A microprocessor or MP is built on a single integrated circuit (IC) and comprises millions of interconnected components like transistors, diodes, and resistors. Functioning as the core of electronic devices, it acts for multiple purposes like timing, data storage, and interfacing with peripheral devices. From servers to smartphones, these chips are universal, augmenting the performance of electronic products by improving their speed and efficiency. Majorly in smartphones, the microprocessor's role is paramount, directly influencing the device's operational speed.
The evolution of microprocessors has seen them exceed their initial role in personal computers & servers to now include diverse applications, like automotive systems like infotainment & Advanced Driver-Assistance Systems (ADAS). They function as the neural center in servers, PCs, and mainframes while also powering embedded processing across many systems like wearable devices, networking gear, and IoT applications. In addition, they underpin digital consumer electronics, PCs, & communication devices, often using RISC architectures to streamline operations & minimize overhead.
Furthermore, as technology advances, the requirement for microprocessors expands to accommodate the constantly growing complexity of modern electronic products. From flat-screen televisions to medical equipment & industrial machinery, microprocessors play a major role in allowing advanced functionalities like touch screens, Bluetooth connectivity, and real-time processing, which highlights the versatility & indispensability of microprocessors across an array of industries and applications.
As per BrandonGaille, the microprocessor market is a cornerstone of global technology, showcasing remarkable advancements and production scales. Today’s fastest processor operates at a speed of 8.429 GHz, utilizing helium and nitrogen cooling, while standard home-use processors offer speeds of 3.4 GHz, boosted to 4 GHz. Intel dominates the graphics chip segment with a 68% market share, followed by Nvidia at 19.3%. Annually, approximately 470 million graphics chips are sold globally.
Semiconductor manufacturing is concentrated in the U.S. (50%), South Korea (17%), and Japan (11%), with over 17.1 billion semiconductors produced annually in the U.S. alone. Meanwhile, 84% of semiconductor manufacturing equipment sales occur outside the U.S., alongside 80% of U.S.-linked semiconductor sales. Embedded microprocessors find niche applications, with 4.1% used in industrial or medical sectors and 3.8% in network processing. Capital expenditure in this sector exceeds $40 billion annually, underscoring its scale and ongoing innovation.
The microprocessor industry has recently experienced significant mergers and acquisitions, reflecting its dynamic nature. In April 2024, Qualcomm acquired Foundries.io, an open-source cloud-native platform provider specializing in Linux-based IoT and edge device development, to enhance its IoT and cloud development security services.
Similarly, Microchip Technology expanded its AI edge solutions by acquiring Neuronix AI Labs, known for neural network sparse optimization technology, thereby advancing its capabilities in developing efficient AI-supported edge systems on FPGAs. In the same vein, AMD announced a $4.9 billion acquisition of ZT Systems to bolster its AI and cloud computing capabilities, aiming to strengthen its position in the data center market. These strategic moves underscore the industry's commitment to innovation and adaptation in a rapidly evolving technological landscape.
Key Takeaways
- Market Growth: The Microprocessor Market is expected to grow by 109.6 billion, at a CAGR of 7.4% during the forecasted period of 2025 to 2033.
- By Type: The general-purpose microprocessor segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Technology: RISC is expected to get the largest revenue share in 2024 in the Microprocessor market.
- By Core Count: 16 Core form of deployment is expected to lead the Microprocessor market in 2024
- By Application: The PC segment is expected to get the largest revenue share in 2024 in the Microprocessor market.
- Regional Insight: Asia Pacific is expected to hold a 54.7% share of revenue in the Global Microprocessor Market in 2024.
- Use Cases: Some of the use cases of microprocessors include embedded systems, consumer electronics, and more.
Use Cases
- Embedded Systems: Microprocessors are largely used in embedded systems where they control & manage specific tasks within a larger system. These systems could be found in daily used devices like washing machines, microwave ovens, automotive control systems, & industrial machinery. Microprocessors in these applications handle tasks like sensor interfacing, data processing, and control algorithms.
