Asia-Pacific MPU Market

Asia-Pacific MPU Market Analysis

The Asia-Pacific MPU Market is expected to register a CAGR of 7.27% during the forecast period.

Microprocessors are widely used in several devices in the consumer electronics category, including smartphones, laptops, Tablets, TVs, and GPS devices, thus driving the market's revenue and volume growth over the forecast period.

• The growing development of connected vehicles and the technological advancements of infotainment and IoT equipment is leading to a significant increase in electronic control unit contents in automobiles, fueling the demand for the Asia-Pacific microprocessor (MPU) market.
• The automotive industry is increasing in Asia-Pacific, and the region holds a significant share of the global automotive market. Further, the Government of China estimates that China's automobile output is expected to reach 35 million units by 2025.
• With the growing technological innovations in the region, the demand for microprocessors has also been increasing at a similar rate. In line with these trends, various companies have invested in the market by undertaking various initiatives.
• For instance, in February 2023, The Center for Development of Advanced Computing (C-DAC) announced the development of a family of microprocessors using indigenous design. These processors will be used in smart water meters, smart energy meters, smart gas meters, multimedia processing, IoT devices, and VR/AR applications. Through this development, the company aims to help India become self-reliant in microprocessor development.
• Furthermore, the growth of the IT sector in the Asia Pacific region is creating a huge demand for computing devices, further supporting the studied market's growth in this region. For instance, according to IBEF, in FY22, the IT industry accounted for about 7.4% of India's GDP and is expected to contribute 10% to India's GDP by 2025.
• Moreover, several data center companies are focusing on expanding their presence in the Asia-Pacific region to gain a competitive edge in the market. For instance, in March 2023, OVHcloud, the European cloud company, announced launching its first data center in India as a part of the Asia-Pacific expansion plan. The company will also build two additional data centers in Australia and Singapore by next year. Through this expansion, the company aims to provide customers with trusted, open, sustainable, and sovereign cloud solutions and enable them to meet growing needs.
• Moreover, as trade tensions persist between the United States. and China, with a focus on restricting Chinese firms, China is increasingly prioritizing self-sufficiency in semiconductor technology.

Asia-Pacific MPU Market Trends

Increasing Demand for Smart Phone and Consumer Electronics in the Region

• With the growing advancements in technologies, the use of consumer electronic devices has increased drastically over the past few years. Consumer electronics have attracted customers with various technological advances, which have increased the demand for microprocessors during the forecast period.
• Consumer electronics include household appliances, smartphones, computers, laptops, and other electronics, such as wearables, gaming consoles, etc. The demand for microprocessors in the industry is increasing with product introduction in consumer electronics.
• Smartphones have emerged as significant elements for the use of microprocessors. With the increasing smartphone innovations and the growing smartphone penetration rate, there are further opportunities for growth, especially in emerging countries. According to Ericsson's report, smartphone subscriptions in Asia-Pacific will be 5,300 million in 2022 and are expected to grow by 6,150 million in 2028. This growth in smartphone subscribers is expected to drive the demand for Asia-Pacific microprocessors (MPUs) during the forecast period.
• Moreover, the Asia-Pacific Microprocessor market will witness high growth due to the adoption of smart homes and smart cities. As these trends govern a higher adoption of connectivity technology in consumer appliances, household appliance manufacturers increasingly focus on integrating IoT technologies with products to help customers stay connected with their homes.
• The increasing disposable income, growing internet penetration, and rising awareness of digital technologies are the driving factors behind the market's growth. Furthermore, major industry players focus on new product development to overcome the challenges and offer a reliable user experience.
• For instance, in January 2023, Advanced Micro Device, Inc. released its new Ryzen 7000 series of mobile microprocessors, which uses its Zen4 architecture with up to 16 cores and Radeon DNA (RDNA) 2 Graphics Processing Unit (GPU). The Ryzen 7040 features new generation RDNA3 graphics and integrates a new artificial intelligence (AI) engine, making it one of the most advanced mobile processors for gaming.

Increasing Penetration of Industrial Automation to Augment Market Growth

With the rising Industry 4.0 and automation trend, the manufacturing sector across various Asian countries, particularly China, India, and Japan, is growing significantly. Many manufacturing hubs in China, Japan, and Taiwan drive the Asia-Pacific microprocessor market.

China is among the fastest-growing countries, with a very high industrial production rate. These factors act as drivers for the automation market in the country. Investments are being planned to aid the quality of growth, address environmental concerns, and reduce overcapacity, for the same. The number of companies deploying robotics and process and factory automation technologies in the country is less when compared to the enormous size of China's manufacturing base and the number of workers it employs. This trend presents a great opportunity for companies operating in the Asia-Pacific microprocessor market.

The use of robots in factory automation continues to grow as it significantly increases efficiency, reduces costs, and improves quality. Modern autonomous robots are hybrids of superior sensors, microprocessors, and artificial intelligence (AI) software. The processor is not only the heart of the robot but also the brain. Processors help to implement the various robot control functions. The processor gives the robot some native intelligence that will allow it to function independently.

Moreover, monthly sales volume of new energy vehicles for BEVs in China has grown from 251k in August 2021 to 559K in August 2023. The surge in BEV demand requires manufacturers to scale up production efficiently. Automation solutions can handle oncreased output while maintaining qulaity.

Furthermore, major Korean businesses are fully committed to moving their manufacturing to a smart solution. The companies improved productivity and profitability through expediting manufacturing automation solutions. As a result, the companies witnessed reduced expenses throughout the supply chain. These major Korean companies will play a crucial role in upgrading obsolete centralized systems to automatically controlled smart platforms to create sophisticated industrial environments in Korea.

Asia-Pacific MPU Industry Overview

With their wide-scale availability of offerings, microprocessors' wide range of applications contributes to intense rivalry among the key market players. The major providers are in the process of the constant evolution of products, following different strategies to capture the market. The players are looking forward to strategic collaboration with other brands and joint product developments for coming up with problem-solving solutions.

March 2023: Qualcomm Technologies, Inc. announced introducing the world's first integrated 5G IoT processors to support four major operating systems, two new robotics platforms, and an accelerator platform for IoT ecosystem partners. The company aims to support the next generation of 5G connectivity and premium edge AI through this launch.

May 2022: Intel Corporation announced to unveil seven new 12th Gen Intel Core HX processors based on Intel's performance hybrid architecture. The 12th Generation Intel, Core HX processors use desktop-grade silicon in a mobile package to deliver high-performance levels for professional workflows such as CAD, animation, and visual effects.

Asia-Pacific MPU Market Leaders

Asia-Pacific MPU Market News

• February 2024: Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) launched Japan Advanced Semiconductor Manufacturing Inc. (JASM), in Kumamoto Prefecture, Japan. The event saw the convergence of suppliers, customers, business partners, academia, and representatives from the Japanese government, all coming together to express gratitude for their unwavering support and collaborative efforts that culminated in the project's success.
• December 2023, Zhaoxin: a Chinese chipmaker, unveiled its highly anticipated KX-7000 series of consumer CPUs. These CPUs, the first of their kind in China, are built on the licensed x86-64 ISA. Zhaoxin boldly asserts that their latest 8-core processors, utilizing the "Century Avenue" microarchitecture, boast a performance that's twice as powerful as their predecessors.