Gen AI reshapes global processor market, driving unprecedented growth

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, said: “The processor industry has become the epicenter 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.”

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, U.S. export restrictions are already reshaping the competitive landscape, particularly in China...

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 stabilize, reaching $8 billion by 2030, sustained by automotive applications.

At the market level, telecom & infrastructure surpassed mobile & 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, added, "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.

Chinese ecosystem
In parallel, the Chinese ecosystem is still actively developing.

Daniel Niu, Market Researcher at Yole Group, noted: "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 U.S. 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.

Key takeaways
* The processor market is projected to reach $554 billion by 2030, with a CAGR of 12% between 2024 and 2030, fueled by the AI revolution.
* In 2024, GPUs became the largest processor segment, representing 39% of total revenues.
* AI ASICs are the fastest-growing segment, with a CAGR24-30 of 45%.
* The telecom and infrastructure market overtook mobile and consumer market in 2024, representing 53% of processor revenues, and expected to grow to 66% by 2030.
* NVIDIA, Intel, and AMD will continue to shape market dynamics, but competition from hyperscalers and Arm-based solutions is intensifying.