- Consumer Electronics: Microprocessors power various consumer electronics devices, like smartphones, tablets, smart TVs, gaming consoles, and digital cameras. They handle operations like user interface interactions, multimedia processing, networking, and numerous applications. Microprocessors in consumer electronics often prioritize energy efficiency and compact size to meet the need for portable devices.
- Personal Computing: Microprocessors are at the core of personal computers, laptops, & servers. These processors manage a variety of tasks, from basic operations like input/output (I/O) handling & memory management to complex computations demanding applications like gaming, multimedia editing, data analysis, and web browsing. Performance, power efficiency, and compatibility with many software platforms are vital considerations in this domain.
- Industrial Automation and Control Systems: Microprocessors play a major role in industrial automation & control systems, where they manage processes like manufacturing, logistics, and monitoring. These systems depend on microprocessors for tasks like real-time data acquisition, process control, monitoring, & communication with other devices on the factory floor or across networks. Reliability, determinism, and robustness are essential features needed in industrial applications to ensure constant operation and safety.
Market Dynamic
The current development in semiconductor technology, marked by reduced and improved processing power, and energy efficiency, fueling the need for microprocessors across many applications, which is majorly driven by the proliferation of Internet of Things (IoT) devices & the growing adoption of
artificial intelligence (AI) technologies. With the growing presence of smartphones, tablets, wearables, and other smart devices, there's a rising necessity for microprocessors to deliver superior performance, connectivity, & energy efficiency.
Moreover, in the automotive sector, the switch towards electric vehicles (EVs), autonomous driving technologies, & connected car systems is driving the need for microprocessors used in infotainment systems, advanced driver-assistance systems (ADAS), & vehicle control systems. Further, the expansion of data centers & cloud computing services needs powerful microprocessors to efficiently manage large volumes of data processing activities.
However, manufacturers experience challenges as microprocessor designs become more complex, leading to longer development cycles, higher R&D expenses, & increased risks of design faults. In addition, alternative technologies like system-on-chip (SoC) solutions, application-specific integrated circuits (ASICs), & field-programmable gate arrays (FPGAs) compete with microprocessors in certain applications, constraining market expansion potential.
Legal disputes over patents & intellectual property rights create further challenges, potentially restraining production & distribution, and incurring additional expenses in legal proceedings, licensing fees, & product development limitations. Further, the growing concerns surrounding data privacy, system integrity, & cybersecurity threats are dampening the adoption and investment in new microprocessor technologies, as consumers & businesses prioritize security measures.
Furthermore, the lack of industry-wide standards for software development tools, interfaces, & microprocessor architectures may restrict the compatibility, and interoperability, as well as create entry barriers for new competitors, thereby affecting market expansion and innovation efforts.
Research Scope and Analysis
By Type
Microprocessors come in various forms to meet diverse needs. General-purpose microprocessors are developed to handle a variety of applications, providing a balanced blend of performance, power efficiency, and adaptability. These versatile chips act as the backbone of various systems, providing the flexibility needed to execute a variety of tasks across industries while maintaining an optimal balance between computing power & energy consumption.
Further, the application-specific microprocessors are strictly crafted to excel in many functions or domains. Like graphics processing units (GPUs) to provide visual graphics, digital signal processors (DSPs) for live signal processing, and neural processing units (NPUs) for increasing machine learning algorithms. These specific microprocessors are finely tuned to provide exceptional performance & efficiency customized to their designated applications, thereby maximizing productivity and improving the user experience in specific use cases.
In addition, microcontrollers provide a variety of integrated microprocessors having built-in memory and peripherals. Broadly used in embedded systems, IoT devices, and consumer electronics, microcontrollers excel in handling control & sensing tasks with accuracy & reliability. Their compact form factor &integrated functionality make them critical components in many applications, from
smart home devices to
automotive control systems, making smoother interaction between hardware and software in diverse environments.
