The global graphics processing unit (GPU) market is on fire, poised to hit a staggering $100 billion by the end of the year. This explosive growth is driven by the insatiable demand for GPUs fueled by the AI boom, with NVIDIA firmly at the helm.
Jon Peddie Research, a leading industry analyst, reports that GPUs are becoming ubiquitous, finding their way into nearly every facet of modern technology. From gaming consoles and PCs to data centers, handheld devices, virtual reality, wearables, smart TVs, vehicles, and beyond, GPUs are the workhorses of the digital age.
While integrated GPUs, found in processors from giants like Apple, AMD, Intel, and Qualcomm, are making strides, it’s the high-performance discrete GPUs that are driving the market’s remarkable growth. And at the heart of this boom lies AI.
Data centers, hungry for the power of AI, are fueling demand for high-end GPUs. NVIDIA, in particular, is reaping the rewards, with its GPUs commanding premium prices, sometimes reaching tens of thousands of dollars. This demand is so intense that AI is projected to be the dominant force in the GPU market, surpassing $98.5 billion in 2024. NVIDIA alone could see its GPU sales exceed $90 billion this year, a testament to the company’s dominance in the AI landscape.
While NVIDIA dominates the AI scene, AMD is making significant strides, with its AI GPU sales expected to reach $3 billion in 2024. The report also identifies 20 companies and seven IP vendors supplying the market with discrete, integrated, and embedded GPUs, showcasing the diverse ecosystem driving the GPU market forward.
But the GPU market isn’t just about AI. The world of gaming is also eagerly anticipating the next generation of desktop, discrete, and mobile GPUs from the industry giants: NVIDIA, AMD, and Intel. These companies are locked in a fierce battle to deliver the most powerful and immersive gaming experiences, ensuring the GPU market will continue to be a hotbed of innovation and competition for years to come.
