Market Trends of Server Microprocessor Industry
This section covers the major market trends shaping the Server Microprocessor Market according to our research experts:
Consumer electronics Segment is Expected to Drive the Market Demand
- Microprocessors are increasingly being used in consumer electronics applications, such as desktop PCs, smartphones, tablets, and servers, because of their fast processing speed, small size, and ease of maintenance. This multipurpose electronic processing device may be configured to accomplish 3 billion activities per second, transport data swiftly between memory regions, and conduct sophisticated mathematical calculations, such as floating-point operations. The rising consumer electronic segment will favor the microprocessor market, contributing to market growth and progress for the market under consideration.
- Operators around the Asia-Pacific are leveraging the scale and utility of mobile networks and services to help large and small businesses implement new digital solutions to meet Industry 4.0 goals, in which 5G and the IoT will play significant roles. According to the GSMA's Mobile Economy Report of the last year, the second phase of 5G network rollouts has commenced in the area, marked by several 5G-related activities in India, Indonesia, and Malaysia. The region's expanding 5G network capabilities will enhance the smartphone, tablet, TV, AR/VR, and other consumer electronics markets, thus boosting the researched market in the region.
- The widespread use of smart homes in industrialized economies, including the United States, Canada, Spain, Germany, and France, will expedite the adoption of intelligent home technology goods, hence advancing the industry. According to a Consumer Technology Association news release from July last year, over 100 million smart home gadgets were supplied in the United States, accounting for USD 15 billion in sales. In the last year, smart home technologies, such as house robots and smart speakers, have been widely used in the United States. These gadgets are heavily embedded with microprocessors, propelling market prospects during the anticipated period.
- The analog AI processor company Mythic launched its M1076 Analog Matrix Processor today to provide low-power AI processing. The company uses analog circuits rather than digital to create its processor, making it easier to integrate memory into the processor and operate its device with ten times less power than a typical system-on-chip or graphics processing unit (GPU).
- Supermicro, Inc., a total IT solution provider, announced the launch of the industry's most comprehensive portfolio of servers and storage systems based on the upcoming 4th generation Intel Xeon Scalable processor in November of this year.
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Asia-Pacific Making Efforts to Develop Key Competence in Microprocessors
- The Asia-Pacific region is among the fastest-growing regions and is even outpacing developed regions, such as North America and Europe, in terms of growth rate across various sectors. For instance, the automotive industry, where the demand for microprocessors has been increasing significantly, has witnessed the highest growth rate in the Asia-Pacific region.
- According to OICA, China was the leading producer of motor vehicles last year, with about 26 million vehicles. Japan and India were in the third and fourth spots, with 7.84 million and 4.39 million vehicles produced, respectively.
- With the automotive industry fast moving toward autonomous vehicles, the demand for microprocessors is expected to grow further in the Asia-Pacific region. In July of this year, for example, Baidu, a major automaker in China, showed off the self-driving taxi RT6.
- Furthermore, the consumer electronics industry in the Asia-Pacific region is also witnessing an upward trend, with demand touching record heights every year due to factors such as fast digitalization and increased penetration of high-tech gadgets. During the projection period, the regional market is expected to be driven by increased use of the Internet of Things (IoT), large IT investments by the government, and rising demand for cloud-based services.
- According to IBEF, the value of consumer electronics production in India was INR 705.15 billion last year. Furthermore, the number of connected wearable devices in the Asia-Pacific region is also expected to significantly increase from 258.2 million in 2021 to 311 million in the current year. (Source: Cisco Systems). Such trends are expected to drive the growth of the market studied in the Asia-Pacific region during the forecast period.
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