Microprocessor Market Size, Share & COVID-19 Impact Analysis, By Architecture (RISC, CISC, Hybrid, Others), By Application (Computer, Mobile Devices and Tablets, Industrial, Consumer, Automotive, Government), By Size (Less than 10nm, 10nm-22nm, More than 28nm), By Bit Size (4,8,16 bits, 32 bits, 64 bits), By Core Count (Less than 4 Cores, 8 Cores, 16 Cores, More than 32 Cores), and Regional Forecast, 2023-2030

The microprocessor market size was valued at USD 50.55 billion in 2022 and is projected to grow from USD 50.58 billion in 2023 to USD 100.15 billion by 2030, exhibiting a CAGR of 10.3% during the forecast period. Asia Pacific dominated the global market with a share of 46.55% in 2022.

Microprocessors are Integrated Circuits (ICs) that serve as the Central Processing Unit (CPU) of a computer system, capable of executing complex instructions and performing arithmetic and logical operations. They differ from general ICs as they are specifically designed for general purpose computing, while microcontrollers are ICs that integrate a microprocessor core with other components such as memory, input/output ports, and timers, providing a self-contained system for embedded devices and applications.

According to the World Intellectual Property Organization (WIPO), the mobile industry has experienced 7.6% increase in technology adoption, while robots and automation have grown by 10.4%, and electric vehicles have witnessed a significant growth of 61.1% between 2020 and 2021. The data suggests a significant increase in the adoption of microprocessors in electric vehicles, which is further fueling the microprocessor market growth.

COVID-19 IMPACT

Surging Demand and Increasing Adoption of Mobile Devices to Enhance Market Growth

Global lockdowns and restrictions disrupted the supply chains and manufacturing operations, ensuing challenges in meeting the demand for microprocessors, leading to supply shortages and increased prices. For instance,

• In December 2020, North Shore Components Inc. stated that the pandemic increased the sales of computers and mobile devices due to higher consumer demand. The company also estimated the prices of microprocessors to increase up to 3.2% in the coming 12-month period, attributed to the rising sales of notebooks, servers, and desktop PCs.

Additionally, the shift toward remote work and increased reliance on technology during the pandemic fueled the demand for devices, such as laptops and tablets, driving the need for microprocessors even further. The COVID-19 pandemic exhibited a positive impact on the global market and is expected to demonstrate speedy growth through 2023 and in the coming years.

LATEST TRENDS

Implementation of Smaller Core-Sized Microprocessors’ in Hi-tech Devices to Fuel Market Growth

Small-sized MPUs are a result of cutting-edge technological innovations and miniaturization techniques, enabling enhanced performance and efficiency in a compact form factor. By integrating smaller core-sized MPUs into devices, such as smartphones, wearable technology, and IoT devices, manufacturers can provide powerful functionalities while maintaining consumer apprehensions for usability and longer battery life.

According to Semiconductor Industry Association (SIA), Taiwan held the highest logic capacity below 10 nanometers, accounting for upto 92% of the global logic process technologies in 2019. Furthermore, South Korea accounted for the rest 8%, signifying the regional growth in Asia Pacific.

Small core MPUs, such as Qualcomm Gen 2, Mediatek Dimensity, Apple M2, and Ryzen 6000 series, among others, offer increased programming power, enabling devices to handle complex tasks and demanding applications such as gaming, multimedia editing, and AI applications. Additionally, the upcoming trend of reduced power consumption of these MPUs enhances energy efficiency, leading to extended battery life and improved space optimization.

MICROPROCESSOR MARKET GROWTH FACTORS

Rising Adoption of MPUs in 5G-ready Devices to Drive the Market Growth

The deployment of the 5G network and infrastructure is gradually gaining momentum, with the rising demand for smartphone-based powerful MPUs to harness the full potential of the millimeter wave technology. Microprocessors in these devices ensure seamless connectivity, enabling rapid data processing, improved network responsiveness, and enhanced user experiences.

The integration of MPUs in 5G-ready mobile devices enables handling data throughput of the 5G network, ultra-low-latency, rapid data transfers, and real-time communication. The MPUs widen the functionality of applications in autonomous vehicles, remote healthcare, augmented reality, and smart city infrastructures.

