[Asia Economy Reporter Jeong Hyunjin] It is forecasted that the global microprocessor unit (MPU) market size will exceed $100 billion for the first time ever this year. MPUs are called the "brain" of IT products as they handle various information processing and calculations in IT devices such as PC and server central processing units (CPUs) and smartphone application processors (APs).
On the 29th, market research firm IC Insights estimated in a recent report that the MPU market this year will reach $103.7 billion (approximately 121.3 trillion KRW), a 14% increase compared to the previous year. This is 9% larger than the size IC Insights initially expected in January, and it anticipates that the MPU market, which grew 16% year-on-year last year, will continue its growth trend. The number of MPU units sold is expected to rise 11% this year, reaching 2.5 billion units, and the average selling price is also projected to increase by 4% during the year.
IC Insights forecasts that MPU sales will grow at an average annual rate of 7.1% over the next five years, expanding the market size from about $90.7 billion last year to $127.8 billion by 2025.
Due to the impact of COVID-19, dependence on the internet has increased, significantly boosting demand for large screens and high-performance smartphones, which has led to a surge in processor demand for mobile phones since last year. IC Insights expects sales of mobile phone-related processors to increase by 34% this year, reaching $35.7 billion. Shipments are projected to grow by 11%, and the average selling price is expected to rise by 20%.
In particular, with the expansion of remote work, demand for personal computers has surged, resulting in a 14% increase in computer CPU microprocessor sales last year, marking the largest growth rate in the MPU market in a decade. The computer CPU processor market is also expected to grow by 4% this year, reaching $48.4 billion, the highest ever recorded.
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