Neural Processing Unit Market Report, Size, Share, Opportunities, and Trends Segmented By Type, Component, Application, and Geography – Forecasts from 2025 to 2030

Description

Neural Processing Unit Market Size:

The neural processing unit market is projected to grow at a CAGR of 16.26% from US$11,496.383 Million in 2025 to US$24,420.685 Million in 2030. 

Neural Processing Unit Market Introduction:

A neural processor, sometimes referred to as a neural processing unit (NPU), is a specialized circuit that carries out all the arithmetic and control logic needed to execute machine learning algorithms. These algorithms typically work with predictive models such as random forests (RFs) or artificial neural networks (ANNs).  Digital and analog methods can be used to build neural processors.  In analog design, only a small number of transistors are needed to replicate the differential equations of neurons.  These units, therefore, theoretically consume less energy than digital neuromorphic computers. 

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The NPU market is a cornerstone of AI accelerators, driving advancements in deep learning processors and machine learning chips. NPUs, including AI SoCs, enable efficient AI inference and training chips for applications in edge AI and on-device AI. Neuromorphic computing enhances energy-efficient processing, mimicking brain-like computations for real-time tasks in IoT, automotive, and healthcare. These chips optimize complex neural networks, supporting low-latency, high-performance AI workloads. For instance, in June 2025, AMD launched the MI355X, a high-performance AI GPU accelerator with 4x faster processing than its predecessor, targeting generative AI and data center workloads. The market is pivotal for scalable, intelligent solutions across industries.

Neural Processing Unit Market Trends:

The NPU market is advancing with a focus on energy-efficient AI, optimizing power consumption for edge and mobile applications. Low-latency AI and real-time AI processing enable rapid decision-making in autonomous vehicles and IoT devices. Privacy-preserving AI techniques, such as federated learning, ensure secure on-device processing. Model compression and quantization for NPUs reduce computational demands, enhancing efficiency without sacrificing accuracy. These trends drive scalability and performance in AI workloads, catering to industries requiring compact, high-speed solutions. The market’s emphasis on sustainable, secure, and optimized AI processing positions NPUs as critical for next-generation intelligent systems.

Neural Processing Unit Market Overview & Scope:

The neural processing unit market is segmented by:

• Type: The neural processing unit market is divided into several segments based on type, including Sequence-to-sequence Model, Shallow Neural Network, Convolutional Neural Network, Recursive Neural Network, Recurrent Neural Network, Multilayer Perceptron, and Long Short-term Memory.  Neural processors of various kinds are regularly used in a wide range of industries, including manufacturing, entertainment, sports, automotive, aerospace, and electronics.  Apart from this, deep learning commonly uses convolutional neural networks to process data, understand images, and lessen the need for human intervention, all of which contribute to the segment's growth in the market.
• Component: The neural processor market, based on components, has been divided into three segments: hardware, software, and services. The hardware category is expected to dominate the global neural processor market because of the rapidly evolving innovations and developments in the hardware used in neural processing.
• Application: The global neural processors market has been divided into several segments based on their respective applications, including automotive, electronics, defense, aerospace, entertainment, and others. Over the projected time, it is expected that the application of neural networks in the automotive industry will grow rapidly. Neural processor use in the industry is increasing due to the need for automation features like voice commands, automated driving, and artificial intelligence in automobiles.
• Region:  The market is segmented into five major geographic regions, namely North America, South America, Europe, the Middle East, Africa, and Asia-Pacific. North America is anticipated to dominate the market and might grow at the fastest CAGR.

Top Trends Shaping the Neural Processing Unit Market:

1. Growing Need for Applications of AI and Machine Learning

• The growing need for machine learning and artificial intelligence (AI) applications in a variety of industries is driving the neural processing unit market.  The need for strong processing capabilities has been greater as companies want to use AI to boost consumer experiences, increase operational efficiencies, and spur innovation.  While running large-scale machine learning algorithms, neural processors are made to handle complicated data sets and carry out calculations that conventional CPUs and GPUs find difficult.  The growth of AI applications in fields like natural language processing, predictive analytics, healthcare diagnostics, and driverless cars is driving this demand.

2. Technological Progress in Neural Networks

• Neural network technology is advancing quickly, which is a key factor propelling market expansion.  The capabilities of neural processors are being increased by advancements in neural network topologies and deep learning techniques.  Organizations are progressively implementing complex neural network models that require more potent processing technology to enhance the performance of their AI applications. These developments are making it possible to create neural processors that can effectively handle greater model sizes and more intricate neural networks to achieve high accuracy and performance in AI applications.

