Total microprocessor sales revenue forecast to grow 1.4% in 2020
Date: 26/10/2020
IC Insights reported from its latest findings that the total microprocessor sales to grow 1.4% in 2020 to nearly $79.3 billion after seeing a 2.4% drop in 2019. IC Insights predicts a growth of 8.8% in 2021 to reach a record revenues of $86.3 billion. However this positive forecast assumes availability of vaccine for Covid-19 virus and the present crisis comes down.
The sales of processor chips used in computers, tablets, servers and supercomputers estimated by IC Insights to grow by 2.2% to US$ 41.7 billion in 2020 garnering a share of 52% of total microprocessor market. The growth in this segment is attributed to work from home and other activities carried on remotely from home through Internet connected computers during this Covid-19 crisis. It is known fact that Intel holds significantly huge share in this market with the only other strong competitor AMD. The x86 architecture based processors manufactured by Intel and AMD constitute 49% of total microprocessor sales in 2020, according to IC Insights.
The other findings reported by IC Insights include:
Microprocessor units in touchscreen tablet computers most of which are ARM-based system-on-chip (SoC) processors are expected to account for 3% of total MPU sales in 2020 ($2.3 billion),
Computer CPU microprocessors made with architectures other than x86-based cores are forecast to be 1% of the total ($750 million).
Cellphone application processors nearly all built with RISC-computing cores and technology licensed from ARM in the U.K. are expected to account for 26% of total MPU revenue in 2020.
On account of the economic fallout from the deadly coronavirus pandemic, sales of application processors for smartphones are expected to decline 3% to $20.9 billion this year. However, smartphones sales are expected to gradually improve in 4Q20, especially with demand growing for fifth-generation (5G) handsets.
IC Insights forecasts that 21% of MPU sales this year will be generated by MPUs used in embedded-processing systems including automotive applications (passenger cars, trucks, and buses), data networking and communications equipment, industrial and medical systems, and consumer products. The embedded-processor portion of the MPU market is expected to climb 5.0% to $16.7 billion in 2020.
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Author: Srinivasa Reddy N
