Analysis by Component (Software, Hardware, and Services); by Delivery Model (Public Cloud, Private Cloud, and Hybrid Cloud); and by Application (Gaming, Automotive, Real Estate, and Healthcare) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global GPU as a service (GPUaaS) market is estimated to garner a revenue of ~USD 30 Billion by the end of 2035 by growing at a CAGR of ~30% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 1 Billion in the year 2022. The growth of the segment can be attributed to growing adoption of autonomous cars by a large number of people. It is expected that between 2019 and 2024, there will be an increase in the number of autonomous vehicles with at least Level 1 autonomy (driver assistance). Globally, there were reportedly about 30 million autonomous vehicles in 2019, and this figure is expected to rise to approximately 50 million by 2024.
The processing demands of ADAS and autonomous vehicle technologies are entirely within the capabilities of the GPU, particularly in the areas of parallel signal processing and image analysis. The GPU is tipped to become the workhorse of the autonomous vehicle, since it could provide the computing skills that would allow future automobiles to grow increasingly aware of and reactive to their surroundings so they're able to operate dependably, efficiently, and safely. Hence, owing to the growing number of road accidents, it is estimated that the demand for autonomous vehicles would increase, further boosting the market growth. However, as ADAS platforms demand higher levels of performance, larger and more potent GPUs would be needed. Therefore, manufacturers are focusing more on advancing their GPU in order to satisfy a growing need, which would also boost the market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~30% |
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Base Year Market Size (2022) |
~ USD 1 Billion |
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Forecast Year Market Size (2035) |
~ USD 30 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for Games - There are about 3 billion gamers who are active worldwide. Approximately, 4 billion gamers are projected to exist worldwide by 2024. Not only on laptops or PC, also the games are also extensively played on mobile phones. Current smartphones have cutting-edge embedded chipsets that, depending on their programming, are capable of performing a wide range of functions. The performance of the GPUs, which are a crucial component of those chipsets as mobile games push the limits of their capabilities, is becoming more and more significant. Hence, growing demand for games from all around the world is estimated to boost the growth of the market.
Rising Government Initiatives for Smart City Development - A total of about USD 27 billion was allotted in India for the "Smart City Mission" in 2020. By 2020, approximately 5,330 projects totaling about USD 23 billion—or approximately 85% of the total—had been submitted for bid.
Surge in Adoption of Cloud Based Services - About 60% of organizations in United Nations moved their workloads to the cloud in 2020 alone.
Growth in Adoption of GPU in Autonomous Vehicles - NVIDIA, in 2020, unveiled NVIDIA DRIVE Thor, its centralized computer of the next generation for safe and secure autonomous vehicles. The next-generation superchip includes the NVIDIA Grace CPU and NVIDIA Ada Lovelace GPU in addition to the cutting-edge AI capabilities initially seen in the NVIDIA Hopper Multi-Instance GPU architecture.
Increasing Sale of Gaming Laptops - In India, gaming laptop sales increased from about 39,000 in 2016 to approximately 7,00,000 in 2021. There is at least one graphics processing unit in laptops (GPU). An integrated graphics card is what it is, and it is built-in. Both an integrated and a discrete graphics card are included in gaming laptops. The dedicated graphics card is more powerful and is exclusively utilized for tasks requiring intensive graphics, such as gaming, and more. Hence, owing to the growing sales of gaming laptops the market is expected to extend further.
Challenges
The global GPU as a Service (GPUaaS) market is segmented and analyzed for demand and supply by delivery mode into public cloud, private cloud, and hybrid cloud. Out of these segments, the hybrid cloud segment is anticipated to garner the highest revenue by the end of 2035. The use of just one strategy is insufficient for many businesses. Using both public cloud resources from a service provider and on-premises systems, hybrid cloud computing combines both in order to benefit from the security and management of each. Compared to the other industrial segments, more than 79% of IT companies and GCCs are estimated to adopt a hybrid work model. However, a large number of organizations are also planning to implement hybrid clouds over the forecast period. Hence, owing to this, the demand for GUPaaS is estimated to increase. Using the service, hybrid cloud users would be able to smoothly organize and live-migrate AI workloads across virtual servers with GPU acceleration.
The global GPU as a Service (GPUaaS) market is also segmented and analyzed for demand and supply by application into gaming, automotive, real estate, and healthcare. Amongst which, the gaming segment is anticipated to have the fastest growth over the forecast period, backed by growing launch of games and a surge in the number of streamers all around the globe. Every setup used by a streamer must have a good graphics card. It guarantees a smooth HD streaming experience that can handle even the most demanding games. Although streaming is largely a CPU-intensive activity, the GPU indirectly affects the overall experience. Although the CPU is the brain of the computer, the GPU increases the CPU's efficiency by doing repetitive work and freeing up memory. The CPU organizes the information and sends it to the streaming services, while the GPU creates a better-quality game image and boosts streaming quality. Hence, the demand for GPUaaS by streamers is increasing. Moreover, owing to growing people preference, a large number of key players are advancing their technology in GPU in order to satisfy the user in gaming sector, is expected to boost the segment’s growth in the market.
Our in-depth analysis of the global GPU as a Service (GPUaaS) market includes the following segments
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By Component |
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By Delivery Model |
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By Application |
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The North American GPU as a Service (GPUaaS) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by growing adoption of technologies including AI, and IoT, along with a growing gaming industry. It is anticipated to be a total of about 4 billion Internet of Things (IoT) connections overall in North America by 2025. In North America, there were approximately 1 billion Internet of Things connections in 2019. Moreover, the key players in this region are manufacturing various advanced technology products, including IoT devices, AI chipsets, and more, which is also estimated to boost the growth of the market in this region. Also, a large number of organizations in this region are estimated to adopt a public cloud model, which is also driving the demand for GPUaaS. Moreover, North America would rule the GPUaaS market throughout the projection period owing to significant investments made in the technology by businesses that operate in the U.S. market.
The European GPU as a Service (GPUaaS) market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market in this region can be attributed to the high need for hardware performance among professional users, including engineers and CAD designers. Additionally, Europe is a global leader in intelligent robotics and technology that would create brand-new, intricate manufacturing supply and production networks. Also, the adoption of cloud-based GPU computing is higher in this region, which is also estimated to boost the market growth in this region. Further, an increase in the demand for Customer Relationship Management (CRM) software is another factor driving the adoption of the SaaS model in the cloud computing market. Given the inexpensive subscription costs and hardware, SaaS has become an affordable option for small and medium-sized organizations with limited financial resources. Moreover, companies in this region are focusing on more on launching cloud-based games, which are also estimated to boost the growth of the market in this region.
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are growing demand for games, rising government initiatives for smart city development, surge in adoption of cloud-based services, and others.
Ans: The market is anticipated to attain a CAGR of ~30% over the forecast period, i.e., 2023 – 2035.
Ans: High incurrence cost, lack of awareness regarding technology among people, and lack in performing general purpose computing tasks estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are IBM Corporation, Microsoft Corporation, Nvidia Corporation, Intel Corporation, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, delivery model, application, and by region.
Ans: The hybrid cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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