Neural Processing Unit Market Growth Drivers vs. Challenges:

Drivers:

• Increasing Use of Edge Computing: The market expansion for neural processors is being significantly impacted by the growing use of edge computing. Businesses are searching for effective methods to handle and analyze data at the point of generation due to the proliferation of IoT devices and the requirement for real-time data processing. In this context, neural processors are essential since they give edge devices strong computational capabilities. Edge computing is increasing demand for specialized hardware that can effectively manage AI workloads on-site by lowering latency, lowering bandwidth needs, and protecting data privacy.
• Increasing funding for cutting-edge technology: Every organization can benefit greatly from investing in AI and neural networks.  Object and sound detection, sound recognition, object tracking, facial recognition, keyword spotting, and packet inspection are all powered by neural network processors.  The government has also made significant investments in the development of AI and real-time analytics, which are expected to propel the processor industry.

Challenges:

• The availability of neural processor (NPU) compatible software and tools: Neural processor (NPU) usage across a range of applications is significantly influenced by the availability of suitable software and tools. The absence of customized software that can fully utilize the capabilities of neural processing units (NPUs) presents a difficulty for many developers and organizations, despite the rapid improvements in neural processing technology. This restriction may make it more difficult to apply NPUs effectively in practical settings, which could impede innovation and adoption rates.

Neural Processing Unit Market Regional Analysis:

• North America: The market for neural processors in North America is expanding rapidly, driven by the rising need for complex AI applications. Neural processor usage is accelerating in several industries, including healthcare, banking, and the automotive sector, due to the growth of cloud computing and edge devices. Furthermore, significant regional firms are making significant R&D investments to improve neural processor performance and capabilities.

Neural Processing Unit Market Competitive Landscape:

The market is moderately fragmented, with many key players including NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, and AMD.

• Product Innovation: In September 2024, the Core Ultra 200V processors from Intel Corporation improved laptop power economy and computational capacity by introducing a neural processing unit that is four times quicker than the previous version.
• Sustainable product launch: In June 2024, at the Computex technology trade expo, Advanced Micro Devices Inc. showcased new neural processing units made for on-device AI workloads in AI PCs through the introduction of its AI processors, which included the MI325X accelerator. It is anticipated that the MI350 series will have 35 times greater inference capabilities than previous models, demonstrating AMD's dedication to major performance enhancements.

Neural Processing Unit Market Key Developments:

• In May 2025, Intel announced that it achieved full neural processing unit (NPU) support with the MLPerf Client v0.6 benchmark. It is the first standardized evaluation of large language model (LLM) performance on client NPUs. 
• In May 2025, Expedera announced the launch of its Origin Evolution™ NPU IP, which provides hardware acceleration for using LLMs on resource-constrained edge devices. 
• In May  2025, Semidynamics announced the launch of Cervell, which is a scalable NPU that is a combination of CPU, vector, and tensor processing utilized for AI applications. Its features include delivering up to 256 TOPS at 2GHz, supporting edge and datacenter AI, and integrating with the Gazillion Misses memory subsystem for high-bandwidth, low-latency performance. 
• In August  2025, ALi Corporation signed a strategic licensing agreement with Ceva to integrate Ceva's NeuPro-Nano and NeuPro-M NPUs into ALi's next-generation Video Display Sub-System platform

Neural Processing Unit Companies:

• NVIDIA
• Intel
• Qualcomm
• Google
• Apple

Neural Processing Unit Market Scope:

Neural Processing Unit Market Segmentation:  

By Type

• Multilayer Perceptron
• Convolutional Neural Network
• Recursive Neural Network
• Recurrent Neural Network
• Sequence-to-sequence Model
• Shallow Neural Network
• Long Short-term Memory

By Component

• Hardware
• Software
• Services

By Application

• Automotive
• Electronic
• Defense
• Aerospace
• Entertainment
• Others

By Region

• North America
  • USA
  • Mexico
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Others
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Taiwan
  • Others

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Navigation

• Neural Processing Unit Market Size:
• Neural Processing Unit Market Key Highlights:
• Neural Processing Unit Market Introduction:
• Neural Processing Unit Market Trends:
• Neural Processing Unit Market Overview & Scope:
• Top Trends Shaping the Neural Processing Unit Market:
• Neural Processing Unit Market Growth Drivers vs. Challenges:
• Neural Processing Unit Market Regional Analysis:
• Neural Processing Unit Market Competitive Landscape:
• Neural Processing Unit Market Key Developments:
• Neural Processing Unit Companies:
• Neural Processing Unit Market Scope:
• Our Best-Performing Industry Reports:

Page last updated on: September 23, 2025

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. NEURAL PROCESSING UNIT MARKET BY TYPE 

