Global microprocessor market to reach $110.4 billion in 2022

Total microprocessor (MPU) sales remained strong in 2021, increasing 14% to $102.9 billion after growing 16% in 2020. According to the update for the first quarter of 2022, the global total microprocessor sales growth rate is expected to fall back to 7% in 2022, with the MPU market reaching a new high of $110.4 billion and processor shipments increasing 6% to 2.6 billion.

The entire microprocessor market maintained double-digit growth rates in 2021, mainly as users turned to faster smartphones, including those equipped with new fifth-generation (5G) cellular modems, more powerful cameras, and artificial intelligence. Sales of mobile phone processors with machine learning capabilities soared 31%. According to IC Insights' forecast, mobile application processor sales will grow to $35 billion in 2021; the growth rate will drop to 10% in 2022, that is, mobile microprocessor revenue will reach $38.4 billion.

After growing 14% in 2020, sales growth for computer central processing unit (CPU) microprocessors slowed to 4% in 2021. Sales of computer CPU microprocessors are expected to grow another 4% in 2022 to a record $50.5 billion.

Sales of embedded microprocessors for a variety of end systems, including industrial, communications, automotive, and IoT, are expected to grow 9% in 2022 to approximately $21.5 billion, after growing 11% in both 2021 and 2020.

IC Insights predicts that total MPU sales will grow at a compound annual growth rate (CAGR) of 5.3% between 2021 and 2026, reaching $133.3 billion by then. Mobile application processor sales are expected to grow at a CAGR of 6.3% to $47.4 billion within five years, while computer CPU revenue is expected to grow at an annual rate of 3.7% to $58.1 billion in 2026.