Tablet Application Processor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The trend in automation has developed the need for intelligent and smart ways of transferring and storing the data, especially in the industrial sector. Industrial tablets are growing in popularity in the manufacturing sector. The manufacturing vertical chooses to deploy industrial tablets due to their reliability and durability.
The tablets are integrated with serial ports, authentication, RFID, and card readers, which enable communication with any industrial third-party device. A player such as Intel is transferring the advantages of Moore’s Law and its leading transistor technology for higher performance and more energy-efficient processors to other computing segments in tablet, thereby further helping in driving the growth of the market.
- High adoption of octa-core application processors drives the market. The processor refers to an integrated circuit that implements eight independent physical execution units (core) on a single die. Its two sets of quad-core processors split various tasks between them according to type. Most of the time, the low-powered set of cores function when advanced tasks are needed; however, the faster set of four cores kicks to provide the advantage over quad-core in the tablet.- However, due to the impact of COVID-19, the market suffers from the current growth. Raymond James, in investment banking company, reduced its estimates for semiconductors used in mobile handsets and tablets based on an estimated 17 to 20% drop in the sale in China and a drop in the sale of Apple Inc. products of approx 12 to 16% during the second quarter of 2020, while digital transformation is keeping demand for tablet solutions growing in industry and enterprises, while the weak consumer performance remains the primary reason for the contraction in the market.
- From a consumer demand standpoint, there are a different set of challenges, but they mostly fall on one vendor. Having been backed into the Chinese market due to the US trade restrictions, Huawei’s tablet business was in a challenging position in early 2020 due to the barriers to movement in China (e.g., transportation restrictions, temperature checkpoints before entering buildings) and the impact of the distribution of processors and voluntary caution of people staying home. Overall the COVID-19 impact is restraining the growth of the market.
- While in India, the government has stopped all electronics manufacturing, shut down retail stores, and stopped the sale of electronics online as well, India Cellular and Electronics Association (ICEA) and the Manufacturers Association of India (MAIT) have written to the government to allow the sale of tablets, smartphones, and other products online during the lockdown but no decision has been taken yet.
Key Market Trends
Apple iOS to Witness Significant Growth Rate
- Apple Inc. designed System on Chip (SoC) and System in Package (SiP) processors for their tablet business. The combination of a low-power central processing unit (CPU) and other components into a physically compact package meet the stringent power and space constraints common to mobile devices.
- According to Apple, it extended its tablet application processor market share leadership with a 42% revenue share in Q2 2019, followed by Intel with 19% and Qualcomm with 17%. Apple A4 is a PoP SoC manufactured by Samsung. It combines ARM Cortex-A8 CPU with a PowerVR GPU and emphasizes power efficiency.
- Further, the new iPad contained a new dual-core A5X processor with quad-core graphics, and a Retina Display with a resolution of 2,048 by 1,536 pixels, more than 50 percent more pixels than a standard 1,920 by 1,080 high definition TV screen. Apple prioritizes to doubled the size of the A5X's memory interfaces in comparison to the A5, including a memory interface subsystem with four 32-bit wide LP-DDR2 memory controllers, which was done to provide sufficient bandwidth for the very high pixel count on the third-generation iPad's Retina Display.
North America Accounts for Significant Market Share
- North America accounts for a significant share, and due to various global players residing in this region, the market is significantly growing compared to other regions. Further, with decreasing the average price of consumer tablets in the United States, the rate of demand for the tablet is increasing; thereby, the need for tablet application processor increases. The two brands that dominate the market share are Samsung and Apple.
Competitive Landscape
The tablet application processor market is tending to move from consolidated to fragmented but with a slow rate, and the players are coming with new processor technology increasing the rivalry in the market. Key players are Qualcomm Technologies Inc., MediaTek Inc., etc. Recent developments in the market are -
- April 2019 - Samsung introduced its new flagship tablet Galaxy TabS6 aimed at consumers that need advanced functionality and performance. The Galaxy Tab S6 is based on Qualcomm’s Snapdragon 855 SoC, which features four high-performance cores, four low-power cores, and Adreno 640 integrated GPU. The application processor is accompanied by 6 or 8 GB of LPDDR4/LPDDR4X memory as well as 128 or 256 GB of NAND flash storage (expandable using a microSDXC card).
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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