• In January 2022, Intel MobileEye launched EyeQ Ultra, a system-on-chip (SoC) specifically designed for autonomous driving vehicles. The SoC performed 176 tera operations per second, leveraging its advanced EyeQ architecture to manage the performance requirements of electric autonomous vehicles.

With the convergence of 5G technology and MPUs, the market growth of such devices is estimated to increase as businesses and consumers seek to embrace the transformative potential of ultra-fast, high-capacity networks.

RESTRAINING FACTORS

Reduced Rate of Performance in MPUs to Limit the Market Growth

According to Moore’s law, since 1970s, the processing speed of a microprocessor doubles every two years along with their transistor count. However, recent data published by the World Intellectual Property Organization (WIPO) indicated slower progress, with 21.4% increase from 2019 to 2021.

The exponential growth in performance has been a key driver behind the expansion of the microprocessor market share. However, as technology reaches its physical limits, the ability to continue scaling the number of transistors and increasing clock speeds has become increasingly challenging for producers and manufacturers.

The reduced growth rate is due to several affecting factors such as limitations in semiconductor materials, power consumption, and heat dissipation, among others. Such factors hamper the market growth, limiting the performance gains in MPUs.

SEGMENTATION

By Architecture Analysis

Rapid Innovations in ARM-based RISC Processors to Boost the Market

By architecture, the market is branched into RISC, CISC, hybrid, and others. The Reduced Instruction Set Computer (RISC) segment is projected to demonstrate the highest growth rate during the forecast period, owing to increasing adoption of 5G-ready mobile devices and multiple launches in recent times. For instance, in April 2023, the Ministry of Electronics and IT (MoS IT) revealed its plans to launch India’s indigenous chipset by 2023-2024 through its Digital India RISC-V (DIR-V) program. The initiative aims to boost local chip development and establish India as a key player in the global RISC-V open-source chipset manufacturing movement.

Complex Instruction Set Computer (CISC) includes processors such as Intel x86, AMD, PDP-11, and others. These processors are commonly used in computer systems such as desktops and PCs. Furthermore, hybrid MPUs combine multiple types of processing cores within a single chipset, offering a balance between versatility, performance, and efficiency, and are majorly implemented in Graphical Processing Units (GPUs).

By Application Analysis

Industry 4.0, 5G Infrastructure, and Artificial Intelligence to Propel the Adoption of MPUs in the Industrial Segment

Based on application, the market is distributed into computer, mobile devices and tablets, industrial, consumer, automotive, and government. The industrial segment is expected to grow at the highest CAGR during the study period, attributed to the increasing usage of advanced and speedy processing applications such as conversational Artificial Intelligence (AI), cloud computing, and IoT, among others. For instance, in June 2023, AMD launched its new line of AI processors, the Instinct MI300 series, aiming to address the growing demand for AI processing in data centers. The series includes the MI300X accelerator, designed to boost processing speeds for generative AI tasks, presenting a competitive challenge to NVIDIA’s dominance.

The adoption of MPUs in the automotive sector has witnessed a significant surge in recent years. Microprocessors play a crucial role in enabling Advanced Driver Assistance Systems (ADAS), infotainment systems, and autonomous driving functionalities. Recent developments in such processors offer computational capabilities necessary for real-time data processing, sensor fusion, decision making, and more efficient connected vehicles.

By Size Analysis

Increasing Implementation of Less than 10nm MPUs in Computers and Laptops to Enhance the Market Growth

Based on size, the market is segmented into less than 10nm, 10nm – 22nm, and more than 28nm processors.

Less than 10nm processors are projected to dominate the market with the highest growth rate during the market study period, owing to industries prioritizing space optimization and energy efficiency in their latest technological devices. For instance, in May 2022, AMD revealed its Ryzen 7000 series 5nm desktop processors, based on the Zen 4 architecture, during Computex 2022 keynote. The processors offered AMS socket compatibility and twice the volume of L2 cache per core compared to prior versions.

Processors in the range of 10nm – 22nm are commonly used in applications such as servers, high-performance computers, and gaming consoles. Such processors offer affordability, as their architecture is based on matured software, resulting in additional support for multiple types of devices.

