GPU as a Service Market Trends

Growth Drivers

• Growing Demand for Games - There are about 3 billion gamers who are active worldwide. Approximately, 4 billion gamers are projected to exist worldwide by 2024. Not only on laptops or PC, also the games are also extensively played on mobile phones. Current smartphones have cutting-edge embedded chipsets that, depending on their programming, are capable of performing a wide range of functions. The performance of the GPUs, which are a crucial component of those chipsets as mobile games push the limits of their capabilities, is becoming more and more significant. Hence, growing demand for games from all around the world is estimated to boost the growth of the market.

• Rising Government Initiatives for Smart City Development - A total of about USD 27 billion was allotted in India for the "Smart City Mission" in 2020. By 2020, approximately 5,330 projects totaling about USD 23 billion—or approximately 85% of the total—had been submitted for bid.

• Surge in Adoption of Cloud Based Services - About 60% of organizations in United Nations moved their workloads to the cloud in 2020 alone.

• Growth in Adoption of GPU in Autonomous Vehicles - NVIDIA, in 2020, unveiled NVIDIA DRIVE Thor, its centralized computer of the next generation for safe and secure autonomous vehicles. The next-generation superchip includes the NVIDIA Grace CPU and NVIDIA Ada Lovelace GPU in addition to the cutting-edge AI capabilities initially seen in the NVIDIA Hopper Multi-Instance GPU architecture.

• Increasing Sale of Gaming Laptops - In India, gaming laptop sales increased from about 39,000 in 2016 to approximately 7,00,000 in 2021. There is at least one graphics processing unit in laptops (GPU). An integrated graphics card is what it is, and it is built-in. Both an integrated and a discrete graphics card are included in gaming laptops. The dedicated graphics card is more powerful and is exclusively utilized for tasks requiring intensive graphics, such as gaming, and more. Hence, owing to the growing sales of gaming laptops the market is expected to extend further.

Challenges

• High Incurrence Cost – GPU are harder to build and of greater quality than those from earlier generations. Simply explained, one of the primary factors contributing to the high price of current GPUs is greater manufacturing expenses. Moreover, global chip shortages are another major factor for growing cost of GPUs. Another, main causes of the steadily rising GPU pricing has been the absence of competition between the middle of the 2010s and the beginning of the 2020s, particularly from AMD.
• Lack of Awareness Regarding Technology Among People
• Lack in Performing General Purpose Computing Tasks