Cloud Tensor Processing Unit Market (By Product Type: TPU v2, TPU v3, TPU v4 & Others. By Application: Deep Learning, Smartphones, USB Accelerator, Industrial Gateways & Others. By End-User: IT and Telecom, Consumer Electronics, Medical Sector, Media and Entertainment, Automotive & Others) - Global Market Analysis, Growth, Trends & Forecast, 2022-2032

The global cloud tensor processing unit market was valued at $16.4 billion in 2021 and it is expected to reach $89.1 billion at a CAGR of 16.4% between 2022 and 2032. Technological advancements and increasing demand in various end-user industries are expected to drive the growth of the global cloud tensor processing unit market during the forecast period. 

By region, Asia-Pacific has led the global cloud tensor processing unit market with significant growth over the upcoming years.

Tensor processing units are application-specific integrated circuits. Google developed this specifically to enable faster machine learning workloads. Additionally, these are developed from the ground up with the help of Google’s deep knowledge and role as a machine learning pioneer. Moreover, Google applications such as translate, photos, search engine, assistant, and Gmail are all allowed by Cloud TPU, a machine learning ASIC that was specifically created for a wide number of customers. These major factors are driving the cloud tensor processing unit market. There are top countries in the cloud tensor processing unit market. These countries are India, China, Japan, South Korea, Canada, the U.S, Mexico, and others. 

Several benefits of using cloud tensor processing units are expected to accelerate the market with growth opportunities. People could use TensorFlow and Cloud TPU to perform their machine learning workloads on Google’s TPU accelerator hardware. To assist researchers, developers, and businesses in producing TensorFlow compute clusters that might utilize CPUs, GPUs, and TPUs. In addition, cloud TPU is built for optimal performance and versatility. Furthermore, TPUs can work faster and more efficiently than GPUs while utilizing fewer resources as they were designed specifically for neural network demands. These are major advantages that are expected to drive the growth of the market during the forecast period. 

Source: SAI Research

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A couple of years ago, the outbreak of COVID-19 negatively impacted most of the end-user industries. Due to complete lockdowns, manufacturing companies were shut down, which stopped the manufacturers and software developers to create innovative products. Hence, this has harmed the cloud tensor processing unit market as well, which caused the temporary suspension of various development projects and reduced the revenue share in 2020. This was one of the major restraints a couple of years ago. Another factor is limited support for small-sized workload models are also hampering the growth of the market over the last few years. However, the market is gradually gaining growth opportunities and developing innovative products for a large number of end-user industries. This would propel the market growth in the upcoming future.                             

Based on product type, the global cloud tensor processing unit market is segmented into TPU v2, TPU v3, TPU v4, and others. The TPU v4 segment is expected to lead the market growth during the forecast period due to its rising demand. In comparison to the v3 generation, the TPU v4 chip offers three times the peak FLOPs per watt. Cloud TPUs are among the most efficient in the global market for their exceptional power delivery and compute efficiency along with carbon-free electricity. Due to these advantages, this segment is anticipated to accelerate market growth during the forecast period.

In terms of application, the market is categorized into deep learning, smartphones, USB accelerator, industrial gateways, and others. The Smartphone category accounted for the largest share of the market and is anticipated to boost the market growth due to the rising demand for high-end smartphones among a large number of customers. Additionally, increasing preference for smartphone models with the highest battery backup, among other things, can be regarded as some of the major drivers of the market expansion for the cloud tensor processing units.

By end-user type, the market is categorized into IT and Telecom, consumer electronics, medical sectors, media and entertainment, automotive, and others. Among these, IT and Telecom hold the largest share of the market and are projected to accelerate the growth of the market during the forecast period due to rising demand for advanced technologies. Medical sectors also held a large share of the market due to their several benefits and increasing demand.

Geographically, the global cloud tensor processing unit is segmented into North America, Europe, Asia-Pacific, Latin America, and Africa. Among these, the Asia-Pacific region holds the largest share of the market and is expected to drive accelerate the growth of this market due to rising factors such as the shifting focus of IT companies toward improving internal processes and the development of projects with larger investments to support the development of connected or autonomous vehicles. Furthermore, the region’s demand for tensor processing units may also be driven by the adoption of cutting-edge technologies such as artificial intelligence, machine learning, and others, as well as the growing need for advanced hardware and interfaces to improve smartphone and gaming applications. On the other hand, North America is also estimated to become the second-largest market during the forecast period as most of the key players are located in this region, which is an advantage of the market.    

According to the study, key players such as Alphabet Inc (U.S), AGM Global (U.S), Intel Corporation (U.S), Graphcore (U.K), MediaTek (Taiwan), NVIDIA (U.S), Qualcomm (U.S), Renesas Electronics (Japan), SoftBank Group (Japan), Xilinx (U.S), among others are leading the global cloud tensor processing unit market.

Scope of the Report:

The Global Cloud Tensor Processing Unit Market Has Been Segmented Into:

The Global Cloud Tensor Processing Unit Market – by Product Type:

• TPU v2
• TPU v3
• TPU v4
• Others

 The Global Cloud Tensor Processing Unit Market – by Application Type:

• Deep Learning
• Smartphones
• USB Accelerator
• Industrial Gateways
• Others

The Global Cloud Tensor Processing Unit Market – by End-User Type:

• IT and Telecom
• Consumer Electronics
• Medical Sector
• Media and Entertainment
• Automotive
• Others

The Global Cloud Tensor Processing Unit Market – by Regions:

• North America
  • USA
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America, Middle East & Africa
  • Brazil
  • South Africa
  • UAE
  • Rest of LAMEA