The latest research from data analytics company IHS has revealed that the global processor market will show strong growth throughout 2013, thanks to a year-on-year increase in CPU shipments to smartphone, tablet, PCs and server OEMs (original equipment manufacturers).

Worldwide processor shipments are forecast to reach 1.5 billion units by the end of this year, representing a healthy increase of 24% from the 1.21 billion shipped during 2012. This figure includes processors powering desktop PCs, notebooks and servers, as well as system-on-a-chips (SoCs) handling the processing duty in smartphones, and tablets.  

Declining PC segment

According to IHS, the PC segment is the only area out of the four main processor market segments that experienced a year-on-year decline due to a struggling PC market. During Q2 2013 for example, CPU shipments for PCs amounted to 84.3 million units, which is a drop from the 89.9 million from the same timeframe a year ago.

Within the PC segment, processor shipments for notebooks fared better than those to desktop PCs, as the former dropped by 2%, whilst the latter declined by 13%. Server shipments also one-upped those to desktop PCs, by posting a year-on-year increase for every quarter this year thus far. In Q2 2013, 4.8 million server chips were shipped worldwide compared to 4.6 million during Q2 2012.  

Intel vs. AMD

Intel rival AMD managed to increase its market share in processor shipments to PCs during Q2, even though its share of market overall fell on an annual basis. Intel remained the dominant force in PC processors, with the company now boasting a dominant market share of 84% overall.

IHS stated that Intel is hedging its bets on its latest Atom processor as a future driver of growth. This processor range will be powering PCs, servers, tablets as well as smartphones, virtually all CPU market segments.

Mobile devices a booming segment of the processor market

According to the market research firm, the processor market overall would not be in such as strong position that it is in now, if not for the saving presence of smartphones and tablets.

This as processor shipments to tablets hit the up button on the shipment elevator to increase by 40% from 38.3 million units in Q2 2012 to a whopping 53.5 million during Q2 2013. When it comes to growth in processor shipments to smartphone makers, the market delivered a growth rate of 38% from 147.9 million to 204.2 million.

Tablet SoC shipments were boosted by the Chinese market where low-cost Android tablets have taken off in a big way. The increase to smartphones was helped by the fact the CPU performance remained a key acquisition factor for smartphone buyers.

In other market research related news, IDC recently revealed that Google’s Android mobile operating system (OS) reached a new milestone during Q3 2013, as the mobile platform powered 81% of all smartphones shipped worldwide during this quarter.