Multi-Core Processors Market

• Growing demand for smartphones is driving the market growth

Market CAGR for multi-core processors is driven by the increase in demand for smartphones and is expected to propel the expansion of the multi-core processor market going forward. A Smartphone is a handheld electronic gadget that provides a connection to a cellular web and the internet. Smartphones with multi-core processors are useful for handling and managing tasks and can achieve more and heavier apps simultaneously.

For instance, in August 2020, as per the Statistics Bureau of Japan, a government agency, the smartphone use rate was 68.3%, signifying that more than 70% of individuals in the age group between 13 and 59 years utilize smartphones. Therefore, an expansion in smartphone demand is driving the growth of the multi-core processor market revenue.

Additionally, the growing complexity of computer applications and the increasing demand for better performance led to the development of multiple processor cores. Previous-generation processors were unable to handle such performance demands effectively. Also, such processors had heat dissipation issues. In multi-core processors, the program execution is divided into different cores, leading to better performance and the capability to perform various tasks simultaneously. Such capacity successfully met the growing demand for faster and better-performing devices. Advanced multi-core processors are designed to meet future performance needs also. This, in turn, has been boosting their application across different devices globally.

Applications involving machine learning and AI require a considerable amount of computational power. AI/ML processors based on tensor processing units (TPUs) are being developed to accelerate training and inference tasks. Through advancements in processor architectures, the incorporation of dedicated AI/ML accelerators, and the development of efficient algorithms, there is a significant opportunity to improve AI/ML performance, reduce energy consumption, and enable edge computing. As IoT devices proliferate and real-time data processing becomes more necessary, edge computing becomes more prevalent. Power-efficient, high-performance, and real-time-responsive processors are crucial in developing edge applications.

The future lies in developing energy-efficient processors, developing distributed computing architectures, and tackling security and privacy issues at the edge.

Various factors, such as increasing digitization and an increase in high-tech gadgets on the market, are also supporting the market growth in developing economies like China and India. Additionally, the increasing utilization of the Internet of Things (IoT) and government spending on IT is expected to boost regional market growth. A growing number of investments are being made towards expanding the capabilities of their regional production facilities.

The emergence of Internet of Things (IoT) devices is reshaping the Global Multi-Core Processors Market Industry. As IoT applications proliferate across various sectors, including smart homes, healthcare, and industrial automation, the need for efficient processing solutions becomes increasingly critical. Multi-core processors facilitate the handling of vast amounts of data generated by IoT devices, enabling real-time analytics and decision-making. This trend is expected to drive substantial growth in the market, as organizations seek to leverage IoT technologies for enhanced operational efficiency and innovation. The integration of multi-core processors in IoT devices is likely to become a key differentiator in the competitive landscape.

The Global Multi-Core Processors Market Industry is also propelled by advancements in mobile computing technologies. With the increasing adoption of smartphones and tablets, there is a growing need for processors that can deliver high performance while maintaining energy efficiency. Multi-core processors are essential for enabling seamless multitasking and enhancing user experiences in mobile devices. As mobile applications become more sophisticated, the demand for powerful processing capabilities is likely to rise, further driving market growth. This trend aligns with the overall expansion of the mobile computing sector, which is expected to contribute significantly to the market's future.

The proliferation of cloud computing services significantly influences the Global Multi-Core Processors Market Industry. As businesses migrate to cloud-based infrastructures, the demand for powerful multi-core processors to support virtualization and multi-threading capabilities escalates. These processors enable efficient resource allocation and improved performance for cloud applications. The market is expected to expand as organizations seek to enhance their cloud offerings, with projections indicating a growth trajectory that could see the market reach 110.1 USD Billion by 2035. This trend underscores the critical role of multi-core processors in facilitating scalable and efficient cloud solutions.

