Yole Group’s latest report, ‘Status of the Processor Industry 2025’, highlights a profound transformation in the global processor market, driven by Generative AI and the rapid expansion of Cloud infrastructure.
Adrien Sanchez, Senior Analyst, Computing at Yole Group: “The processor industry has become the epicentre of the AI revolution. Generative AI has not only propelled GPUs to record levels but is also creating new opportunities for AI ASICs, reshaping the entire ecosystem. The coming decade will be defined by how the industry balances performance, innovation, and geopolitical challenges in the race to power the future of AI.”
Yole Group’s analysts investigate the processor industry to provide a comprehensive, data-driven overview of the entire processor landscape, covering CPUs , GPUs, APUs , FPGAs , AI ASICs, and DPUs with forecasts on revenues, volumes, ASPs , and wafer demand. This new dedicated report, Status of the Processor Industry 2025, offers in-depth insights into market dynamics across mobile, consumer, automotive, telecom, infrastructure, and industrial segments, while mapping the global ecosystem, its leading players, and new entrants, including the rapidly evolving Chinese processor market.
Beyond market figures, it provides technical and strategic perspectives on roadmaps, chiplet integration, Generative AI, and future computing paradigms, including neuromorphic, quantum, and optical technologies.
In 2024, GPUs became the leading processor segment, overtaking APUs and CPUs. With revenues of $113 billion, GPUs accounted for 39% of total processor sales, propelled by an unprecedented 126% growth in just one year. This surge was largely driven by NVIDIA’s dominance and the insatiable demand for GPUs to power Generative AI models.
And the growth trajectory continues. Indeed, Yole Group asserts that the GPU market will more than double by 2030 to $239 billion, with rising server GPU ASPs underpinning the rise. Meanwhile, US export restrictions are already reshaping the competitive landscape, particularly in China.
Yole Group announces processor segments in motion
While GPUs lead the current market, AI application-specific integrated circuits (AI ASICs) are emerging as a strategic alternative. Hyperscalers such as Google, Amazon, and Huawei are investing heavily in proprietary solutions, reducing dependency on NVIDIA’s GPUs. With a CAGR of 45% between 2024 and 2030, the AI ASIC market is projected to climb from $9 billion in 2024 to $85 billion by 2030, marking it as the fastest-growing segment of the industry.
Other processor segments show mixed dynamics:
- DPUs: growth tied to AI and server demand, increasing to $17 billion by 2030
- FPGAs: declined in 2024, but expected to stabilise, reaching $8 billion by 2030, sustained by automotive applications
At the market level, telecom and infrastructure surpassed mobile and consumer in 2024 for the first time, capturing 53% of revenues. By 2030, this share will rise to 66%, highlighting the central role of cloud-based AI deployments. The automotive sector, particularly all applications related to ADAS and infotainment, is another growth engine, with 15% annual growth expected through 2030.
Industry leadership and shifting dynamics
Hugo Antoine, Technology & Market Analyst, Computing at Yole Group: “NVIDIA, Intel, and AMD remain at the core of the market, collectively holding 97% of the CPU and GPU segments, which account for 58% of total processor revenues.”
However, the balance of power is shifting. Indeed, Arm-based challengers such as NVIDIA, Ampere, and hyperscaler-designed processors are gaining ground, while Apple, Qualcomm, and MediaTek dominate the APU ecosystem.
Daniel Niu, Market Researcher at Yole Group: “China continues to accelerate its investments in AI and processors, fostering domestic players like Huawei, Cambricon, and Biren, while also advancing RISC-V architectures. These developments are reinforced by policy support and growing independence strategies in response to US restrictions.”
The processor industry is entering a new era, shaped by the convergence of Generative AI, Cloud infrastructure, and strategic investments across the ecosystem. Yole Group projects that by 2030, the industry will not only surpass half a trillion dollars but also redefine competitive landscapes and technology roadmaps. GPUs and AI ASICs are at the heart of this revolution, driving the future of computing.
With its expertise spanning processors, memory, and artificial intelligence, the market research and strategy consulting company delivers a 360° vision of the semiconductor industry. Through in-depth market reports, consulting services, and technology and strategy analyses, analysts support leading companies in understanding disruptive shifts, anticipating future roadmaps, and capturing opportunities in the AI-driven era of computing.
