SCOTTSDALE, AZ – Total microprocessor sales are forecast to grow 1.4% in 2020 to nearly $79.3 billion, following a 2.4% decline in 2019, which was the first revenue drop in the worldwide MPU market in 10 years, according to IC Insights.
The mid-year forecast expects total MPU sales to be up 8.8% in 2021, reaching a new record high annual level of about $86.3 billion, under the assumption vaccines become available for the Covid-19 virus and the health crisis diminishes in most regional markets next year.
Within the microprocessor market, sales of central processing units used in traditional PCs, tablets, servers, supercomputers, and all other types of computers are benefitting from increased Internet usage during the global Covid-19 crisis. IC Insights expects sales in this segment to rise 2.2% to $41.7 billion this year and account for 52% of the total MPU market.
About 49% of total MPU sales in 2020 ($38.6 billion) are expected to be generated by microprocessors built with the x86 architecture and sold by Intel and Advanced Micro Devices for traditional PCs, servers, and large computers. MPUs in touchscreen tablet computers – most of which are ARM-based system-on-chip processors – are expected to account for 3% of total MPU sales in 2020 ($2.3 billion), while computer CPU microprocessors made with architectures other than x86-based cores are forecast to be 1% of the total ($750 million).
Cellphone application processors are expected to account for 26% of total MPU revenue in 2020. Because of the economic fallout from the 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 the fourth quarter, especially with demand growing for 5G handsets, says the firm.
IC Insights forecasts 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% to $16.7 billion in 2020.