The Global Multi-Core Processors Market Industry is witnessing a heightened focus on energy efficiency as sustainability becomes a priority for many organizations. Multi-core processors are designed to optimize performance while minimizing power consumption, making them attractive for both enterprise and consumer applications. This trend is particularly relevant in data centers, where energy costs can significantly impact operational expenses. As companies strive to reduce their carbon footprint and improve energy efficiency, the demand for advanced multi-core processors that meet these criteria is likely to grow. This shift may contribute to the overall market expansion in the coming years.

The Global Multi-Core Processors Market Industry is experiencing a surge in demand for high-performance computing solutions. This demand is driven by advancements in artificial intelligence, machine learning, and data analytics, which require robust processing capabilities. As organizations increasingly rely on data-driven decision-making, the need for multi-core processors that can handle complex computations efficiently becomes paramount. In 2024, the market is projected to reach 33.1 USD Billion, reflecting the growing reliance on these technologies across various sectors, including finance, healthcare, and telecommunications.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American multi-core processors market will dominate owing to the presence of numerous international companies; the market there is expanding faster than in other regions. Moreover, the growing number of trained professionals involved in software development for multi-core processors drives the market growth in this region. Further, the US multi-core processors market held the largest market share, and the Canadian multi-core processors market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MULTI-CORE PROCESSORS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's multi-core processors market accounts for the second-largest market share due to the rising penetration of smartphones and other electronics, including laptops, mobiles, desktops, and tablets in the region. Further, the German multi-core processors market held the largest market share, and the UK multi-core processors market was the fastest-growing market in the European region.

The Asia-Pacific multi-core processors Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to various factors such as increasing digitization, growing penetration of high-tech gadgets, and the advancement of automotive electronics drives the market growth in this region. Moreover, China’s multi-core processors market held the largest market share, and the Indian multi-core processors market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the multi-core processors market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the multi-core processors industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is a critical business tactic manufacturers use in the multi-core processors industry to benefit clients and increase the market sector. Major players in the multi-core processors market, including Advanced Micro Devices Inc., Intel Corporation, MACOM Technology Solutions Holdings, Samsung Electronics Co. Ltd., Texas Instruments Inc., ARM Holdings, Apple Inc., Mediatek Inc, and others, are attempting to expand market demand by investing in research and development operations.

Advanced Micro Devices Inc designs, manufactures, develops, and markets high-performance computing, graphics, and visualization technologies. The company's product portfolio includes desktop graphics, desktop processors, laptop graphics, laptop processors, chipsets, memory products, professional graphics, and server processors. AMD markets its products under AMD, Athlon, EPYC, FreeSync, FirePro, Geode, Opteron, Ryzen, Radeon, Virtex, Kintex, Zynq, Versal, UltraScale, and Threadripper brand names. The company's products find application in diverse areas, including automotive, aerospace and defense, healthcare and sciences, education, industrial and vision, consumer electronics, media and entertainment, and supercomputing and research.

It serves OEMs, original design manufacturers, system integrators and independent distributors, add-in-board manufacturers, public cloud service providers, and contract manufacturers. In February 2022, Advanced Micro Devices, Inc. acquired Xilinx, Inc. for a compact amount of $50 billion. The acquisition is anticipated to enable AMD to offer the industry's most substantial portfolio of high-performance and adaptive computing solutions. Xilinx, Inc. is a US-based developer of multi-core processors and programmable logic solutions.

Intel Corp designs and develops technology products and components. The company's product portfolio comprises microprocessors, chipsets, embedded processors and microcontrollers, flash memory, graphic, network and communication, and conferencing products. It also offers motherboards, solid-state drives, wireless connectivity products, server products, and software and applications. Intel markets its products and solutions to original and industrial and communications equipment manufacturers and original design manufacturers. The company's products find applications in notebooks, tablets, servers, and desktops. Intel markets processors under Core, Quark, Atom, Celeron, Pentium, Xeon, and Itanium brand names.

In February 2021, Intel launched the Intel Core X-Series of desktop processors, which is the 10th generation of Intel Core CPUs. The development has a maximum increased clock speed of 4.8GHz, with the core count rising as high as 18 and the thread count bearing 3. The product also helps 256GB of DDR4-2933 RAM and updated Intel turbo boost max technology.