By Bit Size Analysis 

Demand for 64-bit Computational Performance to Drive the Market Growth

Based on bit size, the market is segregated into 4, 8, 16 bits, 32 bits, and 64 bits. The 64 bits segment is projected to dominate the market with the highest growth rate during the forecast period, owing to consumer-driven functionalities and capabilities offered by manufacturers. For instance, in May 2023, STMicro Electronics updated its STM32MP series of Industry 4.0 processors with enhanced performance and an advanced architecture. The STM32MP25 included 64-bit ARM Cortex-A35 cores, support for several connectivity options, and a dedicated Neural Processing Unit (NPU) for edge AI acceleration, driving the adoption in industrial sectors.

32-bit processors remain important in today’s technology landscape due to their balance between performance and cost-effectiveness, wide software support, and power efficiency. These MPUs provide extensive applicability in several industries, including embedded systems, consumer electronics devices, IoT devices, and industrial automation.

By Core Count Analysis

Segregation of Separate Efficiency and Performance Cores to Enhance the Market Growth

Based on core count, the market is distributed into less than 4 cores, 8 cores, 16 cores, and more than 32 cores. The 16 cores segment is expected to dominate the market by projecting the highest CAGR due to rising demand for powerful performance and constant innovations. Providers of 16-core processors have been segregating performance and efficiency cores to offer a balance between performance and efficiency. For instance, in March 2023, Intel revealed its Arrow Lake-S microprocessors, supporting Z890, W880, B860, and Q870 motherboards. The processor featured 24 cores, further distributed into 8 performance cores and 16 efficiency cores, with additional support for DDR5 memory.

8 core processors are commonly used processors in regular applications such as media & entertainment, mobiles and computers, and portable gaming consoles. These processors provide cost affordability and adequate performance, which is sufficient for mid-computing requirements, thus boosting their deployability.

REGIONAL INSIGHTS

By geography, the market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific. These regions are further categorized into several dominating countries.

In 2022, Asia Pacific emerged as the dominant region in the global market share. According to Interos Inc. Report of 2022, companies in Taiwan dominated over 60% of the manufacturing market share. Furthermore, the concentration is evident as mere five companies hold 88.6% of the global market share in semiconductor manufacturing. The higher market share is attributed to the presence of major microprocessor manufacturers and their dominance over the market due to constant innovations and advancements in leading technologies such as 5nm and AI-embedded MPUs.

The market in North America is highly competitive, technologically advanced, and driven by factors such as digital technology adoption, IoT growth, autonomous vehicles, and high-performance computing needs. Compared to other regions, North America is technologically advanced, and thus provides market opportunities for players such as Tesla Motors Inc. and Rivian Automotive Inc. to deploy electric vehicles with self-driving technology and lane assist, requiring powerful performing MPUs. Such factors, including the presence of key market players, including Intel Corporation and AMD Inc. are surging the demand for microprocessors in this region.

According to our market study, Europe is set to exhibit a healthy growth rate during the study period, owing to government funding and initiatives toward native development of microprocessors. For instance, in December 2022, the European Union invested approximately USD 288.2 million to develop chips based on the open RISC-V architecture and achieve technical independence. The funding announced by EuroHC Joint Undertaking aims to support project building high-performance computers through the utilization of RISC-V hardware and software.

South America and the Middle East & Africa have witnessed significant investments in advanced technologies, such as 5G, cloud computing, AI, and electric vehicles, which are fueling the market growth. Furthermore, smart city initiatives in GCC countries are aiding the deployments and innovations of MPUs in the region.

KEY INDUSTRY PLAYERS

Business Expansion through Constant Innovations and Partnerships with OEMs to Propel Market Growth

Enterprises across several industrial domains gain operational benefits by offering innovative microprocessor applications. Key players are also collaborating with device manufacturers to offer unique features and integrations to enhance the functionality of their products, resulting in increased demand. For instance, in May 2022, SiPearl expanded its collaboration with NVIDIA to pair RHEA supercomputing CPU with NVIDIA’s GPU. The company also partnered with HPE to develop high-performance computing systems using RHEA processors, appealing to European companies and universities to utilize domestic RHEA high-performance computing.

List of Key Companies Profiled in Microprocessor Market:

• Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)


• STMicroelectronics N.V. (Switzerland)


• NXP Semiconductors N.V. (Netherlands)


• Advanced Micro Devices, Inc. (U.S.)


• Intel Corporation (U.S.)


