Preference of Integrated GPUs Over Discrete GPUs Can Affect the Adoption of Discrete GPU Units, Says Technavio

LONDON--()--The global graphics processing unit (GPU) market witnessed unit shipments of 81.42 million units in 2015 and is expected to decline to 67.61 million units by 2020, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global GPU market for 2016-2020. Based on end-user platform, the market is segmented into desktops and notebooks. The notebooks segment dominated the market with over 63% in 2015.

Technavio researchers found that the growing adoption of integrated GPU is a major driver for the growth of the market. Integrated GPU is more popular than discrete GPU. Intel, one of the prominent vendors of integrated GPU, claims that their integrated GPU is 30 times more efficient than discrete GPU. This can affect the adoption of discrete GPU units.

“The increasing adoption of integrated GPU is mainly attributed to the growing need of enhanced visual content by end-consumers. In addition, end-consumers are demanding high memory graphics in their systems. In order to meet such demands, graphic processor vendors are providing high graphics through integrated GPUs. Currently, notebooks are being designed with integrated GPUs that meet end-user requirements,” says Sunil Kumar Singh, a lead analyst at Technavio for research on embedded systems.

Technavio’s research study segments the global GPU market into the following regions:

  • APAC
  • Americas
  • EMEA

Global GPU market segmentation by geography 2015 (market share %)

   
APAC 37.10%
Americas 32.60%
EMEA 30.3%

Source: Technavio

 

APAC: largest GPU market

The GPU market in APAC is expected to see a decline during the forecast period because of the withdrawal of consumer interest in laptops. Though the market is not fully saturated with a penetration level of less than 70%, there is a higher demand for laptops because of the reduced ASP. Chromebooks and netbooks are easier options but they require highly developed cloud infrastructure. Also, their ASP is lower than that of traditional or hybrid laptops, which will offset their revenue share even if there is an increase in the unit shipments of Chromebooks and netbooks and hybrid laptops. Hybrid laptops will generate majority of the revenue, but laptop manufacturers will have difficulty in deciding the type of customers they need to pitch their products for, because of the high ASP of laptops. In the first quarter of 2015, hybrid laptops generated higher revenue from commercial customers than from retail or personal customers.

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Americas: highest laptop sales revenue emerged from the US in 2015

In 2015, 26.54 million units of GPU were shipped in the Americas, and this is expected to increase to 21.9 million units by 2020.

From the annual reports of leading laptop manufacturers such as HP, Lenovo, and Apple, it was found that in the premium segment, the highest sales revenue came from the US in 2015 and the first quarter of 2016. Lenovo's Yoga hybrid laptop series generated huge sales revenue in the US. Also, 85% of Chromebooks and netbooks were sold in North America, with 90% of the sales revenue coming from educational institutes. As the Chromebook and netbook market in North America is already getting saturated, the only source of revenue from such a market is innovative hybrid laptop products.

New range of hybrid laptop products to rejuvenate growth in EMEA

The GPU market in EMEA is highly saturated and the socio-economic factors have not been favorable in recent years; hence, the growth was comparatively low. However, the new range of hybrid laptop products is designed to rejuvenate the interest of customers looking for innovative products. The laptop manufacturers gain profit from hybrid laptops and low-cost Chromebooks and netbooks. Though the hybrid laptop market will target corporate customers, the Chromebooks and netbooks market will target educational institutes, which is similar to the trend in North America.

“Europe is the major revenue contributor in EMEA. This is because of high sales of notebooks, desktops, and workstations in this region. The increasing need for enhanced visual content is another major factor contributing to the growth of the market in this region,” adds Sunil.

The top vendors in the global GPU market highlighted in the report are:

  • AMD
  • NVIDIA

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

The global graphics processing unit (GPU) market witnessed unit shipments of 81.42 million units in 2016 and is expected to decline to 67.61 million units, according to Technavio’s latest report.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com