Global computer graphics market to be US$464.2 million by 2033: FMI
The global computer graphics market is poised for substantial growth, with projected revenues surpassing US$208.5 million in 2023 and expected to reach an impressive US$464.2 million by 2033. This market expansion is anticipated to be fuelled by a steady CAGR of 8.3% throughout the forecast period.
These insights are based on a report on the computer graphics market by Future Market Insights (FMI).
The widespread adoption of computer graphics across various industries has driven market growth. From gaming and entertainment to architecture, engineering, and manufacturing, the demand for high-quality visuals, immersive experiences, and advanced design capabilities has skyrocketed. Computer graphics offer unparalleled opportunities for professionals to create, visualize, and manipulate complex models with enhanced precision and efficiency.
The global gaming and entertainment industry surge has also played a pivotal role in propelling the computer graphics industry forward. With the rising popularity of interactive gaming experiences, demand for cutting-edge graphics and visual effects has soared. Opening a wide array of lucrative opportunities for market players to develop and deliver immersive gaming experiences to a growing global audience.
With the proliferation of mobile devices, gaming consoles, and virtual reality systems, ensuring seamless performance and compatibility across various platforms is paramount, which may prove as a market restraint.
Data management and storage pose additional challenges for the computer graphics market. As the complexity and size of graphic files increase, businesses must find efficient ways to store, access, and manage vast amounts of data.
“The constant advancements in technology, such as real-time rendering, virtual reality (VR), and augmented reality (AR), have revolutionized the computer graphics landscape. These innovative technologies enable realistic simulations, virtual prototyping, and immersive experiences, captivating users and pushing the boundaries of what is possible,” says FMI in its report.
In 2022, the market for computer graphics in the United States accounted for 17.2% of the global computer graphics industry.
On a global level, Germany accounted for 8.2% of the global market for computer graphics in 2022.
Japan represented 7.5% of the value share of the global computer graphics industry in 2022.
The market for computer graphics in China is expected to achieve a CAGR of 7.2% during the forecast period.
India's computer graphics industry shows significant growth potential, with a projected CAGR of 10.5% from 2023 to 2033.
The industry for computer graphics in the United Kingdom is predicted to progress steadily, with a CAGR of 6.5% during the projected period.
“The market is highly competitive, with several key players vying for market share. These companies are continuously striving to innovate and develop cutting-edge solutions to stay ahead in the market,” say the researchers at FMI.
“The companies leverage their expertise in hardware and software technologies to deliver superior computer graphics solutions across various industries. Including gaming, entertainment, architecture, and design. Additionally, they focus on research and development initiatives to enhance their product offerings and cater to the evolving needs of customers.”
According to FMI, intense competition in the market encourages companies to invest in strategic partnerships, mergers, and acquisitions. This way, the companies expand their product portfolios and strengthen their market presence.
Continuous technological advancements and the adoption of emerging technologies like virtual reality (VR) and augmented reality (AR) further intensify the competition in the computer graphics industry.
“As the market continues to evolve, companies are also focusing on providing comprehensive solutions that integrate computer graphics with other technologies. Such as artificial intelligence (AI) and machine learning (ML), enabling more sophisticated and realistic visual experiences,” adds FMI in its report.
The report also highlights some recent developments in the computer graphics market.
A definitive agreement was signed between Qualcomm Incorporated and Qualcomm Technologies in January 2021 for Qualcomm Technologies to acquire NUVIA for around US$1.4 billion, including expenses and working capital.
In addition to customary closing conditions, the transaction must receive regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. In acquiring NUVIA, Qualcomm Technologies builds on its leadership in Snapdragon-based technology, offering a step-change improvement in CPU performance and power efficiency to meet the demands of the upcoming 5G era.
In November 2021, Threekit, the leading 3D visual commerce platform for brands, raised US$35 million in Series B funding from Leaders Fund, alongside strategic investors Capgemini and ServiceNow and existing investors Salesforce and Shasta Ventures. Through this investment, Threekit can accelerate investments in product platforms, eCommerce integration, global sales organization, and partner network.
In February 2022, AMD announced that it had acquired Xilinx in an all-stock transaction. Because of the acquisition, announced on October 27, 2020, the company established itself as the industry's leading high-performance and adaptive computing player, with a substantial scale advantage and the most robust portfolio of leading computing, graphics, and adaptive SoC products. AMD expects the acquisition to accrue to non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year. By acquiring Xilinx, NXP created the industry's leading high-performance and adaptive computing company by combining complementary products, customers, and markets.
In February 2022, AMD announced the launch of next-generation RDNA GPUs later this year. With the implementation of their current products and the launch of their next wave of Zen 4 CPUs and RDNA 3 GPUs, the company is looking forward to another year of significant growth and share gains. The launch date of AMD's RDNA 3 GPU was not provided. However, the products will likely arrive later this year, two years after the Radeon 6000 series debuted.
In March 2022, Intel launched Intel Arc, a new graphics technology that aims to compete with Nvidia and AMD as part of its website, and featured a video previewing the first graphics card in the series released in 2022. With the announcement of the first Intel Arc graphics cards in late March 2022, Intel kept its word. Intel's first graphics-enabled laptops bring gaming prowess to ultrabooks, including desktop cards in development.