U.S. Microprocessor Market (By Architecture Type: ARM MPU, x64, x86, MIPS; By Application: Smartphones, Personal Computers) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Microprocessor Market Size and Trends

The U.S. microprocessor market size was estimated at around USD 19.22 billion in 2023 and is projected to hit around USD 42.04 billion by 2033, growing at a CAGR of 8.14% from 2024 to 2033.

Key Pointers

• By Application, the personal computer (PC) segment held the largest revenue share of 36% in 2023.
• By Application, the smartphone segment is estimated to expand the fastest CAGR of 9.03% from 2024 to 2033.
• By Architecture Type, the ARM MPU segment is anticipated to grow at the noteworthy CAGR of 8.83% from 2024 to 2033.

U.S. Microprocessor Market Overview

The U.S. microprocessor market stands as a cornerstone of technological innovation and economic growth, driving advancements in various sectors ranging from consumer electronics to industrial applications. With a rich history of innovation and a competitive landscape, this market continues to evolve, fueled by factors such as technological advancements, increasing demand for high-performance computing, and the proliferation of IoT devices.

U.S. Microprocessor Market Growth Factors

The growth of the U.S. microprocessor market is driven by the technological advancements in semiconductor design and manufacturing processes continually drive improvements in microprocessor performance, efficiency, and cost-effectiveness. Additionally, the increasing demand for high-performance computing across various industries, including data centers, automotive, and telecommunications, fuels market growth. Moreover, the proliferation of artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) applications necessitates the development of more powerful and energy-efficient microprocessors, further stimulating market expansion. Furthermore, the rapid adoption of cloud computing, edge computing, and 5G technology creates new opportunities for microprocessor manufacturers to cater to evolving computing needs.

U.S. Microprocessor Market Trends:

• Rise of Artificial Intelligence (AI) and Machine Learning (ML) Technologies: The integration of AI and ML capabilities into various applications, such as data analytics, image recognition, and natural language processing, drives demand for microprocessors with enhanced processing power and efficiency.
• Expansion of Cloud Computing and Edge Computing: The growing adoption of cloud computing and edge computing architectures necessitates microprocessors capable of supporting these distributed computing environments, driving demand for high-performance and energy-efficient chips.
• Proliferation of Internet of Things (IoT) Devices: The increasing deployment of IoT devices across industries, including smart homes, healthcare, and manufacturing, drives demand for microprocessors optimized for low-power and real-time processing, facilitating data aggregation and analysis at the edge.
• Integration of 5G Technology: The rollout of 5G networks accelerates the adoption of connected devices and applications requiring high-speed data transmission and low latency. Microprocessors optimized for 5G connectivity and processing capabilities are in demand to power next-generation communication devices and infrastructure.
• Focus on Energy Efficiency: Energy efficiency remains a critical consideration in microprocessor design, driven by environmental concerns and the need to prolong battery life in mobile devices. Manufacturers prioritize the development of energy-efficient architectures and fabrication technologies to meet regulatory requirements and consumer demands.
• Advancements in Semiconductor Manufacturing: Continuous advancements in semiconductor manufacturing processes, such as the transition to smaller nanometer nodes and the adoption of novel materials and architectures, enable the production of microprocessors with higher performance, lower power consumption, and reduced cost per transistor.

Architecture Type Insights

In terms of architecture type, there are four types of architecture-based microprocessors, namely ARM MPU, x64 MPU, x86 MPU, and MIPS. The ARM MPU segment is anticipated to witness the fastest CAGR of 8.83% over the projected period of 2024 to 2033. The ARM segment dominated the market in 2023 with the largest market share of over 49%. The increased utilization of ARM processors in smartphones and personal computers is driving this trend. ARM architecture presents several benefits, including streamlined design, energy efficiency, and manageable operation. Its exceptional energy efficiency makes it particularly suitable for portable and low-power embedded devices like notebooks and smartphones. Furthermore, ongoing advancements in ARM architecture have empowered these processors to deliver superior computing performance when compared to x86 processors.

