Microprocessor Market By Technology (Complex Instruction Set Computer (CISC), Reduced Instruction Set Computer (RISC), Application-specific Integrated Circuit (ASIC), Superscalar, Digital Signal Processor (DSP), Others), Application (Personal Computers, Smartphones, Server & Data Centre, Tablets, Embedded Devices, Laser Printer, Calculators, and Others), End-user (Consumer Electronics, Automotive, Aerospace & Defence, BFSI, IT & Telecommunication, Healthcare, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Microprocessor Market size was worth around USD 71.5 billion in 2022 and is predicted to grow around USD 104.3 billion by 2032 with a compound annual growth rate of roughly 3.8% between 2023 and 2032.

Microprocessors have revolutionized the world of consumer electronics with their high processing speed, compact size, and ease of maintenance. They have found wide applications in devices such as desktop computers, smartphones, tablets, and servers, and the advent of cloud technology has made them even more versatile. The microprocessor market is expected to continue its growth trajectory in the coming years due to the widespread use of these energy-efficient devices in data acquisition systems, wireless communication devices, and industrial controllers. The Internet of Things (IoT) is also playing a major role in driving the growth of the microprocessor market.

The demand for smartphones and tablets is driving the market, with countries such as China, India, and the United States leading the way in terms of usage. By 2026, the number of smartphone subscribers is expected to reach a staggering 7.5 billion, which is expected to further boost the market for microprocessors. With the rapid pace of technological advancements and increasing demand for high-quality products, the microprocessor market is poised for substantial growth in the near future.

Key Insights

• Based on the technology, the reduced instruction set computer (RISC) segment held the largest market share
• Based on application, the server & data center segment generated the highest revenue
• Based on end-user, the consumer electronics segment is expected to dominate over the forecast period
• On the basis of region, Asia Pacific accounted for the largest market share

Proliferating Demand for High-Performance and Energy-Efficient Processors Driving Market Growth

The microprocessor industry is rapidly approaching a number of key milestones, driven by the increasing demand for high-performance computing. The affordability of workstations for 2D and 3D graphics applications, particularly in fields such as architecture and graphic design, has created a demand for powerful microprocessors that can handle complex algorithms.

The rise of devices such as laptops, smart TVs, and speakers that offer an immersive visual and audio experience is driving demand for microprocessors. As more homes become smart and incorporate advanced technologies, the demand for smart speakers and other applications is only set to increase. The development of high-quality codecs and audio processors has made it possible to deliver stunning 3K visuals and outstanding audio quality, further fueling the growth of the microprocessor market. The availability of low- and high-power processors with advanced features is also driving market growth, as consumers look for smart devices that can keep up with their demands.

Increasing Adoption in Medical Applications Offers Growth Opportunities for the Market

The escalating healthcare expenses in various economies are largely attributed to the aging population and a growing pool of patients utilizing processors in medical applications. The cost of treatment per individual is significantly higher for those in the 60+ age group compared to those in the 15-30 age group. The world is witnessing rapid growth in its elderly population, leading to an increased life expectancy, however, this is accompanied by numerous co-morbidities.

One example of the application of microprocessors in healthcare is in nerve integrity monitors, where embedded microprocessors are used to convert laryngeal muscle activity into audible and visual electromyography (EMG) signals during various medical procedures. These factors, along with advancements in medical technology, are driving the growth of the global microprocessor market.

Rising Prices of Microprocessors Are Hampering the Market Growth

The proliferation of smart devices, particularly in the Internet of Things (IoT), is a major factor driving the use and growth of microprocessors. These tiny yet powerful devices are integrated into numerous smart devices, enabling them to collect and process vast amounts of data with high efficiency.

However, the rapid growth in demand for microprocessors has resulted in a corresponding increase in their cost. This is due to the high demand for advanced processors, as well as a rise in the cost of flagship products such as servers and PC processors. This, in turn, is placing some constraints on the overall growth of the market. Nevertheless, the continued expansion of the smart device market, coupled with advancements in technology, is expected to keep the demand for microprocessors strong in the coming years.

Recent Development

In October 2022: Intel elevated PC performance with the launch of its 13th generation Core i9, Core i7, and Core i5 desktop processors. These processors boast a hybrid architecture, building upon the success of the previous generation by incorporating even more processing cores and higher clock speeds, all while being compatible with LGA 1700 motherboards.

