According to a report available on Radiant Insights, Inc.the EMEA microprocessor and GPU market is projected to attain lucrative growth by 2022. It is expected to display a significant growth rate over the forecast period (2012 to 2022). Factors that drive the global market are high demand for smartwatches, preference for data transfer from on-premise environments, and emergence of Internet of Things (IoT). There is a strong demand for Graphical Processing Unit (GPU) from gamers and visual effect (VFX) artists. This trend is expected to positively impact the Europe and Middle East & Africa (EMEA) market for microprocessor and GPU.
Microprocessors are computer processors that contain instructions to run the CPU on a single chip. These chips find applications in automobiles, consumer electronics, and other fields. GPUs make it possible to carry out multiple activities on a personal computer. They are used in rendering textures and shaders to display 3D graphics. Advancements in GPUs and impressive penetration of smartphones are anticipated to propel GPU market in the forthcoming years.
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Trends of Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI) are expected to further support the market demand till 2022. For instance, Nvidia has collaborated with Microsoft to develop an AI framework that can work with help of Tesla GPUs. It has also invested in Deep Learning and plans to manufacture GPUs that are compatible with this advanced technology. Recently, Intel Corporation acquired Nervana Systems, a specialist in machine learning. This can allow the former to gain high market share in the near future.
The worldwide EMEA microprocessor and GPU market is segmented on the basis of architecture, end-users, and regions. According to architecture, the market is split into Scalable Processor Architecture (SPARC), MIPS, Advanced RISC Machine (ARM), x86, and power. As per types, the segments are hybrid, integrated, and discrete GPUs. The x86 microprocessors dominated the overall market on account of demand in 2016. Growing preference from consumer electronics is anticipated to propel this growth during the forecast period.
Industrial, medical, automotive, server, consumer electronics, automotive, aerospace & defense, and banking, financial services, and insurance (BFSI) are the major end-user segments. Automotive sector is expected to exhibit robust growth during the forecast period. Applications in infotainment and Advanced Driver Assistance System (ADAS) can impel the expansion in the years to come. This is in light of recent policy changes by the US and European Union about ADAS installation to bring down accident rates. Electronics is expected to emerge as the biggest end-user of the GPU market in the years to come. High demand for graphic cards to enjoy high-level gameplay can support the expansion.
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Geographically, the market is divided into Europe, Africa, and Middle East. Europe is anticipated to register a substantial CAGR till 2022. Mandatory policies by the EU regarding installation of microprocessors in automobiles can drive the adoption. Demand for infotainment is expected to open up new avenues for the worldwide GPU market in the forthcoming years.
Prominent players operating in the global EMEA microprocessor and GPU market are Qualcomm Technologies, NVIDIA Corporation, Intel Corporation, IBM Corporation, and MediaTek. Most companies adopt mergers & acquisitions and novel product launches as the chief business strategies to maintain stronghold over the worldwide market. For instance, in 2016, Qualcomm Technologies announced acquisition of NXP Semiconductors to increase their product portfolio. This transaction is expected to help the company gain a significant share of automotive and IoT industries.
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