Fuelled by AI, the processor market is projected to reach $554bn by 2030, with a CAGR of 12% between 2024 and 2030, says Yole.

In 2024, GPUs became the largest processor segment, representing 39% of total revenues.

AI asics are the fastest-growing segment, with a CAGR24-30 of 45%.

The telecom and infrastructure market overtook mobile and consumer in 2024, representing 53% of processor revenues, expected to grow to 66% by 2030.

Nvidia, Intel and AMD will continue to shape market dynamics, but competition from hyperscalers and Arm-based solutions is intensifying.

“The processor industry has become the epicentre of the AI revolution,” says Yole’s Adrien Sanchez. “Generative AI has not only propelled GPUs to record levels but is also creating new opportunities for AI asics, reshaping the entire ecosystem. The coming decade will be defined by how the industry balances performance, innovation, and geopolitical challenges in the race to power the future of AI.”

Yole’s analysts look at CPUs , GPUs, APUs , FPGAs , AI asics and DPUs, offering forecasts on revenues, volumes, ASPs and wafer demand, insights into market dynamics across mobile, consumer, automotive, telecom, infrastructure and industrial segments and accounts of the leading players, new entrants and the rapidly evolving Chinese processor market.

Beyond market figures, it provides technical and strategic perspectives on roadmaps, chiplet integration, generative AI and future computing paradigms, including neuromorphic, quantum, and optical technologies.

In 2024, GPUs became the leading processor segment, overtaking APUs and CPUs. With revenues of $113bn, GPUs accounted for 39% of total processor sales, propelled by an unprecedented 126% growth in just one year.

This surge was largely driven by Nvidia’s dominance and the insatiable demand for GPUs to power generative AI models.

And the growth trajectory continues. Yole asserts that the GPU market will more than double by 2030 to $239bn, with rising server GPU ASPs underpinning the rise. Meanwhile, US export restrictions are already reshaping the competitive landscape, particularly in China.

While GPUs lead the current market, AI asics are emerging as a strategic alternative. Hyperscalers such as Google, Amazon, and Huawei are investing heavily in proprietary solutions, reducing dependency on Nvidia’s GPUs. With a CAGR of 45% between 2024 and 2030, the AI asic market is projected to climb from $9bn in 2024 to $85bn by 2030, marking it as the fastest-growing segment of the industry.

Other processor segments show mixed dynamics:

DPUs: growth tied to AI and server demand, increasing to $17bn by 2030.

FPGAs: declined in 2024, but expected to stabilise, reaching $8bn by 2030, sustained by automotive applications.

Other processor segments show mixed dynamics.

At the market level, telecom and infrastructure surpassed mobile and consumer in 2024 for the first time, capturing 53% of revenues. By 2030, this share will rise to 66%, highlighting the central role of cloud-based AI deployments.

The automotive sector, particularly all applications related to ADAS and infotainment, is another growth engine, with 15% annual growth expected through 2030.

“Nvidia, Intel, and AMD remain at the core of the market, collectively holding 97% of the CPU and GPU segments, which account for 58% of total processor revenues,” says Yole’s Hugo Antoine. “However, the balance of power is shifting. Indeed, Arm-based challengers such as Nvidia, Ampere and hyperscaler-designed processors are gaining ground, while Apple, Qualcomm and MediaTek dominate the APU ecosystem.”

In parallel, the Chinese ecosystem is still actively developing.

“China continues to accelerate its investments in AI and processors, fostering domestic players like Huawei, Cambricon, and Biren, while also advancing Risc-V architectures,” says Yole’s Daniel Niu. “These developments are reinforced by policy support and growing independence strategies in response to US restrictions.”

The processor industry is entering a new era, shaped by the convergence of generative AI, cloud infrastructure and strategic investments across the ecosystem. Yole projects that by 2030, the industry will not only surpass half a trillion dollars but also redefine competitive landscapes and technology roadmaps. GPUs and AI asics are at the heart of this revolution, driving the future of computing.

By: DocMemory
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