Microprocessor Market Size, Share, and Trends 2024 to 2034

Microprocessor Market Size, Share and Growth Analysis (By Technology: CISC, RISC, ASIC, Superscalar, DSP; By Application: Smartphones, Personal Computers, Servers, Tablets, Embedded Devices, Others) - Global Industry Analysis, Trends, Regional Outlook, and Forecast 2023 - 2032

  • Last Updated : November 2023
  • Report Code : 1287
  • Category : Semiconductor and Electronic

The global microprocessor market was valued at USD 106 billion in 2022 and it is estimated to reach USD 185.39 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032, owing to the growing use of microprocessors in smartphones and increasing use of embedded microprocessors in the healthcare electronics sector.

Microprocessor Market Size 2023 to 2032

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Key Takeaways

  • Asia Pacific generated more than 43% of revenue share in 2022.
  • North America is expected to grow at a CAGR during the forecast period.
  • By Technology, the reduced instruction set microprocessor (RISC) segment has held the largest revenue share of 30% in 2022.
  • By Technology, the ASIC segment is anticipated to grow at a remarkable CAGR during the projected period.
  • By Application, the personal computer (PC) segment contributed more than 41% of revenue share in 2022.
  • By Application, the server segment is expected to expand at the fastest CAGR over the projected period.

Microprocessor Market in the Asia Pacific 2023-2032

The Asia Pacific microprocessor market size was valued at USD 57.24 billion in 2022 and is estimated to reach around USD 101.06 billion by 2032, growing at a CAGR of 5.9% from 2023 to 2032.

Asia Pacific Microprocessor Market Size 2023 to 2032

The Asia Pacific held the largest share in the market due to the rising penetration of smartphones and other electronics. In 2022, the region was the largest contributor to the revenue with the market share of 55%. The consumer electronics market size was valued at USD 400 billion in 2020 in Asia Pacific. The growing urbanization and rising disposable income in the region are the major factors which are increasing the usage of consumer electronics in high and middle-income households. This will create a positive impact on the microprocessor market as microprocessors are used widely in the consumer electronics sector to increase efficiency of the overall product.

North America has the considerable share in the global microprocessors market due to the presence of market leaders in U.S. and Canada. The one of the major players which is having the large share are Intel Corporation., Qualcomm Technologies Inc., and Texas Instruments Inc. The rapid development of consumer electronics items, healthcare monitoring systems, and electric and hybrid automobiles in North America is a key element driving market expansion in the United States.

Microprocessor Market Share, By Region, 2020 (%)

Growth Factors

In terms of market size and models, the smartphone industry has been continually evolving and rising. According to Ericsson, the number of smartphone subscriptions worldwide will surpass six billion in 2021, and will continue to expand by several hundred million in the next years. The countries with the most smartphone users are China, India, and the United States. By 2026, it is predicted that the number of smartphone subscribers would have risen to 7516 million. With the increasing demand of smartphones, the manufacturers are developing the efficient product. Because it is utilized to improve the speed and efficiency of a smartphone, the microprocessor improves its performance. Any smartphone's performance speed is directly related to the microprocessor's performance. As a result, the rapidly expanding demand for smartphones is likely to boost the microprocessor market forward.

Healthcare spending is directly related to an ageing population, rising per capita disposable income, and a better quality of life. Medical spending per person in the 60+ age group is significantly greater than in the 15–30-year age group. The world's elderly population is growing at an unprecedented rate, resulting in longer life expectancy but with a slew of comorbidities. Embedded microprocessors are utilized in a variety of healthcare electronic systems to improve quality of life and minimize medical costs, such as real-time patient monitoring systems, wireless patient body monitoring systems, and remote health monitoring systems. Nerve integrity monitors, for example, use embedded microprocessors to convert laryngeal muscle action into audible and visual electromyographic (EMG) signals in a variety of procedures. These factors have a favorable impact on the global microprocessor market's growth.

Report Scope of Microprocessor Market

Report Coverage Details
Market Size in 2023 USD 111.62 Billion
Market Size by 2032 USD 185.39 Billion
Growth Rate from 2023 to 2032 CAGR of 5.8%
Base Year 2022
Forecast Period 2023 to 2032 
Segments Covered Technology, Application
Regional Scope North America, APAC, Europe, Latin America, MEAN, Rest of the World
Companies Mentioned Intel Corporation, Taiwan Semiconductor Manufacturing Company, Limited, SK Hynix Inc., Qualcomm Technologies, Broadcom Inc., Micron Technology, Inc., Sony Corporation, Nvidia Corporation, Samsung Group, Applied Materials, Inc.