In May 2022: SiPearl and NVIDIA entered into a strategic partnership, aimed at jointly developing their technical and commercial offerings. Through this collaboration, both companies aim to seamlessly integrate their hardware and software solutions. As part of this partnership, NVIDIA and SiPearl are developing a cutting-edge proxy platform aimed at decompressing and analyzing SVE workloads.

In April 2021: NVIDIA unveiled its first data center processor, a groundbreaking Arm-based processor designed to deliver unprecedented performance in artificial intelligence (AI) and high-performance computing (HPC). Dubbed "Grace," this processor leverages licensed Arm IP specifically tailored for large-scale AI and HPC applications. With the introduction of NVIDIA's Grace data center processors, it becomes clear that the Arm licensing model has the potential to facilitate significant innovation that can support the groundbreaking work of AI scientists and researchers across the world.

Segmentation Analysis

By technology, the microprocessor market is classified into various technologies, including Reduced Instruction Set Computers (RISC), Complex Instruction Set Computers (CISC), Application-Specific Integrated Circuits (ASIC), Superscalar, Digital Signal Processors (DSP), and others. In 2020, the RISC segment emerged as the dominant segment, accounting for over 30% of the market share, due to its reduced chip complexity. The RISC architecture minimizes the instruction set, thereby reducing the chip complexity and minimizing the need for a microcode layer or its associated overhead. This allows RISC microprocessors to take advantage of the simplicity of most computer processing instructions and to perform them quickly and efficiently.

Based on application, the market is segmented into personal computers, smartphones, server & data centers, tablets, embedded devices, laser printers, calculators, and others. Personal computers held the largest market share as it offers strong business opportunities for major market players to capitalize on, as evidenced by the increasing use of microprocessor chips in personal computers worldwide. 

Asia Pacific is Dominating the Market Share Due to the Proliferation of the Technology Industry 

The Asia Pacific region dominates the microprocessor market due to its booming technology industry, marked by the widespread adoption of smartphones and electronics. The growth of the market in this region is driven by rapid digitization, the proliferation of high-tech devices, and advancements in automotive electronics, particularly in countries like China and India. The rise of IoT, significant government IT spending, and growing demand for cloud-based services further contribute to the market's expansion in the Asia Pacific region.

The region is also experiencing explosive growth in internet usage, with the emergence of broadband and high-frequency internet services and cloud connectivity, giving a significant boost to the industry. Microprocessors offer numerous benefits, including larger storage capacity, advanced non-volatile memory, efficient logical operations, improved operating systems, and lower energy consumption, leading to increased adoption of the component in personal computer applications. The emergence of new applications and advancements in technology, particularly in emerging economies such as China and India, is further driving the microprocessor market growth in the Asia Pacific region.

North America is the Fastest Growing Market Owing to Increased Demand for Organic and Herbal Products

The North American microprocessor market is poised for substantial growth in the forecast period, fueled by the strong presence of leading players and the booming development of consumer electronics, health monitoring systems, and electric and hybrid vehicles. The region is at the forefront of technological innovation, particularly in the areas of the Internet of Things (IoT) and electronic processor manufacturing, which has established it as a major player in the chip manufacturing industry.

The increasing use of microprocessors in the automotive sector provides advanced, secure, and convenient electronics to users, further driving the market growth. The United States, as the most technologically advanced economy, has been a trailblazer in the industry, adopting and advancing microprocessor technology ahead of others, making it a key contributor to the overall growth of the market.

Competitive Landscape

• Advanced Micro Devices (AMD), Inc.
• ASE Technology Holding Co., Ltd.
• IBM Corporation
• Intel Corporation
• Logitech
• Micron Technology, Inc.
• NVIDIA Corp.
• Qualcomm Technologies, Inc.
• SiPearl
• Texas Instruments Incorporated

The global microprocessor market is segmented as follows:

By Technology

• Complex Instruction Set Computer (CISC)
• Reduced Instruction Set Computer (RISC)
• Application-specific Integrated Circuit (ASIC)
• Superscalar
• Digital Signal Processor (DSP)
• Others

By Application

• Personal Computers
• Smartphone
• Server & Data Centre
• Tablets
• Embedded Devices
• Laser Printer
• Calculators
• Others

By End-user

• Consumer Electronics
• Automotive
• Aerospace & Defence
• BFSI
• IT & Telecommunication
• Healthcare
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • AustraliaSouth Korea
    • Southeast Asia
      • Indonesia
      • Thailand
      • Malaysia
      • Singapore
    • Rest of Southeast Asia
    • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America