The dominance of the combined x86 and x64 segments in the processor market is from their extensive usage across PC and server environments. The x64 processor represents an advancement in the x86 architecture, both adhering to the Complex Instruction Set Computing (CISC) model. Within the x86 and x64 landscape, x64 processors lead the market due to their superior memory and processing capabilities compared to their x86 counterparts. In addition, x64 processors handle dual instructions better in contrast to the 32-bit architecture of x86 processors, resulting in enhanced efficiency. They are widely applied in mobile processing, video game consoles, supercomputers, and virtualization technology. On the other hand, x86 processors find their niche in personal computers, gaming consoles, laptops, and high-performance workstations.

Application Insights

Based on application, the microprocessor market has been segmented into smartphones, personal computers, servers, tablets, embedded devices, and others. The personal computer (PC) segment held the largest market share of more than 36% in 2023. This large share is attributed to microprocessors as they provide several benefits, such as enhanced storage, upgraded volatile memory, expanded logical functionalities, increased capability for operating system tasks, and reduced power consumption, which contribute to their widespread adoption in personal computer applications. Furthermore, major companies in the market are consistently introducing innovative products featuring advanced technologies to secure significant market share in the PC segment, which is resulting in propelling the growth of the segment.

The smartphone segment is anticipated to witness the fastest CAGR of 9.03% over the projected period. This growth can be attributed to microprocessors as every smartphone is equipped with a microprocessor, which enables a broad spectrum of functionalities such as placing calls, sending texts, browsing the web, and running diverse applications. The integration of microprocessors in smartphones has significantly enhanced their power and capabilities. As microprocessor technology advances, smartphones evolve into more potent devices capable of handling increasingly intricate tasks. With the current technological scenario, key companies are always launching new smartphones with better capabilities and superior power. Hence, the demand for microprocessors is on the rise with the increasing adoption of smartphones.

U.S. Microprocessor Market Key Companies

• Advanced Micro Devices, Inc
• Intel Corporation
• Marvell Semiconductor Components Industries, LLC
• Toshiba Electronic Devices & Storage Corporation
• Texas Instruments Incorporated
• Microchip Technology Inc.
• Nvidia Corporation
• MediaTek Inc.
• Broadcom Inc.
• Qualcomm Technologies, Inc.

Recent Developments

• In February 2024, Advanced Micro Devices (AMD) introduced AMD Embedded+, a novel architectural solution merging AMD Ryzen™ Embedded processors with Versal™ adaptive SoCs onto a single integrated board. This innovation aims to provide scalable and power-efficient solutions, expediting time-to-market for original design manufacturer (ODM) partners. Validated by AMD, the Embedded+ integrated compute platform empowers ODM customers to streamline qualification and build processes, enabling faster time-to-market without requiring additional hardware and R&D investments.
• In January 2024, NVIDIA unveiled the GeForce RTX™ 40 SUPER Series family of GPUs, featuring models like the GeForce RTX 4080 SUPER, GeForce RTX 4070 Ti SUPER, and GeForce RTX 4070 SUPER. These GPUs significantly enhance gaming experiences and serve as the backbone of AI-powered PCs. Built on the latest NVIDIA Ada Lovelace architecture, these GPUs can deliver up to 52 shader TFLOPS, 121 RT TFLOPS, and 836 AI TOPS, empowering users to create new entertainment worlds and experiences.
• In July 2023, Cerebras Systems and G42 announced the Condor Galaxy, a network of nine interconnected supercomputers designed to accelerate generative AI. The flagship AI supercomputer, Condor Galaxy 1 (CG-1), boasts 4 exaFLOPs and 54 million cores, promising to revolutionize AI model training time. Cerebras and G42 plan to deploy two additional AI supercomputers, CG-2 and CG-3, in the U.S. in 2024. With an estimated total capacity of 36 exaFLOPs, this supercomputing network is poised to advance the field of AI significantly.

U.S. Microprocessor Market Segmentation:

By Architecture Type 

• ARM MPU
  • By ARM Size
    • ARM 32-Bit
    • ARM 64-Bit
  • By End Use Industry
    • Consumer Electronics
    • Networking & Communication
    • Automotive
    • Industrial
    • Medical Systems
    • Aerospace & Defense
    • Energy
      • Oil & Gas
      • Others
    • Others
• x64
• x86
• MIPS

By Application

• Smartphones
• Personal Computers
• Servers
• Tablets
• Embedded Devices
• Others