By Architecture
Manufacturers design a variety of architecture-based microprocessors, with four major types being ARM MPU, x64 MPU, x86 MPU, and MIPS. Among these, the ARM MPU segment is expected to have significant growth in the forecast period. With ARM processors being largely adopted in smartphones & personal computers, and is expected to capture the largest market share in 2024 and is also expected to show the highest growth as ARM architecture is favored for its simplicity, power efficiency, and ease of management, making it majorly suitable for portable & low-powered embedded devices such as notebooks and smartphones. Also, constant developments in ARM architecture have further supported its computing capabilities, exceeding those of x86 processors.
Moreover, the x86 and x64 segments together dominate the microprocessor market, finding broad applications in PCs & servers. The x64 architecture, an evolution of x86, comes out as supreme due to its superior memory & processing capabilities. Built on Complex Instruction Set Computing (CISC), x64 processors expand in handling double instructions in comparison to their 32-bit x86 counterparts, ensuring better efficiency.
While x64 processors are installed in mobile processing, video game consoles, supercomputers, and virtualization technology, x86 processors find utility in personal computers, gaming consoles, laptops, and high-performance workstations. These distinctions highlight the variety of applications & performance advantages associated with each architecture-based microprocessor type.
By Technology
Reduced Instruction Set Microprocessor also known as RISC is anticipated to have its dominance in the microprocessor market, by having a significant share, which is due to the inherent simplicity of RISC chips, which allows streamlined operations without the requirement for a microcode layer or associated overhead. Further, the market for RISC-based processors is expected to accelerate growth, driven by development in scaling technology & decreasing prices of integrated circuits (ICs). These factors all together contribute to the projected higher pace of expansion in the RISC segment.
Further, the Application-Specific Integrated Circuit (ASIC) segment is expected to have the most rapid growth during the forecast period, which is driven by the growing adoption of ICs within the consumer electronics industry, driven by their many advantages like low power consumption & compact size. These attributes make ASICs highly favored in consumer electronics, using their prominence in the microprocessor market. The overall growth provides a strong transformation in microprocessor technologies, with RISC and ASIC segments playing pivotal roles in shaping the market landscape.
By Size
Microprocessors of size less than 10 mm in size and those fabricated using advanced nanometer-scale technology between 10nm and 22nm play a major role in driving the growth of the global microprocessor market. These miniaturized chips pack a punch, providing better performance, efficiency, and functionality in a compact form factor. Their small size makes them ideal for use in portable electronic devices like smartphones, tablets, and wearables, where space is at a premium. Moreover, these microprocessors consume low power while delivering better computing power, contributing to better battery life and enhanced energy efficiency in electronic devices.
Furthermore, the development in nanometer-scale fabrication technology allows the production of microprocessors with mini transistors, resulting in higher transistor density and better performance, which leads to faster processing speeds, better multitasking capabilities, and enhanced overall system performance. As a result, manufacturers can create more powerful and feature-rich electronic devices, meeting the rising demands of consumers for faster, smarter, & more energy-efficient products. In addition, the compact size and better efficiency of these microprocessors open up new opportunities for innovation in many industries, driving the continued expansion of the global microprocessor market.
By Core Count
In terms of core 16-core microprocessors are expected to lead the global microprocessor market in 2024, as it offer businesses and consumers a major boost in processing power, allowing them to handle demanding tasks with ease. These processors are mainly beneficial for industries demanding heavy computational capabilities, like data analytics, video editing, and scientific research. With more cores, these microprocessors can perform multiple tasks simultaneously, leading to easy data processing and better productivity. As businesses look to stay competitive in the current fast-paced digital landscape, the demand for 16-core microprocessors is expected to grow, driving growth in the global microprocessor market.
Further, 8-core microprocessors are expected to show steady growth during the forecasted period providing a balance between performance and affordability, making them an attractive option for many consumers and businesses. These processors offer sufficient processing power to handle everyday tasks like document editing, web browsing, and multimedia consumption.
