Microprocessor growth will slow in 2022 after cell phone MPU surge

Article by: IC Insights

Global total MPU sales growth is expected to decline in 2022 to an increase of only 7%, but yet another record high for the MPU market at $110.4 billion.

Total microprocessor sales in 2021 held steady, rising 14% to a record $102.9 billion after soaring 16% in 2020, when emergency lockdowns amid the COVID-19 virus crisis took hold. is driving up demand for large-screen personal computers and smartphones due to increased internet reliance during the deadly pandemic, according to the February Q1 update of IC Insights’ McClean Report 2022 service ( Figure 1).

Global growth in total microprocessor sales is expected to decline in 2022 to an increase of 7%, which will take the MPU market to a new high of $110.4 billion, with unit shipments up 6% to 2 .6 billion processors, according to the 1Q22 update. forecast.

The total microprocessor market hung on to double-digit percentage growth in 2021, primarily because sales of cellphone processors jumped 31% as users switched to faster smartphones, including those built with new fifth-generation (5G) cellular modems, more powerful cameras and artificial intelligence. (AI) machine learning capabilities for automatic performance improvements. After the sales of mobile phone application processors reached a record high of $35.0 billion in 2021, the growth rate is expected to decrease to 10% in 2022, which will bring this segment of mobile microprocessors to revenues $38.4 billion, according to IC Insights forecast.

Tight supplies of cutting-edge smartphone processors and the continued integration of more features, acceleration units, powerful graphics and high-speed 5G modems on these MPUs will increase the average selling price of the units by 4% in 2022 after ASP climbed 22% both in 2021 and 2020, the new update report shows.

Growth in computer central processing unit (CPU) microprocessor sales slowed to a 4% increase in 2021 after rising 14% in 2020. Growth in computer processors slowed after strong demand for computers slowed. personal and home computers once many consumers, businesses and schools had new remote working and home schooling systems in the first year of the Covid-19 virus crisis. Sales of MPUs for computer processors, including x86 processors sold by Intel and competitor Advanced Micro Devices for traditional laptops and desktops, are expected to grow another 4% in 2022 to a record 50.5 billion. of dollars.

Sales of embedded microprocessors for a wide range of end-use systems, including industrial, communications, automotive and Internet of Things (IoT), are expected to grow 9% in 2022 to approximately 21, $5 billion after growing 11% in 2021 and 2020.

IC Insights’ McClean Report service forecasts total MPU sales to grow at a compound annual growth rate (CAGR) of 5.3% between 2021 and 2026 to reach $133.3 billion. Mobile phone application processor sales are expected to grow at a CAGR of 6.3% in the five-year forecast to reach $47.4 billion, while computer processor revenues are expected to grow 3.7% annually to reach $58.1 billion in 2026. Embedded MPU sales are expected to grow by the fastest five-year average in the microprocessor market, growing at a CAGR of 7.2% to reach $27.8 billion in 2026 , according to the new update.

Comments are closed.