Microprocessor sales to continue double-digit growth in 2021

Article from: IC Insights

The total MPU market is on track to surpass $ 100 billion for the first time this year, thanks to the surge in revenues from mobile phone application processors.

Microprocessor sales hold steady in 2021 after climbing 16% last year amid the global health crisis from the Covid-19 virus that increased global internet dependence during the pandemic. Newly released mid-year update to the McClean 2021 report by IC Insights now predicts a 14% increase in MPU sales in 2021, bringing the total microprocessor market to a record high of $ 103.7 billion , against a 9% increase expected in January.

The mid-year update increases the MPU unit growth projection to 11% this year. With MPU shipments reaching 2.5 billion units and the Average Selling Price (ASP) expected to increase 4% in 2021, annual sales of microprocessors are expected to exceed $ 100.0 billion for the first time this year. year (Figure 1).

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The mid-year 2021 update also brings IC Insights’ five-year revenue forecast for microprocessors to a compound annual growth rate (CAGR) of 7.1%, which will boost sales volume. to $ 127.8 billion in 2025, up from about $ 90.7 billion in 2020.

Growing reliance on the internet during the Covid-19 virus pandemic has led to a surge in the growth of high-end large-screen smartphones, many of which are 5G handsets, which has resulted in increased revenues for consumers. Mobile phone application processors in 2020. The mid-year update shows that sales of mobile phone application processors strengthen and increase by 34% in 2021 to reach $ 35.7 billion. Shipments of mobile phone application processors are now expected to increase by 11% in 2021 and ASP for these processors by 20% this year. Smartphone MPU prices are rising due to the integration of 5G modems, more on-chip 64-bit processors, higher performance in graphics / video cores and accelerators for artificial intelligence (AI), the machine learning and advanced cameras (some capable of capturing 3D images).

Surprisingly, sales of computer CPU microprocessors increased by 14% in 2020, the biggest increase for this MPU market segment in 10 years. Demand for portable personal computers increased in 2020 as more workers, students and consumers needed internet access while isolated at home during the pandemic. The mid-year update lowers the expected growth rate of computer processor processor sales to 4% this year to an all-time high of nearly $ 48.4 billion. Mid-year forecasts show that computer processor processor shipments will increase 6% in 2021 after increasing 12% in 2020.

In the embedded processor segment, the mid-year update cuts sales guidance to 11% growth for 2021, in part due to some MPU shortages during this year’s economic rebound. On-board MPU sales, which cover a wide range of system applications such as Internet of Things, automotive, industrial, medical, consumer, telecommunications and network equipment, are now expected to reach 19.7 billion dollars this year, with unit shipments growing 12% globally. , according to the mid-year update of IC Insights.

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