The global network processing unit market size was estimated at USD 7.16 billion in 2023 and is projected to reach USD 20.86 billion by 2030, growing at a CAGR of 17.1% from 2024 to 2030. Market growth is primarily driven by the escalating demand for high-performance networking solutions, as NPUs provide the computational power required to manage complex networking tasks efficiently.
With increasing data traffic across industries, NPUs ensure reliable and high-speed data transmission, while also supporting advanced security functions such as deep packet inspection and encryption to protect against cyber threats. The rise of network function virtualization (NFV) and software-defined networking (SDN) further amplifies the importance of NPUs by enabling flexible, scalable, and programmable network architectures.
Manufacturers continue to innovate, integrating technologies such as programmable logic, high-speed memory interfaces, and machine learning accelerators, allowing NPUs to perform broader networking functions with enhanced efficiency and security.
Key Market Trends & Insights
- North America accounted for a 31.3% market share in 2023, making it a dominant region.
- The U.S. network processing unit market is expected to maintain the highest market share over the forecast period.
- By product, the wired NPU segment led the market with a 54.1% revenue share in 2023.
- By application, the communications & IT segment accounted for 29.4% of global revenue in 2023.
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Market Performance
- 2023 Market Size: USD 7.16 Billion
- 2030 Projected Market Size: USD 20.86 Billion
- CAGR (2024–2030): 17.1%
- North America: Largest market in 2023
Competitive Landscape
Key industry players are leveraging product innovation, partnerships, mergers and acquisitions, and strategic collaborations to strengthen their market position. For instance, in August 2023, Fortinet launched the FortiGate 90G, a Secure SD-WAN appliance and Next-Generation Firewall (NGFW) featuring the Security Processing Unit 5 (SP5) ASIC. This solution provides AI-driven threat protection, scalability, and energy efficiency, enhancing Fortinet’s capability to deliver secure, unified, and intelligent networking solutions across hybrid networks.
Key Companies
- Broadcom Inc.
- Cisco Systems, Inc.
- Fortinet, Inc.
- MA Lighting
- Marvell Technology, Inc.
- NVIDIA Corporation
- Qualcomm
- Sandvine
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Conclusion
The NPU market is poised for strong growth due to rising demand for high-performance, secure, and flexible networking solutions. Continuous technological advancements, integration of AI and machine learning, and strategic partnerships among key players are expected to further propel market expansion across global data-driven industries.
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