costs, high functioning, and high storage by using micro-data centers are likely to escalate the microprocessor market, globally.

The global microprocessor market can be segmented based on type, architecture, technology outlook, end-user, company, and region. In terms of type, the market can be segregated into the desktop microprocessor, mobile microprocessor, performance microprocessor. The desktop and mobile microprocessor segments are dominating the overall microprocessor market in 2020 with a cumulative share of 70.01% due to global dependence on the internet and smartphone devices, which has also increased over the past few years. There has been an increased use of laptops, personal computers and smart phones during COVID-19 by employees, students, and consumers as most of the companies, schools and other organizations were running remotely. Desktop and mobile microprocessors are also driven by change in consumer lifestyles and increased disposable income which have led to increase in consumers’ ability to spend more over products for entertainment and connecting devices and the microprocessor market goes in sync with increased sales of these personal computers and smartphones devices, hence driving the market.

Some of the major players operating globally in the microprocessor market include Intel Corporation, Taiwan Semiconductor Manufacturing Company LimitedSK Hynix Inc., Qualcomm Technologies Inc., Micron Technology Inc., Broadcom Inc., Sony Corporation, Nvidia Corp., Samsung Electronics Co. Ltd., Applied Materials Inc.,

Players operating in the market are employing different growth strategies to register sound returns in the market. For instance, Intel corporation set up a new chip factory or fab called Fab 42 for the manufacturing of 10nm processes. While, Taiwan Semiconductor Manufacturing Company, Limited is using advanced semiconductor process technologies, i.e., 5-nanometer production capabilities, which is the most advanced semiconductor process technology available in the world.

“In the end-user segment, consumer electronics holds the largest share with 20.34% in the year 2020 due to wide application of microprocessors in consumer electronics and advancement in new technologies leading to new product development. The rise in demand for IoT devices such as smart mobiles, smart refrigerators, smartwatches, smart fire alarms, smart door locks, medical sensors, fitness trackers are driving the growth of the consumer electronics segment.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

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