The presence of a large number of players has rendered the vendor landscape of the global next generation processor market highly fragmented. Companies such as Qualcomm, Intel, and Advanced Micro Devices currently enjoy a stronghold in the overall market. These companies are shifting focus towards emerging nations in order to capitalize on opportunities prevalent therein, finds Transparency Market Research (TMR) in a new study. In countries like Japan, where technological developments happen fast thus creating lucrative prospects for the market players. Besides this, collaborations with other prominent enterprises have helped them expand their global footprint and product portfolio.
According to TMR, the global next generation processor market is expected to reach US$165.27 bn by the end of 2024, from a valuation of US$41.41 bn in 2015. If the figures hold true, the global next generation processor market will report a CAGR of 17.61% between 2016 and 2024.
By end use, consumer electronics accounted for the dominant share of 24.9% in the overall market in 2015. It is also expected to continue leading the market over the course of the forecast period. Regionally, North America led with a share of 28% in the global market in 2015. However, during the forecast period, Asia Pacific is forecast to report a higher CAGR.
Proliferation of IoT to Boost Opportunities for Market
Next generation processors have been in high demand primarily because they offer a high degree of energy-efficiency and are extremely fast. Next generation processors generate less heat during operations, which is also a chief factor boosting their demand. Driven by these factors, the market is prophesized to exhibit robust growth. Furthermore, due to the proliferation of the Internet of Things, the market is expected to gain accelerated momentum during the forecast period.
Growth witnessed in the market will therefore get support from various factors. For instance, the rising number of smart cities and increasing construction of smart building backed by government incentives are broadening scope for the global next generation processor market. Presently consumer electronics hold dominance in the overall market. In response to the recent advancements, the integration of next generation processors in consumer electronics is expected to increase. This is expected to fuel demand in the market.
Fluctuating Prices of Raw Materials Pose Threat to Market
On the downside, the market is reeling under vulnerability to the fluctuating process of raw materials. Also the highly fragmented vendor landscape of the market pose threat. With the rising number of small and medium sized vendors, the competition prevailing in the market is likely to get fiercer. This can discourage the entry of new players. Other key challenge witnessed by the market is software incompatibility of multicore processors.
Extensive Research and Development Activities Hold Promise for Growth
However, with extensive research and development activities underway, this concern is soon likely to be mitigated thus providing significant impetus to the global next generator processor market. Besides this, the rising use of consumer electronics such as television, smartphones, and automatic household appliances, the demand for next generation processors is forecast to rise. The market is also expected to gain from the rising demand for HVAC systems to gain centralized control over security threats.
This review is based on a TMR study, titled “Next Generation Processors Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 - 2024.”
The report segments the global next generation processors market as:
Global Next Generation Processor Market by End Users
- Consumer Electronics
- Information and Communication Technology
Global Next Generation Processor Market by Machine Type
Global Next Generation Processor Market by Region
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa
- United Arab Emirates
- Saudi Arabia
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America
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