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With the prevalence of numerous players, the vendor competition and scenario has extremely intensified in the last couple of years, states Transparency Market Research (TMR) in the research report. The market is also significantly fragmented with regards to the prevailing scenario and the number of market players. Leading companies such as Advanced Micro Devices and Qualcom, and Intel at present cherish a good hold over the market. The market vendors are currently shifting their focus towards developing countries for capitalizing on the prospects arising from there. In nations such as Japan, the collaborations with noteworthy enterprises of other companies have helped in the expansion of the global footprint of the market. This is expected to further benefit the market in the long run.
According to a TMR analyst, “The global next generation processor market is expected to rise at an outstanding 17.61% CAGR from 2016 to 2024. In 2015, the market was estimated to be US$41.41 bn and it has been projected that it will touch a valuation of US$165.27 bn by 2024.
Automation Demand in Consumer Electronics to Aid in Growth
On the basis of end use, the global market for next generation processors can be classified into automotive, manufacturing, information and communication technology, and consumer electronics. Amongst these, the segment that emerged dominant in the market is the consumer electronics segment. Owing to the growing demand for smart technological devices among consumers, the need for next generation processors is expected to intensify in the consumer electronics sector in the near future. Nevertheless, based on revenue, the industry that is expected to witness substantial growth in the market is the manufacturing industry witnessing substantial growth. To encourage the method of smart manufacturing and decrease faults related to quality, the use of next generation processor is likely to increase in this particular industry. Volume in concern, the automotive segment is likely to witness good demand for this technology owing to the demand for automotive brakes and intelligent cars.
Region-wise, the global market for next generation processors can be segmented into the Middle East and Africa, South America, North America, Europe, and Asia Pacific. Amongst these, the leading share was held by North America in 2015 as it is the center of leading automotive industries and intelligent building. While Europe will hold a substantial market share, the vendors are likely to witness fruitful prospects in Asia Pacific.
Extensive Activities Relating to Research and Development to Hold Opportunities for Future Growth
The growing research and development activities in the field of next generation processors is expected to provide impetus to the market in the coming years. Other than this, the increasing application of consumer electronics such as automatic household appliances, smartphones, and television, the forecast is that it will further rise in the forthcoming years. The demand for next generation processors is rising mainly as they present users with an extreme degree of energy efficiency and are comparatively very fast. They also generate less heat at the time of operations. As a result of these factors, the global next generation processors market is expected to proliferate in the coming years. The amalgamation of IoT with the rise in construction of smart buildings and smart cities is expected to further fuel the demand for next generation processors in the years ahead. The recent advancements in the integration of these processors in the consumer electronics industry is another boosting factor. However, the market might face threat in the years ahead due to fluctuating prices.