COVID-19 Impact

The global microprocessor industry is predicted to be impacted by the COVID-19 pandemic. During the first quarter of 2020, the entire supply chain was interrupted due to a lack of parts. Many East Asian economies, notably China, South Korea, Taiwan, Malaysia, Singapore, the Philippines, Thailand, and Vietnam, rely heavily on the electronics manufacturing industry as a source of manufactured exports. Furthermore, the electronics supply chain is heavily intertwined across economies, with China serving as a key supplier of intermediate electronics parts to a number of Southeast Asian electronics industries. In 2019, during February and March, the complete stoppage of Chinese industrial output for an extended period caused substantial supply chain disruptions in the electronics manufacturing industry in many Southeast Asian regions. In 2020, the market shows a small downward curve but due to the recovery rate and low cases at the global level the microprocessors market will grow at the significant rate in the forecast period.

Technology Insights

The Reduced Instruction Set Microprocessor (RISC) segment is the most dominating segment in the market and accounted for more than 30% share in 2022 due to its reduced chip complexity. It aids in maintaining the instruction size without the need of a microcode layer or the related overhead. With developments in the scaling and lower IC prices, the market for RISC-based processors is expected to grow at a higher pace. 

Microprocessor Market Share, By Technology, 2020 (%)

The ASIC segment is expected to be the fastest growing in the forecast period due to the increasing adoption of ICs in the consumer electronics industry due to their advantages such as low consumption electric power, small size and others.

Application Insights

The personal computer (PC) segment is the most prominent segment in the market which contributed share of 41% in 2022. In the first quarter of 2021, global PC shipments totaled 69.9 million units, up 32% from the first quarter of 2020. Such high shipments of PCs offer opportunities to the market players across the globe. 

Microprocessor Market Share, By Application, 2020 (%)

Further, the server’s segment is expected to be the fastest growing due to the various improvements and innovations in the servers’ microprocessors. The storage capacity, clock rate, and increased transistors and resistors operating frequency are the new features which will further fuel the growth of the server’s segment in the global microprocessor market.

Key Companies & Market Share Insights

Because of the presence of major competitors and regional players, the microprocessor market is fragmented and extremely competitive. All of the leading players outperform one another in one or two categories, increasing rivalry in the Microprocessor industry. Thus, the market is very competitive. Because fixed costs are high and marginal costs are low, manufacturers are under high pressure to reduce costs below the market average in order to attract customers while also covering some of their fixed expenses. This leads to a ‘Bertrand Trap,' in which the top companies compete on the same dimension, resulting in a ‘zero-sum game,' with one company gaining and the other losing.

Some of the prominent players in the microprocessor market include:

  • Intel Corporation
  • Taiwan Semiconductor Manufacturing Company, Limited
  • SK Hynix Inc.
  • Qualcomm Technologies
  • Broadcom Inc.
  • Micron Technology, Inc.
  • Sony Corporation
  • Nvidia Corporation
  • Samsung Group
  • Applied Materials, Inc.

Segments Covered in the Report

By Technology

  • CISC
  • RISC
  • ASIC
  • Superscalar
  • DSP

By Application

  • Smartphones
  • Personal Computers
  • Servers
  • Tablets
  • Embedded Devices
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions

The microprocessor market size was surpassed at USD 106 billion in 2022 and is expected to hit USD 185.39 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032.

The growing demand of smartphones, increasing embedded microprocessors in the healthcare electronics sector and high research and development investment are the key driving factors for the microprocessor market growth?

The major players operating in the microprocessor market are Intel Corporation, Taiwan Semiconductor Manufacturing Company, Limited, SK Hynix Inc., Qualcomm Technologies, Broadcom Inc., Micron Technology, Inc., Sony Corporation, Nvidia Corporation, Samsung Group, Applied Materials, Inc..

In 2022, the personal computer (PC) segment is hold the largest revenue share of 41% in microprocessor market.

In 2022, the Asia Pacific region lead the market with revenue share of 55% due to the rising penetration of smartphones and other electronics.

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