5.1. Introduction

5.2. Multilayer Perceptron

5.3. Convolutional Neural Network

5.4. Recursive Neural Network

5.5. Recurrent Neural Network

5.6. Sequence-to-sequence Model

5.7. Shallow Neural Network

5.8. Long Short-term Memory

6. NEURAL PROCESSING UNIT MARKET BY COMPONENT

6.1. Introduction

6.2. Hardware

6.3. Software

6.4. Services

7. NEURAL PROCESSING UNIT MARKET BY APPLICATION

7.1. Introduction

7.2. Automotive

7.3. Electronic

7.4. Defense

7.5. Aerospace

7.6. Entertainment

7.7. Others

8. NEURAL PROCESSING UNIT MARKET BY GEOGRAPHY 

8.1. Introduction

8.2. North America

8.2.1. By Type

8.2.2. By Component

8.2.3. By Application

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type

8.3.2. By Component

8.3.3. By Application

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type

8.4.2. By Component

8.4.3. By Application

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Type

8.5.2. By Component

8.5.3. By Application

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Type

8.6.2. By Component

8.6.3. By Application

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Taiwan

8.6.4.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. NVIDIA 

10.2. Intel 

10.3. Qualcomm 

10.4. Google 

10.5. Apple 

10.6. Samsung 

10.7. Huawei

10.8. Arm 

11. APPENDIX

11.1. Currency 

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology 

11.6. Abbreviations 

List of Tables

Table 1: Research Assumptions

Table 2: Neural Processing Unit Market, Key Findings

Table 3: Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 4: Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 5: Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 6: Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 7: Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 8: Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 9: Neural Processing Unit Market, By Geography, USD Billion, 2020 to 2030

Table 10: Neural Processing Unit Market Shares, By Geography, 2025 and 2030 (%)

Table 11: North America Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 12: North America Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 13: North America Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 14: North America Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 15: North America Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 16: North America Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 17: North America Neural Processing Unit Market, By Country, USD Billion, 2020 to 2030

Table 18: North America Neural Processing Unit Market Shares, By Country, 2025 and 2030 (%)

Table 19: South America Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 20: South America Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 21: South America Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 22: South America Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 23: South America Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 24: South America Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 25: South America Neural Processing Unit Market, By Country, USD Billion, 2020 to 2030

Table 26: South America Neural Processing Unit Market Shares, By Country, 2025 and 2030 (%)

Table 27: Europe Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 28: Europe Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 29: Europe Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 30: Europe Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 31: Europe Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 32: Europe Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 33: Europe Neural Processing Unit Market, By Country, USD Billion, 2020 to 2030

Table 34: Europe Neural Processing Unit Market Shares, By Country, 2025 and 2030 (%)

Table 35: Middle East and Africa Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 36: Middle East and Africa Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 37: Middle East and Africa Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 38: Middle East and Africa Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 39: Middle East and Africa Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 40: Middle East and Africa Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 41: Middle East and Africa Neural Processing Unit Market, By Country, USD Billion, 2020 to 2030

Table 42: Middle East and Africa Neural Processing Unit Market Shares, By Country, 2025 and 2030 (%)

Table 43: Asia Pacific Neural Processing Unit Market, By Type, USD Billion, 2020 to 2030

Table 44: Asia Pacific Neural Processing Unit Market Shares, By Type, 2025 and 2030 (%)

Table 45: Asia Pacific Neural Processing Unit Market, By Component, USD Billion, 2020 to 2030

Table 46: Asia Pacific Neural Processing Unit Market Shares, By Component, 2025 and 2030 (%)

Table 47: Asia Pacific Neural Processing Unit Market, By Application, USD Billion, 2020 to 2030

Table 48: Asia Pacific Neural Processing Unit Market Shares, By Application, 2025 and 2030 (%)

Table 49: Asia Pacific Neural Processing Unit Market, By Country, USD Billion, 2020 to 2030

Table 50: Asia Pacific Neural Processing Unit Market Shares, By Country, 2025 and 2030 (%)

Table 51: Neural Processing Unit Market, Strategy Analysis of Major Players

Table 52: Neural Processing Unit Market, Mergers, Acquisitions, Agreements, and Collaborations

Table 53: NVIDIA, Products and Services

Table 54: Intel, Products and Services

Table 55: Qualcomm, Products and Services

Table 56: Google, Products and Services

Table 57: Apple, Products and Services

Table 58: Samsung, Products and Services

Table 59: Huawei, Products and Services

Table 60: Arm, Products and Services

List of Figures

Figure 1: Neural Processing Unit Market Size, USD Billion, 2020 to 2030

Figure 2: Neural Processing Unit Market Segmentation

Figure 3: Key Market Drivers Impact Analysis

Figure 4: Key Market Restraints Impact Analysis

Figure 5: Key Market Opportunities Impact Analysis

Figure 6: Porter’s Five Forces Analysis: Bargaining Power of Suppliers

Figure 7: Porter’s Five Forces Analysis: Bargaining Power of Buyers

Figure 8: Porter’s Five Forces Analysis: Threat of New Entrants

Figure 9: Porter’s Five Forces Analysis: Threat of Substitutes

Figure 10: Porter’s Five Forces Analysis: Competitive Rivalry in the Industry

Figure 11: Neural Processing Unit Market, Industry Value Chain Analysis

Figure 12: Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 13: Neural Processing Unit Market Attractiveness by Type, 2030

