LONDON Ė Worldwide processor sales are expected to regain strength in 2013 and grow 12 percent to $65.3 billion after rising just 5 percent in 2012 to $58.2 billion, according to market research firm IC Insights.
The slow growth in 2012 was ascribed to weakness in the personal computer part of the market and global economic uncertainty.
The market researcher sees the microprocessor market gaining strength between 2013 and 2016 with modest growth returning in standard PCs made with x86 processors and stronger demand continuing for MPUs used in tablet computers and smartphones.
Tablet processor sales are expected to grow 50 percent in 2013 to nearly $3.4 billion from about $2.3 billion in 2012, when revenues surged by 60 percent. Cellphone application processor sales are forecast to increase 28 percent in 2013 to $17.0 billion from $13.3 billion in 2012, when revenues climbed by 41 percent.
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Global microprocessor sales by type. Source: IC Insights
The market for processors for standard PCs, servers, and a variety of
embedded processors is forecast to rise 5 percent in 2013 to $44.9
billion from $42.6 billion in 2012, when this market category declined
by 5 percent.
This large MPU category will account for 69 percent of total microprocessor sales in 2013, while tablet processors are expected to represent 5 percent of the revenues, and cellphone application processors will be 26 percent
Tablet and smartphone unit shipments increased at annual rates of 80 and 55 percent, respectively, in 2012. The market for tablet processors is forecast to increase by a compound annual growth rate (CAGR) of 22 percent between 2012 and 2017, while cellphone application processor sales are projected to rise by a CAGR of 24 percent. Revenues for MPUs in PCs, servers, and embedded applications are expected to grow by an annual rate of 7 percent in the five-year period.
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