Worldwide microprocessor sales grew 14% to a record-high US$102.9 billion in 2021, after climbing 16% in 2020, when COVID-induced lockdowns drove up demand for PCs, large-screen smartphones and other devices enabling stay-at-home initiatives, according to IC Insights.

Growth in the microprocessor sales is expected to slow to 7% in 2022 when the market log another record high of US$110.4 billion, said IC Insights. Unit shipments for the year are forecast to increase 6% to 2.6 billion processors.

Cellphone processor sales surged 31% in 2021, as users moved to faster smartphones, including those built with new 5G cellular modems, more powerful cameras, and AI machine-learning capabilities for automatic performance improvements, IC Insights indicated. After cellphone application processor sales jumped to a record-high US$35 billion in 2021, the growth rate is expected to decrease to 10% in 2022 which will lift the mobile microprocessor segment to US$38.4 billion in revenue, IC Insights said.

Meanwhile, tight supplies of leading-edge smartphone processors and continuous integration of more functions, acceleration units, powerful graphics, and high-speed 5G modems on mobile MPUs will increase the average selling price (ASP) by 4% in 2022 after the ASP rose 22% both in 2021 and 2020, IC Insights noted.

Sales growth in computer CPU microprocessors slowed to a 4% increase in 2021 after rising 14% in 2020, IC Insights said. Computer CPU growth eased back after strong demand slowed for personal and home computers once many consumers, businesses, and schools had bought new systems for remote working and at-home education in the first year of the COVID-19 pandemic.

Sales of computer MPUs, including x86 processors sold by Intel and AMD for traditional notebook and desktop PCs, are forecast to rise by another 4% in 2022 to a record-high US$50.5 billion, IC Insights indicated.

Embedded microprocessor sales for a broad range of end-use systems including industrial, communications, automotive and IoT are projected to grow 9% in 2022 to about US$21.5 billion, after increasing 11% in both 2021 and 2020, IC Insights said.

Total MPU sales are forecast to increase by a CAGR of 5.3% between 2021 and 2026 to US$133.3 billion, according to IC Insights. Cellphone application processor sales are forecast to rise by a CAGR of 6.3% in the five-year forecast to US$47.4 billion while computer CPU revenues will grow by an annual rate of 3.7% to US$58.1 billion in 2026. Embedded MPU sales are forecast to grow by the fastest five-year average in microprocessor market, increasing by a CAGR of 7.2% to reach US$27.8 billion in 2026.

By DIGITIMES