In addition, these are commonly used in gaming consoles, where they deliver smooth gaming experiences &immersive graphics. Their affordability makes them accessible to a broader market segment, like budget-conscious consumers and small businesses. As the need for reliable and cost-effective computing solutions continues to grow, the popularity of 8-core microprocessors contributes highly to the overall expansion of the global microprocessor market.
By Bit Size
64-bit microprocessors, with their better processing capabilities and larger memory capacity, meet high-performance computing needs in industries like finance, scientific research, and advanced gaming. These processors allow businesses to perform complex tasks more efficiently, boosting productivity & driving innovation. Furthermore, the adoption of 64-bit microprocessors in servers & data centers drives the growth of cloud computing services, helping the growing demand for scalable & reliable computing infrastructure across the world. As businesses constantly prioritize performance & scalability, the need for 64-bit microprocessors is expected to remain strong, contributing significantly to the growth of the global microprocessor market.
Further, 32-bit microprocessors maintain their relevance by providing affordable solutions for entry-level devices & applications where moderate computing power serves. These processors find broad use in budget smartphones, low-cost laptops, and many consumer electronics, providing affordable computing solutions to a broad range of consumers. Moreover, the backward compatibility of 32-bit microprocessors allows smooth integration with legacy software and hardware, supporting smooth transitions for users and businesses.
In addition, 32-bit microprocessors are used in installed systems, IoT devices, and industrial automation applications, where reliability and simplicity are key. As such, the constant demand for 32-bit microprocessors in various market segments contributes to the overall growth and stability of the global microprocessor market.
By Application
The personal computer (PC) segment is expected to claim the largest share of the global microprocessor market in 2024, which provides cost-effective opportunities for key market players, driven by the higher integration of microprocessor chips in PCs across the world. Microprocessors provide a lot of benefits like better volatile memory, expanded storage, logical processing functions, multi-tasking capabilities, and energy efficiency, driving their high adoption in PC applications. Furthermore, market leaders constantly develop advanced products using advanced technology to solidify their foothold in the PC segment.
Further, the smartphone segment is anticipated to experience significant growth in the coming years. Every smartphone is fitted with a microprocessor, allowing a variety of functionalities like messaging, calling, web browsing, and app usage. The integration of microprocessors in smartphones has largely contributed to their enhanced power and capabilities.
As microprocessor technology advances, smartphones become highly adept at handling complex tasks, supporting the development of specialized applications that have become indispensable in daily life. In addition, microprocessors allow smartphones to connect to the internet, enriching user experiences with access to diverse information & services like email, social media, and online shopping. Collaborations between PC manufacturers & technology providers further enhance the availability of high-tech products, meeting to the evolving needs of consumers.
By End User
Microprocessors are being used across multiple sectors. In consumer electronics, they power smartphones, tablets, laptops, gaming consoles, smart TVs, and various other consumer devices, allowing functionalities important for modern-day living. These devices depend on microprocessors to deliver effective performance, connectivity, and advanced features required by consumers in today's digital age.
Also, in the automotive industry, microprocessors play a major role in infotainment systems, engine control units (ECUs), advanced driver-assistance systems (ADAS), and the development of autonomous driving technologies. These processors support improved vehicle performance, connectivity, safety features, and complete driving experience.
Moreover, in industrial settings, microprocessors drive automation, robotics, control systems, & manufacturing equipment, optimizing processes, enhancing efficiency, and ensuring accurate operation. In addition, microprocessors are integral to the operation of medical devices, like medical imaging equipment, patient monitoring systems, diagnostic tools, & wearable health trackers, contributing to developments in healthcare delivery & patient care. Furthermore, in networking and communication, switches, microprocessors power routers, modems, base stations, & other networking infrastructure equipment, make smooth data transmission and connectivity in the digital communication landscape.
The Microprocessor Market Report is segmented on the basis of the following
By Type
- General-Purpose Microprocessors
- Application-Specific Microprocessors
- Microcontrollers
By Architecture