Figure 14: Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 15: Neural Processing Unit Market Attractiveness by Component, 2030

Figure 16: Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 17: Neural Processing Unit Market Attractiveness by Application, 2030

Figure 18: Neural Processing Unit Market Share (%), By Geography, 2025 and 2030

Figure 19: Neural Processing Unit Market Attractiveness by Geography, 2030

Figure 20: North America Neural Processing Unit Market, USD Billion, 2020 to 2030

Figure 21: North America Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 22: North America Neural Processing Unit Market Attractiveness, By Type, 2030

Figure 23: North America Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 24: North America Neural Processing Unit Market Attractiveness, By Component, 2030

Figure 25: North America Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 26: North America Neural Processing Unit Market Attractiveness, By Application, 2030

Figure 27: North America Neural Processing Unit Market Share (%), By Country, 2025 and 2030

Figure 28: North America Neural Processing Unit Market Attractiveness, By Country, 2030

Figure 29: South America Neural Processing Unit Market, USD Billion, 2020 to 2030

Figure 30: South America Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 31: South America Neural Processing Unit Market Attractiveness, By Type, 2030

Figure 32: South America Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 33: South America Neural Processing Unit Market Attractiveness, By Component, 2030

Figure 34: South America Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 35: South America Neural Processing Unit Market Attractiveness, By Application, 2030

Figure 36: South America Neural Processing Unit Market Share (%), By Country, 2025 and 2030

Figure 37: South America Neural Processing Unit Market Attractiveness, By Country, 2030

Figure 38: Europe Neural Processing Unit Market, USD Billion, 2020 to 2030

Figure 39: Europe Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 40: Europe Neural Processing Unit Market Attractiveness, By Type, 2030

Figure 41: Europe Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 42: Europe Neural Processing Unit Market Attractiveness, By Component, 2030

Figure 43: Europe Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 44: Europe Neural Processing Unit Market Attractiveness, By Application, 2030

Figure 45: Europe Neural Processing Unit Market Share (%), By Country, 2025 and 2030

Figure 46: Europe Neural Processing Unit Market Attractiveness, By Country, 2030

Figure 47: Middle East and Africa Neural Processing Unit Market, USD Billion, 2020 to 2030

Figure 48: Middle East and Africa Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 49: Middle East and Africa Neural Processing Unit Market Attractiveness, By Type, 2030

Figure 50: Middle East and Africa Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 51: Middle East and Africa Neural Processing Unit Market Attractiveness, By Component, 2030

Figure 52: Middle East and Africa Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 53: Middle East and Africa Neural Processing Unit Market Attractiveness, By Application, 2030

Figure 54: Middle East and Africa Neural Processing Unit Market Share (%), By Country, 2025 and 2030

Figure 55: Middle East and Africa Neural Processing Unit Market Attractiveness, By Country, 2030

Figure 56: Asia Pacific Neural Processing Unit Market, USD Billion, 2020 to 2030

Figure 57: Asia Pacific Neural Processing Unit Market Share (%), By Type, 2025 and 2030

Figure 58: Asia Pacific Neural Processing Unit Market Attractiveness, By Type, 2030

Figure 59: Asia Pacific Neural Processing Unit Market Share (%), By Component, 2025 and 2030

Figure 60: Asia Pacific Neural Processing Unit Market Attractiveness, By Component, 2030

Figure 61: Asia Pacific Neural Processing Unit Market Share (%), By Application, 2025 and 2030

Figure 62: Asia Pacific Neural Processing Unit Market Attractiveness, By Application, 2030

Figure 63: Asia Pacific Neural Processing Unit Market Share (%), By Country, 2025 and 2030

Figure 64: Asia Pacific Neural Processing Unit Market Attractiveness, By Country, 2030

Figure 65: Neural Processing Unit Market Share, 2025

Figure 66: Competitive Dashboard

Figure 67: NVIDIA, Financials, 2022–2024

Figure 68: Intel, Financials, 2022–2024

Figure 69: Qualcomm, Financials, 2022–2024

Figure 70: Google, Financials, 2022–2024

Figure 71: Apple, Financials, 2022–2024

Figure 72: Samsung, Financials, 2022–2024

Figure 73: Huawei, Financials, 2022–2024

Figure 74: Arm, Financials, 2022–2024

Companies Profiled

NVIDIA

Intel

Qualcomm

Google

Apple

Samsung

Huawei

Arm

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