• Qualcomm Technologies, Inc. (U.S.)


• Broadcom Inc. (U.S.)


• NVIDIA Corporation (U.S.)


• Micron Technology, Inc. (U.S.)


• Samsung Group (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – Qualcomm launched Snapdragon 4 Gen 2, an entry-level smartphone processor fabricated using a 4nm process. It offered enhanced AI-related technologies, improved GPU and CPU performance, and better connectivity for streaming and gaming.


• June 2023 – Intel announced a rebranding for its processors in 15 years, starting with Meteor Lake CPUs in 2023. The new names dropped the “i” from the Intel Core i3, i5, and i7, replacing it with high performance SKUs coined Intel Core Ultra 5, 7, and 9, featuring Intel 3D Packaging Technology and AI Boost, leveraging Intel 4 process nodes.


• May 2023 – Texas Instruments partnered with iWave Systems to aid in developing the iW-RainboW-G55M, a solderable system-on-module powered by automotive-grade AM62AX Sitara Vision processors. The compact MPU module featured quad ARM Cortex-A53 CPU cores, deep learning acceleration, Cortex-R5F processing, and QSPI flash, among others, advancing the deployments in vision processing applications in automotive industries.


• May 2023 – Apple Inc. revealed that it secured 90% of TSMC’s 3nm production capacity for 2023 toward the development of A17 Bionic and M3 processors. This agreement provided substantial growth opportunities for TSMC with the upcoming launch of the iPhone 15 series and Apple Mac models.


• May 2023 – Axiado Corporation launched AX3000 and AX2000 processors, featuring AI-driven hardware security aimed at detecting cyber-attack on advanced servers, data centers, network switches, and 5G infrastructure. The company integrated data collection, AI, software, and silicon into a power-efficient processor for advanced AI functionality in the security sector.


• April 2023 – Intel partnered with ARM to optimize its ABA fabrication process for ARM designs, enabling ARM licensees such as Mediatek and Qualcomm to utilize their chip manufacturing services. The collaboration aimed to expand the mobile SoCs for several applications while addressing supply chain dependencies.


• March 2023 – NXP Semiconductors partnered with Lynx Software Technologies to enable real-time application processing for sensor fusion, gateway functionality on deterministic Ethernet vehicles, and actuation through Lynx’s MOSA.ic software. The collaboration was deemed crucial for supporting autonomous features in safety-critical vehicles and flight systems, with their Layerscape LS1028A processor.

REPORT COVERAGE

Our analysis on this market provides leading business insights on global regions to improve business decisions, considering the market. Furthermore, the report provides key insights into recent developments, market trends as well as a thorough review of emerging technologies, which are being adopted worldwide. It also emphasizes the major growth-stimulating factors, which allow the reader to obtain an in-depth perception of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 10.3% from 2023 to 2030
Unit	Value (USD Billion)
Segmentation	By Architecture RISC CISC Hybrid Others   By Application Computer Mobile Devices and Tablets Industrial Consumer Automotive Government   By Size Less than 10nm 10nm - 22nm More than 28nm   By Bit Size 4, 8, 16 bits 32 bits 64 bits   By Core Count Less than 4 Cores 8 Cores 16 Cores More than 32 Cores   By Region North America (By Architecture, By Application, By Size, By Bit Size, By Core Count, and By Country) U.S. (By Size) Canada (By Size) Mexico (By Size) South America (By Architecture, By Application, By Size, By Bit Size, By Core Count, and By Country) Brazil (By Size) Argentina (By Size) Rest of South America Europe (By Architecture, By Application, By Size, By Bit Size, By Core Count, and By Country) U.K. (By Size) Germany (By Size) France (By Size) Italy (By Size) Spain (By Size) Russia (By Size) Benelux (By Size) Nordics (By Size) Rest of Europe Middle East & Africa (By Architecture, By Application, By Size, By Bit Size, By Core Count, and By Country) Turkey (By Size) Israel (By Size) GCC (By Size) North Africa (By Size) South Africa (By Size) Rest of the Middle East & Africa Asia Pacific (By Architecture, By Application, By Size, By Bit Size, By Core Count, and By Country) China (By Size) Japan (By Size) India (By Size) South Korea (By Size) ASEAN (By Size) Oceania (By Size) Rest of Asia Pacific